Striking The Appropriate Balance Between the Interests of Tenants and Landlords: The Growing Issue of 'No-Fault' Evictions

A no-fault eviction is when a Landlord uses Section 21 of the Housing Act 1988 to evict a tenant with an assured shorthold tenancy without needing to give a reason. This means that tenants who have consistently paid rent on time, have caused no damage to the property and have not breached their contract in any way can be evicted through ‘no-fault’ of their own.‘[1] Despite many tenants wishing to remain in their homes, as long as the landlord follows the correct legal process and gives at least 2 months notice in writing, the tenant must leave. Consequently, by bypassing the need to prove the tenant has done anything wrong, Section 21 provides landlords with an easy and less bureaucratic way to regain possession of their property if they want to sell, move into the property or renovate it, offering them significant control over their investment.[2]  

However, this situation means that many tenants are often left susceptible to unexpected displacement. This is of particular concern when the most vulnerable tenants are considered as this regularly contributes to the risk of homelessness and/or housing insecurity. Similarly, the repercussions of no-fault evictions are often felt powerfully by families who find themselves unable to establish roots in a particular area or become fully immersed in the community as they have the constant threat of eviction hanging over their heads.[3] This lack of stability has been exacerbated by the exponential rent rises seen in the rental sector as a result of high demand, stemming from the shortage of affordable housing options available.[4] As a result, the consequences of ‘no-fault’ evictions are heightened as so few affordable options are available for tenants who desperately need somewhere else to live.

Advice Offered to Tenants

Shelter and Citizens Advice both advise that tenants do not have to leave immediately and that the tenancy continues until the tenant agrees to leave or the landlord applies to the court for a possession order.[5] This order means that the tenant must vacate the property by a date specified by the court. At this point, if the court does grant the possession order, the landlord can ask for a warrant of possession whereby bailiffs can evict the tenant from the property.[6] Although this could allow tenants approximately 6 months to find an alternative place to live, they might have to pay court costs if they decide to go to court and challenge the eviction.  

Ministry of Justice figures show that in 2023 30,230 no-fault eviction notices were served, a 28% increase from the 23,622 served in 2022.[7] The statistics highlight how prominent section 21 notices are and predictably it is the most vulnerable tenants who are most often affected.[8] Although all councils are under a duty to help stop people from becoming homeless, which should offer some protection for the most vulnerable, in reality 1.28 million households in England are currently on council waiting lists for a social home.[9] Consequently, section 21 is a leading cause of homelessness.[10]

Renters (Reform) Bill

Section 21 of the Housing Act 1988 has been a constant source of debate for many years since it places tenants at a significant disadvantage and embeds an inherent power imbalance between both landlords and tenants. Under the current legislation, tenants have very limited recourse to challenge the eviction unless the landlord has failed to comply with their legal obligations such as using the correct form, protecting the tenant’s deposit, providing a gas safety certificate and providing a safe living environment.[11] This ultimately places an unfair emotional and financial burden on tenants who are constantly facing the threat of eviction and housing instability. Action must be taken by the government to address the issues mentioned above, nevertheless, in doing so, the bill must strike the correct balance of interests and needs of both parties.

In response to the issues, the Conservatives promised in their 2019 general election manifesto to ban no-fault evictions. Since October 2023 MPs have been debating the Renters (Reform) Bill, however, it has yet to pass through the House of Commons. Under the bill, ‘no-fault’ evictions will be abolished, meaning landlords will no longer be able to evict tenants without giving one of the specific reasons set out in the Housing Act 1988 and issuing a section 8 notice with evidence to justify this reason.[12] The bill does however set out more comprehensive grounds for landlord possession, enabling landlords to “recover their property (including where they wish to sell their property or move in close family) and to make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour and repeat rent arrears”.[13]

During the time since the Conservatives first announced their plans for reform, the number of no-fault evictions by bailiffs has seen a huge increase of 49%, affecting 9,457 households in England.[14] Commentators such as Tom Darling, the campaign manager for the Renters’ Reform Coalition, noted the “shocking juxtaposition” of these figures when read against the backdrop of the Renters (Reform) Bill being put on “life-support” after being deprioritised by the government”[15].

