25/05/2023
Introduction
The most fundamental change introduced by the The Renters (Reform) Bill is the removal of ‘no fault’ evictions through the abolition of section 21 of the Housing Act 1988. Under the new regime, all assured tenancies will be periodic and in every case, a landlord will only be able to end a tenancy by relying on one or more of the grounds in Schedule 2 to the 1988 Act. The new and amended grounds of possession are the focus of this Spotlight article.
Background
Given the proposed abolition of section 21, the Bill introduces a re-modelled set of grounds of possession that will be available to landlords seeking to end an assured tenancy and recover possession. Reliance on grounds for possession (using what is known as the “section 8 procedure”) has long been an option for landlords when looking to end an assured shorthold tenancy, but the convenience of the ‘no fault’ process has meant that it has been by far the most popular method of tenancy termination.
It is therefore a fundamental shift in housing policy to remove the ‘no fault’ section 21 process. The balance that the Government seeks to strike with the Bill is to provide greater security of tenure for tenants and a sense of permanence regarding their home, whilst also making it easier for landlords to end tenancies and get their properties back where they have legitimate grounds to do so. The extent to which the Government succeeds will depend on how the Bill looks when enacted, and how the grounds are subsequently interpreted and applied by the Courts.
Changes proposed by the Bill
The Bill amends some of the existing grounds for possession, and introduces some new ones.
New introductions include grounds that are available when a landlord intends to sell the property, or move in (or move a close family member in). Further specific grounds are introduced to deal with some specific but not uncommon scenarios, e.g. where property is used for student accommodation; where social housing providers need to end a tenancy in connection with the Rent to Buy process; and where tenancies need to be ended in order to support the more effective and efficient use of property to deliver supported or temporary accommodation (see our separate Spotlight article on the Bill’s changes to temporary and supported accommodation). Some grounds (such as where the landlord intends to move in, sell or redevelop the property) cannot be used in the first six months of a tenancy.
Other changes proposed by the Bill are designed to expedite and enhance the ability of landlords to evict tenants who are in serious default under their tenancy. The grounds to evict those who disrupt neighbourhoods through anti-social behaviour will be bolstered (e.g. by lowering the evidential bar for a landlord such that proving conduct capable of being anti-social behaviour, as opposed to being likely to do so, will be enough). The ability to end tenancies for persistent rent arrears will also be strengthened, although the Bill builds in a defence for a tenant where the sole reason for the arrears relates to problems with receipt of housing benefits.
A new statutory form of notice to be served on tenants before possession proceedings can be commenced will be required, and the Government intends to publish the form of notice to be used in due course. Many of the notice periods (i.e. the period of notice a landlord must give before being able to start court proceedings to regain possession) have also been amended.
The Bill continues the current practice of having two categories of grounds: mandatory grounds (where judges have no discretion in whether to award possession where a landlord can prove that the ground is met) and discretionary grounds (where judges do have discretion as to whether to award possession or not based on what is the reasonable thing to do overall).
The table below sets out a full list of the proposed new grounds for possession, and the applicable notice periods. The list also contains a very simple explanation of when the ground will be available, but in each case the specific provisions of the Bill will need to be consulted to understand the precise extent and application of the ground.
|
Ground |
Explanation |
Notice period |
Mandatory or discretionary |
|
Moving in |
The landlord or their close family member wishes to move into the property. |
Two months |
Mandatory |
|
Selling |
The landlord wishes to sell the property. |
Two months |
Mandatory |
|
Selling (rent-to-buy) |
The landlord is a private registered provider of social housing and the tenancy needs to be ended in connection with a rent-to-buy agreement. |
Two months |
Mandatory |
|
Mortgage repossession |
The property is subject to a mortgage and the lender exercises a power of sale requiring vacant possession. |
Two months |
Mandatory |
|
Superior lease ending |
The tenant’s landlord itself holds a superior lease and the superior lease is terminated by the superior landlord requiring the landlord to give back vacant possession. |
Two months |
Mandatory |
|
Possession by superior landlord |
After a superior lease ends, the superior landlord becomes the tenant’s direct landlord, and wishes to end the tenancy and recover possession. |
Two months |
Mandatory |
|
Student accommodation |
In the 12 months prior to the start of the tenancy the property has been used to house students. This can be used by certain educational establishments only and in connection with purpose-built student accommodation. |
Two weeks |
Mandatory |
|
Ministers of religion |
