Firstly, I just want to clarify what a Section 21 does for landlords now.
A Section 21 notice is now the only means that a Landlord can retrieve possession of his or her property without grounds or reason. It can be issued at any time, with a minimum notice of two months, during a fixed term contract in order to regain possession at the end of that fixed term.
It can be issued also during a Statutory Periodic contract, again within a minimum notice period of two months, for possession to be gained by the Landlord. Should a tenant not vacate at the end of the notice period, possession will be granted by the court and will always be granted as long as the notice has been issued correctly and the dates are in line with the dates of the tenancy.
Landlords may require their property back for a variety of reasons, it may be financial, personal or because the tenancy has not been successful. Many landlords may not want to issue the Section 21, they may have a perfectly good tenant in the property but for a personal reason they need the property back.
A Section 21 allows the owner of the property to claim possession of their property.
What the Deregulation Bill would mean for Section 21 Notices:
- A Section 21 Notice cannot be served until month four of a tenancy (therefore cannot be issued at the start of a AST)
- A Section 21 Notice is invalid if before it was issued a tenant had made a complaint in writing to the landlord regarding the condition of the dwelling, and
- The Landlord did not respond to the complaint in 14 days, did not provide an adequate response, or gave a Section 21 Notice following the complaint
- A Section 21 Notice would be invalid if then a tenant took the same complaint to the local authority, and
- The local authority served a relevant notice to the landlord in relation to the complaint, and
- If the Section 21 Notice was not given before the tenants complaint to the local authority, it was given before the service of the relevant notice.
- If a landlord fails to comply with obligations relating to Energy Performance Certificates and Gas Safety Certificates, the eviction of a tenant will be suspended while the landlord is in breach.
- Exemption would be if the landlord is genuinely selling the property and be able to provide evidence they are not selling to a friend or family member.
Tenancy Deposit Schemes (TDS)
The proposed amendments are:
- If a landlord took a deposit in respect of a fixed term AST before 6th April 2007 which then became a periodic tenancy after 6th April 2007, the landlord should protect the deposit and provide the relevant prescribed information within 90 days of the Deregulation Bill gaining Royal Assent.
- A landlord of a tenancy that became periodic before the tenancy deposit scheme came into force on 6th April 2007 should protect the deposit however there is no financial penalty for failing to comply with this amendment.
- The prescribed information can specify the details of the agent who protected the deposit rather than then landlord.
- Any deposit received for a fixed term or contractual periodic tenancy on or after 6 April 2007 and prescribed information was given correctly at the time, then, if a renewal tenancy is granted (between same landlord and tenant for substantially same property), or a contractual periodic tenancy replaces the original tenancy, the prescribed information is treated as having being given in respect of the renewal / replacement tenancy (provided same scheme provider & scheme rules are honoured) NB the proposed amendment only applies to the prescribed information. Whether the deposit will need re-protecting will depend on the rules of the individual Deposit scheme provider.
It is expected that the Deregulation Bill will gain Royal Assent before the dissolution of Parliament on 30th March 2015.