Under the UK Government’s proposals, landlords will have to provide a concrete, evidenced reason already specified in law for bringing tenancies to an end.
To ensure landlords have confidence the Government will allow them to be able to end tenancies where they have legitimate reason to do so. To this end, Ministers at Westminster will amend the Section 8 eviction process, so property owners are able to regain their home should they wish to sell it or move into it.
The Government will also expedite Court processes, so landlords are able to swiftly and smoothly regain their property.
Ministers will work with other types of housing providers outside of the private rented sector who use these powers and use the consultation to make sure the new system works effectively.
This could be devastating for the private rented sector and landlords operating within it.
The consultation proposes the removal of Assured Shorthold Tenancies (ASTs) from the Housing Act 1988. This would mean that assured tenancies would become the only type of tenancies available to private landlords. It’s also proposed that the changes apply to social landlords.
The Government is proposing that landlords and tenants can agree either a fixed-term assured tenancy (meaning both landlord and tenant are committed to a set period), or a periodic assured tenancy. A fixed-term tenancy which is not ended by the tenant, or by the landlord using Section 8, could either be renewed to a new fixed term, or automatically become an assured periodic tenancy.
“The effects of the tenant fees ban have been felt, and now the Government is introducing more new legislation which could deter landlords from operating in the market. Although in the majority of cases there is no need for Section 21 to be used, there are times when a landlord has no choice but to take action and evict tenants from a property.
“Landlords need the safety of no fault evictions and removing Section 21 takes this away. Until there is a greater clarity on the changes planned for Section 8, this will only increase pressure on the sector and discourage new landlords from investing in buy-to-let properties. This comes at a time when supply is dramatically outpacing demand and rent costs are rising.