The unintended consesquences of abolishing section 21.

No to section 21 evictions
Oct 05 2019

The unintended consesquences of abolishing section 21.

This report from the NLA and Capital Economics is a short read with some interesting stats from the survey they carried out.

If landlords nationally act in line with the survey sample, the following could occur should section 21 be removed.

The private rented dwelling stock available to rent in England would fall by twenty percent (960,000 dwellings), considering it is has already seen a decline this would put more supply and demand economic pressure on rent prices.

There would be a 59 percent reduction in the private rented dwellings available to households which claim local housing allowance or universal credit (770,000 fewer dwellings). Would this then see a huge increase in rogue landlords taking risks and have over populated and unlicenced HMO’s?

Around 600,000 homes could see rent increases (13 percent of the sector), I think this is actually a very conservative figure. The very essence of supply and demand would result in rent increases.

If section 21 was removed and not replaced with an alternative leaving Section 8 as the only process, I feel the results from the survey would be completely underestimated as Landlords would look for less risk and possibly pull away from residential investment all together.

Read the full potential effects of removing section 21.

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