Four years ago Prime Minister Theresa May announced the plan to scrap Section 21. So far MPs have not had the opportunity to vote on any legislation regarding the subject. The original bill intended to scrap Section 21 was supposed to be called the Renter’s Reform Bill, and the published white paper outline was criticized for containing too many loopholes.
Section 21 of the Housing Act 1988 “enables private landlords to repossess their properties from assured shorthold tenants without having to establish fault on the part of the tenant”. It is usually referred to as a ‘no-fault’ eviction, and it puts tenants in an unstable position, unable to plan for their children’s education, and less likely to secure repairs or challenge rent increases. Landlords can ask tenants to leave with just two months’ notice.
According to the ONS, private rent has increased by 4.6% in England, 4.4% in Wales, and 5.1% in Scotland between March 2022 and March 2023.
London particularly has a much more significant supply/demand imbalance. In 2022, the number of households facing homelessness raised by 6% compared to the year before, up to 290,330. In the same time frame, the number of people facing homeless as a result of a Section 21 notice went up by 50%, to 24,060 households.
The white paper still gives landlord eviction powers: one of the options is for the landlord to move into the property themselves, then put it back on the rental market three months later. Otherwise, in-tenancy rent could be raised, forcing tenants to move out.
In Stoke-on-Trent, the Citizens Advice Bureau said 70% of its housing support staff is helping people with Section 21 eviction cases.
In the West Midlands, the number of landlords planning to cut down on properties they own has almost doubled in a year. 38% want to reduce the number of properties they rent, according to the National Residential Landlords Association. While the MPs are still waiting for a bill to sign, a spokeswoman for the Department for Levelling Up, Housing and Communities said: “We remain absolutely committed to delivering a fairer deal for renters. (...) We will bring forward a Renters Reform Bill in this Parliament, abolishing ‘no-fault evictions.”
Similarly, a Communities Department spokesperson has declared that over three years they are giving councils £1bn through the Homelessness Prevention Grant, “on top of £26bn cost of living support this year”.
While no concrete plans have been published regarding the renters’ reform, the spokesperson has claimed it will “deliver a fairer, more secure, and higher quality private rented sector, reducing the risk of tenants becoming homeless.”