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The Renters Reform Bill will revoke a landlord’s right to reclaim their property and evict tenants using a Section 21 notice.
These changes aim to provide tenants with a safer and more secure private rental landscape, but they have left many landlords wondering how they will deal with problem tenants.
In this article, we will explore the changes to Sections 8 and 21 proposed by the Renters Reform Bill, explain the tenant eviction process post-Section 21, and offer guidance on how landlords can plan and prepare for the changes ahead.
The Renters Reform Bill and the Abolishment of Section 21
The Renters Reform Bill began its journey through Parliament earlier this year.
The bill contains several important changes to how the private rental market will operate, including abolishing Section 21, “no-fault” evictions.
Under Section 21, landlords can take back possession of their property whenever they want, providing they follow the correct procedure.
Once the bill becomes an act, landlords will no longer be able to evict tenants without giving a valid reason.
Why is Section 21 Being Abolished?
The changes outlined in the Renters Reform Bill, including the abolishment of Section 21, all aim to create a fairer and safer private rental sector.
Michael Gove explained that some renters face “a precarious lack of security” under current legislation. A government consultation also found that “some tenants feel reluctant to challenge poor standards due to the risk of eviction without reason.”
Scrapping Section 21 evictions aims to make tenants feel more secure in their homes and force landlords to be more transparent and accountable when evicting tenants.
The change is intended to foster a fairer rental market where tenants’ rights are strongly upheld and eviction processes are justifiable and clearly communicated.
Can I Still Use Section 21 in 2023?
Yes, the Renters Reform Bill is still on its journey through Parliament and has not yet come into force, so Section 21 evictions are still valid in 2023.
When Will Section 21 be Abolished?
Section 21 will not be abolished until after the Renter Reform Bill has become an Act. The Royal Assent for the Renters Reform Bill is not expected to occur before the first quarter of 2024. Even after the Royal Assent has taken place, Section 21 isn’t likely to be abolished for at least another 18 months. This means the earliest we’ll likely see Section 21 abolished is late 2025 or early 2026.
Whilst the transition still sounds a long way off, landlords need to get their heads around the new way of working before the changes and adapt their strategies to align with this fairer approach.
How Will Landlords Evict Tenants After Section 21 is Abolished?
Once Section 21 is abolished, the only way landlords will be able to terminate tenancies and evict tenants is by using the revised Section 8 Grounds for Possession.
This means landlords will always be required to provide tenants with valid grounds for ending their tenancy.
Existing Section 8 Grounds for Possession
Under existing laws, landlords can serve a tenant a Section 8 notice to end their tenancy if they have breached their tenancy agreement. There are currently 17 grounds for possession for evicting tenants using a Section 8 notice. These 17 grounds are split into eight mandatory and nine discretionary grounds. They are as follows:
Section 8 mandatory grounds for possession:
- The landlord used to occupy the property as his main home or now wishes to occupy the property as his main home.
- Repossession by the lender.
- The tenancy is a fixed term of not more than eight months, and the property was previously a holiday let.
- The tenancy is a fixed term of not more than 12 months, and the property is student accommodation let out of term.
- The property is that of a minister of religion.
- The property requires redevelopment.
- The tenant has died.
- Anti-social behaviour.
- No right to rent.
- Serious rental arrears.
Section 8 discretionary grounds for possession:
- Suitable alternative accommodation is available for the tenant upon possession.
- The tenant is in arrears of rent.
- Persistent delays in rent payments.
- Breach of tenancy obligation.
- Due to the tenant’s conduct, the property has deteriorated.
- Nuisance, annoyance, illegal, or immoral use of the property.
- Domestic violence.
- Offence during a riot.
- Deterioration of furniture caused by the tenant.
- The tenant occupies the property due to his former employment by the landlord.
- The landlord granted the tenancy due to a statement made by the tenant, which was later found to be false.
Renters Reform Strengthening of Section 8
In response to concerns raised by landlords about the removal of Section 21 and to establish a balanced system, the Renters Reform will also strengthen the existing grounds for eviction under Section 8.
The government announced in a white paper that the changes to Section 8 grounds are “comprehensive, fair, and efficient, striking a balance between protecting tenants’ security and landlords’ right to manage their properties.”
