The Property NomadsHow COVID-19 is changing Section 21 + Section 8 notices - with Alex Cook of Helix Law
Rob is joined by Alex Cook of Helix Law to deep dive into the subject of evictions, post-Co-vid. They briefly review what the conviction process was pre-Co-vid. Then take an in-depth look at how it needs to be handled under the new rule. As well as discuss what direction legislation and processes are likely to go in the future.
Including, what would happen if section 21 evictions were to no longer be possible. As well as the negative impact an eviction process that is too long could have on landlords, tenants, and the availability of housing. They also briefly discuss the impact far longer minimum rental terms can have. Plus, how using stamp duty to stimulate the housing market could backfire.
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KEY TAKEAWAYS
- Only around 1% of rentals end up with the need to evict.
- Pre-CoVid, the eviction process, which has been successfully working since 1988, was clear and easy to follow.
- Post-CoVid the government issued legislation on the fly – pausing evictions and extending the notice period. The details and impact of this is discussed in-depth.
- Both notice periods are 6 months as a starting point, for England, apart from a few exceptional circumstances.
- There is no doubt that there will be a huge bottleneck when it becomes possible to evict again.
- The “us versus them” narrative is becoming worse, despite most landlords actively working to avoid evictions.
- If it were only possible to use section 8 to evict things would be bad for tenants as well as landlords.
- Those tenants evicted under section 8 are categorized as making themselves voluntarily homeless, so cannot get help to be re-housed.
- Making it far more difficult for landlords to run a viable business is going to cause a shortage of housing.
- Landlords need to get more organised and vocal about the impact some of these changes will have on them, tenants, and the housing supply.
- In the short term, landlords who are evicting are likely to have to provide more information and jump through more hoops.
- There is also likely to be a formal obligation for mediation before going to court
- Evictions may end up being handled by a dedicated court.
BEST MOMENTS
‘Landlords don't have a business without tenants, most landlords and investors know that, so they don't want to proceed claims.’
‘People need to know that if people don't honour the deal that has been struck in terms of paying rent, that ultimately, they can regain their assets.’
‘If you turn off private investor landlords, who is going to fill that gap?’
‘Landlords probably need to get a little bit more organised and a little bit more vocal about the impacts that some of these decisions have.’
VALUABLE RESOURCES
Buy to Let: How to Get Started – By Rob Smallbone (Amazon)
ALEX COOK´S ARTICLES
https://inews.co.uk/news/analysis/evictions-ban-end-landlords-held-hostage-problem-tenants-582814
https://www.commercialtrust.co.uk/news/eviction-ban-extended/
ABOUT ALEX COOK
For over 13 years, Alex Cook, Director of Helix Law, has specialized in commercial and complex property litigation — acting for investors and landlords across the UK and internationally.
Having been instructed in, or supervised, hundreds of landlord and tenant disputes, he's remained active throughout the coronavirus crisis, providing legal advice and resolving issues for landlords and investors involved in such disputes. He’s also currently assisting the Sunday Times on an article to be published soon.
CONTACT METHODS FOR GUEST
Email: ac@helix-law.com
ABOUT THE HOST
Rob Smallbone the host of The Property Nomads Podcast, is on a global mission to guide your success. Success can happen in many ways, shapes, and forms. Think about what success means to you. More properties? More clients? Financial freedom? Time freedom?
Rob wants to make a huge difference to people around the world. He is here to guide your success in property, business, and life and to inspire you to achieve your goals, dreams, and visions. He's travelled, explored, and invested. And he's not planning on stopping these activities anytime soon.
Buckle up, sit tight, and enjoy the ride that is life.
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