The property firm launched by Manchester Council and Manchester City owners the Abu Dhabi United Group (ADUG) is threatening to evict hundreds of tenants from their new homes in Ancoats after just a year - unless they accept above-inflation rent increases.

Residents in Smith's Yard on Blossom Street told how they unexpectedly received Section 21 (6A) Eviction Notices through the door in recent weeks.

The development was opened last year by Manchester Life, the £1bn joint venture formed in 2014 by the council and ADUG to drive the residential transformation of Ancoats and New Islington.

The two parties signed up to deliver thousands of new homes in the area over ten years in order to address the city's acute housing shortage.

The first phase involved building more than 900 predominantly privately rented homes.

Smith's Yard is one of four rental-only developments including Weavers Quay, Sawmill Court and Cotton Field Wharf that have gradually opened since 2017.

On its website, Manchester Life says the company aims to 'rebalance the relationship between landlord and tenant to one of equals where customer service and satisfaction is central to the success of our business.'

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As part of this promise, Manchester Life said it would offer tenancies lasting up to three years with rent increases fixed at the Retail Price Index (RPI).

However, some of the first residents to occupy the new flats told the Manchester Evening News they were 'horrified' to receive Section 21 notices giving them two months to leave before the landlord can apply for a court order to retake possession of the property.

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Under the 1988 Housing Act, 'no fault' Section 21 notices allow landlords to evict tenants without giving a reason, even if they have paid their rent on time and kept the property in perfect condition.

Campaigners say they are the single biggest cause of homelessness in the country and Manchester's own Labour councillors said they would work for them to be scrapped in their latest manifesto.

Earlier this year, the government announced a consultation to look into whether section 21 notices should be scrapped.

Manchester Life say it was always their intention to send a second letter to Smith's Yard residents inviting tenants to sign up to a new tenancy with a rent increase of around 5pc if they sign up for 12 months, or around 3pc if they sign up for two to three years.

The current RPI rate is around 3pc.

In a statement, Manchester Life said tenants were sent letters to warning them to expect the Section 21 notices, and that they are necessary to give them 'formal notification' that the tenancy is coming to an end.

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Manchester Life denied that they served the eviction notices because they wanted to evict tenants, or that the process was linked to the increase in rents.

A spokesperson added: "It gives our tenants clarity on their rights, and it also protects us as a landlord by following the government process, should a tenant refuse to leave. Section 21 is entirely unrelated to rental increases."

Manchester Council backed Manchester Life's use of the section 21 notices, saying they 'do have a legitimate use' and that they have 'every confidence' that the developer has been 'transparent' in its dealings with tenants.

Nevertheless, Smith's Yard residents say the process has been upsetting and left them worried about the future.

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A copy of one eviction notice seen by the M.E.N states: "You are required to leave the below address after [date redacted], if you do not leave your landlord may apply to the court for an order under Section 21(1) or (4) of the Housing Act 1988 requiring you to give up possession."

One renter, who asked not to be named, has been paying £975 a month for a two-bed apartment and was recently sent the eviction notice by landlord Manchester Life.

"We were really excited to move in here," she told the Manchester Evening News.

"We love Ancoats it's fab.

"I can walk to work, it's great.

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"Then we've got this 6A form saying they want to retake possession of the property.

"I phoned to ask 'what the hell is going on?'

"We've been good tenants, we've looked after the place, we've kept it clean and tidy.

"From talking to other residents, we think it's so they can raise the rents.

"It seems quite a shoddy business practice to me."

Another said he was sent the eviction notice around a month ago, and then a follow-up letter offering fresh terms a few weeks later.

"I'm not in a position to sign up to the two or three-year lease so I'll have to agree the 12-month offer at 5 per cent. It's about £50 more a month," he said.

"But I wonder, are they going to do the same in a year's time?

"When I read the letter I was horrified.

"I felt so bad that I'd had an eviction notice served on me. I've done nothing wrong.

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"It was really shocking, it made me feel unwelcome and that they didn't value my business.

"Before I moved in I did some research and saw that Manchester city council were on the board [of Manchester Life].

"It reassured me that I wasn't getting a dodgy, cowboy landlord.

"I thought I was going to be staying here for a good few years."

Manchester Life insist that the Section 21 notice were not served with the intention of evicting tenants, and that they have never refused to renew a tenancy agreement.

They point to a 70 per cent renewal rate.

A spokesperson said: "Twelve weeks before the end of the tenancy we send a letter advising that the period is coming to an end and we will be issuing a Section 21 letter.

"We then issue the Section 21 and immediately follow with a letter offering a new tenancy and the rental increasing, which honours our RPI increase commitment.

"Our tenancy agreements state that rent increases for tenancies longer than 12 months will not be more than current RPI.

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"This is honoured in every single renewal for 12 months or more. It can be a little more for tenancy renewals of less than 12 months to cover administration costs of shorter agreements.

"We send the pre and post S21 letters, so our tenants are not surprised by the S21 and are we are completely open around the process.

"We are only aware of one instance when the pre letter did not arrive beforehand.

"We issue the S21 to provide formal notification to tenants that their current agreement is coming to an end.

"It gives our tenants clarity on their rights, and it also protects us as a landlord by following the government process, should a tenant refuse to leave. Section 21 is entirely unrelated to rental increases.

"It's important to note rental renewals are above 70%; this is a low rate of churn and a demonstration of satisfaction across our four developments (most leave because of relocation, change in jobs or personal circumstances).

"We have also never refused to renew a tenancy agreement."

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Despite the assurances, the fact Section 21 notices have been used by Manchester Life is likely to raise some eyebrows given they have been pinpointed as playing a central role in the housing crisis.

In a report highlighting the soaring numbers of destitute families the council is struggling to accommodate last yea r, the council said rents in the private sector are rising three times faster than wages, adding: “Homes in this tenure are increasingly unaffordable, particularly to households in receipt of local housing allowance.”

And at the council's budget meeting earlier this year, leader of the council Sir Richard Leese said 'no fault evictions from the private rented sector are 'the biggest cause of family homelessness'.

He promised that in the coming year, the council would 'make life a damn sight harder' for landlords that cause problems, particularly at the 'bottom end of the market'.

Manchester Life added that they are aware of the broader debate around Section 21 notices and the government's plans to scrap them, adding: "As a member of the UK Apartment Association and Residential Landlord Association we're participating in discussions around the potential replacement of section 21's to ensure any new legislation addresses the needs of residents and landlords."

Smith's Yard is a part eight-storey, part five-storey block comprising of 185 homes of one-bed, two-bed and three-bed apartments and fourteen two-bed townhouses.

Facilities included a resident's club room, courtyard, 24/7 concierge and access to gym facilities in neighbouring Sawmill Court.

A Manchester council spokesman said: "We’ve all heard stories around Section 21 eviction notices being used unfairly that have put Manchester residents in a position where at best they are removed from their home, and at worst face homelessness.

"The use of the legislation in this way is clearly unacceptable and wrong, and our homelessness team is working to stop unfair evictions using this process.

"However, section 21s do have a legitimate use – in particular to ensure there is clear and official communication between tenant and landlord if the terms of a tenancy agreement change at the end of an agreed tenancy period.

"We have every confidence that Manchester Life’s process is transparent and tenants are clearly made aware that the eviction notice is part of re-signing their tenancy agreement, should they choose to do so."