Section 21 scrapped as Gove hands rental power balance to tenants! What does this mean for Landlords
The government’s new Levelling Up White Paper includes a dramatic reshaping of the private rental sector.
Section 21 eviction powers will be removed from landlords and Housing Secretary Michael Gove says this will “end the unfair situation where renters can be kicked out of their homes for no reason.”
The government’s new Levelling Up White Paper includes a dramatic reshaping of the private rental sector.
Section 21 eviction powers will be removed from landlords and Housing Secretary Michael Gove says this will “end the unfair situation where renters can be kicked out of their homes for no reason.”
In addition all homes in the private rental sector will have to meet a minimum standard to be known as the Decent Homes Standard.
The White Paper does not stop there. It adds: “We will consult on introducing a landlords register, and will set out plans for a crackdown on rogue landlords – making sure fines and bans stop repeat offenders leaving renters in terrible conditions.”
No explicit reference is made to a national landlord register, mentioned earlier this week in a government leak about today’s announcement.
There’s more - the government says home ownership will be boosted via a new £1.5 billion Levelling Up Home Building Fund being launched, which will provide loans to small and medium sized developers and support the government's wider regeneration agenda in areas considered a priority for levelling up.
The government is also committing to build what it calls “a more genuinely affordable social housing.” A new Social Housing Regulation Bill will be introduced following the Grenfell tragedy in 2017.
The ‘80/20 rule’ which leads to 80 per cent of government funding for housing supply being directed at ‘maximum affordability areas’ – in practice, London and the South East – will be scrapped, with much of the £1.8 billion brownfield funding instead being diverted to transforming brownfield sites in the North and Midlands. Metro Mayors will be allocated £120m of this funding.
The whole Levelling Up White Paper is vast and far-reaching with 12 so-called missions, given legal status in a flagship Levelling Up and Regeneration Bill. This will “shift government focus and resources to Britain’s forgotten communities throughout the 2020s.”
Levelling Up Secretary Michael Gove says: “The United Kingdom is an unparalleled success story. We have one of the world’s biggest and most dynamic economies. Ours is the world’s most spoken language. We have produced more Nobel Prize winners than any country other than America.
"But not everyone shares equally in the UK’s success. For decades, too many communities have been overlooked and undervalued. As some areas have flourished, others have been left in a cycle of decline. The UK has been like a jet firing on only one engine.
"Levelling Up and this White Paper is about ending this historic injustice and calling time on the postcode lottery.
“This will not be an easy task, and it won’t happen overnight, but our 12 new national levelling up missions will drive real change in towns and cities across the UK, so that where you live will no longer determine how far you can go.”
And beleaguered Prime Minister Boris Johnson adds: “From day one, the defining mission of this government has been to level up this country, to break the link between geography and destiny so that no matter where you live you have access to the same opportunities.
“The challenges we face have been embedded over generations and cannot be dug out overnight, but this White Paper is the next crucial step.
“It is a vision for the future that will see public spending on R&D increased in every part of the country; transport connectivity improving; faster broadband in every community; life expectancies rising; violent crime falling; schools improving; and private sector investment being unleashed.
“It is the most comprehensive, ambitious plan of its kind that this country has ever seen and it will ensure that the government continues to rise to the challenge and deliver for the people of the UK.”
It is unclear what the ongoing implications will have for Landlords or how it will affect their outlook on remaining as a Landlord. It is expected that the current Section 8 will be beefed up to allow Landlords to gain possession if they have a legal reason to end the tenancy such as rent arrears. Legal reasons for eviction are called 'grounds for possession' on the notice and you must prove the grounds for possession if it goes to court. This process takes time and sometimes the court can stop an eviction.
With the latest round of expected changes on top of all the other mandatory regulations Landlord currently face themselves with it is very easy to be caught out with a problem tenancy costing you thousands in unpaid rent and legal expenses if you don't get it right.
This is why we recommend to all of our Landlords to use our fully managed service, this way as well has having a professional looking after your tenant and property, you know you are fully compliant at all times with rent protection and legal cover should you need it. Take a look at some of the benefits of having your property managed here
