The long awaited second reading of The White Paper Reform was heard on Monday 23^rd October, which was an unexpected surprise as it was rumoured to be unlikely before the King’s Speech.

In order for the bill to pass and to be able to take effect before the end of the current parliament, there had to be some changes.

One of these changes was to delay the ban of Section 21 notice. Housing secretary Michael Gove said it was “vital” to update the courts first before implementing the full abolition, which include;

• digitising more of the court process to make it simpler and easier for landlords to use;
• exploring the prioritisation of certain cases, including antisocial behaviour;
• improving bailiff recruitment and retention and reducing administrative tasks so bailiffs can prioritise possession enforcement; and
• providing early legal advice and better signposting for tenants, including to help them find a housing solution that meets their needs.

This delay will be good news for landlords. Many landlords are exiting the market due to the massive changes that included the Section 21 ban. In my experience and in 99% of the cases where we have issued a Section 21 on behalf of our clients, are because the landlord either wanted to sell, move back in or the tenants were in rent arrears. It cannot proceed to court until there is a minimum of 2 months rent arrears and very often by the time it gets to court, the tenant is around 4-6 plus months in arrears.

The knock-on affect to landlords exiting the market has been a significant rise in rents, with this slight delay, we may see the market prices start to calm.

At Move On, we are helping landlords sell their tenanted properties to investors. If you would like an informal chat on your options, please Email sharon@moveon.biz or ring me 01202 711169.

 

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