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Section 21 WILL be abolished says Truss in new U-turn

Prime Minister Liz Truss says Section 21 eviction powers WILL be scrapped after all.

She made the explicit commitment at Prime Minister’s Questions in the Commons this afternoon.

This appears to be another Truss U-turn following a government leak to The Times yesterday.

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The newspaper had been told that the plans were no longer considered a priority and could be killed off entirely, despite being a manifesto commitment.

Steven Swinford, political editor at The Times, tweeted: “Liz Truss is shelving Michael Gove’s plans to end no-fault evictions, which were due to be introduced in this Parliamentary session.

“The Times has been told that they are not considered a priority and could be killed off entirely, despite being a manifesto commitment.”

The possibility that the commitment to scrap Section 21 might be dropped provoked anger from some quarters of the property industry establishment and anti-landlord activists alike. 

The Chartered Institute of Environmental Health had expressed its anger that the government may be about to do a U-turn on its commitment to abolish Section 21 eviction powers for letting agents and lkandlords.

The CIEH had previously welcomed the government’s commitment to ending S21 amongst other measures claimed to improve housing standards, contained in the long-awaited Renters Reform Bill. 

Speaking before the Truss U-turn Ross Matthewman, head of policy and campaigns at the Chartered Institute of Environmental Health, said: “This is incredibly bad news for renters.

“It’s been a long three years since the UK government first announced its intention to ban no-fault evictions, and the measures outlined in the Queen’s Speech earlier this year pointed to real progress. Reports that these proposals could now be dropped are deeply worrying.

“Instead of shelving these plans, the government should keep its word to end no-fault evictions and require genuine grounds for repossession of tenanted property.

“Eviction causes enormous financial hardship and damages mental health. Renters should not be evicted unnecessarily or forced out under false pretences, for example because they have challenged poor housing standards.

“The government has previously recognised that a ban on no fault evictions is needed to level the playing field between landlord and tenant.

“We are calling on the government to stick to its commitments.”

Meanwhile the Nationwide had also spoken out against the U-turn.

Rachael Sinclair, Nationwide's Director of Mortgages and Financial Wellbeing, said: "If the government fails to push ahead with the proposals outlined in the Fairer Private Rented Sector White Paper, it will miss a vital opportunity. 

“Rental regulations are crying out for an overhaul and now is the time to act as the cost-of-living crisis further exacerbates the challenges facing the sector, primarily poor conditions. 

“Dropping the proposals at this point is short-sighted, and will only add to people’s concerns during what remains a worrying time for many."

Generation Rent, the group that is led by former Labour peer Baroness Alicia Kennedy, has started a lobbying campaign for activists to lobby their MPs. 

The campaign says on its website: “These reforms would give renters more certainty over their home and more power to complain. And they are so close to being achieved.  The Conservatives' commitment to abolish section 21 evictions was made in April 2019. It was in the 2019 election manifesto. It was confirmed by two Prime Ministers at three Queens’ Speeches. Politicians need to stand up for renters today.”

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    Truss Liz to get it wrong again.

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    The government is in fear that renters won’t be able to pay the rent in the economic crises ! Therefore force landlord to house them without receiving rent ! Without Section 21 the difficulties to evict them, with the Courts blocked and not functioning. Landlords won’t put up with this. They will continue to sell up, and rents will rise, only catering for high income tenants!!

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    Well that's a guarantor on every new tenancy created then and busy Courts will with Section 8's!
    I am not a vindictive Letting Agent but again the PRS are being offered little protection from default. I bet if a tenant defaulted on any other type of binding agreement such as their Council Tax, utility contracts, car lease, etc there would be men knocking at doors eventually.
    FFS, is it a crime to now own investment property as an alternative to the LHA chaos?!

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    Yes, Polly and others woud make it a crime.

     
  • Kristjan Byfield

    Firstly, thank you to The Times for a spurious story that has been proven to have no substance making more waves in already very stormy waters! We need to stay calm, over 85% of tenancies are ended by the tenant- this will not change. Rent increases will be enshrined. Right to re-occupy & sell will be enshrined. Yes, ASB or arrears will need to be tackled with S8 and court action BUT this is a small number in the market. As Angus says above, one way to negate some risk is to require guarantors for a broader spectrum of tenancies. It could also be argued that any decent Rent Warranty & Vacant Possession product will be incredibly sensible to have- if not critical- especially in the early days when the courts will be overwhelmed. Most products offer substantial cover for £100-200 per annum.

    James B

    We manage almost 500 and I’d say it’s closer to 95% ended by tenants
    We have guarantors in every contract now and have done for 3 years, two thirds of our stock has homeowner working guarantors

     
  • Matthew Payne

    Is that a W turn?

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    Kristjan please quote your sources for your information?

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