 Does the Bill Go Far Enough?

Despite the increased provisions for tenants under the new bill, a group of charities have urged the government to strengthen the legislation further, claiming it does not go far enough. The Renters Reform Coalition are campaigning for:

●      “Tenants to be given four-month notice periods when being evicted, not the current plan of two months

●      Tenants to be protected from eviction for two years at the start of a tenancy, rather than six months at present

●      The evidential threshold for landlords when they are trying to evict tenants to be raised”[16]

They claim that without the changes outlined above, the experience of tenants will not change as renters will still face the threat of unfair evictions and will feel unable to challenge their landlords on matters relating to the basic standards of the property.

 Likewise, the Law Society expressed that although they are broadly supportive of the proposals, without investment in legal aid and the courts, “the bill will not achieve its aims and may lead to an increase in backlogs and landlords and tenants alike will be unable to enforce their legal rights”[17]. The National Residential Landlords Association has also called for the court system to be improved to enable landlords to regain possession of their properties when they have legitimate grounds to do so without lengthy delays.[18]

 In regards to the rights of landlords, the Law Society recognised that some situations may present that do warrant landlords evicting the tenant prior to the end of the tenancy and therefore, favoured proposals to widen the grounds for possession under section 8.[19]

Is the Bill On the Brink of Collapse?

 Despite being one of Prime Minister Rishi Sunak’s flagship policies, Whitehall insiders have suggested the promise to ban ‘no-fault’ evictions may now collapse as Michael Gove (Secretary of State for Levelling Up, Housing and Communities of the United Kingdom) is being held “ransom”[20] by angry backbench Conservative MPs. Approximately 50 Conservative Ministers, some of whom are landlords and have an invested interest, have expressed concerns about the bill and want to increase the rights of landlords.[21] The Ministers claim to fear that the reform in its current form would cause landlords to sell, reducing the number of rental properties available which are so vital given the unaffordability of the housing market. To alleviate these concerns, the government has promised a review of the scheme “with the explicit aim of reducing burdens on landlords"[22]. As arguably the interests of landlords are overrepresented in parliament compared to the interests of tenants, many fear that this will cause the protections for tenants to be limited in order to prioritise the rights of landlords and allow the bill to pass through the Commons.

 As it stands, the government is still insisting it will deliver on its promise and ban ‘no-fault’ evictions by the next election[23], however, whether the protections for renters will ultimately be watered down in favour of increased rights for landlords remains to be seen.

[1] Mariam Abu Hussein, ‘What You Need to Know About No Fault Evictions and Your Legal Rights’ (lawhive.co.uk, 25 October 2023) <https://lawhive.co.uk/knowledge-hub/landlord-tenant/what-you-need-to-know-about-no-fault-evictions-and-your-legal-rights/#:~:text=A%20no%20fault%20eviction%20is%20when%20a%20landlord%20uses%20Section,arrears%2C%20damage%2C%20or%20nuisance.> accessed 17 March 2024

[2] Gemma Cook, ‘The End of No-Fault Evictions: What Landlords and Tenants Need to Know About Section 21 Reform’ (gdlegalservices.co.uk, 15 September 2023) <https://www.gdlegalservices.co.uk/site/blog/landlordandtenantlaw/The_End_Of_No_Fault_Evictions> accessed 17 March 2024

[3] Jonathon Dinsdale, ‘The End of No-Fault Evictions - What Does This Mean for Landlords and Tenants?’ (Blandly.co.uk, 5 June 2023) <https://www.blandy.co.uk/about/news-and-insights/insights/the-end-of-no-fault-evictions-what-does-this-mean-for-landlords-and-tenants > accessed 17 March 2024

[4] Ibid.

