Unintended consequences of plans to ban Section 21 evictions ‘already happening’

A new landlord survey has revealed the effects of the Government’s proposals to ban Section 21 evictions already feeding into the private rented sector.

Evictions specialist Landlord Action canvassed some 1,500 landlords and found that 26% of those who had evicted a tenant over the past 12 months via a Section 21 had done so because they wanted sell the property.

Other reasons given included rent arrears (31%), anti-social behaviour (22%) while just 2% said it was in order to move back in.

Of those who said they planned to evict their tenant over the next 12 to 18 months, 24% said they were making the move because of the increasing legislative burden means they have decided to sell.

The proposed Rent Reform Bill, which will see Section 21 ‘no fault’ evictions banned, was also a key reason for landlords seeking to remove tenants in the coming months, with 28% of landlords saying this was the main reason, with a further 28% saying they were undecided.

Unintended consequences

“The response to our latest survey paints a very clear picture of the unintended consequences of abolishing Section 21,” says Paul Shamplina (pictured), founder of Landlord Action and Chief Commercial Officer for the Hamilton Fraser Group.

“More than a quarter of tenants who have or will be asked to leave their rental properties (via receipt of a Section 21 notice), are in such a position not because they have done anything wrong but because landlords fear they will be unable to gain possession of their property easily in the future, if their circumstances change.

“Competition for rental properties is already at an all-time high, and we could be heading towards a rental stock crisis.

“Whilst we don’t know how many of the properties sold will remain in the buy to let sector, it’s clear that tenants will ultimately suffer as the combination of pressures forces rents to continue to rise.

“Landlords need reassurance and clarity on the future of evictions soon if the sector is to avoid a deluge of evictions and homelessness.”

Read more about the Government’s plans to reform the private rented sector.