Sep 16, 2024

Renters’ Rights Bill

This breakdown provides summarises key elements from both a landlord’s and tenant’s perspective based on the content of the Renters’ Rights Bill

Landlord Perspective:

  • End of Certain Tenancies:
    • Assured tenancies must now be periodic with rent periods of no more than one month. Fixed-term and assured shorthold tenancies are abolished.
  • Possession and Evictions:
    • The grounds for evicting tenants have changed, including stricter requirements for landlords to justify possession, especially for anti-social behaviour.
  • Rent Adjustments:
    • Landlords must follow statutory procedures for rent increases, which can be challenged by tenants. Unjustified or excessive increases could be ruled invalid.
  • Pets:
    • Landlords cannot unreasonably refuse tenants’ requests to keep pets, though they can require insurance to cover potential damages.
  • Penalties:
    • Non-compliance with regulations (e.g., illegal evictions, discriminatory practices) can result in financial penalties up to £40,000.
  • Landlord Redress Schemes:

Landlords must participate in redress schemes to handle disputes, which can be enforceable by court order.

Tenant Perspective:

  • Tenancy Flexibility:
    • Tenants now benefit from periodic tenancies, providing more flexibility to give notice and leave, without the pressure of fixed-term contracts.
  • Eviction Protections:
    • Tenants have stronger protections against evictions, especially in cases of anti-social behaviour, where landlords must provide clear evidence of the breach.
  • Rent Challenges:
    • Tenants can challenge rent increases through a tribunal, particularly if they believe the proposed increase is unfair or excessive.
  • Pets:
    • Tenants have the right to request permission to keep pets, and landlords must provide a valid reason if they refuse.
  • Discrimination:
    • The bill offers protection against discrimination, particularly concerning children or benefits status, ensuring fair treatment in the rental market.
  • Repayment of Rent:
    • Tenants are entitled to a refund for any rent paid in advance if the tenancy ends early.

Possession Procedures & Grounds

Under the Renters’ Rights Bill, landlords who wish to regain possession of their property must follow specific legal procedures and can only do so under certain grounds.

Here is a breakdown of how a landlord can serve notice and on what grounds:

How a Landlord Can Serve Notice:

  1. Serve a Notice of Possession:
    • A landlord must serve a Notice of Possession to the tenant before taking any legal action for eviction. This notice must comply with the statutory form requirements and be in writing.
  2. Grounds for Possession:
    • The landlord must specify the legal grounds on which they are seeking possession in the notice. The grounds must be one of the recognised and approved grounds for possession under the bill.
  3. Notice Period:
    • The notice period the landlord must give depends on the grounds they are using. In some cases, the landlord must give several months’ notice, while in urgent cases (such as anti-social behaviour), a shorter period may apply.
  4. Legal Action:
    • After the notice period has expired, if the tenant does not vacate the property, the landlord can apply to the court for a possession order. The court will only grant this order if the grounds for possession are proven.

Grounds for Possession (If the Landlord Just Requires the Property):

If a landlord requires possession of the property for reasons unrelated to tenant fault (like needing the property back for personal use), they must rely on specific grounds. These include:

  1. Ground 1 – Landlord Requires the Property for Their Own Use:
    • The landlord can regain possession if they intend to live in the property as their principal residence.
    • This ground may require that the tenant was informed in advance (e.g., at the beginning of the tenancy) that the landlord may seek possession on this basis in the future.
  2. Ground 2 – Mortgage Repossession:
    • The property may be repossessed if the landlord’s mortgage lender has the legal right to take possession due to the landlord defaulting on mortgage payments.
  3. Ground 5 – Major Repairs or Redevelopment:
    • If the landlord needs the property back to carry out significant repairs or redevelopment work that cannot be done with the tenant in residence.
  4. Ground 6 – Demolition or Substantial Construction:
    • If the property needs to be demolished or reconstructed and the works cannot be done with the tenant still living in the property.
  5. Ground 7 – Property Required for Let to Family Members:
    • The landlord may regain possession if they need the property to house a close family member, but only if this was a condition mentioned at the start of the tenancy.

Procedure for Using These Grounds:

  • Reasonable Notice: The landlord must give proper notice, which is usually between 2 to 6 months, depending on the specific ground.
  • Court Approval: Even after serving the notice, the landlord must go to court to prove the ground for possession and obtain a possession order.
  • Compensation: In certain cases (like redevelopment), landlords may be required to compensate tenants for moving out.

Restrictions:

  • Unreasonable Eviction: Landlords cannot simply serve notice because they “want” the property back without a valid reason. The grounds must meet the legal criteria.
  • Tenant Challenges: Tenants can challenge a possession notice in court, especially if they believe the landlord’s reason is invalid or fabricated.

