Letting agents say that the scrapping of Section 21 evictions, as part of the Renters (Reform) Bill, is a major concern to them.
A survey of almost 700 letting agents from across England led by rental market experts Goodlord has revealed that the abolition of Section 21 continues to be the leading cause for concern within the industry. The study found that the majority of agents feel unprepared to implement the recently announced legislation, with large parts of the sector also concerned about the move to a system of assured tenancies and the Bill’s potential impact on student lets.
When asked which element of the Renters (Reform) Bill was causing them the most concern, half – 50% – of the 690 letting agents surveyed by Goodlord said the abolition of Section 21 was their primary worry.
The Bill will abolish Section 21, a clause that allows landlords to evict a tenant without providing a reason – commonly dubbed ‘no fault’ evictions. This is causing concern amongst landlords and agents for how they will be able to recover a property in instances such as non-payment of rent or anti-social behaviour.
Next on the list of concerns is the planned reform to Section 8, the new and strengthened regulations designed to allow landlords to evict a tenant after six months if they wish to sell the property, move in themselves or offer the property to a relative. Despite being designed to provide safeguards to landlords after section 21 is outlawed, 20% of agents said the Section 8 changes were their biggest worry, indicating that many are unsure whether the provisions will be robust enough.
These Section 8 fears are vying for second place as the most commonly cited concern amongst agents, with 20% of those surveyed also saying that the move to assured tenancies – a decision which took many in the industry by surprise – was their biggest concern.
Tenancies are often under 12 month contracts. The move to assured, or ‘periodic’, tenancies will mean that properties will be under rolling monthly contracts, once the Bill has been implemented. Scotland introduced rolling contracts in 2017.
When asked where extra support and guidance would be most helpful, 52% of agents said the move to Assured Tenancies, highlighting a lack of clarity as to what these changes will mean for them in practice.
There is also a large amount of confusion and uncertainty around how the Renters (Reform) Bill will affect student tenancies. It’s feared that the move to assured (or ‘periodic’) tenancies won’t be appropriate for student lets, which typically end in line with the academic year, when the properties are taken up by a new group of students.
Some 51% of agents said they did not yet understand what the reforms would mean for student lets, with only 17% of letting agents, including those specialising in student lets, stating that they understood what the impact would be.
Oliver Sherlock, director of Insurance at Goodlord, commented: “Whilst we have now seen the first version of this Bill, it doesn’t mean the industry has full clarity- far from it. These findings show that a lot of concerns and unanswered questions remain for agents and their landlords when it comes to the sweeping changes this legislation will enact.
“For some areas, such as the Bill’s possibly unintended impact on student tenancies, we hope that the Government factors this into the final text of the legislation. In the meantime, it’s clear the industry must start to get to grips with the details of the bill and make meaningful preparations now to ensure their businesses are well prepared for change.”
BTL landlords left in limbo as bailiffs stop work
There has been more misery for buy-to-let landlords struggling to regain control of their properties, after the HM Courts and Tribunals Service temporarily suspended the work of bailiffs on safety grounds.
An incident is under investigation, and it is believed that the situation will not change until all bailiffs have bespoke, personal protective equipment, and this a major problem for private landlords with problematic tenants, requiring the County Court to sanction appointment of a bailiff. While no landlord wants to see a bailiff injured in the course of their work, the move is a bitter blow for many landlords who have already been struggling for months to regain control of their properties via clogged legal means.
LegalforLandlords, which specialises in helping landlords with legal and tenancy matters, has been recording the scale of the problem, which appears to be particularly acute in London. Courts affected include Central London, Croydon, Brentford and Wandsworth, although Sim Sekhon, LegalforLandlords MD, believes there may well be others.
“These are the cases we know about because our clients are directly affected. We can’t overstate the misery this is causing,” he explained.
According to Sekhon, there are currently 80 cases awaiting bailiff appointments – the majority in London – with four cases where existing bailiff appointments have been cancelled. The only real alternative for landlords seeking possession of a property at the moment is to apply to the High Court, according to Sekhon. But doing so is a lot more costly and there are no guarantees that the judge will appoint a High Court Enforcement Officer.
“It’s a terrible situation,” he added. It’s causing real problems and we have no idea how long it may persist. Once again, landlords’ needs are being ignored.”