Thousands of Tenants Face Eviction Ahead of Section 21 BA

Landlord

Posted in Jan 21 , 2025

Thousands of Tenants Face Eviction Ahead of Section 21 BA

Understanding Section 21 and the ban

Under Section 21 of the Housing Act 1988, landlords in England have the authority to take possession of their property without issuing a reason if they abide by the two-month notice period. However, this rule has been widely criticised for being misused and landlords evicting tenants whenever they desire, thus increasing housing market insecurity.

To tackle this unfair situation, the government revealed the Renter’s Right Bill, which, as per Section 21, has banned the evictions of new and existing tenants, leading to a secure scenario.

What do the Numbers Say?

Renters Reform Coalition, which is a body of 21 organisations that support private renters, have already issued their concerns, saying:

After the government's initial pledge in April 2019 to ban Section 21, landlords have served more than 100,000 households with eviction notices against this provision.
The data suggests that more than 15,000 households living in rent are expected to be evicted within the first 6 months of 2025, a 12% increase from the previous year.

The RRC states that landlords are accelerating this process before the legal rule passes and becomes law. However, this has led to instability in the renters' property market.

Legislation Speed-up Calls

In light of this issue, many housing groups have urged the government to speed up the bill. Lucy Tiller, The Policy Manager for RRC, has also discussed the urgency of this matter. She states that this legislation will take place in the summer of 2025, but we already see the effects. She says, "It is definitely the case that there are a huge number of Section 21 evictions going through at the moment."

The Renters Reform Coalition (RRC) has urged the government to take swift action to prevent the situation from getting out of hand.

Government's Position

The spokesperson of the Ministry of Housing, Communities, and Local Government assured the government of its commitment to this situation and its role in transforming the private rental sector. The government stated, "Our Renters' Rights Bill will deliver on our promise to transform the private rented sector so that people can put down roots and save for the future without fear of being evicted on a whim."

We can also tell you that the government plans to handle the broader crises in the housing sector by working with builders to create more houses. They aim to maximise the affordability of houses for coming generations.

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Thousands of Tenants Face Eviction Ahead of Section 21 BA

The Renters' Rights Bill will abolish Section 21, “no-fault” eviction. It has increased the risk of large numbers of tenants being evicted before the law is enforced. The leading housing and tenant groups have already warned that landlords may fast-track the process of evicting their existing renters to avoid the law changes, which may lead to thousands of tenants becoming homeless. Understanding Section 21 and the ban Under Section 21 of the Housing Act 1988, landlords in England have the authority to take possession of their property without issuing a reason if they abide by the two-month notice period. However, this rule has been widely criticised for being misused and landlords evicting tenants whenever they desire, thus increasing housing market insecurity. To tackle this unfair situation, the government revealed the Renter’s Right Bill, which, as per Section 21, has banned the evictions of new and existing tenants, leading to a secure scenario. Read More: Landlords May be Forced to Compensate Tenants for Evictions Under new Proposal What do the Numbers Say? Renters Reform Coalition, which is a body of 21 organisations that support private renters, have already issued their concerns, saying: After the government's initial pledge in April 2019 to ban Section 21, landlords have served more than 100,000 households with eviction notices against this provision. The data suggests that more than 15,000 households living in rent are expected to be evicted within the first 6 months of 2025, a 12% increase from the previous year. The RRC states that landlords are accelerating this process before the legal rule passes and becomes law. However, this has led to instability in the renters' property market. Legislation Speed-up Calls In light of this issue, many housing groups have urged the government to speed up the bill. Lucy Tiller, The Policy Manager for RRC, has also discussed the urgency of this matter. She states that this legislation will take place in the summer of 2025, but we already see the effects. She says, "It is definitely the case that there are a huge number of Section 21 evictions going through at the moment." The Renters Reform Coalition (RRC) has urged the government to take swift action to prevent the situation from getting out of hand. Government's Position The spokesperson of the Ministry of Housing, Communities, and Local Government assured the government of its commitment to this situation and its role in transforming the private rental sector. The government stated, "Our Renters' Rights Bill will deliver on our promise to transform the private rented sector so that people can put down roots and save for the future without fear of being evicted on a whim." We can also tell you that the government plans to handle the broader crises in the housing sector by working with builders to create more houses. They aim to maximise the affordability of houses for coming generations. Read More: https://www.cribsestates.co.uk/blog/section-11-landlord-and-tenant-act-1985

UK Lenders Slash Mortgage Rates in New Year Price War

The mortgage market in the UK saw a substantial shift as big lenders slashed interest rates, indicating a ‘mini New Year rates war’. With the first month of 2025 almost over, big groups like HSBC, Halifax, and Leeds Building Society are fighting to attract borrowers with low-priced deals. These rate cuts are significant among first-time buyers and homeowners facing the heat of the market. The LBS institute has recently reduced their fixed residential interest rate by up to 0.24% and interest-only rates by up to 0.15%. Following this, the rates cut by HSBC also remained competitive. Halifax also dropped its rates by 0.35% in early January, which started a wave of competitive fights in the market by lenders to appeal to potential customers. The managing director of EHF Mortgages, Juston Moy, in the media, said: “Early moves by Halifax and Leeds Building Society on New Year’s Eve suggest a mini rate war will rage at the start of January, which can only be great news for borrowers. With vast numbers of borrowers looking for a new deal on their mortgage in 2025, it will be important to reserve deals whilst rates are favourable, and January will be an ideal time to take advantage. Other lenders will follow in the coming days without doubt.” According to analysts, this decision to cut rates indicates that inflation is showing stable signs, allowing the Bank of England to raise interest rates further. Approximately 1.8 million mortgage deals in the fixed-rate scenario will end in the summer of 2025. Hence, the competitive market is hot and seeks to attract lenders with the best deals and the lowest rates. What this means for borrowers is an opportunity to save up some mortgage costs. However, experts say these rates will not stay for long if the market conditions see a new shift. Our Take on This Shift The "mini New Year rates war" will prove to be a positive shift in the market to provide hope to borrowers in tough economic times. With more rates forecasted to be cut, the competition will become an opportunity to secure a good borrowing deal. Acting quickly and getting the right help from a trusted and experienced estate agent like Cribs Estates will prove vital.

