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Potential ‘loophole’ identified in current provision for stopping evictions under Article 21

Commenters have identified a potential “loophole” in the Tenants (Reform) Bill that will create a patchwork system where some landlords will be able to continue to serve Section 21 notices and others will not.

Goodlord insurance managing director Oli Sherlock and Dutton Gregory Solicitors solicitor Ryan Heaven say they have identified a critical detail which will impact some tenancies following careful analysis of the current Tenants Bill (reform).

According to Sherlock and Heaven, and discussed during a recent webinar, despite the Housing Secretary’s pledge that Section 21 will have been banned by the time the country goes to the polls in a general election, it seems highly unlikely that this turns out to be the case.

“Many people insist that Michael Gove said that Section 21 would be ‘banned’ before the election, but if you look at the bill more closely, that’s not what will happen; Whenever the election date approaches, some landlords in this country will still be able to serve a Section 21 notice, even if others cannot. Heaven said.

Instead, the adopted bill will usher in a new phase where three main types of tenancy exist, one of which will still allow the application of Article 21:

  1. A new rental created after the implementation of the bill

  2. Any fixed-term rental that becomes periodic once the bill is implemented

    • Landlords would still be able to serve a section 21 notice until the tenancy changes to a periodic tenancy. However, once this happens, the new rules apply and you can no longer serve a sentence under section 21.

  3. Periodic rentals at the time of implementation of the bill

    • For these tenancies, landlords will still be able to apply Section 21 until the government reviews the justice system, reports to Parliament, and then sets an “extended implementation date”, when the new rules will apply. will all apply to all rentals.

    • Therefore, rentals falling into this category could receive a section 21 notice after the election.

Sherlock commented: “As the Bill stands, it appears that the apparent promise to delay the removal of section 21 to allow for reform of the courts is not what it appears to be. Instead, it appears the market will be subject to a fragmented process in which some rentals will allow Section 21, others will not, and others could fall into either camp depending on the how rental renewal is managed.

“All of this would take place alongside an investigation into the courts, for which there is currently no confirmed timetable or identifiable measure of success. The profound irony here is that the same courts will increasingly deal with cases relating to tenancies for which Section 21 has already been banned. This is arguably the worst outcome for all parties. »