Government to reform repossession system before end of section 21

The government is also introducing a ground for repossession that will protect the yearly nature of the student housing market.

Related topics:  Finance News,  Buy-to-let
Rozi Jones | Editor, Financial Reporter
23rd October 2023
legal scales
"We will not proceed with the abolition of section 21, until reforms to the justice system are in place."

The government has pledged that section 21 ‘no fault’ repossessions will not be scrapped until improvements have been made to the way courts handle legitimate possession cases.

At present it takes an average of over half a year for the courts to process possession claims where landlords have good cause, such as tenant rent arrears or anti-social behaviour.

The National Residential Landlords Association (NRLA) has argued that without quicker court processes, responsible landlords would leave the market following the abolition of section 21.

Responding to a report from the House of Commons Housing Select Committee ahead of MPs debating the Renters (Reform) Bill, the government has confirmed that implementation of the new system for repossessing properties “will not take place until we judge sufficient progress has been made to improve the courts.” It continues: “That means we will not proceed with the abolition of section 21, until reforms to the justice system are in place.”

In addition, the government has said it will “introduce a ground for possession that will facilitate the yearly cycle of short-term student tenancies” which “will enable new students to sign up to a property in advance, safe in the knowledge they will have somewhere to live the next year.”

Ben Beadle, chief executive of the NRLA, said: “Reform of the rental market will only work if it has the confidence of responsible landlords every bit as much as tenants. This is especially important given the rental housing supply crisis renters now face.

“Following extensive campaigning by the NRLA, we welcome the approach taken by ministers to ensure court improvements are made before section 21 ends. The Government is also right to protect the student housing market. However, more is needed to ensure student landlords are treated the same as providers of purpose-built student accommodation.

“We will continue to engage positively with all parties as the Bill progresses through Parliament.”

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