Despite calls for the Government to reconsider its decision to scrap Section 21 ‘no fault evictions’, the Queen’s speech, following the general election, solidified the desire to push ahead with the contentious legislative change.
Experts fear that court reform and changes to Section 8 will result in inevitable teething problems to the detriment of landlords. The announcement has already encouraged many landlords to leave the sector with fears of a future mass exodus.
However, for those left, Neil Cobbold, expert in lettings and payment automation believes that current and new landlords will need to ensure they have robust processes, records and technology in place to ensure a smooth and compliant eviction process.
Neil Cobbold, Chief Operating Officer of PayProp, commented:
“For some time, the political will – regardless of party – has been to remove Section 21 from the Housing Act 1988 and reform the eviction system.
“Following the Queen’s Speech, letting agents and landlords need to start preparing for change and updating their processes accordingly as it has been confirmed that the evictions process will be reformed through the same Bill.
“One of the most important aspects of eviction reform for agents will be educating and informing landlords and tenants about how the new system will work.
“However, on top of this, they will also need to make sure their documents are up-to-date and watertight to evidence their adherence to current and proposed legislation. This will give landlords and tenants the best chance of a smooth eviction process.
“Agents who adopt thorough record-keeping and arrears management can prove their worth to landlords and increase their chances of new business and client retention.
“Having the right technology and systems in place can be a huge help in making these changes seamless and efficient.
Preparing for the changes by solidifying and updating processes should also work in collaboration with amending the relationships with tenants according to Cobbold. Promoting fair and positive relationships could help to reduce the need for evictions.
“With this in mind, agents need to think about the ways they can help to reduce the frequency of evictions. Encouraging good relationships between landlords and tenants is all-important, as is staying on top of repairs and facilitating good communication between both parties,” he says.
“Rent arrears are one of the most common reasons for evictions, so agents can help landlords to keep them to a minimum by sending automated emails and text messages – which are proven to be more effective when it comes to chasing rent payments.
“Using technology and automation will be crucial for agents to stay on top of constantly changing industry regulation and legislation.”
What impact will the abolition of Section 21 have on the buy-to-let sector this year?
