As some of you know, the Renters’ Rights Bill is currently making its way through the House of Lords.
Some landlords are not aware of the proposed changes in legislation and how they will affect them. In our experience, some landlords are not even aware of the Renters’ Rights Bill’s existence.
One area that is causing conversation within the industry is the abolishment of no-fault evictions. But what does this mean for Landlords and their current or prospective tenants?
How Does the Renters’ Rights Bill Effect No-Fault Evictions?
One of the biggest upcoming changes in the Renters’ Rights Bill is that Section 21 (no-fault) evictions will no longer exist. The current Housing Act 1988 gives landlords the option to serve a no-fault eviction if they can prove they have met certain obligations as landlord.
The Renters’ Rights Bill suggests that landlords will no longer be able to evict on a no-fault basis and new grounds will be implemented under Section 8. Landlords will be obligated to provide evidence in any court proceedings to show that those grounds can be relied on for eviction.
With the abolishment creeping up on us, we can expect an influx of Section 21 notices between now and when the legislation comes into force.
Could Abolishing No-Fault Evictions Lead to Underhand Tactics?
One concern that people have is whether this will prevent no-fault evictions, or whether landlords find loopholes.
For example, one of the grounds for eviction in Section 8 is for the landlord or their family to take possession of the property to live in it themselves. Could a landlord use this as a reason for eviction and re-let the property to another tenant?
The answer should be no, as this would mean they could be fined and prosecuted, but time will reveal any issues that might arise over the coming years.
The new law will make it a crime for a landlord or letting agent to give a tenant a Section 8 eviction notice if they know (or should know) that they don’t have a real legal reason to evict the tenant. This means that if the landlord fails to provide sufficient evidence that the eviction was on legal grounds, they could be penalised for misleading the court.
If the tenant ends up moving out because of the notice, the landlord or agent could be prosecuted. Instead of going to court, the local authority can choose to fine them up to £40,000.
Other Major Changes in the Renters’ Rights Bill
Getting rid of no-fault evictions isn’t the only major change, there are more proposed changes that will affect both landlords and tenants. These include, but are not limited to:
- Abolishment of fixed-term and assured short hold tenancies, instead there will be a 12-month protective period for tenants and all tenancies will instantly run on a periodic tenancy.
- Landlords or their agents will no longer be able to discriminate against prospective tenants who have children or claim housing benefits.
- Tenants will have to be in three months’ rent arrears rather than two. The arrears cannot be counted for if the reason is because the tenants have not received Universal Credit payments.
- Some notice periods will also be extended. For example, if a tenant has not paid their rent for more than 3 months and the landlord wants to make a claim to the courts due to rent arrears, they will need to give the tenant a four week notice period rather than two.
- Rent will only be reviewed annually and can only be reviewed in accordance with a Section 13 procedure, regardless of what the parties have contractually agreed. Tenants can still challenge rent increases if they feel they’re unfair.
We’re Here to Help
When the law changes surrounding property, it’s easy to forget we’re not just dealing with a transactional issue, such as the income someone gains from renting out their property. We are dealing with the very real insecurity that surrounds our financial stability, and if you’re a tenant, your home.
This can be a nerve-wracking time, when you’re not sure what’s going to happen next, and how it might affect you. That’s where we come in. Getting legal advice about your options can help to put your mind at rest. You can contact us by filling out our enquiry form and we’ll be happy to help.
