Lettings: The Renters Reform Bill – Part 1: Section 8, The New Rules by Lettings Director Helen Jolly

This is the first part in a series of blogs from Lettings Director, Helen Jolly, about the changes to the Renters Reform Bill.

Abolition of the Section 21 Notice - the most talked about part of the reform.

What is a Section 21 Notice?

The section 21 notice is the notice currently served upon tenants to gain possession of the property.

Currently a landlord gains the property back via the accelerated possession process. No reason needs to be given for its use and no money claim can be brought against the tenant. The notice period must be at least two months.

The use of this notice is being abolished.

The New Rules

A Landlord will now need to serve a section 8 notice and will have to say their reasons for regaining the possession. The grounds that are being proposed and notice periods are as below.

I have listed those that will be of the most relevance to our clients when needing to take their properties back. All can be found on the Government website: here: https://www.gov.uk/guidance/guide-to-the-renters-reform-bill

Landlords will need to supply reasons for possession and provide evidence of the reason, for example, if selling, an instruction to sell to estate agents or solicitor. It is also proposed that Landlords will not be able to use grounds for selling or redevelopment in the first six months of the tenancy.

This is just a snapshot of the new system but if this can be made to work effectively and the legal system takes into account the needs of landlords as well as the tenant, then a section 8 route will make possession clearer to all and less fraught with the risk of the giving the wrong or defective notice. A section 8 notice will allow landlords to obtain money orders against tenants which they currently can’t obtain if using a section 21 notice. If landlords can also use High Court Enforcement Officers rather than court bailiffs to evict then gaining possession of their property may be quicker.

In the run up to this being made law, Landlords should look at their tenancies and assess risk going forward. They may need to quantify the risk and if needed discuss rent increases with their tenants, obtain warranties against loss of rent and check they have all their health and safety and paperwork correct.

We know that many landlords are stretched for time and not able to keep up with the reforms, then perhaps now’s the time to consider speaking to your local letting agent who can guide you through the changes.

Emsleys is very well positioned to help landlords with the transition being both a letting agents and legal firm.