Why retain Section 21?

At Ringley, we strongly believe that scrapping Section 21 will harm both landlords and tenants. Here’s why:

1) A System That Works

Section 21 has been in place since the Housing Act 1988 and is well understood by both landlords and tenants. It provides a straightforward process for landlords to regain possession of their properties when necessary.

2) A Cost-Effective and Efficient Process

Many landlords find Section 21 to be the most efficient way to repossess their property. Using Section 8, which requires proving a tenant's breach of contract, is often adversarial and expensive. In many cases, tenants served with a Section 8 notice stop paying rent altogether, leaving landlords with thousands in legal costs and long void periods. Additionally, court backlogs mean landlords can wait months for a hearing.

3) Safeguards Already Exist

Since 2015, landlords cannot use Section 21 unless they have complied with key legal requirements, including:

• Providing an Energy Performance Certificate (EPC)
• Supplying the How to Rent Guide
• Protecting the tenant’s deposit and providing prescribed information

These measures already protect tenants from unfair evictions.

Does Section 21 lead to homelessness?

The Act allows landlords who may need their property back to give notice from the start of a tenancy under specific legal grounds. This helps landlords maintain control over their assets while ensuring a fair process for tenants.

Section 21 and the supply of properties

The Government argues that Section 21 evictions are a leading cause of homelessness. However, data from the National Landlords Association (NLA) disputes this. Between October and December 2018, only 11.8% of the 33,020 households assessed as homeless had received a Section 21 notice. The reality is that scrapping Section 21 will likely reduce rental supply, making it harder for tenants—especially those on benefits or with credit issues—to find housing.

Section 21 and the Supply of Rental Properties

Landlords are leaving the market at an increasing rate, further straining the already fragile supply of rental properties. Removing Section 21 will expose landlords to greater risks, making them even more reluctant to let properties, particularly to vulnerable tenants. Without the ability to remove bad tenants quickly and fairly, the sector could shrink, leading to a rental crisis.

The Future of the Rental Market

Institutional investors are entering the Build to Rent sector, but these developments mainly target major towns and cities. A healthy rental market requires a diverse range of landlords and property types. Pushing buy-to-let landlords out of the market could cause a major drop in available rental homes.

We need a rental market that works for everyone. Scrapping Section 21 is not the answer. Instead, reforms should focus on improving court processes and ensuring fairness for both landlords and tenants.

A Balanced Approach for the Future

Retaining Section 21 is vital to maintaining a balanced rental market that works for both landlords and tenants. The current system offers a fair and efficient process for landlords to regain possession of their property when necessary, while safeguarding tenants’ rights through existing legal requirements. Removing Section 21 could lead to a reduction in rental supply and create further instability in the market. Instead, reforms should aim to enhance the legal processes and protections for all parties involved, ensuring the long-term health of the rental sector.