The Renter’s Rights Bill for the private rental sector is now law, having received Royal Assent from the King last week. The Renters Rights Act is expected to rebalance the relationship between landlords and tenants across England as part of the Government’s Plan for Change.
While some changes may come into effect sooner than others, the Government has yet to provide a date when the changes will commence.
This article highlights a few of the key changes introduced by the new legislation. Further guidance on additional provisions will be released in due course.
What are the changes?
Some of the changes being made by the new law include:
- The removal of section 21 evictions (no-fault evictions).
- Change to mandatory ground 8 & new ground 1A for section 8 evictions.
- Landlord Redress Scheme
- Abolition of Fixed-Term Tenancies
- Decent Home Standards and Awaab’s law
Removal of Section 21 Evictions
Section 21 possession proceedings are issued where there is ‘no fault’ by the tenant, i.e., the landlord does not need to satisfy any of the grounds under section 8 of the Housing Act 1988. Some grounds which a Landlord can issue a section 8 notice and claim repossession of the property for example include the tenant:
- Being behind in rent payments
- Damaging the property
- Providing false information about themselves to gain the tenancy
- Becoming a nuisance to neighbours
- Using the property for criminal activities
The removal of section 21 evictions means that landlords will only be able to evict a tenant if a ground under section 8 can be satisfied.
Although some new grounds have been added to section 8, which do not strictly require a ‘fault’ by the tenant to have occurred, such as the landlord wishing to move in or sell the property, it is currently understood that a landlord will be prevented from using this ground to evict a tenant within the first 12 months of a tenancy.
Timeframes under mandatory ground 8 have been amended, increasing the rent arrears required to exist before a notice can be issued from 2 months to 3 months, and increasing the notice period from 2 weeks to 4 weeks. By the expiry of the notice, tenants will be in around 4 months’ rent arrears.
If a tenant does not leave the property upon the expiry of the eviction notice, landlords will likely need to obtain a possession order from the court.
It will be interesting to see how the already backlogged court system will be impacted as a result of section 8 possession claims often requiring a hearing to be listed to determine the case, as opposed to section 21 claims, which were able to receive judgment without a hearing in many cases.
As a result, landlords may face significant rent arrears before they can regain possession of their property, and there is uncertainty on whether those arrears will be recoverable thereafter.
Landlord Redress Scheme
This will provide the parties with an opportunity to resolve disputes outside of court. If disputes are successfully resolved, possession proceedings may not be required or may no longer be available if a ground under section 8 fails to then be satisfied.
Abolition of Fixed-Term tenancies
All current and future assured shorthold tenancies (“ASTs”) will become assured periodic tenants, with rent periods not exceeding one month.
The tenancy will continue until terminated by the landlord under section 8 or the tenant giving 2 months’ notice.
Decent Home Standards and Awaab’s law
Whilst landlords are already required to have a valid EPC (Electrical Performance Certificate) in place with a rating over a grade ‘E’, and if the property is supplied by gas, have annual gas safety checks carried out (amongst other things), this amendment will require landlords to ensure properties are safe and kept in good repair, with timeframes for landlords to carry out certain repairs, to improve the standard of living for tenants. These standards already apply to social housing.
How can Backhouse Solicitors help?
Whilst the Act is now law, it is important to remember the changes have not yet to come into force and therefore landlords may still be able to issue a Section 21 claim at this stage. For tailored legal advice or assistance in issuing a claim, contact our experts and book a free 30-minute consultation.
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