Repeal of Section 21 and Why You Shouldn't Worry So Much

With recent government announcements surrounding Section 21, it's understandably caused a stir within the landlord community. Full details of the bill are yet to land, which hasn't prevented the majority of landlord-leaning commentators predicting a mass exodus from the market. You'd be forgiven for thinking the private rental scene consisted entirely of antisocial tenants who never paid their rent. If you're a landlord, what's needed is a rational take on the events. To both paraphrase and misquote, news of the death of buy-to-let has been greatly exaggerated.

Undoubtedly, it's been a tough last few years for landlords with small portfolios, who – let's not forget – make up the majority of private rentals in England. Changes to the tax regime haven't been kind; in the past the government have been accused of using a sledge hammer to crack a proverbial egg. Are they doing the same again with the repeal of Section 21? As with most things in life it depends on your perspective.

After the bluster, by far the most likely action if you're a long-term landlord will be - to do nothing. Some who were already wobbling might just head for the exit. But as has been demonstrated over the years, landlords are a resilient and adaptable bunch.

Looking beyond the headlines you'll see that as well as removing so-called “no fault evictions”, the government also proposes to bolster section 8 evictions; granting landlords power to evict tenants if they decide to sell-up or move-in themselves. There are also plans to establish housing courts to better deal with the doubtless increase in cases brought. Of course we don't know how effective Section 8 version 2.0 will be, but we don't know that it won't work either.

The Renters Reform Bill also brings with it some welcome ideas such as 'lifetime deposits' – something which has the potential to bring greater flexibility and accessibility to the private rental sector. So more tenants. What's not to like?

Looking at things from a global perspective, the aim is to transform the rental market into a longer-term arena. It will take time, and there will be individual casualties along the way. But high-quality, long-term tenancies are gold for the majority of landlords. And to take a more holistic view, removing housing insecurity for a swathe of society might be a tide that all boats can rise on.

So tenancies moving forward will have to be thought of as longer-term projects, and letting properties a carefully considered move. Perhaps the smarter agents will place more emphasis on getting to know their prospective tenants, and up their game when it comes to referencing. The even smarter ones will let the world know that's what they're doing.