A surge in the number of tenants seeking assistance with no-fault evictions suggests that landlords may be rushing to evict tenants before new legislation banning the practice takes effect in England. Last month, Citizens Advice helped nearly 2,000 individuals facing section 21 evictions, marking the highest number in a single month on record and a 25% increase since May 2022.
The renters’ reform bill, introduced by Michael Gove, the secretary of state for levelling up, housing, and communities, will outlaw this practice and affect approximately 11 million private renters. Additionally, record numbers of landlords are selling their properties due to rising mortgage interest rates, according to the National Residential Landlords Association. Ben Beadle, the CEO of the lobby group, stated that landlords are seeking possession of properties because it is no longer financially viable to continue letting them.
Citizens Advice conducted research revealing that 48% of tenants who have experienced an eviction had been informed by their landlords that they wanted to sell the property. The advice organization also raised concerns about a potential “back-door eviction” route in the current draft of the bill under parliamentary review. This provision would allow landlords to evict tenants within six months of starting a tenancy by claiming the intent to sell or relocate their family. However, the new regulations would not require landlords to provide evidence of their intentions once the tenant has vacated, leaving them susceptible to exploitation by unscrupulous landlords, as Matthew Upton from Citizens Advice warned.
To ensure the effectiveness of the reforms and prevent section 21 evictions from continuing through other means, Upton emphasized the need for the government to close any potential loopholes. The Department of Levelling Up expressed its commitment to not tolerating any attempts to circumvent the law and stated that the reforms would prevent section 21 evictions from being replicated through rent hikes. Landlords seeking possession through the courts would be required to prove their intention to sell or move themselves or family members into the property. Furthermore, landlords would not be able to remarket or relet their property for three months after utilizing these grounds, thus preventing exploitation of these provisions.
The increasing number of tenants seeking assistance from Citizens Advice adds to the 54,000 households in England’s private rented sector that have faced the threat of no-fault eviction since Theresa May first pledged to end the practice in April 2019. The demand for rentals has risen by 50% following the pandemic, exceeding the five-year average. Simultaneously, the supply of rental homes has declined, leading to an 11% annual increase in the price of new lets in March, according to Zoopla. Many individuals facing the current wave of no-fault evictions had recently challenged rent increases.
One such case is that of Amar, his wife, and their two young children, who turned to Citizens Advice for assistance. After renting for two years, they were hit with a £400-a-month rent increase. When the couple contested the rise, their landlord served them a section 21 notice. Amar expressed his deep concern and worry, as he is uncertain about their future and where they will live. His wife is also experiencing significant stress, fearing homelessness.
In conclusion, the surge in renters seeking help with no-fault evictions points to potential landlord behavior to expedite the eviction process before the implementation of new legislation. The renters’ reform bill aims to prohibit this practice and ensure the welfare of the 11 million private renters in England. However, concerns about loopholes and back-door evictions persist, demanding tighter regulations and accountability from landlords.
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