Abolition of Section 21

Abolition of Section 21

The Key Points of the Abolition of Section 21 and Why it’s Crucial to Your Tenancy

Introduction: The Background of Section 21 and Why it Needs to Be Repealed

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The background of Section 21 and why it needs to be repealed is a topic that has been debated for many years. The debate is not just about how to repeal the section, but also about what should replace it.

Section 21 was established in the Landlord and Tenant Act of 1927, which made it illegal for landlords to refuse a tenant on the basis of race, nationality, or gender. The law was amended in 1988 to include sexual orientation as well.

Section 21 is an important law because it protects people from discrimination when they are looking for housing. In order to repeal this law, we need to know what will replace it so that there are no gaps in protection for people who are discriminated against when looking for housing.

The Pros and Cons of Abolishing Section 21 would Put an End to So-Called “No-Fault Evictions

Introduction: What is Section 21? Why Is It So Controversial?

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Section 21 is a controversial piece of legislation that allows landlords to evict tenants if they are not paying their rent and if they do not have a good reason for non-payment.

The legislation has been controversial because it has been seen as an attack on the rights of renters. Section 21 has also been criticised because it can be used by landlords to evict tenants who have done nothing wrong, and sometimes even when the tenant paid their rent in full.

Section 21 vs. Section 8

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Section 21 is the most common type of eviction in England and Wales. Landlords can use this section to evict tenants if they do not pay their rent, or if they have been convicted of a crime. Tenants can also be evicted from their home under Section 21 if the landlord wants to sell the property, or if the property needs repairing.

Section 8 is a type of eviction that landlords can use when they want to sell their property, or when it needs repairing.

Abolition of Section 21 HMO Management Agency
The background of Section 21 and why it needs to be repealed is a topic that has been debated for many years. The debate is not just about how to repeal the section, but also about what should replace it.

How Can We Make Section 21 a Proactive Policy?

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Section 21 of the Housing Act 1988 states that a landlord can give a tenant notice to terminate their tenancy if they want to sell their property, or use it for their own personal use.

This section has been the cause of many tenants being evicted from their homes without warning.

The government is looking into ways to make Section 21 more proactive and not reactive by giving tenants more time to find somewhere else to live before they are evicted.

Conclusion: The Pros and Cons of Abolishing Section 21

In conclusion, the pros and cons of abolishing Section 21 are not easily determined. There are many arguments to be made for and against it. The government should consult with different stakeholders before making the final decision.

The abolishment of Section 21 will have a number of positive effects. It will help to increase the supply of housing and reduce the cost of renting. But it also has its downsides, such as an increased risk of homelessness and an increase in the population.

Section 21 – A Social Media Campaign to Abolish It

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The campaign is a response to the recent decision by the Irish Government to not hold a referendum on Section 21 of the Irish Constitution. Section 21 states that:

“The Parliament may provide for the regulation of trade and commerce, including importation and exportation, between this State and any other part of Her Majesty’s dominions, or between this State and any other country or countries.”

This section has been criticised as it allows Ireland to be exploited in trade agreements. The campaign is trying to get people to sign a petition that will call for a referendum on Section 21.

The campaign is being run by an organisation called Repeal21 which wants this section repealed so that Ireland can have more control over its economic future.

What does this mean for landlords

This means that landlords have more flexibility and control to manage their properties more efficiently. Here are some pointers on how landlords can implement these new changes to their business and reap the rewards. .1) Consider engaging a manager to manage the property, especially if you are doing it all yourself. This could be less stressful and potentially more profitable, as they will be able to rent out your property while you are managing it.2) Designate different rooms for different types of tenants; this could lead to better upgrades and renovations in certain sections. of the property.

Will I Ever Enact Section 21?

Government data shows that on average tenants live in their rental properties for over four years and that in 90 per cent of cases tenancies are ended by the tenant rather than the landlord.

