{"id":6100044,"date":"2024-07-31T13:38:49","date_gmt":"2024-07-31T12:38:49","guid":{"rendered":"https:\/\/www.buyassociationgroup.com\/en-hk\/news\/section-21-what-are-labours-plans\/"},"modified":"2024-08-01T11:10:17","modified_gmt":"2024-08-01T11:10:17","slug":"section-21-what-are-labours-plans","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-hk\/news\/section-21-what-are-labours-plans\/","title":{"rendered":"Section 21 – What are Labour’s plans?"},"content":{"rendered":"

The reason why platforms like\u00a0BuyAssociation<\/a>\u00a0exist is the huge expansion in property investment by private individuals since the 1988 Housing Act, which ushered in ASTs and Section 21 notice evictions.<\/h2>\n

Because, to persuade people to risk their money in rental property,\u00a0Section 21<\/strong><\/a>\u00a0notices gave landlords the confidence to jump in.<\/p>\n

Previous Tory governments had forgotten this, and Labour continues this collective establishment amnesia.<\/p>\n

But I wonder if those advocating the immediate removal of Section 21 would be so vocal on this if their only nest egg of \u00a3200,000 had recently been invested in a \u00a3400,000 two-bedroom flat via a chunky mortgage, for example, and the tenant then stopped paying the rent with the intention of saving money \u2013 it happens all too frequently.<\/p>\n

 <\/p>\n

Will Labour immediately ban Section 21?<\/h3>\n

Of course, many tenants do feel insecure when dealing with bad actor landlords and agents, but my key issue with Labour\u2019s plans for banning Section 21 is wanting to make it \u2018immediate\u2019, as they did on social media this week, saying it will\u00a0make renting \u2018fairer\u2019<\/strong>.<\/p>\n

Housing minister Matthew Pennycook should know this is not realistic.<\/p>\n

Matthew Pennycook was at the debate in parliament on April 24th when then Tory housing minister, Jacob Young, made it clear an \u2018immediate\u2019 ban was not possible.<\/p>\n

He said, after considering a Pennycook amendment to the then\u00a0Renters (Reform) Bill<\/a><\/strong>\u00a0suggesting an immediate ban, that: \u201cThis would mean that there would be no transition period leaving no time at all for landlords, letting agents, tenant groups or local authorities to adjust to the new system\u201d.<\/p>\n

He also pointed out that there would not be enough time to conclude the necessary\u00a0secondary legislation<\/strong>\u00a0leaving the statute book \u201ca confusing mess\u201d.<\/p>\n

And importantly, without having the necessary improved Section 8 eviction notice system in place, \u201cit would prevent landlords from being able to regain possession of their properties even where they had a legitimate reason to do so\u201d, he said.<\/p>\n

Using words that Pennycook may want to reconsider now he\u2019s in power, Young said that while it may \u201csound good\u201d to abolish Section 21 immediately, it would cause \u201cchaos in the sector\u201d.<\/p>\n

 <\/p>\n

What is the practicality of banning Section 21?<\/h3>\n

The other issue I have with those who want to get rid of Section 21 is that their argument is on shaky practical ground.<\/p>\n

While\u00a0Shelter<\/a>,\u00a0Generation Rent<\/a>\u00a0and the many other tenant champion groups are right to say that property quality in the private rental sector is poor, and that some landlords would rather eject a complaining tenant than improve their home, by banning Section 21 they don\u2019t see that good landlords facing \u2018bad actor\u2019 tenants will instead switch to other means of eviction.<\/p>\n

Bad tenants who wreck homes and opt not to pay the rent must go eventually \u2013\u00a0leaving them in situ is not an option<\/strong>.<\/p>\n

Also, any ban is likely to be delayed for some time for another reason. It is taking\u00a0approximately a year to evict tenants<\/strong>\u00a0as the broken court system grinds on, so thousands of landlords remain in limbo awaiting permission to repossess via a Section 21; hardly an \u2018immediate ban\u2019.<\/p>\n

What politicians don\u2019t grasp \u2013 or want to I assume \u2013 is that the private rented sector is in the main owned and operated by reasonable people and that it\u2019s the small minority of sociopaths who see themselves as outside the law that local authorities should be focussing on.<\/p>\n

Removing the\u00a0certainty<\/strong>\u00a0that Section 21 evictions provide from every landlord regardless of their previous good record is non-sensical and feels like punishing the many for the crimes of the few.<\/p>\n

 <\/p>\n

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