Propertymark has warned that abolishing Section 21 without an adequate replacement mechanism will add 'another nail in the coffin' of the PRS.
The industry body believes that if the new government takes this step, the courts in England and Wales will be overwhelmed, causing lengthy and costly delays for everyone involved, particularly landlords who have faced a raft of regulatory and financial pressures in recent years.
Propertymark members have already voiced their concerns around landlords looking to exit the sector. It says Section 21’s abolition will provide another reason for landlords to quit, prevent prospective investors from entering and create a further shortage of homes for tenants which will ultimately push rents up even further.
When the Bill was announced in May 2023, letting agents and landlords worried they would end up in limbo, anxious about how long they would be expected to wait for a hearing and, ultimately, get possession of their property. There are fears Labour’s proposals to abolish Section 21 could have the same impact.
The Tories’ Renters’ Reform Bill would have resulted in extending the grounds for possession under Section 8 instead – which would have meant many more cases have to go through the courts. Propertymark says this is why Labour need to clarify how their plans to remove Section 21 would work.
CEO Nathan Emerson (pictured right) adds: “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.”
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