With the Renters’ Rights Bill voted through by MPs on October 22 with only a handful of minor Lords amendments agreed to, the bill is heading for Royal Assent almost unchanged from its original presentation. And that means that one of its most fundamental changes – the abolition of Section 21 no-fault evictions – remains firmly in place.
A date for Royal Assent, when the Bill becomes law as an Act of Parliament, has not yet been set. It’s also not yet clear when the changes outlined in the new Bill will be implemented. Section 21 abolition has long been touted as an immediate change, but there is doubt about how possible that is without concurrent court reform.
The government has also pledged that the end of Section 21 will be alongside the shift from fixed term to periodic tenancies but previously said it would provide “sufficient notice ahead of implementation”. Landlords are still waiting.
The current Section 21 eviction process
Until then, the Section 21 right to evict without reason will remain in place. Landlords can serve a Section 21 notice with two months’ warning after a fixed-term tenancy ends, or at any point during a periodic tenancy. Section 21 cannot be used within four months of the start of the tenancy or within the fixed term unless there’s a clause in the tenancy agreement allowing for this.
To ensure the validity of a Section 21 notice, landlords must comply with several terms. Deposits must have been protected in a landlord deposit protection scheme and tenants should have received the property’s Energy Performance Certificate, gas safety certificate and a copy of the How to Rent Guide at the start of the tenancy. Documenting compliance will be essential.
The court can order a mandatory eviction if the tenant fails to leave during the notice period. Landlords can also apply for eviction via a Section 8 using one of a number of broken tenancy agreement grounds, such as the tenant falling into rental arrears. They must prove these grounds in court.
How the eviction process will change with the Renters’ Rights Bill
Under the Renters’ Rights Bill, Section 21 will be abolished with immediate effect if Labour keeps to its original promise. That means that instead of using the Section 21 process, landlords will have to use a Section 8 notification to regain possession even when the tenant isn’t at fault. The new system will allow for evictions only in specific circumstances that are clearly defined, such as if the tenant has broken tenancy agreement terms or the landlord needs to sell.
Possession grounds are being expanded, with stronger rights for landlords to reclaim properties if they want to sell or move in. However, this cannot happen in the first 12 months of a tenancy and the landlord will need to provide four months’ notice when they do use these grounds. This is longer than previously.
The idea of this new measure, says the government, is to protect tenants from arbitrary evictions that can be hugely unsettling. The longer notice periods will allow tenants more time to find a property if their landlord does want them to leave.
Additional protections
Where a tenant is at fault – such as committing antisocial behaviour, property damage or significant rental arrears – landlords will still be able to evict. However, things are changing here too. The mandatory threshold for eviction for rental arrears, for example, will increase from two to three months, while the notice period required will double from two weeks to four to give tenants more time to sort out their finances.
The changes will mean that tenant matching, referencing and screening will become even more essential to reduce the potential need for eviction. Meticulous paperwork will also be important to ensure that notices served are valid and where eviction cases head to court. Efficient and effective rental property management will be vital in the post-Section 21 abolition age.