What is described as a tenant victory over unscrupulous landlords, the section 21 evictions ban is causing quite a stir in the private rental space. For the
11 million private renters in England, the suggested ban will provide a little more security in uncertain times, especially with Brexit luring around the corner. For landlords, the picture might not be as pretty, especially with mounting pressure already piling up in terms of taxes and new legislation.

More Stability In The Rental Market

While landlords may be concerned that they won’t be able to get rid of an unfit tenant, there are certain provisions where evictions are still in play. Section 21 evictions Section 21 evictions are often referred to and give landlords the right to evict their tenants eight weeks after their fixed-term contracts have expired. This means that the eviction can take place even if the tenant was a model tenant and paid their rent religiously and on time.

According to statistics, however, section 21 evictions are a major contributor to the aggressive spike in homeless figures. Unfair evictions are not in the interest of the economy or the people. The homelessness figures are at an all-time high and only serve to inch up rental prices as tenants compete for a place to call their own.

Government Goals Might Not Be Achieved

For tenants, the thought of not having to look for alternative accommodations at the end of a lease might offer a sigh of relief, however, landlords who are unable to evict their tenants can hit back another way, and that is by raising the rent. There is also the other side of the rental arrangement to consider, and that is the fear that landlords won’t be able to rid themselves of problem tenants. Where the ban is considered a way to curb the rising homelessness figures, this move might just exacerbate it as landlords decide to use their investment properties in other ways, such as short-term stays and vacation lets.

Tenants not only have to compete with other long-stay tenants to find their ideal property match, they also need to find some way to appeal to a landlord who is considering converting their properties to short-term stays. The conversion is fairly simple and for the landlord, this could also be a more lucrative way to earn an income. The loss, should there be any, is also considerably smaller than the potential loss of rental income from a tenant that’s not paying their way.

Still Some Recourse For Landlords

The no-fault evictions ban shouldn’t scare landlords that they’ll be stuck with problem tenants indefinitely. Section 8 evictions still provide landlords with recourse for tenants that don’t comply with a legally binding contract such as not paying rent, not abiding by the body corporate rules, and more. This is good news for those who can’t really afford to keep their property without the stability of the rental income and have applied for a buy to let mortgage. While the process may take as long as 16 weeks, this still provides recourse for landlords. The focus, it seems, for the ban of section 21 evictions is to promote a fair rental environment.

There seem to be mixed emotions about the section 21 ban and for both landlords and tenants, there are obvious advantages and disadvantages.

Author: Sandy Kenrick

Sandy Kenrick swapped a fast-paced career as business banker for the insurance industry. Long hours and a new family quickly led her to look beyond the world of finance. As a work from home mom, Sandy now gets to do what she loves. Much of her work still involves finance and business, but when that mid-afternoon sun swings around it’s time to switch off the laptop, pour a glass of wine, and enjoy her growing family.