Propertymark has issued a stark warning to the new Government, cautioning against the abolition of Section 21 no-fault evictions without a suitable replacement. The industry body asserts that such a move could inundate the court system in England and Wales, leading to protracted delays for all parties involved.

Highlighting the compounded regulatory and financial burdens landlords have faced in recent years, Propertymark contends that abolishing Section 21 would exacerbate these pressures. The organization points to landlords already signalling their intention to leave the sector, and fears that the elimination of this eviction route would drive more landlords away, deter potential investors, and aggravate the existing housing shortage, thereby escalating rents further.

In the run-up to the 2024 General Election, Labour campaigned vigorously to eliminate Section 21, promising to crack down on ‘unscrupulous landlords’. Their manifesto also included measures such as banning large upfront rent payments by tenants, reducing energy bills, and combating fuel poverty. Additionally, Labour aimed to extend Awaab’s Law to the private rental sector, intending to improve tenant conditions by curbing the growth of damp and mould in rental properties.

The preceding Conservative Government had also sought to abolish Section 21 no-fault evictions under the proposed Renters Reform Bill, which ultimately did not become law. In December 2023, Propertymark presented written evidence to the Public Bill Committee, underscoring the anxiety among its member agents about legislative changes that could make the private rented sector more inhospitable to landlords, with unintended consequences for those in urgent need of housing.

The proposed Renters’ Reform Bill had suggested broadening the grounds for possession under Section 8, implying that significantly more cases would need to be resolved through the courts. Propertymark has urged Labour to clarify how they plan to handle the removal of Section 21 and has advised the Government to ensure any new legislation maintains a balance between tenant protection and providing landlords with an effective legal mechanism for property repossession, without overwhelming the judicial system.

Nathan Emerson, CEO at Propertymark, emphasized, “The Renters’ Reform Bill brought a great deal of uncertainty to landlords, letting agents, and tenants, so it is vital that the UK Government’s fresh legislation to remove Section 21 guarantees that it is being replaced with a suitable legal mechanism that prevents a backlog of cases to the courts.

“Any new Bill must strike a balance between protecting tenants’ rights and ensuring that landlords have a suitable legal mechanism to repossess properties when necessary.”