The Renters’ Rights Bill will make several significant changes to the private rented sector, explains James Harrison from local solicitors Edwards Duthie Shamash
Assured Shorthold Tenancies (ASTs) – the most common type of tenancy – are soon to become extinct under the Renters’ Rights Bill in 2025. Upon commencement of the Act, all existing ASTs will become assured periodic tenancies, save for those that are already the subject of possession proceedings under section 21 of the Housing Act 1988.
Subject to compliance with various requirements, a landlord can currently terminate an AST by serving two months’ notice under section 21. This is known as the ‘no-fault’ ground for possession. The Renters’ Rights Bill provides for section 21 to be abolished. If by the time the Bill becomes law the landlord has served a section 21 notice and has commenced possession proceedings relying on that notice, the AST will continue, pending the conclusion of those proceedings. If not, the notice will be of no effect.
The Bill provides for several new grounds for possession and amends others.
Ground 1 is available where the landlord or close family member wishes to move into the property. Ground 1A can be relied on where the landlord wishes to sell the property. In both cases, four months’ notice is required and the landlord cannot rely on these grounds during the first 12 months of a new tenancy.
These are both mandatory grounds for possession, so the court must make a possession order if it is satisfied the grounds are proved. In order to discourage abuse of these grounds, a landlord cannot re-let a property within 12 months of serving notice, or commencing court proceedings, on these grounds. There is a fine of up to £7,000 for breach of this.
There is also Ground 4, which applies to a property let to full-time students, where the property is required for a new group of students in line with the academic year. Four months’ notice is still required.
The mandatory rent arrears ground (Ground 8), has been amended in two respects. Firstly, four weeks’ notice rather than two is required. Secondly, the landlord must show that the tenant is three months in arrears (or 13 weeks in the case of a weekly or bi-weekly rent), both at the time the notice is served and at the time of the possession hearing, rather than two months (or eight weeks) as at present.
There are other grounds for possession which are beyond the scope of this article.
The Bill is currently being considered by the House of Lords and is unlikely to become law until the spring or summer of this year.
Edwards Duthie Shamash is located at 149 High Street, Wanstead, E11 2RL. For more information, call 020 8514 9000 or visit edwardsduthieshamash.co.uk