If the landlord cannot prove a valid ground, the court may deny the possession order, and the tenant can remain in the property.

Protocols and Procedures for Rent Arrears

Under the Renters’ Rights Bill and general UK law, landlords must follow specific protocols, procedures, and timescales before taking action to evict tenants for rent arrears. These procedures ensure that tenants are treated fairly and given opportunities to resolve their arrears before being evicted.

Here’s a breakdown of the rent arrears protocols, procedures, and timescales:

Protocols and Procedures for Rent Arrears:

  1. Initial Communication:
    • Landlords are encouraged to communicate directly with the tenant as soon as rent arrears begin to accrue. This initial contact should aim to find out the reason for the arrears and try to work out an amicable solution, such as a payment plan.
  2. Serve a Formal Notice of Arrears:
    • If the tenant fails to pay rent and communication doesn’t resolve the issue, the landlord must serve a notice of arrears. This written notice should specify:
      • The amount of arrears.
      • The period over which the arrears have accrued.
      • A deadline for payment.
  3. Agreeing to a Payment Plan (If Possible):
    • Landlords are encouraged to negotiate a payment plan with the tenant where feasible. This might include spreading the arrears over several months or reducing monthly payments for a temporary period.
  4. Pre-Action Protocol for Possession Claims Based on Rent Arrears (Civil Procedure Rules):
    • The Pre-Action Protocol for rent arrears must be followed before legal action is initiated. This involves:
      • Contacting the tenant to discuss rent arrears and exploring options to resolve the situation without legal proceedings.
      • Providing the tenant with information on where they can seek legal and financial advice.
      • Keeping a written record of all attempts to resolve the situation.
      • Considering whether the tenant is eligible for housing benefit or other forms of assistance that may help clear arrears.
  1. Notice Seeking Possession (Section 8 Notice):
    • If rent arrears persist and no resolution is reached, the landlord may serve a Section 8 Notice under the Housing Act 1988. This is a formal notice seeking possession on the grounds of rent arrears.
    • Grounds for possession in relation to rent arrears include:
      • Ground 8: If the tenant owes at least 2 months’ rent (or 8 weeks if paying weekly), the landlord can seek mandatory possession. If rent is reduced below this threshold before the court hearing, possession may not be granted.
      • Ground 10: Arrears of any amount at the time of serving notice and at the hearing. This ground does not guarantee eviction but is considered by the court.
      • Ground 11: Persistent late payments or regular failure to pay rent on time, even if there are no arrears at the time of the hearing.
    • The Section 8 Notice must give the tenant at least 2 weeks’ notice before the landlord can apply to court for possession.
  2. Court Action and Possession Order:
    • If the tenant does not clear the arrears or vacate the property by the date specified in the Section 8 notice, the landlord can apply to the court for a possession order.
    • The court will consider the landlord’s claim and the tenant’s situation (e.g., whether the tenant has made attempts to pay).
    • If successful, the court will issue a possession order, which typically gives the tenant 14 days to vacate the property. In exceptional cases, this period can be extended up to 42 days.
  3. Bailiff Eviction (Warrant of Possession):
    • If the tenant still fails to leave after the possession order, the landlord can apply for a warrant of possession, which authorises court-appointed bailiffs to evict the tenant. This process can take several weeks to arrange.

Timescales for Landlords in Rent Arrears Cases:

  1. Initial Rent Arrears Notification:
    • Contact the tenant as soon as arrears start, typically after the first missed payment.
  2. Serve Section 8 Notice:
    • This can be served after at least 2 months’ rent is owed (Ground 8) or if rent arrears are less but persistent (Ground 10 or 11).
    • The Section 8 notice must give 14 days before the landlord can apply for court possession.
  3. Court Application:
    • After the 14-day notice period has expired, the landlord can apply to court. The time for a hearing will depend on court availability, which can take 4-8 weeks.
  4. Possession Order:
    • If the court grants a possession order, the tenant will typically have 14 days to vacate. The court can extend this up to 42 days if the tenant proves exceptional hardship.
  5. Bailiff Eviction:
    • If the tenant still does not leave, the landlord can apply for a warrant of possession, which can take an additional 2-6 weeks to arrange depending on bailiff availability.

