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Clarke & Son Blog

The No-Fault Eviction Ban

It is reported in the Law Society Gazette today that “Landlords will be banned from evicting tenants without giving a proper reason under proposed reforms for a ‘fairer’ private rented sector” and that “In a white paper published today, the government said it would abolish section 21 ‘no fault’ evictions”.

We can see the rationale for this where good tenants find their lives disrupted by having to move.

However my concern is that, without rent controls, added security of tenure could well lead to an upward pressure on rents.

How it would impact on buy to let landlords and their ability to raise funds to finance purchases is another issue. Banks prefer to lend where their security is most liquid. The current section 21 procedure provides the necessary flexibility for lenders.

A possible alternative I have seen is to the effect that if a landlord is proposing to end a tenancy to sell that the tenant is at least given a right of first refusal.

If you have any queries, please do not hesitate to get in touch via email: mail@clarkeandson.co.uk or call at 01256 320555

Paul Cowdery

Litigation & Employment Director

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