1. Identify the type of tenancy
Under the new legislation, the majority of residential tenancies will convert from Assured Shorthold Tenancy agreements (ASTs) to Assured Tenancies governed by the Housing Act 1988. However, there are exceptions to this, for example high rent and low/no rent lettings, or where the tenant is a company. There are also different regimes for agricultural tenancies or old pre-1989 Rent Act tenancies.
2. Satisfy the administrative requirements
Landlords are required to give tenants prescribed information at the start of the tenancy, to protect any tenancy deposits. Failure to take these steps can cause major difficulties later.
3. Are there grounds for possession?
Currently landlords of ASTs are entitled to seek possession at the end of the fixed term of the tenancy, using “section 21”. The incoming Renters (Rights) Bill will bring an end to these “no fault” evictions, meaning landlords will have to rely on existing and new grounds, for example they intend to sell, or occupy the premises as their home.
4. What is the correct form of notice?
Once the new Bill has passed into law, landlords will have to serve section 8 notices, as section 21 will no longer exist. For non-ASTs, the form of notice depends on the form of tenancy/occupational rights.
5. How long will it take?
Defended possession cases can go through a full court process to trial, taking nine months to a year or more to resolve. There are concerns in some quarters as to how the court system will cope with the impending abolition of section 21/no fault evictions, as this may result in more cases which are ripe for dispute.
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