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May 14

Section 21 Ban Delay: More Than Meets the Eye?

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A leading PropTech provider suggests that the government’s commitment to postpone the Section 21 eviction ban until court procedures are reviewed and potentially enhanced may not be as straightforward as it appears. According to Oli Sherlock of Goodlord, the current state of the Renters Reform Bill indicates that the purported delay in abolishing Section 21 might not align with expectations for court reform.

Sherlock points out that while the government has pledged to delay the implementation of the Section 21 ban to accommodate court system improvements, the actual details within the Renters Reform Bill suggest a more nuanced situation. This discrepancy raises questions about the true nature of the delay and whether it will effectively address concerns surrounding court processes related to evictions.

It appears the market will confront a fragmented landscape, where certain tenancies permit Section 21 while others do not, and some might fall into either category based on the approach to tenancy renewal. This situation unfolds against the backdrop of an ongoing investigation into the court system, which lacks a clear timeline or criteria for evaluation.

The irony lies in the fact that these same courts will manage a growing caseload stemming from tenancies where Section 21 has already been outlawed. This could potentially lead to unfavorable outcomes for all involved parties, exacerbating the challenges of an already complex situation.

In essence, the promised delay in scrapping Section 21 to facilitate court reform may not deliver the anticipated outcomes. Instead, it could result in a disjointed process, leaving tenants, landlords, and the courts navigating uncertain territory without clear direction or resolution in sight.

Sherlock, collaborating with Ryan Heaven, a solicitor at Dutton Gregory Solicitors, underscores a critical loophole present in the Bill. They emphasize that only one type of tenancy will still permit the enforcement of Section 21, suggesting a potential inconsistency in the legislation.

Despite Housing Secretary Michael Gove’s pledge that Section 21 would be banned before the upcoming General Election, Heaven expresses skepticism about the feasibility of this promise. He suggests that upon closer examination of the Bill, it seems unlikely that Section 21 will be outlawed entirely by the election date.

Heaven elaborates on the discrepancy, pointing out that while Gove’s assurance has garnered attention, the actual provisions of the Bill paint a different picture. He highlights the possibility that even after the election, certain landlords may still retain the ability to serve a Section 21 notice, while others may not.

The nuanced analysis provided by Sherlock and Heaven sheds light on the complexities surrounding the proposed legislation. By dissecting the implications of the Bill, they offer valuable insights into its potential impact on landlords and tenants alike.

In conclusion, the discussion underscores the importance of thorough examination and critical analysis when evaluating legislative proposals. As the debate surrounding Section 21 continues, clarity and transparency regarding its implementation are essential for ensuring fairness and effectiveness in the rental market.

 

The two are:

After the implementation of the Bill, any new tenancy formed won’t be eligible for a Section 21 notice. Similarly, if a fixed-term tenancy transitions into a periodic one post-Bill, landlords can serve a Section 21 until the switch occurs. However, once it converts to a periodic tenancy, the new regulations take effect, barring the use of Section 21.

For existing periodic tenancies at the time of the Bill’s implementation, landlords can continue serving Section 21 notices until the Government assesses the Court system, presents its findings to parliament, and sets an ‘extended implementation date.’ Until this date, Section 21 can still be utilized, implying that tenancies in this category may receive Section 21 notices post-election.

 


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PropTech, Section 21, Section 21 Ban Delay: More Than Meets the Eye?


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