1. Abolition of Section 21 – ‘no-fault’ evictions

The government is still committed to abolishing Section 21, despite concerns raised about the court system’s ability to cope with the potential increase in possession claims.

We’re reassured to see that the Ministry of Justice is working on digitising the county court process – a change we hope will result in faster, more efficient resolutions for owners when possession is required. However, we know the removal of Section 21 is a major shift, and we’re here to guide owners through what this means in practice.

What this means in practical terms

Since this Bill has been in debate since 2019 we have seen an increase in owners who want to issue a section 21 for a variety of reasons. Where the resident has not moved out on the on the set date, we have had to apply to courts for a new date, which will make the resident ‘homeless’ therefore the council has an obligation to house the resident. What seems to be the hidden agenda in this part of the Bill is
that the councils will not have the obligation to re-home – let’s be honest the housing isn’t there. We have seen the length of time that it takes for a resident to leave the property go from an average of two months to six months. It will be interesting to see how digitisation works, but the best way for an owner to protect themselves is to make sure they have legal cover and rent guarantee until the dust settles at least

2. The end of fixed-term tenancies

The Bill confirms that periodic tenancies will become the standard, effectively scrapping fixed term assured shorthold tenancies (ASTs). This is a big change, particularly for those letting to students or professionals on short-term contracts.

A new clause – Ground 6B – has been introduced to allow owners to regain possession if their superior lease ends. This is especially relevant for owners who are leaseholders themselves. However, concerns remain about misuse and lack of compensation for residents being asked to leave under this ground.

So, what’s a periodic tenancy?

A periodic tenancy runs on a rolling basis – usually month to month. There’s no defined end date, and either party can end the tenancy by giving notice:

• Residents can leave by giving two months’ notice.
• Owners can regain possession using specific grounds under Section 8 (once Section 21 is gone).

What this means in practical terms for owners

As we have understood this was coming down the road for some time. We have been actively talking to our owners as the first term comes to an end. Suggesting that a periodic tenancy gives no less security of tenure.

75% of the tenancies that we run are already periodic and we have an average tenure of 45 months. So at this stage I cannot see changing all tenancies to periodic will that much difference to the majority of tenancies. There will always be anomalies. It will be interesting to see how mortgage companies change their terms in the light of the changes. As an aside this legislation was set out to give residents more security but in my mind it gives them far less.

3. Rent increases

Peers raised the alarm about rent increase appeals, with predictions that the new rules could open the floodgates to challenges. Proposals were made to limit both the frequency and scale of increases, though none have been finalised.

What this means in practical terms for owners

Rents will always be able to increase in line with the market rate. Which is what we have been practising for many years. If you put forward a reasonable rent increase with information to back this up (which we always have). Regarding frequency again we have always run in line with 1988 Housing Act which allows an increase every 12 months. So, no change this end.

4. Pets in lets – still to be finalised

Day Four focused on Residents’ rights to keep pets. Although no final decisions were made, amendments are still being considered to define what counts as a “reasonable refusal” for pet requests – including in cases of shared accommodation or allergy concerns.

What this means in practical terms for owners

We receive more complaints about neighbours’ behaviour than outcomes from check out from pet damage. The ‘Lets with Pets’ group have reported that 65% of pet owners struggle to find suitable rentals

We have always understood the concerns around pets, and we’re ready to help implement fair policies that balance residents’ needs with protection for your property – including Pet Damage Insurance where needed.

5. Advance rent and guarantors

A major talking point was the unintended consequences of restricting rent in advance – especially the risk of placing greater pressure on guarantors. While proposals to cap advance rent were made, none were adopted, though further guidance has been promised.

What this means in practical terms for owners

Due to money laundering concerns it has been very rare for us to take money in advance in lieu of rental payments or to cover the lack of referencing. be assured we are working with trusted referencing partners to provide robust guarantor options and ensure every tenancy remains secure and compliant.

6. Landlord database – get ready

One of the more certain outcomes is that all Owners will be legally required to register on a new national database, along with their rental properties. If you’re not registered, you may be barred from serving notice (except for anti-social behaviour cases) and could face repayment claims from residents.

What this means in practical terms for owners

We’re already preparing systems to manage this on behalf of our fully managed clients – so you won’t need to worry.