Renters (Reform) Bill for England

Assured Tenancies

Tenancies granted between 15 January 1989 and 27 January 1997, were treated as assured tenancies. If the landlord wanted to create an assured shorthold tenancy, then they simply needed to serve the tenant a section 20 notice. By serving this notice, the landlord was then able to serve a section 21 “no fault eviction” to obtain possession of their property.

Through all the negative news regarding the removal of section 21 “no fault evictions” landlords reactions are to serve notice and sell. This is largely due to private landlords worrying they will not be able to get possession of their property if required.

To clarify, this is not the case, as the government have modified and added extra grounds to a section 8 notice that means the landlord can still get possession, in several cases as a “no fault eviction”, where they want to sell for example. Some of the key proposals are listed here. 

Ground 1

The landlord can seek possession if they want to live in the property. They will no longer need to have lived in the property prior to renting it. They can also use this ground if they want possession for a family member to live in the property, a benefit not currently available.

Ground 1A

This ground will be used if the landlord wants to sell, hence landlords can wait and see how the new rules work before deciding to sell or stay in the market.

With rising rents staying, may provide increased returns.

If the landlord or their family member does not move into the property or if the property does not sell, the landlord will not be able to relet the property for a period of three months. This is intended to prevent the abuse.

The notice period for both grounds will be two months and the main condition is that the notice cannot be used in the first six months of letting the property.

Ground 6A

This is also a new ground that can be used if the landlord has been issued an enforcement notice by the local authority or a banning order by the First-tier Tribunal and needs possession to be able to be complaint.

Rent Arrears

The landlord will still be able to serve notice to the tenant if the tenant is in two or more months rent arrears, however the current notice period that is two weeks will be extended to four weeks’ notice.

Ground 8A

This is also a new ground, if the tenant becomes two months of rent arrears by at least one day on three separate occasions in a three year period this ground can be used. The notice period is also four weeks just as it is for rent arrears and hopefully it will be a deterrent for tenants continuously going into arrears.

Trading Standards Clarifies

On a slightly separate note, the National Trading Standards Estates and Letting Agency Team, have produced guidance that will help agents and their clients when describing and advertising a property.

This is so a purchaser or renter has a clearer understanding as to what is being offered. All information must be clear, accurate and up to date at all times.

General terms

New on the market - This is when a property that has not been advertised since the last sale or let. The description should only be used for a short period of time. It cannot be used if the property has previously been advertised with another agent, even if removed from the market between instructions.

New instruction - This is where an agent has recently been instructed to market the property. The description should only be used for a short period of time.

New and exclusive - A property that is either a new instruction or new on the market which is exclusive to that agent or portal (depending on the context).

The description ‘new’ should only be used for a short period of time*, although the term ‘exclusive’ can be used for as long as it is applicable.  

Reduced - This is where the price of a property has recently been reduced. Any reduction should be a genuine reduction against the previous price.