Section 21 evictions are set to be abolished under the Renters’ Rights Bill. How will this impact letting agents, and how can they prepare for the changes?
Since the Renters’ Rights Bill was announced, the abolition of Section 21 “no-fault” evictions has been a central focus. The removal of this eviction notice will significantly impact the lettings process. How can letting agents prepare?
The Renters’ Rights Bill aims to reform the English private rental sector and strengthen tenants' rights. However, letting agents must adapt to manage tenancy processes without Section 21.
Here’s a guide for letting agents on how to navigate the eviction process without it:
- The impact of abolishing Section 21 for letting agents
- When will Section 21 be abolished?
- What do landlords think of abolishing Section 21?
- How can letting agents prepare for Section 21 abolishment?
The impact of abolishing Section 21 for letting agents
In our 7th annual State of the Lettings Industry Report, we asked letting agents and landlords about the impact of abolishing Section 21 on the private rental sector.
The results showed growing concern, with 69.7% of letting agents, landlords and industry professionals fearing the negative consequences. This is a 13.5% increase from last year when only 56.2% shared the same view.
In our report, Dutton Gregory’s Associate Solicitor Ryan Heaven, comments: “Most landlords knew that the writing was on the wall for Section 21 when the Renters Reform saga was going on and, for some landlords, losing that control is a deal-breaker. That said, there will definitely be landlords waiting for complete certainty before making a decision and when a date is set they will leave.”
For more insights, download the full State of the Lettings Industry Report.
When will Section 21 be abolished?
The Renters’ Rights Bill is set for its Second Reading on 7 October, where MPs will debate it for the first time. If it passes, the Bill will move to the Committee Stage in the House of Commons.
While a final date hasn’t been confirmed, Ryan Heaven, lettings legislative expert and Associate Solicitor of Dutton Gregory Solicitors, suggests the law could come into effect in December 2024 or January 2025.
To find out more about Ryan Heaven’s insights, watch our video
What do landlords think of abolishing Section 21?
Letting agents need to understand the potential impact of Section 21’s abolishment on their landlords. Our State of the Lettings Industry Report found that 56% of landlords are considering selling their properties due to incoming legislation.
Supporting landlords through this transition is crucial. Proactive agents can minimise concerns before the Renters’ Rights Bill comes into force.
How can letting agents prepare for Section 21 abolishment?
The Renters’ Rights Bill guide, provided by the government, states that if implemented, landlords or letting agents can evict tenants only through Section 8 notices, with “specific circumstances in which a landlord can regain possession”.
Section 8 notices can only be served in a “prescribed form” with a required notice period for a tenant.
With this bill, Labour has integrated new or amended grounds of possession under Section 8 which include:
- Amended Ground 1: If a landlord, or their close family, wishes to move into the property - four-month notice
- New Ground 1A: Intention to sell the property (if the tenancy exceeds 12 months) - four-month notice
- New Ground 2ZA-D: Surrounding if the landlord doesn’t own the leasehold - four-month notice
- New Ground 4A: If all tenants are students with a HMO license, but only used between 1 June and 30 September with pre-notice given - four month notice
- New Ground 6A: If the property has an issue, whether that’s planning breach, improvement notice, prohibition order or licensing problem - four-month notice
- Amended Ground 8: For cases of rent arrears, the periods have now been changed to 13 weeks of rent or three months’ arrears - the notice period is now two weeks
As with current eviction processes, if the tenant doesn’t vacate, landlords will need to provide evidence in court to enforce the Section 8 ground.
