Section 21 notices scrap – to scrap or not?

Section 21 Notices scrap- There has been much talk recently about the possibility that Section 21 Notices are to be scrapped.

However, it is not clear if they are to be replaced with something else or if the scope of other Notices (such as a Section 8 Notice) are to be widened.

What is Section 21 Notice?

• When you have entered into an assured shorthold tenancy with your tenant, you may recover possession of the property from them by using the notice procedure set out in Section 21 of the Housing Act 1988. It is not available to any other form of tenancy agreement.

It appears that all three main political parties support abolishing the Section 21 Notice, so regardless of which party forms the next government, there’s a good chance that the proposal to scrap the use of a Section 21 Notice will proceed.

The consequences of abolishing the Notice are far-reaching and could affect Tenants just as much as it will affect Landlords.

Landlords may become a lot more particular about who they rent to, the vetting procedure may be even more diligent and more and more Tenants may be refused properties, to outweigh the risks faced by Landlords.

Similarly, rent could be increased if Landlords choose to leave the rental market and those Tenants who are renting will fall victim to properties being in higher demand.

The eviction process, as it currently stands, is far from straightforward. The Courts are already backlogged and it can take months to get to a possession hearing. If that hearing is adjourned for any reason, the delay is even longer.

We don’t know when/if these proposals will take root. However, it is hoped we will receive some clarity in the not too distant future after the consultation period closed on 12 October 2019.

WHAT TO DO NEXT

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