In the King’s Speech on 17th July 2024, King Charles III set out the Government’s proposed legislation for the upcoming parliamentary year. This article focuses on the Renters’ Rights Bill, which is poised to give “greater rights and protections to people renting their homes, including ending no-fault evictions and reforming grounds for possession”. Housing reform was a key focus of the King’s Speech with many of the proposed Bills looking to reform the law in this area, with the aim of giving tenants increased housing security.
The Current Process
A landlord can, as the law stands, currently serve a tenant with a ‘Section 21’ notice, provided certain validity requirements are met, pursuant to s.21 Housing Act 1988. This allows a landlord to give two months’ notice for a tenant to vacate the property and thereafter seek proceedings for an order for possession if a tenant does not vacate. This therefore allows a landlord to end an assured shorthold tenancy without providing a reason or ground(s) for possession, hence, these types of evictionare more commonly known as ‘no-fault’ evictions.
The Reform
Currently, the exact mechanisms which will be put in place to deal with the void left by ‘no-fault’ evictions is not yet clear. As it stands, this will mean a landlordwishing to repossess a property will have to give a reason for doing so and rely on a Section 8 notice instead.
A Section 8 Notice (pursuant to Section 8 Housing Act 1988) provides mandatory and discretionary grounds for possession on which a landlord can serve an eviction notice upon a tenant. This makes it crucial that when claiming possession, a landlord is able to justify the need to evict the tenant and repossess the property, as well as providing clear documentary evidence of the reason. The notice period which a landlord must give to a tenant when serving a Section 8 Notice differs depending on the ground which the landlord relies upon. It has been widely reported that the use of Section 21 Notices has increased, particularly in London. The end to no-fault evictions and reform to the grounds for possession will likely work in conjunction with other proposed reforms of the Renters’ Rights Bill, including the ability for tenants to challenge rent increases and end the practice of rental bidding wars which are becoming all the more commonplace. There are proposals, along with the abolishment of ‘no-fault evictions’ for reform to the grounds which a landlord may rely on when serving a Section 8 notice to ensure that the approach is balanced in providing security to landlords as well as tenants. For example, a new mandatory ground has been proposed for a landlord to be able to evict renters who are in serious breach of rent provisions in exceeding the level of two months’ of arrears three times in one year.
In practice, the reforms are likely to cause an increase in the sector in the service of and reliance by landlords on the Section 21 procedure in the interim period beforetheir abolishment and the implementation of a new reformed system therefore creating a transitional period where renters continue to be faced with ‘no-fault’ evictions despite the Reform’s intended goals.
Nearly a month on from the King’s Speech, it still remains to be seen what exactly these changes will entail and when the reform will be brought into force although it is unlikely that any said changes will be made before October, at the earliest.
If you are a landlord or a tenant and have questions regarding (a) the current process of evictions under Section 21 (b) what the proposed abolishment means for you as a landlord/tenant or (c) any other tenancy related matter, please do not hesitate to contact our specialist Dispute Resolution Team by email at disputeresolution@curzongreen.co.uk or by telephone on 01494 451 355 or on 0203 443 9576.
All information is true as at the date of preparing this article. Please always consult the latest legislation or government guidance for accurate information.