Key Considerations for Landlords:

  • Ground 8 (Mandatory): If the tenant owes at least 2 months’ rent, the landlord can request a mandatory possession order. However, the tenant can avoid eviction by reducing arrears below 2 months before the court date.
  • Grounds 10 & 11 (Discretionary): These grounds give the court discretion, meaning possession isn’t guaranteed, and the court will consider the tenant’s circumstances.
  • Tenant’s Right to Challenge: The tenant can challenge the notice and raise defences, such as incorrect service of the notice or disputing the amount of arrears.
  • Adherence to the Pre-Action Protocol: Failure to follow the protocol, including the steps to resolve arrears without court action, can result in the court delaying possession proceedings or dismissing the case.

By following these protocols, landlords can ensure they are complying with the legal requirements and avoid unnecessary delays or complications in regaining possession of the property.

Repair Procedures

Here is a breakdown of repair procedures and responsibilities from both the landlord’s and tenant’s perspectives based on general UK housing law:

Landlord Responsibilities for Repairs:

  1. Statutory Duty to Repair:
    • Under the Landlord and Tenant Act 1985, landlords are legally responsible for maintaining the structure and exterior of the property, including:
      • Roofs, walls, windows, and doors.
      • Gutters, drains, and external pipes.
      • Heating and hot water systems.
      • Gas appliances, pipes, flues, and ventilation.
      • Electrical wiring and necessary repairs for safety.
      • Sanitary fittings, including sinks, baths, and toilets.
  2. Repair Standards:
    • The property must be kept in a state that meets the Decent Homes Standard. It must be free from hazards and safe for habitation.
  3. Response Times:
    • Emergency Repairs: Repairs that are urgent and impact the safety of tenants (e.g., gas leaks, electrical faults, flooding) should be addressed immediately, usually within 24 hours.
    • Urgent Repairs: Non-emergency but serious issues (e.g., heating system failure in winter) should be resolved within a few days (typically 3-7 days).
    • Routine Repairs: Less urgent issues (e.g., minor plumbing leaks, cosmetic issues) should be repaired within 28 days.
  4. Landlord’s Obligation to Inspect:
    • The landlord should inspect the property regularly and respond to tenants’ repair requests promptly.
  5. Failure to Repair (Consequences for Landlords):
    • Tenant Complaints: If repairs are not completed within a reasonable timeframe, tenants can complain to the local authority or environmental health.
    • Rent Repayment Orders: Tenants can apply for rent repayment orders if the landlord’s failure to repair breaches housing regulations.
    • Legal Action: Tenants may take legal action for damages or for forcing the landlord to make repairs.

 Tenant Responsibilities for Repairs:

  1. Reporting Repairs:
    • Tenants must report any damage or repair issues to the landlord as soon as they become aware of them. Failure to report issues can affect tenants’ rights to claim compensation for damage or disrepair.
  2. Maintaining Cleanliness and Minor Repairs:
    • Tenants are responsible for:
      • Keeping the property clean and in good condition.
      • Minor repairs and maintenance, such as changing light bulbs, fixing small leaks, and keeping the garden tidy.
  3. Negligence:
    • If the tenant causes damage due to negligence or misuse, the tenant may be responsible for the repair costs. Landlords are not obligated to repair damage caused by the tenant.

Procedure When Repairs Are Required:

  1. Tenant Requests Repairs:
    • The tenant should notify the landlord in writing, including details of the issue and how long it has been ongoing.
  2. Landlord’s Response:
    • Upon receiving a repair request, the landlord should:
      • Acknowledge the request.
      • Arrange for repairs within the appropriate timeframe (depending on the urgency).
  3. If Landlord Fails to Act:
    • Contacting Local Authorities: Tenants can contact the local council or environmental health if the landlord fails to carry out repairs. The council may serve an Improvement Notice or other enforcement actions to ensure the landlord complies.
    • Rent Withholding: While tenants can withhold rent in extreme cases of disrepair, they must follow specific legal procedures (e.g., using the withheld rent to cover the cost of repairs after the landlord has been given notice).
    • Legal Action: Tenants can also pursue legal claims for housing disrepair, especially if the issue affects their health or safety.
  4. Right to Repair Scheme (for Social Tenants):
    • Social housing tenants can use the Right to Repair Scheme, which ensures repairs under £250 are carried out quickly. If the landlord fails to act within a reasonable time, the tenant can hire an independent contractor to carry out the repairs, and the cost will be covered by the landlord.

Consequences of Failure to Repair (Tenant’s Perspective):

  • Rent Reduction or Compensation: If disrepair affects the tenant’s quality of life (e.g., dampness, loss of heating), they may be entitled to compensation or a reduction in rent.
  • Health and Safety Risk: Unaddressed disrepair could lead to personal injury claims if the tenant suffers health consequences (e.g., illness caused by mould or damp).

By following these procedures, both landlords and tenants can ensure that repair issues are addressed fairly and in a timely manner, with legal recourse available for serious violations.