Section 21 vs Section 8

?In the Queen’s Speech in May of this year, the Government reinforced its intention to abolish Section 21.?This has, in some quarters, caused huge concern as the “no fault eviction” of Section 21 was a comfort to landlords who feared being stuck with “bad” tenants.?It was preferred over the it’s cousin, the Section 8 as there was a facility for accelerated possession which meant that the eviction would not have to go to court.?Now that the Government is intending to abolish S21, there has been the usual panic and, in some cases, according to the latest English Private Landlord Survey Report, many landlords are going so far as to consider divesting themselves of their buy 2 let properties and exiting the sector completely.

When any new legislation is mooted, let alone passes through parliament, the nay sayers will find reasons why this is a fatal blow to their business, and predict dire consequences to the industry.?What is not given equal airtime is that measures are being looked at to mitigate the impact and attempt to maintain a fair balance between landlord and tenant.

Consider.?If the government abolishes section 21 and makes it so costly, complex and time consuming, that the result is fewer people willing to risk renting out property this will exacerbate the already significant problem of the lack of homes for those unable to purchase. The government needs private landlords – always has, always will.

So, while the government is preparing a White Paper and will be going through a long-winded consultation process on the Section 21 no fault eviction, they are also reviewing ways to strengthen Section 8 which currently is available for tenants breaching their tenancy and rent agreements.

The primary function of a landlord is to rent out his property so instead of focusing on how to get rid of tenants, maybe focus on getting the right tenants in the first place.?This may seem a bit na?ve, but the vast majority of tenants are just people who want a nice place to live.?Do landlords have nightmare stories to tell of tenants that don’t pay or cause damage, of course they do but Section 8 will give landlords the ability to evict tenants and indications are that added criteria for eviction will be included.

In conclusion, there will always be another law or tax hike or some other crises, but people have been renting out properties and making money since the year dot – its an industry that has stood the test of time as demand is always there so our advice is…don’t panic. ?It was ever thus. ??