Tenants are much more likely to be the party that initiates a Section 21 notice, and once they have served this notice they are much less likely to vacate. their property.There are also many cases of tenants withholding rent as a form of protest against their landlord. This can be motivated by a number of reasons, from the landlord failing to carry out repairs to bills not being paid or simply because the tenant decided they no longer wanted to live in the property. This means that most landlords find themselves struggling financially and have no choice but to sell their property.This section does not state that the tenant will never enact Section 21, but it seems that if the tenant is currently in a Section 21 notice, they are less likely to vacate.I’ll only enact this against my landlord for reasons like unpaid bills or repair requests.

If you need help or have any questions, please get in touch by email or give us a call.

2021 budget housing

The Budget 2021 – What Could this mean for the housing market?

The Chancellor Rishi Sunak is set to announce the budget for the 21-22 financial year on March 3rd. Here we discuss what this may mean for the housing market.

 

Stamp Duty Tax – The Stamp Duty Tax relief was implemented in July 2020 with the aim to make it more achievable for homeowners to move house. This has come as a relief to many and resulted in an unexpected ‘Housing Boom’ with transactions and house prices increasing throughout.

This relief is due to end on 31st March and during the budget, the chancellor will announce whether this will still be the case. Many companies and home owners have called for a 6-week extension to help the hundreds of thousands who are likely to fail to complete before the deadline.

 

Rental Help and The Eviction Ban – The current eviction ban is still in place, forbidding landlords from evicting tenants during the pandemic. The chancellor may well announce plans for how this ban will slowly ease out but more importantly, about any help that may be given to tenants who find themselves in rent arrears. Scotland and Wales have both already provided details of grants to help those with rent arrears and homeless charities in England have called for similar measures.

Failure of suitable help for tenants is likely to result in mass evictions and a rise in homelessness once the ban is lifted.

 

Capital Gains Tax – Hiking capital gains tax may be seen as a good way for the government to claw back some funds needed after a year of spending. It has been reported they could make over £14billion extra revenue by increasing capital gains tax.  However, the knock-on effect that this may have on the private rented sector is also a fear, by discouraging investment in property, supply will inevitably dwindle too.

 

The announcement will come on March 3rd and this year, any announcement is a possibility!

2020 house prices

2020 House Prices Finished on a 6% High!

2020 was a roller coaster of a year when it came to house prices. It got off to a strong start and then slumped in the spring and summer as the first national lockdown took their toll on prices. This didn’t last long though and prices shot up again shortly afterwards.

The rise in house prices is due to a combination of several factors including the pent-up demand combined with people spending more time at home. Buyers craved a change with rural areas seeing the highest demand, more space to work and live were also high on priority lists. The ‘Stamp Duty Holiday’ announcement also prompted people to make the change and get moving. The holiday has seen people save thousands on house purchases and has propped the market up as people take advantage of massive savings.

Halifax has reported that prices were up 6% in December when compared to December 2019, with a slight increase from the month before.

December’s price increase brings us to the sixth consecutive month that prices have risen and finishes 2020 on a high that people may not have expected.  This has bought the average house price up to £253,374.

Mortgage approvals are also sitting at a 13-year high meaning more and more people are able to make that first or second step on the property ladder.

Options on what the 2021 market will hold remains divided, with the stamp duty holiday still in play until the end of March there are currently no signs of a slowdown.

2020 House Prices Finished on a 6% High! HMO Management Agency
House Prices 2021

Housing Prices to Rise 4% in 2021 say Rightmove

The UK’s biggest property portal ‘Rightmove’ have weighed in with their opinions on the 2021 Housing Market, predicting a 4% rise next year.

Experts have been divided on how the market will go in the coming 12 months, with 2020 seeing an incredible 7% rise in prices despite the coronavirus pandemic. The Stamp Duty Holiday has undoubtedly contributed to this rise, with prices and sales soaring as people make the most of the savings which can be as much as £15,000.

