section 21: landlords' reaction
The consultation on the abolition of section 21 has now ended. If the proposed plans come into force, this is likely to be announced soon, and any changes would take place in late 2020 or early 2021.
Section 21 evictions allow landlords to end an assured shorthold tenancy (the most common kind of tenancy), without giving a reason, provided they give enough notice.
How are landlords reacting to these proposed changes?
Lyvly have surveyed 163 landlords and property investors, asking them what that their plans for their property portfolio are in the next twelve months, taking into account the possibility that section 21 and assured shorthold tenancies (ASTs) will be scrapped.
I plan to increase it - 22%
I plan to decrease it - 23%
It will stay the same - 25%
I haven't decided yet - 31%
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In a separate survey carried out by Lyvly, 129 landlords also shared whether they are feeling ready for a potential abolition of section 21 and an official end to ASTs.
Yes - 27%
No - 40%
I'm neutral - 33%
READ more on SECTION 21 & SECTION 8 - A NEW DEAL FOR RENTING
The government wants to repeal section 21 and end ASTs because they believe that tenants will have more security as a result. Landlords, on the other hand, are nervous. The current system gives them a good degree of flexibility and allows them to remove tenants who don’t pay rent relatively easily. It is yet to be revealed whether amendments to section 8 will compensate sufficiently for the loss of section 21.
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The biggest concern on landlords' minds is how new regulations will affect their investments. The outcome may not be nearly as bleak as some media outlets suggest. But one thing is certain, landlords are not ready for big changes and "uncertain / undecided" is the best way to describe their current state of mind.