section 21 - Reside Bath

Extended Section 21 Notice Periods

The Ministry of Housing, Communities and Local Government (MHCLG) has confirmed that it is to extend the evictions ban in England until the 20th of September 2020, and will also introduce six-month long notice periods that will run until the 31st of March 2021.

The ban, which was announced in March as a result of the Coronavirus pandemic, was to end on the 23rd of August, with some cases due to be heard immediately at the newly approved Nightingale courts. It has also been confirmed that once the courts do re-open, only serious cases such as those involving anti-social behaviour and domestic abuse will be prioritised.

Now that the ban on evictions has been extended, the Government must use this time to introduce further guidance and prepare the sector. It is important to take steps back towards normality so that both landlords and tenants have access to the justice system while putting measures in place to offer further support to tenants who have built up COVID-related arrears and this four-week extension will give Government the time to introduce such measures.

Timothy Douglas, ARLA Propertymark

MHCLG has advised landlords to work with tenants who are experiencing financial difficulties as a result of the pandemic and consider all possible options – such as flexible payment plans which take into account both parties’ circumstances – to ensure cases only end up in court as an absolute last resort.

Landlords must disclose impact of COVID-19 on tenant

Those cases which do make it to court will be affected by new rules requiring landlords in England and Wales seeking possession of their properties to set out in their claim any relevant information about a tenant’s circumstances.

This information includes what effect COVID-19 has had on a tenant’s vulnerability or whether they are claiming benefits – information should also be provided on how the pandemic has affected a tenant’s dependents, if they have any. However, the rules do not require agents or landlords to actively seek out information but merely to make the court aware of what information is known.

The rules do not change the regulations around possession for landlords and they do not amend Section 21 claims or Section 8 arrears claims. What is changing is some of the steps that landlords must follow if they want to apply for possession through the courts.

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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.