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Alarming drop in rental stock if abolition of Section 21 goes ahead.

Date Published 01 October 2019

Letting agents would have the challenge of greatly reduced stock if Section 21 – the so-called no-fault eviction process – is abolished as the Government proposes.

A new study, commissioned by the National Landlords Association and carried out by Capital Economics, claims that private rental dwelling stock in England would fall by 20%.

This would equate to the loss of 960,000 dwellings.

The study also claims that in addition there would be a 59% reduction in private rental homes available to households claiming Local Housing Allowance or Universal Credit.

A key result of the changes would be rent rises affecting some 600,000 homes, says the study, as landlords become pickier as to the type of tenant they would choose.

The NLA surveyed more than 2,800 members on their views on the abolition, with 43% saying they would be more selective about tenants, 16% saying they would exit the private rented sector, 10% saying they would reduce the size of their portfolios, and 11% saying they would raise rents.

The study calls for the Government to 'consider carefully' the impact that dumping Section 21 will have on the supply of homes.

The full study is here: