The recent publication of the Government’s Renters Reform Bill, ‘A Fairer Private Rented Sector’ seeks to abolish Section 21 Notices to strike a fairer balance between residential landlords and tenants.
On 16 June 2022, the Government published the Renters Reform Bill proposing to bring an end to Section 21 ‘no-fault’ evictions with the aim of delivering a simpler, more secure tenancy structure.
The Renters Reform Bill and Section 21 Notices
Currently, in accordance with Section 21 of the Housing Act 1988, landlords can recover possession of a property let under an Assured Shorthold Tenancy after the expiry of the fixed term, without the need for a specific reason, provided they have complied with certain requirements.
A Section 21 notice must be served on a tenant in the prescribed form, giving at least two months’ notice. If the tenant has not vacated the property after the expiry of the notice, landlords can issue court proceedings to recover possession of their property.
The Renters Reform Bill seeks to abolish Section 21 notices with the intention of providing ‘greater security for tenants’ who comply with their obligations under their tenancy agreement.
What effect will this have on Landlords?
Under the Government’s proposals, landlords will only be able to bring a tenancy to an end in reasonable circumstances. They will have to rely on the service of a Section 8 notice, where they will need to establish a valid ground for possession such as: rent arrears, breach of contract or nuisance, which are currently the most relied upon grounds by landlord’s serving a Section 8 notice. Although, the Government is proposing to amend the existing grounds available to include further grounds and provide certainty, however this has not yet been confirmed.
Opinions on the proposed abolition and changes are split. However, landlord’s rights will seemingly be narrowed without Section 21 notices whilst strengthening the rights of tenants.
It remains to be seen when Section 21 notices will be removed but the Government is expected to produce its Bill by the end of 2022, which will provide a clearer indication on the timeline for the proposals.
How we can help
If you are a landlord and you are concerned about the proposed abolition of Section 21 notices and wish to discuss further how this may affect you, please do not hesitate to get in touch with one of our Landlord and Tenant specialists who will be happy to assist. It is prudent to act now to avoid being caught out.
For more information or advice on this or any other Landlord and Tenant Disputes, please call our Dispute Resolution Department on 0800 118 1500.