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The End of No Fault Evictions

After a period of uncertainty, the Government has finally reconfirmed its intention to pursue its proposed rental reforms. One of the most controversial has been the plan to axe Section 21, the so called “no fault eviction”. Section 21, put simply, gives landlords the option of terminating a tenancy that has reached the end of its fixed term by serving two months notice. Unlike a section 8 notice the landlord does not have to rely on one of the fault based statutory grounds.

This mechanism has been popular with landlords as it offered a simple way to remove a tenant. The alternative section 8 procedure requires the court to agree, that one of the statutory grounds has been met. By removing section 21 the Government hope to make more time for the courts to be able to hear more serious cases. They also hope that this change in the law will prevent tenants being penalised by unscrupulous landlords who look to evict those people who complain about poor maintenance of their property. The Government has also said that it will strengthen the section 8 provisions including adding a provision for landlords who simply wish to sell the property.

So, what does this mean for investors and how can we protect ourselves? Quite simply a good agent will be invaluable here. Have the tenancy agreements been drafted correctly? What credit control processes do the agents have in place? How are records kept and what procedures do they have to ensure landlord stays informed? What is the landlord not prepared to tolerate when it comes to their property and has this been expressed correctly within the rental agreement?

For help and advice on this or any other aspect of rental management speak to one of our expert team.

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