The end of section 21 ‘no-fault’ evictions marks one of the biggest changes within the Renters’ Rights Bill, recently in the committee stage in the House of Lords. While you might have seen the headlines, are you clear about how it might impact your lettings strategy? To be sure, read on to find out more.
What section 21 currently entails
Currently, the section 21 notice allows landlords to seek possession either at the end of a fixed-term tenancy if there’s a written contract, or during a periodic tenancy. It can’t be used if it’s less than four months since the tenancy began or before the end of a fixed term unless there’s a rent review clause in the tenancy agreement. The notice you serve must give your tenants at least two months’ notice to leave.
Section 21 can also only be used if you have adhered to certain procedures.
These include having previously given tenants copies of the Energy Performance Certificate for the property, the government’s ‘How to rent’ guide and a current gas safety certificate before they moved in. You must also have put their deposit into a deposit protection scheme.
The ‘no-fault’ status means that you don’t have to give a reason for wanting the property back, unlike a section 8 notice which is used when a tenant has broken the terms of the tenancy agreement.
Why Section 21 is being abolished
The abolishment of Section 21 aims to end this no-fault practice and will be accompanied by a move from fixed to periodic tenancies. By abolishing section 21, the government hopes to provide more security for tenants within the private rented sector, giving them more confidence to challenge poor practice and unfair rent increases without the fear of eviction.
New possession grounds
Possession grounds will be clarified and expanded as part of the Renters’ Rights Bill and the right for landlords to reclaim property, when necessary, will also be strengthened. So, if you suddenly decide you need to sell or you want to move in, in place of your tenants, you will be able to do so. However, tenants will have a 12-month protective period at the beginning of a tenancy during which time you won’t be able to do this. If you decide, outside of this 12-month period, that you want the property back to move in or sell, then you will need to give your tenants four months’ notice.
How to adapt
The end of section 21 will require more robust reasons for eviction which makes it more important that you have found the right tenants in the first place. Effective screening and background checks will reduce your risk of letting to tenants you’d rather you hadn’t.
Building on tenancy relationships through open and honest conversations will also be important. Encourage an open dialogue so that tenants not only report any issues promptly, giving you plenty of time to resolve them before tenant relationships are impacted, but they will also give you as much notice as they can of plans to move.
Compliance will be important, both to prevent legal redress but also to maintain your reputation as a great landlord. If you need more help understanding or managing the changes and the new possession grounds, then get in touch.
We Can Help
At Progressive Lets we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. Get in touch to find out more.
