Section 21 and the Renters Reform Bill
What’s changed?
The Renters Reform Bill has attracted a great deal of media attention and headlines over the last couple of months but as the Bill is still progressing through Parliament. It is therefore still unclear what the final Bill might look like. One change that seems likely is the abolishment of the Section 21 notice, which is currently the most common way for a Landlord to bring an Assured Shorthold Tenancy to an end.
What is a Section 21?
There is a lot of concern surrounding this change, but it is important to fully understand the potential changes and the reasons for these before panicking. Essentially a section 21 notice currently allows Landlords to serve two months’ notice on an Assured Shorthold Tenancy to bring a tenancy to an end. No reason needs to be given when serving a section 21 notice so there are concerns around the small minority of Landlords misusing them, for example serving notice on a tenant who has reported a maintenance issue.
How will I be able to end a tenancy going forward?
The alternative to a section 21 notice is a section 8 notice. A section 8 notice serves the same purpose as a section 21 notice but needs to be served on a range of grounds, meaning a reason will be required when serving notice on a tenant. Currently the Government recommends serving a section 8 notice on tenants in breach of their agreement but under the Renters Reform Bill it is expected this will be the standard way to end a tenancy.
There are currently seventeen different grounds to use when serving a section 8 notice, eight of these grounds are mandatory meaning the courts must award possession if grounds are met. These grounds include Landlords wanting to move back into the house or serious rent arrears at the time of service of notice. As part of the Renters Reform Bill the section 8 notice grounds are due to be changed to provide a “comprehensive, fair, and efficient, striking a balance between protecting tenants’ security and landlords’ right to manage their property” including the implementation of a ground to be used if a Landlord wishes to sell their property.
When are these changes taking place?
The Government has confirmed they plan to introduce the Renters Reform Bill in this session of Parliament, which ends in May 2023. We will continue to keep our Landlords updated with the changes when more details are known.
If you would like to discuss the Renters Reform Bill in any further detail, please do not hesitate to contact our Lettings Team on 01603 751555
