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Assured Shorthold Tenancies | ‘no fault’ section 21 eviction

Question – I am an investment advisor to a number of wealthy families and, like a lot of people, I have focussed a lot of my client’s investments around the residential property all of which are let on Assured Shorthold Tenancies.  Do you think that the abolition of the ‘no fault’ section 21 eviction is going to have a devastating effect on landlords that people are saying?  Should I consider advising my clients to start to sell up?  Everything I read on the subject is adamant that this is a disaster for landlords – is that your view?

Answer – I can only answer the 3 questions in the same way that Amy Winehouse would…’No, No, No.  As you may have seen in other blogs/articles I have written, from the outset, I have taken the view that the impact of abolishing section 21 would likely have a worse impact on tenants than it would on landlords and I have seen nothing to change my mind.

If you look at the private rental sector as a whole, the majority of landlord’s have become landlord’s in order to either capitalise on capital growth, the return on investment provided by the rent or as a contribution towards their pension.  That being the case, how many landlord’s would want a tenant to leave for ‘no reason?  Very few I would think.  Why would they want a vacant property given their objective is to make a return on their investment?

The only time that I can see the majority of landlord’s, and I would include your client’s in this, wanting to have a vacate property is if they wish to sell and believe the property is more marketable without a tenant.  As I said at the outset, the Government could not abolish the ‘no fault evictions without adding, at least, a new ground allowing evictions to take place if the landlord wished to sell and if you look at the latest proposals (click on the link below) you will see that this is exactly what the Government are proposing. Obviously, the devil is in the detail but if the proposal is enacted in the same way as it has been in Scotland then the evidence required to show that a landlord ‘is really going to sell’ is incredibly limited.

So if your clients can still get vacant possession if they want to sell the property what really is the problem, to landlord’s like your client’s, if ‘no fault’ evictions are abolished?  I can’t really think of one, to be honest.  In fact, the scaremongering that has been going on which has led to a number of landlord’s selling up is only going to push rents up as supply diminishes!  It will be interesting to see what is actually brought in but as I say I still think there are few better investments than property.

Content Writer​

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Last updated | 19 July 2023

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