The Renters’ Rights Bill and the Implication for Landlords Seeking Possession of their Rental Property
On Thursday 12th September 2024, the Renters’ Rights Bill was being considered by the House of Commons, which if implemented in its current form, will result in significant changes for both Landlords and Tenants.
Crucially, under this draft legislation, it will see the removal of the procedure to evict Tenants under Section 21 of the Housing Act 1988, otherwise known as ‘no fault evictions.’ This is set to apply to existing Assured Shorthold Tenancies that commenced prior to the legislation being introduced, as well as all new Assured Shorthold Tenancies moving forwards.
Under the current legislation, Landlords are able to remove a Tenant by providing them with a written notice, using Form 6A, which will allow the Tenant a 2-month period to vacate the property. If the Tenant fails to vacate by the specified date, the Landlord can take steps to obtain a Possession Order from the Court.
However, the revocation of Section 21 will leave Landlords with only the procedure contained within Section 8 of the Housing Act 1988 to regain possession. Under Section 8, evidence is required to demonstrate that one of the grounds for possession has been met. Therefore, the result of this legislation is that a reason must be required to regain possession and evict a Tenant.
Grounds can either be mandatory (where the Court is required to order possession) or discretionary (where the Court will decide whether to award possession in the circumstances). A common example of a mandatory ground is the non-payment of rent for a period spanning two months or more. It is important to note that each ground requires a different notice period to be provided to the Tenant before possession proceedings can be issued in Court.
In addition, there are certain grounds which require sufficient written notification to have been given to the Tenant, prior to the tenancy, to enable their use. Therefore, it is essential that all pre-tenancy documentation is sufficient to enable certain Section 8 grounds for possession to be claimed.
It is unclear when the Renters’ Rights Bill will be formally introduced into the law, with the latest suggestion being that it will be finalised by the summertime of 2025.
If you are a Landlord or a Tenant, who would like to have a discussion with a member of our Litigation Department in relation to the effect of the proposed legislation and the options available to you, please contact our office through our webpage or by contacting us on 01208 72328.