Further details have been released of what appears to be a stay of execution for Section 21 eviction powers.
It is argued that the abolition of Section 21 was the centrepiece of the Renters Reform Bill, which had its second reading at Parliament on 23 October 2023.
The second reading concluded that Section 21 would still be abolished, but not until improvements are made to the way Courts handle legitimate possession cases.
The improvements required are:
- Make the Court process simpler and easier for landlords to use, for example, digitise the information;
- Prioritise certain cases, including antisocial behaviour;
- Improve bailiff hiring and retention and reduce administrative duties so bailiffs can focus on possession enforcement;
- Provide early legal advice and improve signposting for tenants such as helping them find a housing solution that meets their individual needs;
- Improve mediation and dispute resolution, this is to help landlords deal with problems without having to go through the Court, and to “embed this as a member service of the new Ombudsman” – the latter being something landlords must all join, as well as professional property agents.
Many experts from the lettings industry have called for a dedicated housing Court which the Government has firmly rejected. Experts have argued its costs would outweigh its benefits. However, the Government vows it would be better to channel resources into improving existing Court capacity and processes and argues how it would be more effective.
These details come on a response from the Government to a report from the House of Commons Housing Select Committee.
However, the release of the response so near to the Second Reading could be interpreted by some as a concession to reduce the growing opposition to the Bill by landlords, the property industry, and a handful of politicians.
In the response, the Government says that carrying out any alternative process for repossessing properties:
“will not take place until we judge sufficient progress has been made to improve the courts. That means we will not proceed with the abolition of section 21, until reforms to the justice system are in place.”
The Government has also agreed to establish a new ground to repossess properties to protect the annual nature of the student housing market.
In addition, the Government has stated it will:
“introduce a ground for possession that will facilitate the yearly cycle of short-term student tenancies which will enable new students to sign up to a property in advance, safe in the knowledge they will have somewhere to live the next year.”
The full letter from the Government to the Select Committee is available here. It is important to be aware that the recommendations are from the committee, which does not set policy, and the responses are given by the Government.
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Paula Haverkamp is a Senior Associate and Litigation Executive in our Dispute Resolution team, specialising in landlord and tenant matters and property disputes.
For further information in relation to the subjects discussed in this article, please contact Paula or another member of our team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online form.
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