Renters Reform New Section 8 Grounds for Possession
The reformed Section 8 under the Renters Reform Bill will transition some discretionary grounds into mandatory ones, while also introducing several new grounds. The new grounds for possession include the following:
- Landlord wishes to sell the property – Landlords will be able to apply for possession if they want to sell their property. This ground will not be valid during the first six months of a tenancy.
- Repeated serious arrears – Landlords can evict a tenant if they have been in at least two months’ rent arrears three times within the previous three years.
- Compliance with enforcement action – This ground will apply if a tenant takes enforcement action, such as a banning order against the landlord, meaning the landlord is no longer allowed to let the property.
- Supported accommodation and homelessness duty – Allows landlords to repossess a property previously used as supported accommodation if needed again for that purpose.
Renters Reform Amendments to Existing Section 8 Grounds for Possession
As well as several new grounds, the Renters Reform will also introduce several amendments to existing Section 8 grounds for possession: including the following:
- Anti-social behaviour – Notice periods are to be reduced.
- Owner-occupier – Landlords will be able to serve two months’ notice to allow for close family members to move into a rental property. These grounds won’t be valid for the first six months of a tenancy.
- Student accommodation – Notice periods are to be reduced.
- Redevelopment – This will only be valid after the first six months of a tenancy.
- Rent arrears – Landlords will no longer be able to evict tenants if their arrears are due to a delay in receiving Universal Credit.
Currently, some of the most common reasons landlords use a Section 21 notice to evict a tenant include rent arrears, anti-social behaviour, and selling the property. The updated Section 8 grounds for possession should address most of these issues, allowing landlords to evict tenants on these grounds using a fair and regulated process.
Evicting a Tenant Using a Section 8 Notice
Once Section 21 has been abolished, landlords will have no choice but to use a Section 8 notice to end a tenancy and evict a tenant.
Currently, under the Housing Act 1988, a Section 8 notice can be used to end a shorthold tenancy before the contract comes to an end.
The Renters Reform will end fixed-term tenancies and move to periodic tenancies, which do not have an end date.
To repossess their property using Section 8 grounds, landlords will need to serve the notice to their tenant using the correct form and giving the required notice period. If the tenant does not leave, the landlord will need to go to court and provide evidence that the ground applies.
Under the Renters Reform, tenants can also end a tenancy at any time by giving two months’ notice.
How can Landlords Prepare for the Removal of Section 21 Evictions?
Leading up to the end of Section 21, there are plenty of things landlords can do to prepare themselves and ensure they are aligning their strategies with the new regulations; these include:
Employ a Rigorous Tenant Screening Process
Whilst you can never eliminate the risk of encountering problems with tenants, a rigorous screening process can improve your chances of a problem-free and harmonious landlord/tenant relationship. If you don’t already have one, develop a stringent screening process which includes comprehensive reference checks, including a credit check, employment references, and previous landlord references. Get into the habit of performing your due diligence too, following up any discrepancies in the information provided and trusting your gut instinct.
Keep Meticulous Records
Complying with all relevant laws and regulations is important, but you also need to be able to provide evidence that you have done so if requested. It is very important that landlords get into the habit of keeping meticulous records. This could include bank statements, invoices, receipts, and photographic evidence. These records can then be used as evidence during potential future disputes if you need to evict a tenant under Section 8. Specialist landlord software can help you to get organised and store records securely.
Develop a Robust Tenancy Agreement
A well-crafted and comprehensive tenancy agreement can serve as a landlord’s best form of protection. Your tenancy agreement should include the terms and conditions of the lease, the responsibilities of both tenant and landlord and the grounds under which eviction could occur under the new laws. We recommend that a legal professional review your tenancy agreement to ensure it’s both comprehensive and legally sound.
Understand Section 8
Section 8 will become your primary tool for evicting tenants once Section 21 is abolished. Therefore, landlords need to familiarise themselves with the grounds for eviction under Section 8 and the procedure for issuing a Section 8 notice.
By making strategic changes in advance, landlords can ensure a smooth transition to the new regulations once the Renters Reform comes into play.
