Eviction madness or PR hype l Vesta blog

Eviction madness or PR hype

May 6, 2022

"Every seven minutes a private renter in England is given an eviction notice despite doing nothing wrong, figures reveal."

The above is a recent headline on Sky News, the same research conclusions and press release from Shelter were picked up and covered across several other publications.

Delving into the detail a little further, according to Shelter, nearly 230,000 private renters have been served with a Section 21 eviction notice, also sometimes referred to as a 'no-fault eviction' notice, since 2019. Once served this means the tenants have two months to leave the property.

However, the overall picture painted by the Shelter press release is contradicted by the NRLA where their data shows that fewer than 10 percent of tenants who move do so because there are asked to by their landlord or letting agent. They have also said the data shows that the overall number of Section 21 notices has been falling since 2015. In responding to the research conclusions from Shelter, Ben Beadle, Chief Executive of the National Residential Landlords Association, said: "Shelter needs to stop its campaign of scaremongering. The vast majority of landlords do not spend their time plotting ways to get rid of their tenants for no reason."

Even the Government has jumped on the bandwagon around Section 21 and they have indicated that their Private Rented Sector White Paper, due out soon, will set out several reforms including the banning of Section 21 'no fault' evictions as soon as possible.

Section 21 notices are often issued when a landlord decides to sell their rental property. Unfortunately, many landlords are still receiving very bad advice from unscrupulous estate agents that they need to market and sell their property with vacant possession.

Whilst in rare cases this might be valid, given that the average property transaction now takes more than 6 months it is complete madness to have a property vacant rather than delivering a yield. In addition, many rental properties are sold and then relet.

Vesta always recommends that landlords sell with their tenants in place which means they earn income right up to the point of sale and the buying landlords earn income from the day of completion. More importantly, the tenants get to stay in their home as the rental contract is simply novated to the new landlord. This approach saves all parties £1,000s.

Some agents might argue that this approach could impact the purchase price, however, we have proven, based on asking prices being achieved, that this is completely unfounded. At Vesta, we achieve a similar and sometimes better price with tenants in place as often landlords see this as a big advantage, as income is generated from day one, the tenants' payment history is known, plus they see how the tenants look after the property.

Our view is that every tenanted house should be marketed with tenants in place before any Section 21 style notice is served or 'no fault' tenants are evicted. It is simply the right thing to do - keeping people in their homes!

If you are considering selling or buying an investment property or simply want an investment valuation, please get in touch, or visit www.vestaproperty.com/sell so we can start the process with you.

Important Note

All information contained in this website is provided as a guideline only, is based on estimates and assumptions, may not be accurate or complete, and is subject to change. We make no representations or warranties with regards to this information, expressed or otherwise. A buyer who relies on such information does so at their own risk. Buyers are advised to seek independent financial advice and should undertake their own due diligence.

Your capital is at risk. Property values may decline and the property might not be able to be rented at amounts sufficient to cover debt interest costs, operating expenses and liabilities, and might not result in a positive cash flow. Property is an illiquid asset and should not be viewed as a short-term investment.

In no event will we be liable for any loss or damage, including without limitation any loss or damage arising directly or indirectly out of or in connection with the use of this website and the information contained therein.

Vesta Property is a full member of the Property Ombudsman (TPO) and commits to TPO Codes of Practice

Chartered Trading Standards Institute - Approved Code

Authorised and regulated by the property ombusdman

Copyright © 2023 Vesta Global Limited. All rights reserved.