The abolishment of Section 21 has been discussed for years without legislative action. What will happen to eviction notices for rent arrears if this is banned?
Rent arrears are an increasingly common issue in the private rental sector. The number of rent arrears cases has risen by 30% year on year, with the average claim now reaching £2,092 this quarter. For letting agents and landlords, managing these cases and any associated evictions is becoming a significant concern.
Traditionally, an easy solution for agents managing rent arrears is to serve a Section 21 notice to evict tenants.
However, there have been persistent calls from both the previous Conservative government and the current Labour administration to abolish Section 21 notices. Despite warnings from property professionals, abolishing Section 21 remains a key priority for Labour.
Propertymark has warned that this change could overwhelm the courts, dealing yet another blow to landlords already considering leaving the sector.
Without adequate alternative measures, it's unclear how letting agents and landlords will manage evictions if Section 21 is abolished.
In the meantime, what can letting agents use for the eviction of tenants with rent arrears? And what is the future of them?
- Can Section 21 notices be used for cases of rent arrears?
- When can’t a Section 21 notice be used?
- Will Labour abolish Section 21 notices?
- What will happen to rent arrears if Section 21 is abolished?
Can Section 21 notices be used for cases of rent arrears?
Yes, Section 21 notices can be used to evict tenants for any reason during a tenancy, including rent arrears. These notices can be served after a fixed-term tenancy ends or during a periodic tenancy, provided there is a written contract.
If the notice is deemed valid by the courts, the tenant must vacate the property, even if they have paid the rent in arrears.
Landlords and agents cannot forcibly remove or pressure tenants to leave if they have not paid the rent. Agents must follow the correct legal procedures, whether that is serving a Section 8 or 21 notice, to evict a tenant from the property.
When can’t a Section 21 notice be used?
Even if a tenant is in rent arrears, a Section 21 notice cannot be used if proper procedures weren’t followed during the move-in process.
According to the government’s guidelines, agents cannot use a Section 21 notice if:
- It’s been less than four months since the tenancy started, or the fixed term has not ended unless there’s a clause in the tenancy agreement allowing eviction.
- The property doesn’t have the correct HMO license.
- The tenant’s deposit hasn’t been placed in a deposit protection scheme.
- Unlawful fees or deposits haven’t been refunded.
- The tenant hasn’t received all the necessary documents before moving in.
Letting agents can download our checklist to ensure compliance when tenants move in.
Will Labour abolish Section 21 notices?
Abolishing Section 21 is a key aim of the Labour government. While this isn’t the first time such a promise has been made, Deputy Prime Minister Angela Rayner has vowed to end no-fault evictions "immediately."
With Labour’s Renters’ Rights Bill announced in the 2024 King’s Speech, with the promise to van Section 21 under the legislation, there is now uncertainty over the future actions letting agents can take once Section 21 is abolished and the already strained courts are reformed.
By offering comprehensive support, letting agents can help landlords retain their properties and stay in the market, even in worst-case scenarios involving rent arrears.
What will happen to cases of rent arrears if Section 21 is abolished?
If Section 21 is abolished under a Labour government, letting agents will need to rely on separate legislation to evict tenants in arrears.
Section 8 is the proposed alternative. During the parliamentary process on the Renters (Reform) Bill, it was suggested that Section 8 would replace Section 21, but it would need to be strengthened to ensure landlords can regain control of their properties.
For rent arrears cases, Section 8 can be used, but only if the tenant is in arrears for more than eight weeks, if paying weekly or fortnightly, or two months, if paying monthly. Landlords and agents can serve a Section 8 notice earlier under discretionary grounds if the tenant is consistently late with payments or in arrears.
This article is intended as a guide only, and is not legal advice. Visit gov.uk for more information.
