A recent survey has revealed increasing concern among landlords regarding the government’s plans to abolish Section 21 eviction powers. This change, which would end ‘no fault’ evictions, has left many landlords anxious about how it could impact their ability to manage tenancies, particularly when dealing with problematic renters.
The survey, conducted by mortgage lender Landbay, found that an overwhelming 75.4% of landlords are worried about the proposed reform. They argue that having the option to remove difficult tenants without needing to prove fault is vital for protecting their properties and maintaining control over their investments. Many fear that without this power, they could face prolonged issues with tenants who fail to pay rent or damage property, with little recourse to resolve the situation quickly.
Rob Stanton, sales and distribution director at Landbay, echoed these concerns, stating: “Rent reform has been a key focus for Labour and was a central part of its election manifesto. Now, with the new government moving swiftly to introduce these changes, landlords are facing significant uncertainty. Our research highlights that landlords are particularly worried about the potential elimination of Section 21, as it could make managing tenancies far more challenging.”
The proposed reforms are seen as part of a broader effort to improve tenant rights, but they have sparked a heated debate about the balance between protecting tenants and ensuring landlords can still effectively manage their properties. Many landlords are now considering the long-term implications of these changes and how they might affect the rental market.
While landlords largely agree that tenants deserve fair treatment, many argue that property owners should have the same protections. The ongoing debate surrounding the abolition of Section 21 eviction powers has intensified these concerns. Landlords worry that the removal of ‘no fault’ evictions may leave them vulnerable to problematic tenants, with fewer options for resolving difficult situations. As the Renters’ Rights Bill begins its legislative journey, there is hope that Parliament and the House of Lords will introduce amendments that create a more balanced and fair framework for both landlords and tenants.
The potential impact of the Bill on the private rental market is a growing concern. Landlords fear that, if the legislation leans too heavily in favour of tenant rights without considering landlords’ needs, it could lead to a reduced supply of rental properties. This, in turn, might push up rents as demand continues to outstrip supply. With tighter regulations and fewer protections for landlords, some may choose to exit the market entirely, creating further strain on the rental sector.
Despite the uncertainty surrounding the future of Section 21 and other proposed reforms, it is important to note that the buy-to-let and private rental sectors have historically weathered many legislative changes. Over the years, these sectors have navigated shifts in government policy, economic crises, and fluctuating market conditions, yet they have continued to thrive. Landlords have adapted to new regulations and challenges, demonstrating the resilience of the market.
Lenders such as Landbay remain committed to supporting landlords, regardless of the legislative landscape. They continue to work closely with brokers to ensure landlords of all sizes have access to the financial resources they need. Whether small-scale landlords or those managing larger portfolios, lenders are prepared to provide the necessary backing to help them through these uncertain times. While the full impact of the Renters’ Rights Bill is yet to be seen, this ongoing support from lenders ensures that landlords can still make informed decisions and adjust to any changes that arise.
In outline, the Bill as it currently stands, includes these measures:Â
The upcoming Renters’ Rights Bill includes several key changes that aim to strengthen tenant protections and improve standards in the rental market:
- Abolition of Section 21 eviction powers, meaning landlords will no longer be able to evict tenants without a reason.
- Stricter rules on rent increases, allowing tenants to challenge unreasonable rent hikes through a Tribunal. Landlords will only be allowed to increase rent once per year and only up to the market rate.
- Faster resolution of disputes through a new Ombudsman service, reducing the need to go through lengthy court processes.
- A new landlord database will be introduced to track property standards, ensuring compliance with regulations and helping local councils target the minority of criminal landlords.
- Pet ownership rights, giving tenants the ability to request to keep a pet, with landlords unable to refuse without good reason.
- Stronger powers for local councils, including higher fines of up to £40,000 to crack down on rogue landlords who breach the law.
These changes aim to provide better protection for tenants while holding landlords accountable for maintaining fair and legal practices.