| The Renters (Reform) Bill 2022-23 was introduced on 17 May 2023. There is separate paper on the Bill's provisions: Renters (Reform) Bill 2022-23. Please refer to that paper for the up to date position. |
What’s the problem with section 21 of the Housing Act 1988?
Section 21 enables private landlords to repossess their properties from assured shorthold tenants without having to establish fault on the part of the tenant. Hence it is sometimes referred to as the ‘no-fault’ ground for eviction.
Private tenants, their representative bodies, and others working in the sector argue the ability of landlords to end an assured shorthold tenancy at short notice has a detrimental effect on tenants’ wellbeing.
Research shows evidence of tenants who are reluctant to exercise their rights to secure repairs and/or challenge rent increases due to the ease with which landlords can evict them. Respondents to a 2018 consultation on, overcoming the barriers to longer tenancies in the private rented sector, said they felt unable to plan due to housing insecurity, with knock-on effects on children’s education and residents’ mental health.
Consultation on abolishing section 21 (2019)
On 15 April 2019, the then-Government announced: “Private landlords will no longer be able to evict tenants from their homes at short notice and without good reason.” This was followed by a consultation which ran between July and October 2019. The consultation paper proposed the abolition of section 21 of the Housing Act 1988.
The Renters Reform Bill and private rented sector white paper
The Conservative Manifesto 2019 promised “a better deal for renters” which included abolishing ‘no-fault’ evictions. A Renters Reform Bill was included in the Queen’s Speech December 2019 but was not introduced in the 2019-21 parliamentary session.
The Queen’s Speech 2021 said the Government’s response to the 2019 consultation would be published, followed by of a private rented sector reform package in a white paper in autumn 2021.
The white paper, A fairer private rented sector, was published on 16 June 2022. It sets out a 12-point action plan to deliver “a fairer, more secure, higher quality private rented sector.” The Queens Speech 2022 confirmed a Renters Reform Bill would be introduced in the 2022-23 parliamentary session (but see below).
The white paper outlines proposals to abolish section 21 evictions and introduce a simpler, more secure tenancy structure. A tenancy will only end if the tenant ends it or if the landlord has a valid ground for possession.
The grounds for possession will be reformed to ensure landlords have effective means to gain possession of their properties when necessary. New grounds will be created to allow landlords to sell or move close family members into the property. Grounds covering persistent rent arrears and anti-social behaviour will be strengthened.
Alongside the white paper the Government published:
- its response to the 2019 consultation on ‘A new deal for renting’ providing more detail on tenancy reforms; and
- its response to the ‘Considering the case for a Housing court: call for evidence’ which outlines reforms intended to improve the efficiency and speed of court processes for possession cases.
On 15 February 2023, Baroness Scott of Bybrook said: “Ensuring a fair deal for renters remains a priority for this Government, and we will legislate in this Parliament to abolish Section 21 'no fault' evictions'.”
Reactions to the proposed abolition of section 21
There’s a divide in opinion between organisations advocating on behalf of tenants and those advocating on behalf of private landlords.
Polly Neate, chief executive of Shelter, described the white paper as “a game-changer” for private renters. Generation Rent welcome the abolition of section 21 but called for: greater protections for tenants to ensure landlords do not abuse the strengthened section 8 grounds for possession; and longer notice periods when tenants are evicted through no fault of their own. Local government has emphasised the need for strong enforcement powers and resources to ensure tenancy reform is successful.
The National Residential Landlords Association (NRLA) argues a reformed and improved court system which has bedded-in, together with improvements to the grounds for possession, should be introduced before section 21 is amended or abolished. Landlord organisations contend there is a risk of landlords leaving the sector, which could reduce access to housing for those who cannot afford to buy and who cannot access social rented housing.