It was announced on 16th June, via a white paper, that the government will be taking Section 21 notices off the menu for landlords.  BUT they will also be introducing a new and improved Section 8 notice with a list of reasons that landlord can choose from when asking an unwanted tenant to leave. Our clients want to know if this is bad news or no news?

We have asked Lee Daniels, Managing Director of Helpland (helpland.co.uk), exactly how this situation will affect us and our clients and most importantly how they can respond with positive action.

 What is a section 21 notice?

A section 21 notice is served to a tenant when a landlord requires possession of his/her property. This will give the tenants a minimum of 2 months +Postage time to vacate the property failing which we can look to issue court proceedings for possession and costs. Currently you do not need to provide a reason for serving this notice as long as the tenancy agreement has expired or has a break clause that you can use.

 What is a section 8 notice?

A section 8 notice can be served when the tenant of a property is in arrears or is in any breach of contract. This notice allows the tenant/s 2 weeks in which to clear the arrears or rectify the breaches of contract in place failing which one can issue court proceedings for possession, arrears and costs.

The tenant must be in a minimum of 2 months in arrears for the notice to be served on mandatory ground 8

 How will the abolishment of Section 21 really impact our landlords?

Without Section 21, landlords will need to state legitimate grounds for repossessing their properties within the new Section 8 notice, whereby currently you do not need to provide a reason when serving a Section 21 notice.

 What will a landlord now do if they would like to end their tenancy?

Although, these reforms will come into force, they are not law yet plus there will be an implementation period, so at the moment the old Section 21 rules still apply.

 What are the grounds that a landlord will be able use to end their tenancy in the future?

The proposed new grounds will include but are not limited to -

·         A new ground to sell the property

·         A new mandatory ground for repeated serious arrears.

·         In cases of criminal behaviour or serious antisocial behaviour, they will lower the notice period

·         A new ground for landlords who wish to sell their property and allow landlords and their close family members to move into a rental property.

I am sure there will be plenty more too!

What grounds will landlords not be able to end a tenancy with under the new Section 8 guidelines?

I do not think they will weaken the current Section 8 grounds for possession but it is the fact that being able to evict for no reason under Section 21 will no longer be an option.

 Do you think that this is bad news for landlords?

Most landlords we deal with do not evict for no reason, therefore once the dust has settled, I hope that most decent landlords will not be too badly affected as they will still be able to evict for legitimate reasons.