Renters Reform Bill Advances, but Section 21 Evictions Ban Faces Delay

In parliament yesterday, the Renters' Reform Bill moved one step closer to becoming law, despite facing a delay in the implementation of its headline component—the ban on Section 21 evictions (commonly referred to as “no fault” evictions). The parliamentary session continued the ongoing debate over tenants' rights and landlord responsibilities in England. Let's explore what this progression means for landlords, particularly those operating in Cornwall, and how they might navigate the evolving regulatory landscape.

Overview of the Renters' Reform Bill

The Renters' Reform Bill, as part of a broader initiative to enhance tenant security and overhaul the rental sector, includes several key provisions aimed at improving the renting experience. These include an overhaul of the current tenancy structure, and notably, the abolition of "no-fault" evictions under Section 21 of the Housing Act 1988.

Delay in Implementing the Section 21 Ban

While the bill has successfully passed through another legislative hurdle, the implementation of the Section 21 evictions ban will be delayed. This delay is so that the Government can review the court system and ensure it is ready to handle possession claims. Our recent experience of the court system in Cornwall is that delays are not too long. Certainly, nothing like the problems experienced in other parts of the country.

Implications for Landlords in Cornwall

For landlords in Cornwall, this legislative shift requires careful consideration of rental strategies and tenancy management practices. In the period before the Renters Reform Bill becomes law, it's essential for landlords to use this time to prepare for a future where evictions must be justified with concrete reasons. Thankfully, in practice, landlords do not evict tenants for ‘no reason’. In our experience, the most common reasons for eviction are: 

1.    The landlord is moving into the property.
2.    The tenant has serious rent arrears.
3.    The tenant has breached the contract.
4.    The landlord is selling the property.

All of the above reasons will still be available once Section 21 is scrapped. There will be new processes to adapt to and different forms to complete but ultimately a landlord will still be able to get possession of the property. The negative is that every possession claim will require a court hearing, compared to the current ‘accelerated procedure’ where the court can issue a possession order without a hearing. With every possession claim needing a hearing, this highlights why the court system needs to be reviewed before the Section 21 ban is introduced; to check it can cope with the increase in hearings.

The proposed ban on Section 21 notices will stop rogue landlords evicting tenants who have done nothing wrong and give tenants more protection from rogue operators. Examples include:

1.    Where a tenant reports issues with property disrepair, and the landlord evicts them instead of carrying out the repairs which are their legal obligation.
2.    Where a landlord evicts a tenant so that they can find a tenant who will pay a higher rent.

Strategic Adjustments and Best Practices

Landlords can take several steps to prepare for the eventual implementation of the Renters’ Reform Bill.

Enhanced Tenant Screening

With the abolition of Section 21 evictions on the horizon, rigorous tenant screening will become even more crucial. Landlords should refine their screening processes to ensure they select tenants who are likely to be reliable and long-term.

Focus on Relationships

Building positive relationships with tenants can lead to more stable tenancies. Open communication, responsiveness to maintenance requests, and fair treatment can reduce the likelihood of conflicts that might otherwise lead to eviction scenarios.

Legal Preparedness

Landlords should familiarise themselves with the full scope of the Renters' Reform Bill and understand the legal changes it entails. Consulting with letting experts for support and updated information can be beneficial.

Property Management

Maintaining properties in good condition can minimise disputes related to repairs and maintenance. Proactive property management will become increasingly important.

Conclusion

The progression of the Renters Reform Bill, despite the delay in banning Section 21 evictions, signals significant changes for the rental market in Cornwall and across England. Landlords must stay informed and adaptable to navigate this transition effectively. By preparing for the changes now, landlords can ensure that they not only comply with new regulations but also thrive in a reformed rental landscape that values stability.

As the bill moves closer to becoming law, continuous engagement with the evolving regulations will be crucial for landlords to manage their properties successfully and sustainably in the changing rental market. At The Accommodation Bureau, we will provide an update to our clients once the bill has passed through the final parliamentary stages to summarise the key changes.

If you have any questions or concerns, please do not hesitate to contact our expert on the Renters Reform Bill, Sam Whitehead on 01208 78480 or email sam@theaccommodationbureau.com.