Landlords May be Forced to Compensate Tenants for Evictions Under new Proposal

A new proposal has sparked controversy in the property market as the new rule requires landlords to compensate the tenants when they evict. A large list of landlords in the UK are calling it ‘absurd’ even as an idea to reclaim their property, and it would be unfair to impose a new financial burden on them, adding to the challenges they are already facing. What’s the Proposal? The initiative suggests that landlords would be liable to pay a two-month rent as compensation upon issuing a ‘no-fault’ eviction. The idea is to help tenants manage their relocation more effectively. Still, landlords argue that the government fails to recognise the daily challenges they face, such as cost increases, strict regulations, and shaky market confidence. Senedd’s Housing and Local Government Select Committee has proposed that landlords reclaim the properties for personal use or sale. The Rejection of Proposal by Landlords Landlords have opposed this proposal for obvious reasons, including the financial burden. Due to higher taxes, stricter rules regarding safety standards, and high-quality maintenance, landlords are already feeling the heat. This addition will only pressure landlords not to rent their properties, resulting in fewer rental places. Another concern is that the proposal overlooks legitimacy. It assumes all "no-fault" evictions are unfair, avoiding cases where landlords need the property for personal or financial use. This one-for-all approach means responsible landlords, within their legal rights, will be targeted unfairly. Moreover, it is not viable for small landlords managing just one or two properties, as they would need to pay this compensation out of their pockets. If this happens, many such landlords may leave the property market entirely. What’s the NRLA’s Response? The National Residential Landlords Association (NRLA) has already opposed the proposal and the CEO, Ben Beadle, called it “ill-conceived and counterproductive.” Here’s what he said: “It is absurd that a landlord should have to pay compensation to get their property back, and the recommendation demonstrates a lack of understanding as to the reasons why landlords may need to do so. “If the Welsh government is so concerned about losing private rented housing stock and the impact this has on renters, they must ensure housing providers have confidence to remain and invest in the supply of high-quality rental property. Ideas such as these serve only to undermine the little confidence that remains in the Welsh PRS.” For further updates and insights on this story, stay tuned to Cribs Estates.

Renters’ Rights Bill moves to Report Stage

Good news! The Renters’ Rights Bill of the UK government is moving closer to becoming a reality as the Report Stage is scheduled for 14th January in the House of Commons. We expect a debate from MPs about all the proposed amendments throughout the committee stage. This rental reform is set to be the labour priority, so we will see major changes for landlords and renters once this bill progresses. Here’s more: What’s Inside the Renters’ Rights Bill? Section 21 evictions will be removed, providing tenants with greater security to challenge unfair practices without fear of eviction. If landlords evict tenants to move in or sell and misuse the possession grounds, tenants will have more time to find a home. Tenants can appeal excessive rent increases designed to force them out, whilst landlords retain the right to adjust rents to market levels with oversight from an independent tribunal. Mediators will resolve tenant-landlord disputes fairly, providing binding resolutions similar to those in social housing. A private database will be created for landlords to understand legal obligations and assist tenants in making informed decisions. Tenants will have the right to request pets, which landlords cannot unreasonably refuse. Renters will benefit from safer, better-quality homes. Landlords will be given clear legal timeframes per Awaab’s Law to address serious hazards, ensuring quicker action to make homes safer. Landlords and agents will be prohibited from discriminating against tenants receiving benefits or with children. To end rental bidding, landlords and agents must advertise a set rent and cannot accept offers above this amount. More civil penalties, investigatory powers, and mandatory reporting on enforcement activity will strengthen local authorities’ ability to regulate. Superior landlords will face extended rent repayment orders, with increased penalties and mandatory repayment for repeat offenders. Why was this Bill Introduced? The private rental sector has faced growing criticism over issues like insecure tenancies, substandard housing, and limited renter protections. The economic pressures of recent years, including inflation and a cost-of-living crisis, have uplifted these issues. Renters’ Rights Bill was introduced to address these challenges and create a balanced relationship between landlords and tenants. What Does This Mean for Renters? This bill represents a significant step forward for tenants. Eliminating no-fault evictions means renters can plan their lives without the constant fear of being asked to leave their homes unexpectedly. A landlord registry will empower tenants to verify the legitimacy of their landlords, and the right to request pets reflects a growing recognition of tenants’ personal needs. The Impact on Landlords Landlords, however, may face challenges adapting to the new regulations. The proposed measures will require compliance with stricter standards and increased scrutiny through the landlord registry. Whilst these changes promote fairness, landlords may need to invest in better property management practices to meet the updated requirements. What’s Next for the Bill? The Report Stage is a key phase in which MPs debate and refine the bill’s provisions. Stakeholders from tenant advocacy groups and landlord associations are actively engaged to ensure their concerns are considered. Once this stage is complete, the bill will proceed to its third reading in the House of Commons and then to the House of Lords.

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