The Renters' Rights Bill – Part One: Abolition of the Section 21 Notice

The abolition of the Section 21 notice has been widely anticipated and is a key part of the Renters' Reform Bill. The Section 21 notice is currently used by landlords to regain possession of a property without providing any reason.

At present, landlords can recover their property through the accelerated possession process. As part of this process, landlords only need to give tenants at least two months' notice, without needing to justify their decision or pursue any money claims, such as unpaid rent, alongside the eviction.

With the abolition of Section 21, landlords will now need to provide valid reasons to reclaim their properties. If tenants do not leave voluntarily, landlords must apply for possession through the courts using a Section 8 notice. Section 8 provides both mandatory and discretionary grounds for possession, which are assessed by the court to determine if an eviction should proceed.

Changes to Rent Arrears and Tenant Protections

The bill proposes new protections for tenants facing short-term financial difficulties, ensuring that viable tenancies are not prematurely ended. This includes:

• Raising the mandatory threshold for eviction from 2 months’ arrears to 3 months.
• Extending the notice period for rent arrears cases from 2 weeks to 4 weeks.
• Allowing landlords to pursue discretionary grounds if tenants repeatedly pay rent late.

These changes aim to strike a balance between supporting tenants during tough times and enabling landlords to manage their properties effectively.

Landlords’ Right to Regain Possession

The new bill ensures that landlords still have the ability to reclaim their property when necessary, such as if they need to sell the property or move in themselves. However, there are new safeguards to prevent sudden evictions, especially in the early stages of a tenancy:

• 12-Month Protection Period: Tenants cannot be evicted to allow for a sale or landlord occupancy during the first 12 months of a new tenancy.
• 4-Month Notice Requirement: If the landlord needs to reclaim the property for sale or personal use after the initial 12 months, they must provide at least 4 months’ notice to the tenant.

These provisions aim to give tenants greater stability while maintaining landlords’ ability to regain possession when needed.

Compliance Requirements for Landlords

The bill emphasises that landlords must meet certain compliance obligations before being allowed to reclaim possession. These include:

• Deposit Protection: The tenant’s deposit must be secured in a government-approved scheme.
• Private Rented Sector Database: The property must be registered on the relevant database.

If a landlord fails to meet these requirements, they may temporarily lose the right to evict a tenant. However, the bill allows landlords to rectify non-compliance, so they are not prevented from regaining possession indefinitely. Importantly, these compliance rules do not apply to cases of anti-social behaviour, ensuring landlords can act swiftly in such situations.

What These Changes Mean for Tenants and Landlords

The abolition of Section 21 represents a significant shift in the rental market. The reforms are designed to improve housing security for tenants by eliminating the threat of no-fault evictions, while still ensuring that landlords can regain possession when justified.

For tenants, the changes offer:

• Longer notice periods for certain evictions.
• A grace period for tenants facing temporary rent arrears.
• Greater stability during the first year of a tenancy.

For landlords, the bill ensures:

• Fair grounds for eviction remain available through Section 8.
• The ability to regain possession for anti-social behaviour or serious breaches of tenancy.
• Opportunities to rectify non-compliance issues and avoid permanent restrictions on regaining possession.

Conclusion

The Renters' Rights Bill aims to create a more balanced rental market, offering greater security for tenants while ensuring landlords retain reasonable control over their properties. The abolition of Section 21 notices is a key step toward curbing arbitrary evictions and promoting more transparent, stable tenancies.

While these reforms bring significant changes, landlords and tenants should both take steps to understand the new rules and prepare for the transition. Staying informed about the requirements and timelines will help both parties navigate the evolving rental landscape smoothly.