Section 21 rental reform plans small business finance options explained

The renters in England got great protection against the rising rent and eviction. With the announcement of changes in the rental market reforms, they are considering elevating the plan. As per the new plan, no landlord will be able to provide Section 21 evictions.

The rental properties issued by the landlords must meet a minimum standard requirement to cater to the needs. The national landlord register also has some changes in terms of proposals. If nothing is met, the landlords will have more bans and fines.

Read the article further for more ideas regarding the Section 21 Rental reforms.

Section 21 rental reform plans small business finance options explained

What is Section 21? What is its use?

The Assured Shorthold Tenancies involve the majority of private rental sectors. Section 21 enables the landlord to reclaim the property after issuing a notice period of two months without making claims regarding the tenant’s fault.

According to Section 21, the landlord can evict the tenant even when no damage is done to the property during the tenancy period. This is referred to as "no-fault" eviction. Section 21 will only be applicable when the fixed term of the tenant has ended, and it will also be applicable when there is no particular decided end date for tenancy.

Has Section 21 been a problem?

Section 21 is regarded as a problem because it impacts the well-being of tenants. Many private renters feel scared to report problems or request repairs. This is because rogue landlords will use it against tenants and reclaim the property from tenants. As a result, the tenants will end up losing their homes.

The private tenants make up a huge part of the English household. However, there is always a risk of uncertainty and instability about losing a house due to Section 21. Section 21 can be a major reason for homelessness in England.

What were rental reforms introduced?

The introduction of rental reforms will significantly impact the landlords across England. It is part of the government’s Levelling Up White Paper program, further introduced by Levelling up Secretary Michael Gove on February 2, 2022.

The proposals made for the same include:

  • The private rental homes need to meet the standard minimum, and the Section 21 eviction will be removed entirely.
  • Strict actions will be taken against rogue or irresponsible landlords who fail to meet the requirements.
  • Landlords who are repeat offenders will have strict actions taken against them.
  • The national landlord register launch will take care of the well-being of renters and landlords.

The government expects to meet the deadline for the 12 key missions by the end of 2030. One of the main aims is to ensure that the renters get a secure path for ownership.

Why does the government want to overhaul renting?

The private rented sector has been disrupting harmony for a long time. Therefore, the government has been looking forward to ending it. The measure of introducing lifetime rental deposits and abolishing Section 21 is said to be handy. The new measures introduced in the Renters Reform Bill were put forward in 2019 itself. However, owing to the pandemic, the implementation of the same was delayed.

With the introduction of new measures, the government wants to provide maximum support to tenants who need it. Many private renters deem their current place to be unfit to say. Furthermore, various renters complain that their current living conditions at the house risk safety and health.

The landlords have been misusing the leverage for a long time. These private renters who have been living under rogue landlords do not get the benefit of staying in efficient conditions, and these private renters are made to live in cold, unsafe and damp situations. Moreover, these rogue landlords may also make these renters victims of unfair eviction without any fault.

Therefore, the government aims to reduce or remove private renters’ injustices. They plan to improve living conditions by providing the best to these private renters. The respective societies will therefore aim at catering to the people’s needs and ensure that their priorities are met.

What about the Renters’ Reform Bill?

The white paper on rental forms has been one of the major announcements by the government. The introduction of the launch of the proposal is expected to have important information that will involve Section 21 eviction information. It will also introduce a wide range of benefits, such as lifetime deposits for the tenants. It is still unclear what the rental reforms would be for the government. The respective authority will soon launch a white paper based on the rental market.

Will the removal of Section 21 have an impact on small businesses?

Private renters with families and small businesses have also suffered due to Section 21. The rogue landlords would lead to unhygienic living conditions that will affect businesses. Small businesses building offices need a clean and efficient space to cater to the needs of their clients.

When the client comes in an unclean and broken condition, it will hurt their business. They are most likely to lose business and eventually suffer due to it. The Section 21 reforms can help them get leverage for the growth of their business. It will be an efficient way to increase revenue and also have a positive impact on your business. Therefore, it will cater significantly to the company’s growth.

What is replacing Section 21?

Section 21 of the Housing Act replacement would be Section 8. Therefore, there will no longer be Bristol Branch Manager “no-fault” eviction. There will be a constant balance between the rights of landlords and tenants. The proposed bill aims at striking a balance for everyone.

Section 8 will also bring new lifetime deposit measures that can be helpful for the tenants. It will be essential in determining accessibility and flexibility across the market. The landlords will also get an essential medium for dispute resolution. If any tenant refuses to leave the property, the new Housing court will help to resolve the problem soon.


The Section 21 reform will not only give a boost to renters but landlords too. The respective authorities aim at launching measures that can be helpful for businesses of all sizes. However, the reform will be a fast-track way for small businesses to accelerate their gains and get better opportunities. Not only will it improve the business’s reputation, but it will also help in driving profit and revenue.

  • Book a free consultation

    Share your details in the form below and one of our friendly experts will be in your touch to give you a free consultation

    * Indicates a required field

Get in Touch

Get the best advice on tax savings, accounting services, payroll, self assessment, VAT and more, whether you want to call us directly, request a call back or chat online with our experts, rest assured that we will always give you the best advice.If you have any questions, or would like to speak to us in person, please do get in touch. We're here to help.

Head Office:

dns accountants
DNS House, 382 Kenton Road,
Harrow, Middlesex, HA3 8DP

Contact Number:

03300 886 686

Award winning experts
trusted by many

We're proud of our clients and their success. Find out more about them and
the help and support we provide.