Fail! Endless calls to scrap S21 evictions leads to g...

Section 21 evictions are set to soar even higher, a property association leader forecasts - because of the threat to abolish them.

Data released last week revealed court proceedings for Section 21s in England reached their highest level in six years, ahead of the renters Reform Bill.

Jonathan Rolande of the National Association of Property Buyers, says worse is to come.

“This will be driven by the fact many landlords are likely to be rushing to beat the ban on Section 21 evictions. Selling at the top of the market also has an impact in this area too.

“Homes sell faster and for more money empty, especially now the heart of the buy to let sector has been ripped out by high tax, high interest rates and legislation.”

Data released by the Ministry of Justice last week show that 7,491 S21 eviction claims were brought before the courts between April and June. That is the highest recorded number since 2017.

There were 2,228 S21 evictions carried out in the same period involving bailiffs, up 41 per cent year on year but almost flat compared with the first quarter of 2023.

Rolande adds: “Landlords are selling up in droves for many reasons. Many are fearful of the new EPC rules which they think may cost thousands and offer little in return.

“Right now, there is a lot of animosity toward landlords, many are fed up. The return on money in the bank is similar to a rental yield without risk or work. Service charges and repair costs have also spiralled as contractors increased prices post-Brexit and to take advantage of the recent boom. And, ironically, talk of banning Sections 21’s has led to an increase in their use."

A W
25 August 2023 09:35 AM

Because people dont know what timescales are involved in legislation and all they see is it all over the news that it's coming.

Plus lets be fair... the courts are bloody slow. 2 months for the notice period and 2-4 months for a court date. So lets round it up to 6 months start to finish, provided that there are no adjournments or the like.

Barry X
25 August 2023 09:48 AM

Whilst I largely agree with you @MP there are a number of good reasons why savy landlords might want to get ahead of that queue...

e.g. (1) Once the queue starts to form in earnest the market for ex. BTL properties will likely take a nose dive,
(2) by then everyone including the tenants will know the courts are completly unable (and probably unwilling) to deal with s.21 proceedings even if they are still for the moment lawful and therefore it will be too late and no longer be possible to get a Possession Order and so the tenant(s) will have become de facto Sitting Tenants and the property unsaleable except perhaps at a fraction of its open market value with vacant possession...
... etc

Matthew Payne
25 August 2023 10:09 AM

I think there's the misunderstanding, there will be 18 months to serve the S21 in its current format on existing tenancies, no possession proceedings required. The enactment will only apply to new tenancies. But even if it was it doesnt change the point, there is no need to serve one in August 23 to beat anything, we are comfortably 12 months away from it becoming statute. We have at least until August 2025 before anyone needs to start beating any rush. (to clarify i was referring to serving a notice, not selling up which I think you may be referring to Barry, he was making 2 separate points. Some are rushing to avoid court, others are selling).

Barry X
25 August 2023 10:25 AM

Thanks for your clarification @MP.... however there is a further very important point that nobody seems to have mentioned yet (or at least not for a while).... This whole Housing Reform drama is just one of several desperate election bribes by The Torries... they are desperately trying to induce large numbers of young, left-leaning tenants into voting for them at the forthcoming election and the whole timing of this & build up to it (with a couple of years of coaching them to fear and hate the mythical/concocted "no fault evictions") is rigged as a bribe for those votes because they intentionally aimed to have it not quite through parliament by the eve of the election so all those tenants conned into clamouring for it will have to swallow their pride and (against their "social conscience") secretly vote Torry to get it through! At least that's the Torries plan.... in reality, this plus a lot of other equally stupid and misconceived things they've done have probably made them unelectable and/or really helped Labour who are anyhow promising to do the same only far worse....

People already serving s.21's and/or just selling up anyhow might be equally if not more worried about the next government being even worse than the one we already have!

Matthew Payne
25 August 2023 11:01 AM

Yep, completely agree, the TFA act was a similar bribe, timed very neatly and delayed to the months before the GE in 2019. The problem is it worked, and they converted a lot of that young, urban left wing vote so they are planning to do it again. Its no coincidence that we conveniently ran out of pariliamentary time this summer to get it through either, people would have forgotten if enacted in 2023, so this brings it nicely into play next Summer, fresh in everyones youngs minds when the GE date is announced.

Hit Man
25 August 2023 12:03 PM

The time frame for process with Section 21 is not the problem, landlords want to get the properties sold with vacant possession and that takes time along with the S21 process. so not really much time.

Barry X
25 August 2023 10:13 AM

You're wise @Rebecca and not alone in your thinking....

By the way, have you ever looked into government gilts... their yields are absolutely rocketing at the moment and are now considerably higher than bank interest... Good news if you have plenty of long term cash on deposit but incredibly bad news for the ecconomy and this country's ecconomic prospects (it's all due to the government having been so utterly incompetant they are now completly bankrupt and are being forced to borrow more than the GDP for the first time since 1961 and at interest rates they can't afford... the only way they can pay the interest is by borrowing even more to cover it which is of course why they are forced to pay so much for that debt...) these gilts, e.g. 6 month and 1 yr ones and soon even 10 Yr or more are already paying way more than the typical net yeild from an average BTL, and without any risk or worry whatsoever! The only downside is inflation, otherwise they'd be perfect!