The property is held for use by a minister of religion to perform the duties of their office and is required for occupation by a minister of religion. |
Two months |
Mandatory |
|
Agricultural workers |
The landlord requires possession to house someone who will be employed by them as an agricultural worker. |
Two months |
Mandatory |
|
Employment criteria |
A landlord who is a private registered provider of social housing (i.e. social landlord) requires the dwelling to let to someone based on their employment eligibility (e.g., key workers). |
Two months |
Mandatory |
|
Employment by landlord |
The dwelling was let as a result of the tenant’s employment by the landlord, and the employment has come to an end OR the tenancy was not meant to last the duration of the tenant’s employment and the dwelling is now required by a new employee. |
Two months |
Mandatory |
|
End of employment related criteria |
A landlord who is a private registered provider of social housing (i.e. social landlord) must have granted the tenancy because of the tenant’s employment eligibility (e.g. key workers) and the tenant no longer meets those criteria. |
Two months |
Mandatory |
|
Used for supported accommodation |
The landlord requires possession from a non-supported accommodation resident to re-let as supported accommodation. |
Four weeks |
Mandatory |
|
Supported accommodation |
The landlord requires possession because support services or funding has ended or fallen away; or the provision is no longer appropriate for the tenant’s needs; or the placement was ‘move on’ accommodation and the move on period has ended. |
Four weeks |
Mandatory |
|
Temporary Accommodation |
The landlord is ending a tenancy which was originally granted because the household was owed the homelessness duty. As soon as the local authority ends that duty or no longer requires the property to provide temporary accommodation, the landlord may evict the tenant. |
Four weeks |
Mandatory |
|
Redevelopment |
The landlord is seeking possession for redevelopment. Not available during first six months of tenancy. Must demonstrate changes cannot be made with the tenant living there. |
Two months |
Mandatory |
|
Enforcement action |
The landlord is subject to enforcement action by the local authority or a banning order by First-tier Tribunal and needs to regain possession to become compliant. Refused/Revoked HMO licenses etc. |
Two months |
Mandatory |
|
Death of tenant |
The tenancy was passed on by will or intestacy. Possession proceedings must begin no later than 24 months after the tenant’s death. |
Two months |
Mandatory |
|
Severe ASB/Criminal Behaviour |
The tenant has been convicted of a criminal offence, breached an IPNA, breached a criminal behaviour order, or convicted of causing noise nuisance. |
Landlords can make a possession claim immediately |
Mandatory |
|
No right to rent |
At least one of the tenants has no right to rent under immigration law. |
Two weeks |
Mandatory |
|
Serious rent arrears |
The tenant is at least two months in arrears at the time notice is served and at the court hearing. Exemption for outstanding benefit payments. |
Four weeks |
Mandatory |
|
Repeated serious arrears |
Three separate instances of at least two months of arrears over a three year period. Exemption for outstanding benefit payments. |
Four weeks |
Mandatory |
|
Suitable alternative accommodation |
Suitable alternative accommodation is available for the tenant. |
Two months |
Discretionary |
|
Any rent arrears |
The tenant is in any amount of arrears when notice is served and on the day of their court hearing. |
Four weeks |
Discretionary |
|
Persistent arrears |
The tenant has persistently delayed paying their rent. |
Four weeks |
Discretionary |
|
Breach of tenancy |
The tenant is guilty of breaching the terms of their tenancy agreement. |
Two weeks |
Discretionary |
|
Deterioration of property |
The tenant has caused the condition of the property to deteriorate. |
Two weeks |
Discretionary |
|
Anti-social behaviour |
The tenant or anyone living in or visiting the property has been guilty of causing nuisance or annoyance to the landlord or anyone living in, visiting or in the locality of the property, or has been convicted of using the premises for illegal/immoral purposes, or has been convicted of an indictable offense in the locality. |
Landlords can make a possession claim immediately. |
Discretionary |
|
Domestic Abuse |
Social landlords only. Ground available to evict the perpetrator of domestic violence if the partner has left the property. |
Two weeks |
Discretionary |
|
Rioting |
The tenant or other adult living at the property has been convicted of an indictable offence which took place at a riot in the UK after 13 May 2014. |
Two weeks |
Discretionary |
|
Deterioration of furniture |
The tenant has caused the condition of the furniture in the property to deteriorate. |
Two weeks |
Discretionary |
|
False statement |
The tenancy was granted due to a false statement. |
Two weeks |
Discretionary |
|
Supported Accommodation (discretionary) |
The tenant has unreasonably refused to cooperate or engage with support. |
Four weeks |
Discretionary |
Further information
If you wish to discuss this further, please contact Kate Hicks, Senior Associate or Steve Eccles, Partner.
If you’ve missed any of the Spotlights in this series, you can find them here:
Spotlight on: an overview of the Bill
Spotlight on: Supported and Temporary Accommodation
Spotlight on: Tenancy structure reform and the abolition of S21 ‘no fault’ evictions
Spotlight on: rent controls, tenant redress, regulation of landlords…and pets
