When Will Section 21 Be Scrapped?

With a new Labour government in place and many of the Conservative’s proposed bills lost in the wash-up period, what will become of Section 21? Labour does have plans to scrap Section 21, but when will this occur? Read on to find out the latest updates on Section 21 and the Renter’s Rights Bill.

Table of Contents

What is Section 21?

Section 21 of the Housing Act 1998 gives landlords the ability to evict tenants and take back possession of their property without having to provide a reason. There are certain rules surrounding a Section 21 notice and when it can be legally used. They cannot be used to evict tenants if the tenancy started less than 4 months ago, a fixed-term tenancy has not ended, if the landlord has been issued improvement notices under the Housing Act 2004, if the council has issued a notice of emergency works on the property within 6 months, or if the tenant has made a complaint about the condition of the property which has been ignored. A valid Section 21 notice gives the tenants 2 months to leave the property unless they successfully appeal the notice,

What is the Renter’s Rights Bill?

The Renter’s Rights Bill is a new legislation proposed by the Labour government to provide greater rights and protections to tenants. It follows the Conservative government’s Renters (Reform) Bill which was not passed before the general election. The Renter’s Rights Bill intends to offer fairer treatment for tenants while protecting the rights of responsible landlords.

One of the main aims of the Renter’s Rights Bill is to remove Section 21 notices and introduce new ways for landlords to gain possession of their properties where necessary. Tenants will have more security and less uncertainty in their living situation and also have more power to challenge rent increases, make it easier for them to keep pets at a property, and avoid being discriminated against if they have children or receive benefits.

When Will the Renter’s Rights Bill Pass Into Law?

It’s hard to say at this point when the Renter’s Rights Bill will officially pass into law, and even after the Bill is approved, it will have a rollout period to give people time to prepare for the changes it introduces. Right now the Bill is in the early draft stages and has no definite timeline for passing through both houses of parliament – we will be sure to update you on any significant changes. We may see a second draft of the Bill by the end of 2024 and it could potentially pass into law with Royal Assent by 2025.

Can Landlords Still Use Section 21 in 2024?

Yes, at present, Section 21 notices can still be issued by landlords to tenants, providing all the above criteria are fulfilled. At the time of writing, August 2024, the Bill is nowhere near being passed, so it should be safe to say that Section 21 notices are still valid in 2024.

Will Section 21 be Scrapped?

The newly appointed Labour government has made strong statements that Section 21 will be scrapped ‘immediately’, however, changing the law is a very slow process. The Renter’s Rights Bill could also undergo significant changes between the draft stage and the final stage. Section 21 notices will not be abolished overnight, but it will happen eventually, save for a dramatic U-turn in the Government’s plans.

How Can Landlords Evict Tenants Without Section 21?

Landlords will still be able to evict tenants without Section 21. If a tenant has broken the contract by either not paying rent, causing damage to the property or conducting illegal activities at the property, the landlord can still evict them using a Section 8 notice. This can also be used if the landlord intends to move into the property themselves. Landlords can still choose to not renew an Assured Shorthold Tenancy contract and the tenants would have to leave at the end of the agreed tenancy period. The King’s Speech on July 17th stated that “New clear and expanded possession grounds will be introduced so landlords can reclaim their properties when they need to”.

Once Section 21 is scrapped, it is likely that landlords will still have the ability to evict tenants from their property, it will just be a longer eviction process that requires grounds for eviction to be provided and alternative resolutions sought such as mediation to resolve any issues between landlord and tenant.

How Will Scrapping Section 21 Affect the Private Rental Sector?

The proposed abolishment of Section 21 has provoked a lot of debate and varying opinions from landlords, property investors and tenants alike. Some landlords feel it is a good thing overall as it can make life easier for good landlords who take care of their properties, and push out more unscrupulous landlords who give the entire profession a bad name. It could be that some landlords find the new law to be too restrictive and will sell up their rental properties, meaning that many more potential properties are available to property investors.

The Renters Rights Bill will also introduce restrictions on rental increases, a private rental sector ombudsman who can help resolve disputes between landlords and tenants without the need for expensive legal proceedings. Other proposed changes include applying the Decent Homes Standard which previously only applied to social housing to the private rented sector, which will help ensure that privately rented homes are safe, secure and free from hazards, and the introduction of a digital rental database which provides key information for landlords, tenants and councils to improve transparency and compliance.

As always, it is important to keep up to date with all laws and regulations that affect all parties within the private rental sector, including tenants, landlords, and property investors. This will help you make the right decisions that will benefit you the most and keep your investments as profitable as possible.

This will help you make the right decisions that will benefit you the most and keep your investments as profitable as possible.

Do you want to find out more about the world of property investment and the financial freedom it can offer? Why not join us at a FREE Assets For Life property event – click here to sign up today.

Before you go …

Want to learn more about serviced accommodation? Learn more about our FREE events here.

Ready To Build Job Replacing Income With Property?

Picture of Liam Ryan

Liam Ryan

Liam J Ryan is a Forbes-featured, 8-figure property business entrepreneur, best-selling author, mentor, host, and co-founder of Assets For Life.

More About Liam

You May Also Be Interested In...

coin money down on a table - Assets For Life

No Money Down Property Strategies Explained

Discover no money down property investment strategies, including REITs, joint ventures, rent-to-rent, and more.

November 27, 2024

How to Choose the Right Property Event for Your Investment Goals

In this blog, we’ll explore the key factors to consider when selecting a property event

November 27, 2024

rent to rent property - Assets For Life

Rent To Rent Property Guide

Learn how rent to rent works, its pros and cons, its legalities, and how to

November 25, 2024

Featured Property Investment Events & Courses

The Property Deal Packaging Summit

The Property Millionaire Bootcamp

The Property Developers Bootcamp

The Serviced Accommodation Bootcamp

Candidate Success Stories

Previous

Next

Connect With Us...