The Government pledged last year to abolish Section 21 ‘no explanation’ repossessions and to make other changes to the rental market this summer. With the Bill not scheduled to begin detailed scrutiny in the House of Lords until after Easter, this timetable will now be missed.
Whilst the Government has said it will give the sector “as much notice as possible” about when the Bill will be implemented, no further detail has been provided.
Almost five million households will be affected by the decision to end fixed-term tenancies, illustrating the scale of the challenge facing the private rented sector. A minimum of six months from the point at which regulations are published will be needed to ensure that landlords, tenants, and the businesses which support them are adequately prepared for these reforms.
The UK Government should learn from the experience of implementing similar reforms elsewhere across the country, which uncovered significant difficulties that took a substantial amount of time to resolve.
Changes needed to ensure the smooth implementation of the system replacing Section 21 include:
- Equipping landlords, agents and legal professionals with guidance and training to manage the transition effectively.
- Adjusting policies and rates across insurance and mortgage providers.
- Adapting court procedures to prepare for an increase in in-person hearings.
- Training letting agents and updating their internal processes and IT systems.
“The lack of clarity is causing needless uncertainty for both landlords and tenants. It is damaging the rental market at a time when there is already a chronic shortage of homes to rent," comments NRLA Chief Executive, Ben Beadle (pictured), “Given the extent of the changes, at least six months will be needed to ensure a smooth transition to the new tenancy system. Anything less will be a recipe for confusion and chaos.
He added, “The idea that such sweeping changes could be made overnight is, at best, wishful thinking.”
