Jessica Irwin and Lyssa Reeve, in our Dispute Resolution team, discuss the Government's surprise announcement that it intends to repeal Section 21 of the Housing Act 1988, putting an end to Section 21 Notices.
What is a Section 21 Notice?
Currently, under Section 21 of the Housing Act 1988, a landlord is permitted to bring an Assured Shorthold Tenancy (‘AST’) to an end by serving a Tenant with a 2 months’ written notice (known as a Section 21 notice) and then obtaining a possession order from the courts. For previous articles on this topic please click here.
A section 21 notice cannot be served unless the fixed term of the tenancy has expired or after the first six months of the tenancy (assuming the tenancy agreement contains a Landlord’s break clause which allows for this).
Unlike a Section 8 notice, a landlord is not required to prove prescribed reasons for the termination of the tenancy (such as rent arrears) and this is why the Section 21 procedure for obtaining possession is commonly referred to as the ‘No fault’ eviction procedure.
The Section 21 procedure is more restrictive than it used to be when it was first brought in, with changes having been made in recent years so that landlords are now required to have carried out the following steps before the tenant occupies the property to be able to validly serve and rely on a section 21 notice to obtain possession:
- Provide the Tenant with an Energy Performance Certificate (free of charge);
- Provided the Tenant with a gas safety certificate;
- Provide the Tenant with a copy of the Government produced document, “DCLG: How to Rent: The checklist for renting in England”;
- Protect the Tenant’s deposit in a deposit protection scheme such as my deposits, Tenancy Deposit Scheme (TDS) and Deposit Protection Service (DPS).
At present, as long as landlords comply with the above the Section 21 procedure remains a simple and relatively speedy way of obtaining possession. However, that may all be about to change…
Government’s announcement to put an end to Section 21 notices
On Monday 15 April 2019, in a published response to its consultation, ‘Overcoming the Barriers to Longer Tenancies in the Private Rented Sector’, the Government made a surprise announcement that it intends to repeal Section 21 of the Housing Act 1988. The published response suggests that the Government has taken this unexpected step due to a number of concerns surrounding tenants being evicted by landlords giving “short notice” using section 21 notices that cause tenants instability that can ‘…have damaging impacts on children’s education, and the cost of frequent moves undermines people’s ability to save up for a deposit’.
Whilst the Government has announced it will launch a further consultation on this issue, with both main political parties apparently in favour of an end to ‘No Fault’ evictions, it seems that the only real question is when it will happen. It is unknown as yet whether or not the reforms will apply to existing ASTs as well as new ASTs.
It is unclear what impact this announcement will have on landlords and tenants renting residential property. Whilst the proposal has been welcomed by residential tenant organisations, it has prompted strong criticism from the National Landlords Association. One concern is that it could lead to a decline in the availability of rented accommodation as the incentive to rent property out may diminish. In addition, it could lead to increased rents to protect landlords from the risks of not being able to regain possession as easily as previously. If the Section 21 procedure is removed it will effectively mean a return to Assured Tenancies (as opposed to Assured Shorthold Tenancies) as the principal form of residential lettings, taking us back in time to the 1990s, with limited grounds for possession.
If you are a landlord or tenant and require legal advice regarding Section 21 notices, please get in touch.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
No documents found.
