What the end of Section 21 eviction notices means for landlords and tenants

It has recently been confirmed that the government remains committed to abolishing a landlord’s ability to terminate a residential tenancy without requiring a reason.Section 21 of the Housing Act 1988 has enabled landlords to terminate certain residential tenancies by providing the tenant with two months notice to leave and without needing a reason to do so. These have been known generally as no-fault evictions.Under current legislation, a landlord can recover possession of a residential property once the fixed term of an Assured Shorthold Tenancy has expired, by serving a notice under Section 21 of the Housing Act 1988.There are certain pre-conditions required of the landlord for the Section 21 notice to be served on the tenant, such as: The Tenancy Deposit Scheme has been complied with; Energy Performance Certificates and gas safety certificates have been provided to the tenant; the latest “How to Rent” Guide has been provided to the tenant and at least two months’ notice has been given to the tenant.

By The Newsroom

Published 23rd Jan 2023, 06:00 BST

By using the Section 21 Notice procedure, a landlord is not required to rely on any grounds of tenant default for possession, such as rent arrears or other breach of the terms of the tenancy.

“The June 2022 White Paper presented to Parliament by the Secretary of State for Department for Levelling Up, Housing and Communities sets out the proposed changes which will be introduced alongside the abolition of Section 21. The aim is to deliver ‘a fairer, more secure, higher quality private rented sector’. All tenancies will change from Assured Shorthold Tenancies to periodic tenancies.

Other measures to be introduced include a new Ombudsman to deal with disputes between landlords and tenants without the need to go to court, and a new Property Portal to help landlords and tenants understand their rights and responsibilities.

The Government intends to introduce a Renters Reform Bill into Parliament in this 2022/2023 Parliamentary session, by April 2023, which will provide the legislative basis to deliver the reforms outlined above. The Government will provide six-months’ notice of implementation, from which date all new tenancies will be governed by the new rules. At least 12 months following this date, all existing tenancies will be transitioned to the new system and all tenants will be protected from Section 21 eviction.

The proposed abolition of Section 21 no-fault evictions mean that a landlord can only end a tenancy if there is a valid ground for possession under Section 8 of the Housing Act 1988. If the tenant ends the tenancy, they will need to provide two months’ notice, which provides some protection for the landlord to find new tenants and avoid lengthy vacant periods.

Whilst the end of Section 21 evictions provides the tenant with increased protection, proposals to reform the grounds for possession under Section 8 will assist landlords regain possession when necessary. These proposals include provisions for landlords wishing to sell their property, and for those who want either themselves or their family members to move into the property. Changes will also be made to make it easier to evict tenants that have been in at least two months’ rent arrears three times within the previous three years.

Tom Edwards at LCF Law is on 01274 386567 or email [email protected].