When you read about section 21 and its abolition in the press, it all seems to be about tenants’ rights.
I wrote about this also here. Where I discussed how the ever-present prospect of eviction can cause damage to tenants, to society and can encourage criminal landlords.
However, there is another problem with section 21. The cost to Local Authorities of rehousing tenants made homeless under section 21 is causing them acute financial problems.
It is indeed a major reason why many of them are issuing Section 114 notices. Which effectively means that they are bankrupt.
This, in turn, has a devastating effect on all the other services that they provide.
Local Authorities’ obligations to the homeless
One of the duties of Local Authorities is to rehouse people who have been made homeless and who are in ‘priority need’. The duty arises if the following conditions apply:
- They are eligible for assistance (on the whole, this means British nationals)
- They are homeless or are threatened with homelessness
- They fall into one of the ‘priority need’ categories. The most important being families with young children
- They have not made themselves ‘voluntarily homeless’. For example, if they are being evicted because of their behaviour. Or because they have given up accommodation available to them
- They have some sort of local connection with the local authority they apply to. Although, this does not apply if they do not have any local connections at all.
The problem with section 21 is that it is ‘no fault’. So if someone is actually being evicted by their landlord because they are not paying the rent or if they are behaving in an anti-social manner – this is disguised by the fact that the no-fault procedure is being used.
So Local Authorities are being forced to house people who, had the true state of affairs been apparent, would not be eligible for rehousing.
The other problem is the fact that Local Authorities have been forced to sell off much of their housing at an undervalue under the ‘right to buy’. So they do not have much housing available. Meaning that they are forced to house people in expensive hotels and B&Bs. That being the only accommodation available.
The fact that so many people are calling on them to be rehoused, coupled with the fact that they are being forced to rehouse these people in expensive B&B and hotel accommodations, is creating intolerable pressure on many Local Authorities.
The real reason for section 21 abolition by Labour
This is the real reason why Labour is determined to abolish Section 21 at the earliest opportunity.
They want to help tenants, true. But the most important reason is to help Local Authorities stay solvent and reduce the burden of the massive cost of rehousing the homeless.
Indeed I have heard Keir Starmer say this.
If section 21 were abolished
This would not be as bad for landlords as many fear. Particularly if the abolition comes as part of the Renters Reform Bill. As this brings in several other grounds that landlords could use instead.
The advantage of the abolition for Local Authorites is that it would make clear the reason for the eviction.
So if the reason for the eviction was down to tenant behaviour (such as failing to pay rent or behaving badly) then they would have a reason to refuse to rehouse them.
Which would relieve the financial pressure on them.
It might also encourage tenants to behave more responsibly. At present, badly behaved tenants are being rehoused because their landlord is using section 21.
However if the reason for the eviction was apparent, many of them would not be rehoused. Which could result in an improvement in tenant behaviour.
The reduction in rehousing costs will also benefit all of us, if it prevents Councils from issuing Section 114 notices and having to cut services.
The post How the abolition of section 21 will help Local Authorities and all who use them appeared first on The Landlord Law Blog.