‘No-Fault’ evictions to be abolished by the end of this government
14 February 2024
The end may be in sight for ‘no-fault’ evictions, as Michael Gove promised this week that Section 21 ‘no-fault’ evictions will be outlawed by the next general election. This promise comes after he had previously voiced concerns that the ban would have to wait until the court system had been reformed. In a Sunday night interview that aired on 11 February, Michael Gove insisted that Section 21 Notices will be banned by the next general election and that the Government would ”put money into the courts” to make sure the courts can implement the new changes and cope with the increased case load.
In the United Kingdom, it is understood that on average, a tenant receives a Section 21 Notice every three minutes. Section 21 refers to the provision of the Housing Act 1988 which permits a landlord to end a tenancy by service of two months’ notice (subject to the expiry of the fixed term). It does not depend upon establishing any fault by the tenants such as non-payment of rent. New figures published last week by the Ministry of Justice show that there has been a significant increase in the number of tenants that have been evicted by bailiffs and the use of ‘no-fault’ evictions. Since 2019, the Government has promised the abolition of Section 21 ‘no fault’ evictions to provide a fairer private rented sector for both landlords and tenants. However, there had previously been uncertainty surrounding when, and potentially if, the new law was going to be implemented.
The second reading of The Renters (Reform) Bill took place on 23 October 2023. The Bill is now at the Report Stage with amendments being proposed and considered. In light of Micheal Gove’s recent announcement, we do expect that the ban on Section 21 Notices will take effect ahead of this year’s general election. However, we do not know whether the remainder of the Bill will be implemented at the same time or if the Bill will be implemented in stages. It is understood that the Government will shortly be making a series of announcements on housing and planning reform, so we wait to see if this will shed more light on the proposed timescales for the implementation of the Bill.
The current position is that there will be a transition period when the Bill is introduced to allow existing landlords to make any necessary changes to bring their tenancies in line with the new provisions. It is understood this transition period is currently scheduled to be six months from the date of implementation of the Bill for all new tenancies and 12 months for all existing tenancies.
To ensure you are ready for the Bill to be introduced and be ahead of the curve, the key changes for those who need to know the details are listed below (references to provisions are of the Housing Act 1988 as amended).
The key changes
- Assured Shorthold Tenancies will be abolished, and all tenancies will be periodic.
- Landlords will still be required to comply with the rules on deposit protections. These rules will apply to all grounds except for grounds 7A and 14.
- In relation to rent arrears, grounds 8, 10 and 11 remain largely the same. However, four weeks’ notice must be given to the tenant instead of two weeks under these grounds.
- There is a new ground 8A for repeated rent arrears. To satisfy this ground, the tenant must be in two months rent arrears which are unpaid for one day on three separate occasions. This new ground resolves the issue under the current law which allows a tenant to pay some of the arrears (so that the tenant is no longer in two months’ rent arrears at the time of the hearing) before the hearing to avoid a possession order being granted under the mandatory ground 8.
- There is a new ground 1A where the landlord wishes to sell the property. The tenant must have lived in the property for six months. However, it is not clear what evidence will be needed to satisfy this ground and whether evidence of the notice of sale will be required at the time of the notice and hearing.
- Ground 14 will be amended to include behaviours “capable of causing” nuisance or annoyance as opposed to “likely to cause”. This change means that a variety of antisocial behaviours can be captured by the bill.
- There is a new mandatory ground 6A which the landlord can rely on to seek possession if the landlord is in breach of an enforcement notice or if the landlord has been refused a licence.
- A landlord will only be able to increase the rent on an annual basis using the statutory s13 procedure. Landlords cannot rely on contractual rent increase clauses.
- There will be an implied term in all tenancies for any tenant to ask the landlord to keep a pet which the landlord must not unreasonably refuse. If the landlord consents to keeping a pet, they can recover the cost of pet damage insurance. There is a strict 42-day time limit to allow or refuse consent.
- The tenant must give the landlord two months’ notice, or such shorter time as is agreed in writing.
- Offences committed under the Bill can be dealt with by civil penalties ranging from £5,000 to £30,000 depending on the severity of the offence. Local authorities can impose financial penalties as an alternative to prosecution for unlawful eviction/harassment.
Given the uncertainty as to when these changes will be enforced, it is important for landlords, tenants, and agents to keep updated about the changes and plan for them.
For further information, please contact Alice Harris and Ellie Mullins in the Property Litigation Team.
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at February 2024.