You will have heard that the new government plans to make important, seismic, changes to Residential Landlord and Tenant Law. This gives you the overview you need to understand the changes to the law.
The biggest change is to end โno faultโ eviction. Currently a landlord can, under section 21 of the Housing Act 1988, seek to recover possession of their let properties under an Assured Shorthold Tenancy (AST).
This will be stopped under the Renters Reform Bill, which is expected to become law in the next few months. The changes in the law are expected to apply to existing as well as new ASTs.
This means that a Landlord will not be able to recover possession without showing a proven โfaultโ by the tenant.
Under Section 21 of the existing Act, there is an Accelerated Possession Procedure option. This allowed possession to be recovered, assuming all paperwork was in order, without a full Court Hearing being needed, in almost all cases. The option reduced legal costs and timescales. This option will no longer be available.
Section 8 of the Housing Act 1988 set out mandatory and discretionary grounds available to a Landlord. These will in principle remain, but will be amended in parts, and new grounds have been added. The minimum notice period needed before proceedings can be commenced will change, in most cases. For example, the notice period for rent arrears in excess of 3 months will increase from 2 weeks to 4 weeks.
Where a landlord proves a mandatory ground for possession, the courtย must, as now,ย make an Order for possession. These are:
- Arrears of rentย – both at the date of service of the Section 8 notice and the court hearing, presently a landlord has to show at least two monthsโ rent. That minimum will go upย to 3 monthsโ rent arrears.
- Sale of property โ This is a completely new ground; after the first 12 months of the tenancy a landlord will be able to serve notice on the tenant if they intend to sell the property.
- Principal home โ If theย landlord plans to move into the propertyย as their only or principal home. This ground cannot be relied on in the first 12 months of the tenancy, but this will now be easier to rely on as the landlord will not have to show this was previously their main home.
There are number of other changes, including:
- A new landlord ombudsman for the Private Rented Sector โ the aim is to assist tenants in a quick, and fair resolution when they are making a complaint about their landlord.
- Strengthened request to have a pet in the property โ under the new legislation a landlord must consider a request for a tenant to have a pet in the property. They cannot unreasonably refuse this request, and landlords will be able to obtain insurance to cover against any damage to their property. It will be the tenantโs responsibility to resolve any damage caused to the property by the pet.
- Applying โAwaabโs Lawโ to the sector โ Legislation will provide timeframes on the action landlords must take to ensure they make their properties safe when they contain serious hazards. This law already applies to the social housing sector following the death of Awaab Ishak, a 2-year-old, who died from a prolonged exposure to mould in a rented home.
- Providing stronger protections against backdoor evictionย โ Tenants will be able to appeal against excessive rental increases which are designed to make them move out. There will be an independent tribunal which can determine whether an increase was excessive.
- Rental discrimination โ It will be illegal for landlords to discriminate against prospective tenants who have children or are in receipt of benefits.
It remains to be seen what the final legislation will look like; there may be significant amendments to the measures before it is brought into law. As it stands, it is creating significant anxiety for landlords, with many making the difficult decision to sell their properties and leave the private rented sector.
It is hoped, that in its final form, the legislation will strike a balance between protecting tenants and landlords alike.
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