Experts in the private rented sector have identified a potential loophole in the Renters (Reform) Bill that could lead to a confusing system for landlords and tenants regarding evictions.
The Bill, which aims to eliminate Section 21 ‘no-fault’ evictions, might not fully achieve this goal. The Bill will create three main types of tenancies, with one type still allowing the enforcement of Section 21:
- New tenancies created after the Bill’s implementation: Landlords will be prohibited from serving a Section 21 notice.
- Fixed-term tenancies that become periodic after the Bill’s implementation: Landlords can serve a Section 21 notice until the tenancy transitions to a periodic one, at which point the new rules will apply, and Section 21 notices will no longer be allowed.
- Tenancies that are already periodic when the Bill is implemented: Landlords can continue to serve Section 21 notices until the government reviews the court system, reports to Parliament, and sets an ‘extended implementation date,’ after which the new rules will apply to all tenancies.
Under the final scenario, landlords could still issue Section 21 notices even after the election.