Some landlords will be able to continue serving Section 21 notices under the Renters (Reform) Bill, despite the Housing Secretary Michael Gove's promise that their demise will come shortly after the legislation is approved.

“A lot of people place emphasis on Michael Gove stating that Section 21 would be ‘outlawed’ before the election, but when you examine the Bill closer this is not what will happen; whenever the election date is there will be some landlords in this country who will still be able to serve a Section 21 notice even if it others are not able to,” says Ryan Heaven (pictured right), associate solicitor at Dutton Gregory Solicitors.

Tenancy types

Speaking on Goodlord’s recent webinar, he explains that the Bill will usher in a new phase where three broad tenancy types exist: a new tenancy created after the Bill has been implemented under which you can’t serve a Section 21 notice; a fixed-term tenancy that becomes periodic once the Bill has been implemented, under which landlords would still be able to serve a Section 21 notice until the tenancy switches over to a periodic one; and a periodic tenancy when the Bill is implemented.

Under this third type of periodic tenancy, landlords will still be able to serve a Section 21 until the government reviews the court system, reports on it to Parliament, and then sets an ‘extended implementation date’ – or backstop - at which date the new rules all apply to all tenancies.

Taking chance

“As such, tenancies which fall into this category could be served a Section 21 notice after the election,” adds Heaven. “If you want to use Section 21 for the longest possible time, let tenancies go periodic and don’t renew them. Any new tenancies, you’re just taking the chance.”

Speaking on Radio 4 at the weekend, Gove said: “I hope that the Bill that will ensure that we no longer have Section 21 will receive Royal Assent, in other words, will be done and dusted by the summer. Then it will be, I hope, a matter of months after that that we will end Section 21 for new tenants, and then shortly after that we will be in a position to end Section 21 altogether.”

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