Changes affecting AST's in England..

Proposed changes affecting ASTs in England

On 5^th February 2015, the Government announced changes proposed by the Deregulation Bill 2015.

The Deregulation Bill intends to restrict a landlord’s ability to rely on a notice ending residential assured shorthold tenancies (ASTs) under Section 21 of the Housing Act 1988.

What this means for Section 21 Notices 

 

Firstly, I just want to clarify what a Section 21 does for landlords now.

A Section 21 notice is now the only means that a Landlord can retrieve possession of his or her property without grounds or reason. It can be issued at any time, with a minimum notice of two months, during a fixed term contract in order to regain possession at the end of that fixed term.
It can be issued also during a Statutory Periodic contract, again within a minimum notice period of two months, for possession to be gained by the Landlord. Should a tenant not vacate at the end of the notice period, possession will be granted by the court and will always be granted as long as the notice has been issued correctly and the dates are in line with the dates of the tenancy.

Landlords may require their property back for a variety of reasons, it may be financial, personal or because the tenancy has not been successful. Many landlords may not want to issue the Section 21, they may have a perfectly good tenant in the property but for a personal reason they need the property back.

A Section 21 allows the owner of the property to claim possession of their property.

What the Deregulation Bill would mean for Section 21 Notices:

 

• A Section 21 Notice cannot be served until month four of a tenancy (therefore cannot be issued at the start of a AST)
• A Section 21 Notice is invalid if before it was issued a tenant had made a complaint in writing to the landlord regarding the condition of the dwelling, and
• The Landlord did not respond to the complaint in 14 days, did not provide an adequate response, or gave a Section 21 Notice following the complaint
• A Section 21 Notice would be invalid if then a tenant took the same complaint to the local authority, and
• The local authority served a relevant notice to the landlord in relation to the complaint, and
• If the Section 21 Notice was not given before the tenants complaint to the local authority, it was given before the service of the relevant notice.
• If a landlord fails to comply with obligations relating to Energy Performance Certificates and Gas Safety Certificates, the eviction of a tenant will be suspended while the landlord is in breach.
• Exemption would be if the landlord is genuinely selling the property and be able to provide evidence they are not selling to a friend or family member.

**These provisions will not affect ASTs where the fixed term was granted before these provisions come into force**

ADVICE

We advice all landlords and agents to serve section 21 notices before 30 March 2015.

More to follow folks but call me in the meantime if you have any questions.

Best regards