Propertymark has warned the new Government against the abolition of Section 21 no-fault evictions.
The industry body said that, without an adequate replacement mechanism, the court system in England and Wales would be overwhelmed.
Propertymark said that this would cause lengthy delays for everyone involved, and that in addition to the raft of regulatory and financial pressures placed on landlords in recent years, this would only further add to their existing strain.
Propertymark members voiced their concerns around landlords already expressing their desires to exit the sector, and said Section 21’s abolition would provide another reason for current landlords to leave, prevent prospective investors from entering and create a further shortage of homes for tenants which will ultimately push rents up even further.
During the 2024 General Election, Labour campaigned to clamp down on ‘unscrupulous landlords’, and to abolish Section 21.
Other pledges included preventing tenants from paying large upfront rent payments, reducing energy bills, and cutting fuel poverty.
The party also wanted to extend Awaab’s Law to the private rental sector to improve tenant conditions by preventing damp and mould from growing in rental properties.
The last Conservative Government also wanted to ban Section 21 no-fault evictions as part of the Renters Reform Bill, which never became law.
However, Propertymark submitted written evidence to the Public Bill Committee on the legislation in December 2023, citing data which proved the level of anxiety among member agents about measures likely to make the private rented sector more hostile to private landlords, and the unintended outcomes for people desperate for homes.
The Renters’ Reform Bill would have resulted in extending the grounds for possession under Section 8 instead – which would have meant many more cases have to go through the courts.
Propertymark urged Labour to clarify how its plans to remove Section 21 would work.
It also advised the Government to ensure that, like with the Renters’ Reform Bill before, the latest legislation must ensure that there is a balance between protecting tenants’ rights and guaranteeing that landlords have a suitable legal mechanism to repossess properties, when necessary, without swamping the courts.
Nathan Emerson, CEO at Propertymark, said: “The Renters’ Reform Bill brought a great deal of uncertainty to landlords, letting agents, and tenants, so it is vital that the UK Government’s fresh legislation to remove Section 21 guarantees that it is being replaced with a suitable legal mechanism that prevents a backlog of cases to the courts.
“Any new Bill must strike a balance between protecting tenants’ rights and ensuring that landlords have a suitable legal mechanism to repossess properties when necessary.”
