Time is running out for Landlords to have their say on Section 21

News at Stirling Ackroyd | 26/09/2019


Time is running out for Landlords to have their say on the Government proposals to abolish Section 21.
 
Government proposal - abolishing Section 21

The Government is proposing the removal of Assured Shorthold Tenancies (ASTs) from the Housing Act 1988. This potentially means that all landlords (private and social) will only be able to offer assured tenancies.  
 
The tenancies will either be fixed-term assured tenancies, meaning both landlord and tenant are committed to a set period or contractual periodic assured tenancies. A fixed-term tenancy not ended by a tenant or by a landlord using Section 8, could either be renewed to a new fixed term or it automatically becomes a contractual periodic assured tenancy.

Under the proposals, tenants will still be able to end tenancies by giving notice and there is no intention to change the current requirement of one month’s notice. Tenants could only give notice at the end of a fixed term or during a periodic tenancy, unless the tenancy agreement includes a break clause.

Improving Section 8 grounds

The Government has suggested several improvements to the Section 8 process, including:
 

  • Introducing a new ground when the landlord wants to sell the property and widen the current ground for use when landlords, their spouse or partner, or their families want to move into the property.
  • Amending the current mandatory ground 8 rent arrears so that landlords need two months’ arrears on notice, one month’s arrears at the time of the hearing (and that if there are three instances of the tenant paying down and then re-accruing arrears, the ground becomes mandatory).
  • Strengthening antisocial behaviour grounds, although no specific proposals yet
  • Domestic violence ground is made available to private landlords, and that it is amended to give the victim more rights and protections
  • Strengthening ground 13 to allow landlords to use this if tenants routinely refuse access to the property for repairs / safety checks.
  • The Government has also proposed introducing an accelerated process for possession (which would remove the need for a court hearing, unless the tenant challenges it) for mandatory grounds.

Exceptions

The Government indicated that they do not believe exceptions are needed for student tenancies, although they ask for views for extending the current ground to regain possession at the end of an educational course to private landlords, as well as institutions.

When will the changes come into force?

The consultation is the first stage of the process which will then be followed by a Government response, confirming the intention to introduce legislation in Parliament. At the earliest we expect that any changes will come into force late 2020 / early 2021 depending on other Government priorities.

Once Parliament passes the law and it gets approved by the Queen, the Government has proposed a six-month transition period before the changes can be enforced. However, the consultation is inviting views on the suitability of the proposed transition period.

The changes will not be retrospective so any existing ASTs will not be affected but once the tenancy comes to an end, any new tenancy agreement will be an assured tenancy.

Landlords can make an individual response to the consultation should they wish to have their say. The consultation is available online from the Ministry of Housing, Communities and Local Government (MHCLG) website. Responses can be submitted via an online form, email or post by 12 October 11:45pm.
 
Prior to taking part in the survey (consultation) please do read Gov.UKs guide "A new deal for renting" and the Q&A paper here.

Complete the survey now

The consultation closes on 12 October 2019.

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