Loveitts advises landlords not to panic, following on from announcements made last week.
Following guidance issued last week outlining significant changes to the Private Rented sector, Loveitts have voiced an air of caution following widespread media coverage suggesting otherwise. To help landlords understand what has been announced, please see our Q & A below.
1. Will the Section 21 Notice disappear next month? No
2. What will replace the Section 21 Notice? A revamped version of the Section8 Notice with additional Grounds
3. How quickly will the legislation be implemented? Before the Bill becomes an Act. There is no set time limit -peers and MPs will scrutinise the Bill as it makes its way through parliament. Given the complexity of the content of the Bill, this process may last 12 months or more.
4. Will a landlord need to serve notice if they wish to sell? Yes. It is likely a new Ground will be introduced under Section 8. However, it depends on how the legislation is written and what information a landlord will be required to provide. Is the 'intention' to sell, or will the landlord need to prove they are 'genuinely' selling? There are so many factors to discuss and decide it is far too early to speculate at this stage.
5. Will Accelerated Possession Proceedings still exist? No. If the Section 21 Notice is abolished, this process will also disappear.
6. Will the legislation only apply to new tenancies? No. There will be a six-month period of grace -a transitionary period of six months, similar to the implementation of the Tenant Fees Act 2019 and EICRs, at the end of which all existing tenancies would have to comply with the new legislation.
7. Will a landlord be required to accept pets if the head lease includes a restriction? This is up for debate. Statute overrides contract. However, thousands of head leases do not permit pets, which cannot be overridden. The question on pets will always be contentious, and again we will need to see how this evolves. For more information and discuss the new potential legislation please contact our lettings team in our three branches.