Industry News


Landlords call for fast track housing tribunal if Section 21 evictions are abolished


‘no-fault’ eviction process is abolished. The Section 21 ‘no-fault’ eviction process was


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introduced in The Housing Act 1988 and has been a mainstay of the UK’s Private Rented Sector ever since. It allows landlords to give tenants two months’


notice of their intention to take back possession of a property at any time after the initial fixed term of the tenancy agreement has expired. The Government announced its intention to


abolish Section 21 in April. In its place, it proposes that landlords should follow the Section 8 process


lmost four out of ten private landlords want the Government to introduce a fast track housing tribunal if the Section 21


which requires them to demonstrate that tenants are in breach of their rental agreement when serving notice. Paragon Banking Group surveyed over 200


private sector buy-to-let landlords for its PRS Trends Report for the second quarter of 2019. The survey comes ahead of a Government consultation this summer, designed to gather views on how best to make the existing Section 8 process work more effectively. Alongside a fast track tribunal, almost


one quarter of landlords in Paragon’s survey (24 per cent) called for a shorter court process; one in seven (15 per cent) would like a guaranteed way to cover their costs and seven per cent


argued for the ability to submit evidence online. The majority of landlords (84 per cent) said


they felt the maximum time from serving notice to taking possession should be no longer than eight weeks. According to the MHCLG’s recent English


Landlord Survey the vast majority of tenancies end at the tenant’s request. John Heron, Director of Mortgages at Paragon


said: “Some of the main concerns for landlords around a move to the Section 8 eviction process relate to the efficacy of the existing court process. What we see here is widespread support for a fast track housing tribunal that can deliver a fair and timely solution for both landlords and tenants.”


Government call for evidence on reform of deposit protection


Housing Secretary James Brokenshire has announced a call for evidence on tenancy deposit protection in England. The call for evidence seeks to understand the


barriers tenants face providing a second tenancy deposit when moving from one tenancy to the next and looks at what can be done to speed up the return of deposits to tenants at the end of the tenancy. The Government will look at whether existing


initiatives to address deposit affordability are meeting tenants’ needs and whether the market can offer improved products. It will also explore


innovative approaches that could be taken to help tenants move more easily, including allowing tenants to passport their deposit between tenancies. ARLA Propertymark has been involved in a


Government working group of stakeholders examining this issue throughout the last 12 months. It is supportive of the concept of tenants moving deposits between tenancies, but says it is essential that the solutions are workable and affordable for tenants. David Cox, Chief Executive, ARLA


Propertymark welcomed the Housing Secretary’s announcement for deposit passporting in the


18 | HMM August/September 2019 | www.housingmmonline.co.uk


private rented sector: “We’re supportive of this concept in principle, but it needs a practical, workable solution. “We’ve been sitting on MHCLG’s Tenancy


Deposit Protection Working Group for the last 12 months, looking at the problem and finding answers. Significant progress has been made, and we think we’re close to a practical solution, but we’re not quite there yet. “For deposit passporting to work we need to


ensure that both the outgoing landlord’s deposit can be used if needed, while the incoming landlord has certainty they will get the full deposit they have agreed by the tenant. “Affordability for tenants of any bridging loan or


insurance policy will be key if deposit passporting is going to be a workable and affordable solution for the future of deposits.”


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