Abolition of Section 21

The Government consulting on plans to abolish Section 21, the means landlords or their agents can obtain possession of their properties without reason.

It is expected that property owners will need to give valid reasons for obtaining possession. The process called "A New Deal For Renting", the consultation only relates to England and only and was open until October 12th.

It is likely that Assured Shorthold Tenancies will be removed from the Housing Act 1988. ARLA have stated that the impact on the private rented sector cannot be underestimated.

Tenancies could have either a fixed-term and a rolling period, but one of the issues is if fixed terms should have a minimum length. The changes would ban clauses allowing changes to the contract after the fixed term.

Concerns raised include:

  • If a property owner requires use of the property for themselves
  • What happens if the landlord needs to sell the property, perhaps to address debt or other reasons

An option considered is allowing a landlord to serve two-weeks notice once there are two months of rent arrears but responses say this does not address the question of persistent rent arrears.

There are also concerns about whether student should be included in the new legislation.

Further information available here: https://www.gov.uk/government/consultations/a-new-deal-for-renting-resetting-the-balance-of-rights-and-responsibilities-between-landlords-and-tenants