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'Small minority of rogue landlords exploit Section 21 eviction rules'

david hannah cornerstone tax

A high-profile figure has claimed that ‘no-fault’ Section 21 evictions are a significant problem within London’s private rental sector and agrees with Shelter’s approach that they should be banned ‘as soon as possible’.

The comments by David Hannah, group chairman of advisory firm Cornerstone Tax, follow his firm’s claim that its latest research shows 24% of the capital’s renters have been forced to move every year on average over the past five years.

Hannah pins this squarely on a ‘small minority’ of rogue landlords who, he claims, have sought to exploit Section 21 evictions at the expense of their tenants.

He also says the Renters (Reform) Bill, which will include the ban on Section 21 evictions should therefore be “accompanied by a host of fair and balanced improvements to the wider system, which ensure that becoming a landlord remains an attractive proposition in the UK”, he says.

“This could involve streamlining the eviction procedure for landlords that genuinely have to deal with troublesome tenants.”

But Hannah also accepts that the main problem facing both tenants and landlords is higher costs including sky-high rents for tenants and rising tax and property management costs for landlords.

His firm’s research reveals that 37% of the landlords it polled said they were considering selling up.

“[This] would have a catastrophic impact on the rental sector, pushing prices up even further,” he says.

“The capital’s rental market must work for tenants and landlords alike and address the current problems of undersupply and soaring costs.”