Possession reforms must retain landlords’ confidence

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Section 21:

Interested parties representing landlords and letting agents
have formed a group to be known as the “Fair Possessions Coalition�.

The industry leaders’ group has united in warning the Government
that plans to abolish the no-fault Section 21 repossessions process, before a safeguarded
alternative system is in place, would undermine investment in the sector. This
they say is crucial at a time when private landlords are being heavily relied
upon on to provide homes for one in five households in England.

The collective says that, “Section 21 repossessions should
be retained in the private rented sector unless and until a new system is in
place that provides landlords with the same level of confidence  about repossessing properties in legitimate
circumstances.�

The Fair Possessions Coalition is so far made up of: ARLA
Propertymark; Cornwall Residential Landlords Association; Country Land and
Business Association; East Midlands Property Owners; Eastern Landlords
Association; Guild of Residential Landlords; Humber Landlords Association;
iHowz; Landlord Action; Leeds Property Association; National Landlords
Alliance; National Landlords Association; North West Landlords Association;
Portsmouth and District Private Landlords’ Association; Residential Landlords
Association; Safe Agent; South West Landlords Association; and Theresa Wallace
(Chair, The Lettings Industry Council)

Landlords and letting agents are worried that simply abolishing
section 21 without the necessary safeguards will undo all that the 1988 Housing
Act provided as an incentive for landlords to invest in the rental property market.
Already tax and regulatory changes are taking their toll and some landlords
have already taken steps to abandon the market.

In a statement the Coalition says:

“…whilst landlords much prefer to have good tenants staying
long term in their properties they need certainty that in legitimate
circumstances, such as tenant rent arrears or anti-social behaviour, they can
swiftly and easily repossess their properties in much the same way as social
landlords and mortgage lenders.�

Government has intimated that simply tweaking the current
‘Section 8’ process, under which landlords can repossess properties based on a
number of grounds, would suffice. But landlords, especially those who have
experience of the current courts system, have little confidence that this would
work to their satisfaction.

The coalition says, “[It – section 8] …is not fit for
purpose and does not provide the level of certainty offered by Section 21. The
current judicial process for dealing with possession cases is confusing for
tenants and takes an average of over five months from a landlord applying to
the courts for a property to be repossessed to it actually happening.�

Instead of tinkering with the system, the Coalition thinks,
a comprehensive overhaul of the regulations and processes enabling landlords to
repossess their properties is what’s needed. The government would need to
set-out clear grounds for repossession and a mechanism for swift action in
dealing with re-possessions that are unable to be exploited by criminal
landlords or unreliable tenants.

Linked to the reform, says the Coalition, “should be the
establishment of a new, dedicated, fully funded housing court. This should make
better use of mediation taking into account models in use abroad and meet in
local venues such as schools and community centres, making the process less
intimidating and easier for landlords and tenants to obtain the swift and
accessible justice they need if the relationship is to work effectively.

“…such reforms must form part of a wider package of measures
including welfare reforms to better support vulnerable tenants to sustain
tenancies and smart taxation to encourage the development of the new homes for
private rent the country needs.�

A full copy of the statement, which has been sent to the Government, can be accessed here

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