When will Section 21 Notices be abolished?
The landscape of renters’ rights is undergoing significant transformation with the introduction of the Renters Rights Bill 2024 (the “Bill”). Within this framework, Section 2 and Section 3(1) play crucial roles in defining the nature of assured shorthold tenancies and how possession proceedings are handled. Let’s dive deeper into these sections to understand their implications for both landlords and tenants.
Section 2: Assured Shorthold Tenancy Status
Section 2 establishes that a tenancy will remain classified as an assured shorthold tenancy (AST) until the disposal of a Section 21 notice that was given before the commencement date of the bill.
Key Points:
- Continuity of Tenancy Status: The AST designation ensures that tenants retain their rights under this tenancy type.
- Notice Validity: If a Section 21 notice is served, the tenancy retains its status until that notice is resolved, either through court proceedings or by becoming time-barred.
Section 3(1): Implications of Possession Proceedings
Section 3(1) elaborates on the circumstances under which the tenancy remains valid and the implications for possession proceedings initiated under the Housing Act 1988.
Breakdown of Section 3(1):
- Ongoing Possession Proceedings: If possession proceedings based on a Section 21 notice were initiated before the commencement date of the Bill (i.e., the date that the receives Royal Assent and becomes an Act) and are still pending, the notice remains valid. This means:
- Tenants are still protected under the existing tenancy framework until the case is resolved.
- Landlords must adhere to the previous regulations concerning eviction until those proceedings conclude.
- Time-Barring: If no proceedings have commenced but the notice has not become time-barred, the notice is still considered valid.
- Application of Amendments: The amendments introduced by Chapter 1 of Part 1 do not apply to tenancies affected by ongoing possession proceedings. This aspect is crucial, as it prevents sudden changes in legal standing for landlords and tenants who are already in the midst of disputes, thereby safeguarding their rights.
Conclusion
The effect of Sections 2 and 3(1) of the Bill, as currently drafted, is that a Landlord will be able to rely on a Section 21 Notice served before commencement of the Bill until the Notice expires. If a Landlord intends to rely on a Section 21 Notice to issue proceedings during this period, it will be critical to ensure all provisions have been complied with so that the Notice is valid when served; as there will be no second chances once the Bill comes into effect. Landlords should also carefully diarise the expiry of any Section 21 Notice to avoid missing the deadline to issue possession proceedings.
In light of the impending changes that are set to radically alter the residential letting landscape, the confirmation surrounding the validity of Section 21 Notices will likely be welcome news for Landlords as it offers some reassurance in the process that they can expect to rely on to recover possession of their property in the next 6-12 months.
As these regulations come into effect, ongoing education and understanding will be essential for both Tenants and Landlords to navigate this evolving landscape successfully.
How can Ellis Jones help?
Ellis Jones have a specialised Dispute Resolution team available to assist both Landlords and Tenants. If you are a Landlord that would like further understanding of how the Scheme might affect you and the possession action you can take, or you are a tenant faced with a Landlord that is applying pressure on you in respect of rent arrears, we would be happy to discuss your case and see if we are able to assist. Should you wish to discuss this further, please do not hesitate to contact our specialist Dispute Resolution team on 01202 525333 or emma.bowditch@ellisjones.co.uk.
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