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Tenant Homelessness To Rise if Section 21 is Abolished

Using Section 8 to compensate will only lead to tenants receiving county court judgements

Tenants could see their credit ratings affected by Government plans which could make it harder to pass referencing in the future

An eviction specialist firm in the UK has warned that scrapping Section 21 notices could severely impact tenants in a negative way.


A consultation is currently underway on the Government’s plans to scrap Section 21 and expand Section 8 eviction grounds to compensate.


But critics of the plans are worried that the move could lead to a rise in homelessness across the country, with Landlord Action now putting forward their case for why Section 21 should be kept.


They say that half the Section 21 cases they handle come about from tenants wanting to be rehoused by their Council, which would be significantly move complex under any reforms.


In addition, the company’s founder Paul Shamplina said that landlords often use Section 21 rather than Section 8 to evict tenants with rent arrears as it is quicker and does not require or result in a county court judgement (CCJ).


Therefore, without Section 21, a large number of tenants could face receiving a CCJ and ultimately become homeless, as Local Councils are not obliged to re-home people with rent arrears judgements.


Furthermore, CCJs also impact a tenant’s credit rating, which will make it harder for them to pass referencing in the future.


With so many landlords currently using Section 21, Shamplina fears that scrapping it will double the number of Section 8 hearings, resulting in more court time necessitating a recruitment drive for judges.


Representatives from the Ministry of Housing recently visited Landlord Action’s offices to learn more about what impact their reforms could have on tenants and the legal system.


Shamplina explained: “As well as a rise in homelessness, I believe there will be many other unintended consequences following the abolition of Section 21.

 

"These will include, but not be limited to: vulnerable tenants struggling to find accommodation as landlords become more selective; a surge in Section 21 claims as landlords feel increasingly powerless and opt to exit the market.”


Last month, the Residential Landlords Association (RLA) warned that the Government’s focus on homeownership numbers was also negatively impacting tenants.

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