Introduction: The Debate Over Section 21

The government proposes to make tenancies open-ended while strengthening the rights of landlords through a more robust Section 8 process. However, this change could have a major impact on the rental sector, which is already facing significant challenges in meeting housing demand.

Arguments for Scrapping Section 21: A Better System for Landlords

Currently, the process of repossession through Section 21 takes nearly four months, which is deemed unacceptable by many landlords. Many landlords prefer long-term tenants for stability, minimizing rent loss and reducing move-in and move-out wear and tear. Additionally, the new reforms in Scotland have seen positive results, showing that a fair and efficient Section 8 process is essential for landlords.

The Risks of Removing Section 21: Potential Negative Effects on the Market

The proposal would force landlords to provide a valid reason for eviction, which could inadvertently drive smaller landlords out of the market. As a result, the overall rental stock could shrink. Landlords often feel secure knowing they can use Section 21 as a simple, non-adversarial process for eviction, particularly when dealing with tenant issues such as late payments or disruptive behavior.

The Role of Section 8: Will It Be Enough to Replace Section 21?

While landlords face criticism for relying on Section 21, the Section 8 process is often seen as ineffective. The National Landlord’s Association has emphasized the need for the government to address the issues with Section 8 before removing the Section 21 option entirely. The ability of the courts to process possession claims quickly is a key concern.

Lessons from Scotland: How Scrapping Section 21 Worked in Practice

Scotland’s experience with scrapping Section 33 (equivalent to Section 21) in 2017 shows that the change can work if accompanied by significant reforms to the court process. Richard Lambert, CEO of the NLA, urges the government to carefully consider Scotland’s example and the importance of court reform.

Conclusion: The Need for Caution in Reforming Section 21

The potential reform of Section 21 is a delicate issue. While some landlords welcome the move towards open-ended tenancies, there is concern that it could lead to unintended consequences, such as a decrease in rental properties and increased difficulties for landlords. It is crucial that the government considers the lessons from Scotland and addresses the inefficiencies within the Section 8 process before making any drastic changes.