No-Fault Evictions and The Renters Reform Bill.
- LPSC Team
- Aug 23, 2023
- 7 min read
This blog examines how no-fault evictions are contributing to the rising rate of homelessness within the rental sector in the UK, the legal procedures landlords must take to serve a Section 21 notice, the Renters Reform Bill and some of its legal implications, and the free legal help offered to tenants facing eviction.
Recent government figures show that the number of households who lost their home due to a no-fault eviction between April and June this year rose by 40%.
In England and Wales, a Section 21 notice also known as a Section 21 notice of possession or a Section 21 eviction, is the notice which a landlord must give to their tenant to start the process of taking possession of a property let on an assured shorthold tenancy without providing a reason for wishing to take possession. Landlords can use a Section 21 notice to evict their tenants either:
after a fixed term tenancy ends- if there’s a written contract.
during a tenancy with no fixed end date- known as a ‘periodic’ tenancy.
How much notice you need to give.
In England, a Section 21 notice must give your tenants at least 2 months’ notice to leave your property.
You may need to give a longer notice period if you have a ‘contractual’ periodic tenancy. This is a fixed term tenancy that has ended but included a clause to continue as a periodic tenancy. The amount of notice must be the same as the rental period if this is more than 2 months. For example, if your tenant pays rent every 3 months, you must give 3 months’ notice.
In Wales, if it’s a periodic tenancy, you must let your tenants stay for the notice period and any additional time covered by their final rent payment. However, the expiry of a Section 21 notice does not bring a tenancy to its end.
In England, a Section 21 notice must give your tenants at least 2 months’ notice to leave your property. In Wales, if it’s a periodic tenancy, you must let your tenants stay for the notice period and any additional time covered by their final rent payment.
When you cannot use a Section 21 notice in England.
You cannot use a Section 21 notice if any of the following apply:
it’s less than 4 months since the tenancy started, or the fixed term has not ended, unless there’s a clause in the contract which allows you to do this.
the property is categorised as a house in multiple occupation (HMO) and does not have a HMO licence from the council.
the tenancy started after April 2007 and you have not put the tenants’ deposit in a deposit protection scheme.
the tenancy started after October 2015 and you have not used form 6a or a letter with all the same information on it.
the council has served an improvement notice on the property in the last 6 months.
the council has served a notice in the last 6 months that says it will do emergency works on the property.
you have not repaid any unlawful fees or deposits that you charged the tenant - read the guidance for landlords on the Tenant Fees Act 2019.
You also cannot use a Section 21 notice if you have not given the tenants copies of:
the property’s Energy Performance Certificate.
the government’s ‘How to rent’ guide.
a current gas safety certificate for the property if gas is installed.
You must have given your tenants the gas safety certificate and the ‘How to rent’ guide before they moved in.
You must have given your tenants a copy of the property’s Energy Performance Certificate before they rented the property.
New figures revealed that between April and June this year, 2,228 households were evicted after receiving a Section 21 notice which allows a landlord to evict a tenant without giving a reason. This is up 41% on the same period in 2022 and brings the total number of no-faults evictions through the courts in the first half of 2023 to 4,478. Shelter England is claiming that a major contributing factor to rising homelessness is the instability of private renting. The Campaigning Charity is again claiming that one of the main explanations for this instability is Section 21 notice.
New figures revealed that between April and June this year, 2,228 households were evicted after receiving a Section 21 notice which allows a landlord to evict a tenant without giving a reason. This is up 41% on the same period in 2022 and brings the total number of no-faults evictions through the courts in the first half of 2023 to 4,478.
What is the Renters Reform Bill?
The Renters (Reform) Bill is a bill to make provision changing the law about rented homes, including provision abolishing fixed term assured tenancies and assured shorthold tenancies; imposing obligations on landlords and others in relation to rented homes and temporary and supported accommodation; and for connected purposes. The bill is set to:
scrap section 21 ‘no fault’ evictions giving tenants more security in their homes.
make it illegal for landlords and agents to refuse to rent properties to people who receive benefits or have children.
create a national landlord register through the new property portal which will give renters all the information they need to make an informed choice before entering into a tenancy agreement.
introduce new grounds for eviction for landlords who genuinely want to sell their properties or move back in.
The changes will also allow tenancies to roll month by month meaning landlords who previously were entitled to six- or 12-months’ tenancies will now be periodic and determined by the frequency that rent is paid. This gives tenants much more flexibility and removes the security for landlords knowing they have a tenant in situ for 6 or 12 months.
