The proposed changes: The Renters Reform Bill
A tenancy will only end if a tenant gives two months’ notice or if a landlord can establish a ground for eviction.
Currently, most residential tenancies will be an Assured Shorthold Tenancy (‘AST’) for an initial fixed term of at least 6 months. At the end of the period the tenancy can be renewed or will become a periodic tenancy. Under the new proposals, all tenancies will be periodic tenancies with break clauses included ASTs to allow for tenancy to be terminated. The terms of the break clause will have to be agreed between landlord and tenant at the start of the tenancy.
Changes to Section 8 grounds:
Landlords will still be able to evict tenants if the criteria of Section 8 of the Housing Act 1988 are met. The proposals also include a broadening of these grounds to allow more scope for landlords to terminate tenancies. The current grounds to remain, but with reinforcements.
The existing grounds are:
Mandatory
- The property was previously the Landlord’s main residence and notice was given to the tenant that repossession may be sought on this ground
- The property is subject to a mortgage and the mortgage company require repossession
- In the 12 months prior to the start of the tenancy the property was used as a holiday property
- In the 12 months prior to the tenancy the property was a student residence
- The property is required for the use of a minister of religion
- The property is social housing and possession is required to undertake significant maintenance or repair works
- The tenant has passed away
- The tenant or a visitor has been convicted of a serious criminal offense, is in breach of an Anti-social behaviour order or has been convicted of an offense under the Antisocial Behaviour Crime and Policing Act 2014 (s30)
- Issues arise as to the immigration status of the tenant
- There are specific rent arrears at the date of serving notice and at the date of the hearing
Discretionary
- There is suitable alternative accommodation available for the tenant
- There are some rent arrears
- The tenant has been persistently late with rent
- The tenant is in breach of an obligation
- The tenant has allowed the property to fall into decay
- The tenant has caused nuisance at the property or committed illegal activities on the premises
- The tenant has been convicted of rioting
- Situations involving domestic abuse
- Furniture provided has been permitted to fall into decay
- The tenancy relates to the tenant’s employment and that employment has ceased
- The tenancy was entered into on false grounds by the tenant
For the Rent arrears ground the notice period will be increased to four weeks and the arrears requirement at the date of trial will remain.
Proposed new grounds:
Under the new proposals in addition to the grounds summarised above there will be three new grounds. The three new grounds are:
1) A mandatory ground where a landlord wishes to repossess the property for their own use or that of close family members (an obvious issue here will be the interpretation of who constitutes “close” and (probably) “family”).
2) A mandatory ground if the landlord wishes to sell the property.
Neither of the 2 new mandatory grounds above can be implemented by a landlord in the first 6 months of a new tenancy and both will require the landlord to provide the tenant with at least 2 months’ notice.
3) A mandatory ground for repeat serious rent arrears. This can be used where the tenant has been in at least two months’ rent arrears, at least three times in the past three years. This is intended to be regardless of the level of rent arrears (if any) at the time of the hearing of the possession claim. This ground will require the landlord to give 4 weeks’ notice to the tenant.
It is also worth pointing out that under the proposals the notice period for landlords to obtain possession from a tenant due to criminal and serious antisocial behaviour is to be reduced from one month or 4 weeks to 2 weeks.
Implementation:
The proposals are intended to be introduced in two stages. The first stage will apply to new tenancies created after the proposals are brought into legislation. There will then be a transitional period before the changes can be applied to tenancies that commenced before the new legislation comes into effect. At least 6 months’ notice will be provided for the first implementation date.
More information about the proposed changes can be found here:
