Landlords 'More Selective' Post-Section 21 Ban, Warns COHO
UKPulse Property Desk
Landlords are reportedly becoming more stringent in tenant selection following the abolition of Section 21 'no-fault' evictions. Research by COHO indicates a significant rise in eviction notices ahead of the Renters' Rights Act taking effect.
- Abolition of Section 21 has led to landlords being more cautious when selecting tenants.
- COHO research estimates 73,900 additional eviction notices issued since 2023, with nearly 20,000 in the month before the law changed.
- Landlords view Section 21 as a 'safety net' for managing tenant issues, and its removal alters risk assessment.
- Eviction notice rates spiked significantly, reaching 27.1% just as the legislation came into force in May.
- The change could lead to wider impacts across the UK rental market, potentially making it harder for 'higher-risk' tenants to secure properties.
The abolition of Section 21 'no-fault' evictions has sparked a seismic shift in the UK rental market, with landlords adopting a more cautious approach to tenant selection. COHO's research reveals that an estimated 73,900 additional eviction notices have been issued since 2023, as landlords sought to manage their portfolios under the previous rules before the changes took hold.
According to COHO's findings, nearly 20,000 of these eviction notices were served in the final month leading up to the new legislation. This surge highlights landlords' efforts to mitigate risks associated with the Renters' Rights Act, which came into effect on 1st May. The removal of Section 21 has left landlords feeling more exposed, prompting them to exercise greater caution when assessing prospective tenants.
Vann Vogstad, CEO and co-founder of COHO, explains that Section 21 previously offered landlords a crucial 'safety net', allowing them to work with tenants through financial difficulties or other challenges. Its removal has understandably altered landlord behaviour, leading to a more risk-averse approach to tenant selection.
COHO's data shows that Section 21-related evictions stood at 5.7% before the initial discussions around the Renters' Rights Act, rising to over 8% following the news of the Act and peaking at 27.1% after it came into force in May this year.
The implications of this heightened selectivity could be far-reaching, potentially making it more challenging for certain groups of tenants to find accommodation and reshaping the dynamics of the private rental sector across the UK.
Why this matters: This shift in landlord behaviour could significantly impact the availability and accessibility of rental properties across the UK, especially for tenants who might have previously been considered higher risk. It highlights the unintended consequences of major legislative changes in the housing sector.
What this means for you: What this means for you: If you are a tenant, particularly one with a less-than-perfect rental history or an unsteady income, you may find landlords conducting more thorough vetting and potentially being less flexible. For landlords, it means a greater need for robust tenant referencing and a longer, more complex process for managing problematic tenancies without the 'no-fault' eviction route.