You may have seen our recent articles concerning the Renters’ Rights Bill and how it is set to bring about significant changes to the residential rental market in England.
This is the next article in our short series, aimed at understanding the important legislative reforms put forward by the Bill, where we set out the process that landlords will have to follow in order to regain possession of their property.
As discussed in our last article, the proposed abolition of Assured Shorthold Tenancies means that tenants can no longer be evicted on the basis of ‘no fault’, commonly referred to as the section 21 notice procedure.
Consequently, landlords will now have to rely on the section 8 notice procedure and will not be able to regain possession of the property unless they can prove a ground for doing so. The grounds for obtaining possession fall into two categories: mandatory and discretionary. The court must order possession if the landlord can prove a mandatory ground, whereas the court may, if it is reasonable to do so, order possession if the landlord can prove a discretionary ground.
The Bill proposes to create new, and amend certain existing, grounds for obtaining possession, some of which are set out below:
- Landlord’s intention to sell– this is a newly introduced mandatory ground which enables landlords to regain possession if they intend to sell the property. It is not yet clear how landlords will be required to evidence their intention to sell. However, landlords will not be able to provide notice in this respect within the first 12 months of the tenancy, and any notice that they give after this time will need to be a minimum period of four months.
- Landlord’s intention to move into the property– this existing mandatory ground is proposed to be amended to require a minimum notice period of four months, which cannot be served within the first 12 months of the tenancy.
- Redevelopment of the property– this existing mandatory ground is proposed to be amended to include stricter criteria, subject to the type of landlord, and circumstances surrounding the development. The minimum notice period required in this respect will be four months, as opposed to the current two months.
- Rent arrears – rent arrears are currently provided for in both a mandatory ground and two discretionary grounds. The mandatory ground, being “serious” rent arrears, is proposed to be amended so that landlords will have to show significant rent arrears in excess of three months, as opposed to the current two months. The discretionary grounds, being “some” rent arrears, and a “persistent delay” in paying rent, are proposed to be amended so that the minimum notice period required will be increased to four weeks, instead of the current two weeks.
- Anti-social behaviour of the Tenant– this existing mandatory ground is proposed to be amended so that possession proceedings can be commenced immediately upon service of a notice, in comparison with the current notice period of one month. However, the court will not be able to order possession until at least 14 days have passed since service of the notice.
There is no doubt that the section 8 notice procedure is more time-consuming, costly, and unpredictable. It has replaced a process that was relatively quick and simple, and didn’t always necessitate a court hearing. It remains to be seen just how much impact this will have on landlords, and the courts, in both the issue and enforcement of possession proceedings.
Our next article in the series will look at the introduction of a new Private Rented Sector Database and the expansion of the Decent Homes Standard to the private rented market.
The above article is for illustrative purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any part of the information given.
Furthermore, the information contained is accurate and up to date as of the date of publication. Readers should be aware that legislative frameworks may have been amended since the original date of publication.