Housing Secretary Michael Gove’s commitment to eliminate Section 21 ‘no-fault’ evictions before the upcoming General Election is causing apprehension among legal experts who warn of potential confusion and instability in the housing market.
The government aims to prohibit Section 21 evictions through the Renters (Reform) Bill, obliging landlords to rely on statutory grounds when seeking possession of rental properties. This would necessitate a court hearing unless the tenant vacates voluntarily, or an accelerated procedure is in place for certain statutory grounds.
While Mr. Gove’s pledge underscores the government’s dedication to manifesto commitments on ‘no-fault’ evictions, it leaves landlords in what experts describe as ‘an uncertain position.’
Ian Morgan, a property dispute resolution expert at law firm Pinsent Masons, expressed concerns about the lack of specifics on crucial elements. He emphasized that the absence of details, especially regarding promised reforms of court and tribunal processes, could leave landlords, investors, tenants, and their advisors in uncertainty.
Mr. Gove had previously stated in November that reforming the court system was ‘vital’ to prevent it from being overwhelmed.
Morgan added, “Affordability and accessibility of housing remain key election issues – and renters want to feel secure in their homes. The lack of specifics, particularly around exactly how much further money is coming, when, and how this will then be operationalized by the courts and tribunals service to deliver a streamlined possession process for genuine cases, remains to be seen.”
The announcement comes in the wake of a revelation that the number of households evicted surged by 39% in 2023, according to analysis by homelessness charity Shelter. This brings the total of Section 21 notices since the government’s initial plans to ban the practice almost five years ago to over 26,000.
Shelter’s analysis further revealed that an additional 30,230 landlords initiated no-fault eviction court proceedings in 2023, marking a 28% increase in just one year.
Sarah Campey, an expert in housing and the residential sector at the law firm, commented, “Whether there really is the time and necessary backing to make the Bill a reality before the next General Election is questionable. Notwithstanding this, it is clear that section 21 will be abolished either before or after the election, whatever the outcome, and it now looks like that will happen sooner rather than later.”