The reforms will give more rights to tenants who want to keep pets too. Under current legislation a blanket ban on all pets is allowed.
But tenants who fall behind with the rent or who are causing anti-social behaviour are not protected by the laws and may still be evicted by their landlord in the usual way under the section 8 notice regime. The Renters Reform Bill received its first reading in Parliament back in May. Since then, renters have been waiting for MPs to debate the legislation for the first time. The Conservatives first promised to axe Section 21 evictions back in April 2019, but it took more than four years for the government to introduce legislation to do so. More than 23,000 houses have now suffered this fate since the government pledged to scrap the process. As a spokesperson for the Crisis charity said: “introducing the Renters Reform Bill is a welcome step from Government. Now we need to get on with making sure Parliament not only passes the Bill as quickly as possible but ensures it is strong enough to deliver on its commitment to give tenants the security and stability they desperately need.”
Contrastingly, a leading industry is warning the Justice Secretary that the removal of Section 21 will cause harm to the legal system. As the Renters Reform Bill is set to abolish Section 21 and extend the grounds for possession under Section 8 will mean even more cases have to go through the courts. There is a widespread concern from landlords and letting agents about the capacity of the courts to handle possession cases, the waiting times they could face in court for a hearing and to gain back possession of their property. Nathan Emerson, the chief executive officer at Propertymark said: "failure to fund the courts properly means a lack of justice for landlords and tenants."
"Failure to fund the courts properly means a lack of justice for landlords and tenants." ~ Nathan Emerson (Chief Executive Officer @Propertymark)
Housing Loss Prevention Advice Service (HLPAS): Free legal help offered to tenants facing eviction.
Tenants facing eviction in England and Wales can now get free legal advice – and access to a lawyer in court – from a new government-backed scheme called Housing Loss Prevention Advice Service (HLPAS).
The HLPAS scheme is designed to help tenants avoid losing their home and from going through stressful and expensive court proceedings, renters can access the service when they receive a written notice from their landlord. The service is also being offered to mortgage holders facing repossession from their mortgage lender. Both the tenant and homeowner can have a lawyer represent them in court, regardless of how much money they have. The Justice Minister, Lord Bellamy, said: “We are creating this new service so that fewer people lose their home and can get help with their finances and resolve issues before they escalate.” The scheme also covers housing, debt, and welfare benefit matters, including help with claiming benefits, reducing debts, or accessing support services to improve health and wellbeing.” The government is investing an extra £10 million a year into housing legal aid to provide this wrap-around care. The Housing Loss Prevention Advice Service aims to prevent homelessness and improve the quality of the private rented sector by supporting responsible renters and landlords. The scheme is part of the wider government agenda to reform the rental market through the Renters’ (Reform) Bill, which is currently going through Parliament.
The government is investing an extra £10 million a year into housing legal aid to provide this wrap-around care. The Housing Loss Prevention Advice Service aims to prevent homelessness and improve the quality of the private rented sector by supporting responsible renters and landlords.
The Legal Aid Agency (LAA) funds the Housing Loss Prevention Advice Service (HLPAS) throughout England and Wales to provide:
early Legal Advice to anyone at risk of possession proceedings and loss of their home – advice can be provided in relation to Housing, Debt and Welfare Benefits issues.
in Court Duty on the day emergency advice and advocacy to anyone facing possession proceedings.
The service enables anyone at risk of losing their home or facing possession proceedings to get free legal advice, and representation in court, regardless of their financial circumstances. This scheme applies to England and Wales. A list of providers who can deliver Housing Loss Prevention Advice Services from the 1st of August 2023 is available click the following link to access it: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1176982/HLPAS_Provider_List_-_Outcome_of_Tender_-_8th_August_2023.pdf
Please note that this list will be updated as further provider contracts commence.
Thank you for reading. For more property related content, follow us on Instagram: @lpsandconsultancy, on Twitter: @lpsconsultancy, and on LinkedIn: @London Property Services & Consultancy Ltd.
SOURCES:
Big Issue Magazine- https://www.bigissue.com/news/housing/thousands-of-tenants-lose-homes-to-no-fault-evictions-as-wait-for-renters-reform-bill-goes-on/
UK Parliament- https://bills.parliament.uk/bills/3462
Landlord Today- https://www.landlordtoday.co.uk/breaking-news/2023/5/shelter-and-crisis-make-new-claims-about-section-21-evictions
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