Our friends over at LandlordNews.co.uk have provided this article about the proposed Section 21 ban and ask “what will this mean for the property industry?”

Less than two months before the Tenant Fees Act was introduced, the Government announced yet another blow for landlords and letting agents – it is looking to ban Section 21 notices.

To explain what this will mean for the property industry, we’ve spoken to Rose Jinks, the Spokesperson for Landlord Insurance provider Just Landlords, to explain.

Back in April, the Government announced its plan to ban Section 21 of the Housing Act 1988, which gives landlords the right to evict their tenants without giving a reason – so-called no fault evictions. It believes that this would make the private rental sector more secure for tenants, creating open-ended tenancies for all. As a result, it could also help to reduce homelessness.

The Government is currently consulting on the ban with members of the property industry.

During reform of the eviction process, the Government has indicated that it will strengthen Section 8 powers, which enable landlords to evict their tenants for legitimate reasons, such as rent arrears or needing to sell the property.

Following an outpouring of concern from landlords and letting agents alike, the Housing and Homelessness Minister, Heather Wheeler MP, has confirmed that the court processes for repossessing properties will be reformed if Section 21 is banned.

However, landlord organisations have recently conducted surveys that suggest that landlords will sell their properties and leave the sector if Section 21 is abolished, due to fears that they will not be able to efficiently regain possession of their properties in legitimate circumstances. This could result in reduced housing stock for tenants, which would negate the Government’s original intentions.

Jinks believes: “Although we fully understand the Government’s goals of making the private rental sector more secure and fair for tenants, we have to look at the consequences in the long-term; if landlords leave the market, as they’re indicating that they will, then tenants simply won’t have the homes that they need, which will cause rent prices to soar.

“On the other hand, we do feel that tenants need more confidence in the security of their homes, so that they know they’re going to have a roof over their heads for the foreseeable future. However, despite this sentiment, we do know already that the majority of tenancies are ended by tenants, rather than landlords, and that landlords – mostly – only evict their tenants in legitimate circumstances.”

She adds: “These legitimate circumstances will still exist whether Section 21 is banned or not, it’s just that a different system will be used if it is.”