[5] Shelter, ‘Section 21 Eviction’ (Shelter.org.uk, 9 January 2024) <https://england.shelter.org.uk/housing_advice/eviction/section_21_eviction/how_long_a_section_21_eviction_takes#:~:text=Section%2021%20notices%20are%20sometimes,section%2021%20notice%20is%20valid.> accessed 17 March 2024

Citizens Advice, ‘If you get a ‘no fault’ eviction notice’ (Citizensadvice.org.uk, 1 December 2022) <https://www.citizensadvice.org.uk/wales/housing/renting-privately-w/if-you-get-an-eviction-notice-w/if-you-get-a-no-fault-notice-w/#:~:text=A%20no%20fault%20notice%20is,stay%20longer%20in%20your%20home.> accessed 17 March 2024

[6] Ibid (n1)

[7] Ministry of Justice, ‘Mortgage and landlord possession statistics’ (gov.uk, 8 August 2023 updated 13 May 2021) <https://www.gov.uk/government/collections/mortgage-and-landlord-possession-statistics> accessed 17 March 2024

[8] Harry Farley, ‘Surge in no-fault evictions by bailiffs in England’ (bbc.co.uk, 8 February 2024) <https://www.bbc.co.uk/news/uk-politics-68239232.amp> accessed 17 March 2024

[9] Robert Booth, ‘Renters in England face rising no-fault evictions as reform bill delayed again’ (theguardian.com, 8 February 2024) <https://amp.theguardian.com/society/2024/feb/08/renters-in-england-face-rising-no-fault-evictions-as-reform-bill-delayed-again> accessed 17 March 2024

[10] The Law Society, ‘Renters' Reform Bill’ (lawsociety.org.uk, 23 January 2024) <https://www.lawsociety.org.uk/topics/social-welfare-and-housing/renters-reform-bill> accessed 17 March 2024

[11] Shelter, ‘Section 21 Eviction’ (Shelter.org.uk, 9 January 2024) <https://england.shelter.org.uk/housing_advice/eviction/section_21_eviction/how_long_a_section_21_eviction_takes#:~:text=Section%2021%20notices%20are%20sometimes,section%2021%20notice%20is%20valid.> accessed 17 March 2024

[12] Department for levelling up, housing and communities, ‘Guide to the Renters (Reform) Bill’ (gov.uk, 17 May 2023) <https://www.gov.uk/guidance/guide-to-the-renters-reform-bill> accessed 17 March 2024

[13] ibid.

[14] Ibid (n7)

[15] Liam Geraghty, ‘Surge in number of no-fault evictions, figures show: 'How are renters expected to live like this?'’ (Bigissue.com, 8 February 2024) <https://www.bigissue.com/news/housing/section-21-no-fault-evictions-rise-renters-reform-bill/> accessed 17 March 2024

[16] Harry Farley, ‘Renters will still face unfair evictions under 'inadequate' new bill, say campaigners’ (bbc.co.uk, 10 February 2024) <https://www.bbc.co.uk/news/uk-politics-68250070.amp > accessed 17 March 2024

[17] Ibid (n10)

[18] Sam Hunter, ‘Rental reforms won't work without improvements to courts, NRLA tells MPs’ (nrla.org.uk, 17 November 2023) <https://www.nrla.org.uk/news-rental-reforms-wont-work-without-improvements-to-courts-nrla-tells-mps> accessed 17 March 2024

[19] Ibid (n10)

[20] Noa Hoffman, ‘RENT 'RANSOM' Blow for millions of renters as flagship package on brink of collapse ahead of election, insiders say’ (thesun.co.uk, 7 March 2024) <https://www.thesun.co.uk/money/news-money/26452270/renters-reform-bill-on-brink-of-collapse/amp/> accessed 17 March 2024

[21] Harry Farley, ‘Renting reforms: Ministers discuss watering down no-fault eviction proposals’ (bbc.co.uk, 28 February 2024) <https://www.bbc.co.uk/news/uk-politics-68421116.amp> accessed 17 March 2024

[22] Ibid.

[23] Becky Morton, ‘No-fault eviction ban by next election, Michael Gove promises’ (bbc.co.uk, 11 February 2024) <https://www.bbc.co.uk/news/uk-politics-68267106.amp> accessed 17 March 2024