The private rented sector would shrink by 20 per cent if Section 21 ‘no-fault’ evictions are abolished, according to an economic report.
‘A new deal for renters? The unintended consequences of abolishing Section 21’ by Capital Economics - prepared on behalf of the National Landlords Association - also forecasts a 59 per cent reduction in housing available to tenants on housing benefit or Universal Credit, and a potential increase in rents for 13 per cent of properties.
The report also suggested a possible solution, a reformed court process that made dealing with Section 8 cases faster and cheaper could nullify the removal of Section 21 for many landlords.
However, the private rental sector would still see a likely reduction of between 180,000 and 390,000 homes, between 130,000 and 300,000 fewer homes available to benefit claimants, and rent increases for between 110,000 and 240,000 properties.
Chris Norris, director of policy and practice at the NLA, says: “The government has clearly failed to recognise the realities of the private rented sector by proposing the abolition of Section 21.
“Any government which thinks it appropriate to risk the loss of nearly one million rental homes at a time of housing crisis needs to reassess its priorities as a matter of urgency.
“Rather than playing to the gallery, the government should be looking to support and incentivise good landlords to remain active and provide homes to those who need them, rather than making it harder and causing these landlords to exit the market.”