Perhaps more people should write to their MPās, this was my attemptā¦
Dear Barry Sheerman MP
As a constituent and one of the 2.5 million landlords housing people in the UK, I am writing to you to express my serious concerns over the proposed abolition of section 21 of the Housing Act 1988.
I have been a full time residential landlord in the Huddersfield area for over 20 years and have 13 residential properties as well as being connected with a number of commercial properties. Throughout this time I have issued only one Section 21 notice. This notice was issued to a tenant of ours who had been renting their property with us for 7 years. For whatever circumstances sadly their lifestyle changed and theirs and their new friendās behaviour began to affect the wellbeing of our other tenants who shared the same block. We tried over a six month period to resolve the ever increasing issues and sadly we were unable to achieve an amicable solution for all concerned. With the mindset that this one person was making life miserable for another 3 families we then took the decision to reclaim possession of the property. Whilst we could have used the Section 8 process, we felt that the onus of proof could further delay proceedings and ultimately not give us the guaranteed possession we required. You have to be a good detective and understandably not everyone wants to be your witness through fear of reprisals.
In the same way that any business owner can refuse custom and clients, should it not be that a landlord can also use this common sense approach in the best interest of the collective community?
I and my Companyās policy has been and is, to let quality homes at competitive rents, providing a responsible management service for all our tenants and tenant communities.
This proposed change in the law has already encouraged us to look at other options and we have valued our portfolio with the view to begin selling off our assets. This would have the effect of removing 13 properties from the PRS in Huddersfield adding to the existing quality housing shortage.
The text below details further our collective concerns and issues
Section 21 is often described as the āno faultā route to repossession but the reality is almost all notices are served because of poor behaviour by the tenant. Research by Manchester Metropolitan University found that in over 90% of cases, the landlord attempts repossession because of rent arrears or antisocial behaviour by the tenant.
Landlords need the security of section 21 because repossession based on grounds (section 8) is unreasonably difficult to achieve in a timely fashion because:
- Possession is too slow. The MOJ revealed that it took 22 weeks on average for landlords to regain possession of their property in 2017. This means that a tenant in continuous rent arrears would accrue on average Ā£6,624 in arrears before possession is enforced.
- Possession is not guaranteed even after a serious breach. Tenants may continue to live in the property as long as they keep their rent just Ā£1 below two months of arrears.
- Section 8 is much harder to use than the section 21 procedure. The accelerated possession form for section 21 is simpler to fill out and does not require a hearing.
- Landlords are not provided with enough guidance or support and find the court hearings confusing.
- Section 8 does not allow landlords to repossess their property so they can house a family member or sell their property. It is also extremely difficult to gain possession where antisocial behaviour has occurred.
Confidence in the sector is already fragile after the recent tax changes and increase in regulations with 25% of landlords set to sell properties in 2019. Abolishing section 21 will lead to more landlords selling or restricting who they let out to. With 22% of PRS renters in receipt of Housing Benefit these vulnerable tenants may find it difficult to rent in future with a smaller PRS and increasing demand for rented homes.
I urge you to press the Housing Minister not to go forward with this proposal. However, if section 21 must be revoked then I must be able to repossess my properties with confidence or I may not continue in the market without significant improvements such as:
- Creating a specialist, low cost, housing court to handle repossession cases by judges and experts with specialist knowledge. This court should make extensive use of online facilities to lower costs, reduce delays, and guide landlords through the process.
- Introducing number of new section 8 grounds to improve the notice.
- Making it easier to gain possession via the existing grounds of section 8.
- Allowing some section 8 grounds to use the accelerated possession route.
I would welcome the opportunity to discuss my concerns with you, and would be grateful if you would let me know when you are next available to speak with me over the phone?
Thank you for reading about my concerns and I look forward to your reply.
