Ladybird Living – Your London Estate Agent
Abolishing Section 21: How would it affect the lettings market?
Abolishing section 21 and property owners leaving the sector:
Many property owners have been surveyed since the announcement of abolishing section 21. The aim of the surveys was to investigate whether abolishing section 21 would impact property owners’ decision to remain in the sector.
Goodlord conducted a survey in 2022 which reported that 29% of agents and 54% of property owners may consider leaving the real estate sector after the abolishment of section 21.
In contrast, a report from the NLRA (National Residential Landlord Association) demonstrated that 70% of property owners would not leave the sector because of the abolishment of section 21.
Section 8 reforms:
Usually, section 8 would need to be enforced when there is a breach of contract such as rent arrears. However, section 8 has been criticised in the recent House of Commons report for being a lengthy, complicated, and expensive process.
The Renters’ Reform Bill white paper planned to strengthen the grounds for section 8. However, many property owners believed that the section 8 reforms would not be enough to replace section 21. In response to this, the government plans to increase property owners’ power and give them more rights to evict anti-social tenants.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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