The Government’s election manifesto confirmed its plans to abolish Section 21 of the Housing Act and improve the grounds for eviction set out in Section 8 of the Act. The timescale of these changes is currently unknown but, once implemented, landlords will need to know how to bring a tenancy to an end legitimately.
What is Section 21?
Outside of the fixed term period, Section 21 of the Housing Act 1988 permits a landlord to evict a tenant by serving two months’ written notice to terminate the tenancy. The landlord does not need to cite a specific reason for ending the tenancy and, as long as they have complied with certain legal obligations during the tenancy, the notice can be upheld.
These are commonly known as ‘Section 21’ evictions or ‘no-fault’ evictions because the landlord does not need to provide any grounds for eviction.
What is Section 8?
Currently, a landlord can only seek possession within a fixed term by applying to the court for possession under Section 8 of the Housing Act, citing one or more of the grounds contained in Schedule 2.
These grounds include the mortgage lender being entitled to possession of the property, the tenant being at least two months in rent arrears or a breach of the tenancy agreement, amongst several other grounds. These are commonly known as ‘Section 8’ evictions.
Why does the Government want to remove Section 21 notices?
The Government has expressed its intention to modernise the private rented sector, and intends to introduce a new, fairer deal for both landlords and tenants. They hope to abolish Section 21 by removing assured shorthold tenancies; instead, Section 8 would have enhanced grounds for which a landlord can evict a tenant and a streamlined process through the courts, so landlords with justified grounds aren’t waiting too long to evict a tenant.
“ARLA Propertymark will be engaging with the Government to ensure they fully understand the consequences of any changes, and we will be scrutinising the legislation, to ensure landlords have the ability to regain their properties if needed.”
David Cox, ARLA Propertymark Chief Executive
The changes would hopefully mean that tenants would have the security of staying in their property for as long as they need to, and landlords would be able to quickly and fairly evict tenants if they break the terms of their agreement, or if the landlord wishes to take back the property to sell or live in themselves.
Confused?
The government’s drive to raise standards in the private rental sector means that there are now nearly 150 pieces of law affecting tenancies. It has never been more important for your tenancy to be managed by a knowledgeable, professional and regulated agency.
For guidance on all aspects of tenancy management, or if you are considering letting your property in Bath, contact us on 01225 445777 or info@localhost.
Subject to approval by both Houses of Parliament, landlords and letting agents will need to ensure electrical installation inspections and testing are carried out for all new tenancies in England from 1st July 2020, or from 1st April 2021 for existing tenancies.