With the stamp duty holiday due to end in March 2021, buyers hopes of purchasing property within the deadline are dwindling quickly. However the property portal claims demand is still as strong, proving that the demand for new homes is there whether they receive the savings or not.

Rightmove claimed buyers will continue searching for new homes as the pandemic has unleased demand for more space and rural locations.

‘Pandemic related uncertainties have been around for nearly a year, and Brexit uncertainties for far longer, and record activity month after month has proved that movers are willing and able to act on their new or existing housing priorities,’ Rightmove said.

This is despite the stark warning by some property agents that the Stamp Duty Holiday must be extended to avoid a dramatic end to the housing demand. Coupled with Brexit and the end of the furlough scheme, the timing could be unfavourable.

However despite these hurdles, Rightmove, like many others, believe the 2021 housing market will far outperform expectations in a similar fashion to 2020. Some 650,000 are still in the process of changing hands so the beginning of the year is sure to start of on a strong footing.

Housing Market Strongest since 2004

The Housing Market is at its strongest since 2004!

House prices rose 7.6% year on year in November according to the latest data released by the Halifax Index. This brings the average house price in the UK up to a staggering £253,243.
Whilst the Stamp Duty Holiday has definitely contributed to the rise, the rise in prices has outstripped the savings in many areas and the housing market is currently at its strongest since 2004.
Unsurprisingly, the biggest growth in house prices this year was after the initial lockdown in the spring where prices rose by a huge 6.5% in the 6 months following it, equivalent to £15,000.
Mortgage approval rates are also at a 13 year high, and buyers have been snapping up properties particularly in rural locations with more space.
So far, the housing market has proved itself to be resilient and strong through the pandemic.

 

 

The Housing Market is at its strongest since 2004! HMO Management Agency
Stamp Duty Holiday Explained

The Stamp Duty Holiday

The Stamp Duty Holiday - What you need to know

What is The Stamp Duty Holiday?

Usually Stamp Duty tax is payable on property transactions worth more than £125,000 (£300,000 for first time buyers), however on the 8th July 2020 The Chancellor of the Exchequer announced a temporary break from this, reducing Stamp Duty Tax down to 0% for all transactions below £500,000. This has saved purchasers thousands over the last few months and propped up the housing market throughout the pandemic. For example, on a property worth £400,000, a purchaser will have saved £10,000 in stamp duty that they would previously have been liable to pay.

 

Is it too late to take advantage of this offer?

If you are looking to buy a property, now is the perfect time with the potential savings running into the tens of thousands. With the average property purchase taking 12 weeks to go through and the deadline for the holiday coming on 31st March 2020, potential buyers should hope to be in the purchasing process by the start of January.

What if I have a property to sell too?

This can take longer, with the average property taking 6 months to sell from putting on the market, which takes us past the 31st March deadline. That doesn’t mean its impossible though. If you use a proactive estate agent and get your property on the market quickly, with a realistic valuation as well as ensuring all paperwork is in place for the conveyancing team – you stand a reasonable chance of being able to take advantage of this saving, especially with the added interest from your potential purchasers wanting to work to this deadline too.

Property Transactions up 8%!

Property Transactions up 8%!

According to data published by HMRC yesterday (24.11.20), UK monthly property transactions are up by 8.1% year-on-year in October, as well as being 9% higher than September’s figures. There were 105,630 transactions in October 2020, which is over 8% higher than October 2019 and is diminishing fears that the housing boom was slowing.

Residential property transactions have increased each month since the first government lockdown in April and May, showing buyer confidence is returning. HMRC believe the rise was impacted by purchases going through that may have stalled since March as well as the Stamp Duty Holiday meaning purchasers can save tens of thousands of pounds on their purchase.

Industry experts have echoed HMRC’s comment’s and added the demand for homes has remained high since the reopening of the Housing Market. Whilst the Stamp Duty holiday has contributed to the boom, buyers need to be quick if they wish to take advantage as it is due to end on 31st March 2020.

Property Transactions up 8%! HMO Management Agency