Loophole Means Section 21 Ban Delay “is Not What it Seems” – Claim

Government’s Section 21 Ban Delay: A Closer Look

PropTech Supplier’s Warning

A prominent PropTech supplier, Goodlord, has raised concerns that the government’s pledge to delay the ban on Section 21 evictions until court processes are reviewed and potentially upgraded is misleading.

Key Insights from Goodlord

Goodlord’s Oli Sherlock states that the Renters Reform Bill does not deliver on the promise to delay the scrapping of Section 21 in a straightforward manner. Instead, it introduces a fragmented approach where:

• Some tenancies will permit Section 21,
• Others will not,
• And certain tenancies could fall into either category based on how tenancy renewals are handled.

Court System Investigation Concerns

The ongoing investigation into the courts lacks a confirmed timeline or clear success metrics. Ironically, these same courts will handle increasing cases from tenancies where Section 21 has already been outlawed, which could be detrimental for all parties involved.

Legal Perspectives on the Section 21 Ban

Loophole in the Renters Reform Bill

Ryan Heaven, a solicitor at Dutton Gregory Solicitors, alongside Sherlock, identified a loophole in the Bill. This loophole indicates that despite Housing Secretary Michael Gove’s pledge that Section 21 will be banned before the next General Election, it’s unlikely to be fully implemented by then.

Michael Gove’s Promise Scrutinized

Heaven emphasizes that Gove’s assertion about Section 21 being ‘outlawed’ before the election is not entirely accurate. Depending on the type of tenancy, some landlords may still serve Section 21 notices:

• New Tenancies Post-Bill Implementation: No Section 21 notices allowed.
• Fixed-Term Tenancies Becoming Periodic Post-Bill Implementation: Section 21 notices can be served until the tenancy switches to a periodic one.
• Periodic Tenancies at Bill Implementation: Section 21 notices can be served until the government completes court system reviews and sets a new implementation date.

Future Implications

This loophole means certain periodic tenancies could still be served a Section 21 notice even after the next General Election.

Join the Discussion

The loophole was a key topic at a recent PropTech webinar. Watch the recording here to learn more.

Stay Informed

For Croydon-based landlords, staying updated on these developments is crucial. Understand how these changes may impact your tenancies and prepare accordingly.

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Top FAQs on Section 21 Ban Delay and Loopholes

1. What is the Section 21 eviction ban?

The Section 21 eviction ban is part of the Renters Reform Bill, aiming to prevent landlords from evicting tenants without providing a reason. This reform is intended to offer tenants more security and reduce the risk of unfair evictions.

2. Why is there a delay in the Section 21 eviction ban?

The government has pledged to delay the ban on Section 21 evictions until the court processes are reviewed and, if necessary, upgraded. This delay is intended to ensure that the court system can handle the increased number of cases effectively once the ban is implemented.

3. What are the potential loopholes in the Renters Reform Bill regarding Section 21?

According to Goodlord’s Oli Sherlock and solicitor Ryan Heaven, there are several potential loopholes:

• New Tenancies Post-Bill: No Section 21 notices allowed.
• Fixed-Term Tenancies Becoming Periodic Post-Bill: Section 21 notices can be served until the tenancy becomes periodic.
• Periodic Tenancies at Bill Implementation: Section 21 notices can be served until the government completes the court review and sets a new implementation date.

4. Will all landlords be unable to use Section 21 after the bill is implemented?

No, not immediately. Some landlords may still be able to serve Section 21 notices depending on the type of tenancy. For instance, periodic tenancies at the time of the bill’s implementation may still allow Section 21 notices until further government action is taken.

5. What does this mean for landlords and tenants in Croydon?

Landlords in Croydon should be aware that the Section 21 eviction ban might not be uniformly applied immediately after the bill is implemented. Tenants may still face Section 21 evictions depending on the specifics of their tenancy agreement. It is essential for both landlords and tenants to stay informed about the latest updates to understand their rights and obligations.