Virtually all eyes of the property industry are fixed on the government currently, as the Renters Reform Bill reaches the second reading stage in the House of Commons (23rd October). And the big news is that details have emerged of what appears to be a watering down or at least a delay in proposed changes to Section 21 eviction powers in the short term.
The abolition of Section 21 (also known as ‘no fault’ eviction) was widely regarded as the main aim of the Renters Reform Bill. So, the question on everyone’s lips is: ‘has there been a U-turn?’. Well, not quite.
On 23rd October, it was announced that Section 21 would still be abolished but – importantly – only when improvements are made to the way courts handle legitimate possession cases. The government has also clarified what those improvements will consist of – and they appear to be substantial improvements which may take some time to introduce. The main improvements proposed are as follows:
- Digitising more of the court process to make it simpler and easier for landlords to use.
- Prioritisation of certain cases including antisocial behaviour.
- Improving bailiff recruitment and retention and reducing administrative tasks so bailiffs can prioritise possession enforcement.
- Providing early legal advice and better signposting for tenants including to help them find a housing solution that meets their needs.
- Strengthening mediation and dispute resolution as a way for landlords to settle problems without resort to courts.
The government has rejected the call from many experts in the lettings industry for a dedicated housing court, saying its costs would outweigh its benefits; insisting it would be more effective to channel resources into improving existing court capacity and processes.
These details have emerged in a response from government to a report on the Renters Reform Bill from the House of Commons Housing Select Committee.
The release of the response so close to the Second Reading could be interpreted as a concession to defuse growing opposition to the Bill by the property industry, landlords and some politicians.
This may be the case, but the good news for landlords is the key message from the government that abolition of Section 21“will not take place until we judge sufficient progress has been made to improve the courts.”.
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