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Loss of Section 21, is it really that bad?

Latest News and Updates September 5, 2022 468 Views
Loss of Section 21, is it really that bad?

The government has confirmed that it will abolish section 21 and “replace section 21 ‘no fault’ eviction notices with a modern tenancy system”, in the recentA fairer private rented sector white paper. It also states that they’re planning to move every fixed-term tenancy to periodic. 

So what is section 21? Often called the ‘no fault’ notice, section 21 allows the landlord to evict a tenant without giving a reason. Unlike a section 8 notice that requires the landlord to prove that the tenant has done wrong, such as breaching the tenancy agreement. 

Without section 21 landlords might feel a bit uneasy about renting, having to rely on their tenant’s wrongdoing before being allowed to file for repossession of the property. But in reality, the section 21 notice is rarely used, the landlord’s business model works perfectly well if the tenant stays put, so this change in legislation shouldn’t put landlords off.

Balancing the tenant’s and landlord’s rights will be key to the paper’s success, and the proposed bill does promise to streamline the revised notice system.

The white paper plans to bring all residential tenancies under one roof and switch fixed-term ASTs (assured shorthold tenancies) to periodic tenancies, this means that there will be no set end date and tenants will have to give two months’ notice if they want to leave the property.

The government has not yet set a date for when these changes will come into effect but has mentioned they will give us an update by the end of the year. We will keep you updated on any new changes. 

This article is for use only as a guide and not to be used as legal advice.