Property News - Changes to notice periods and tenant evictions - 1st June

UK domestic property renters will continue to receive support for longer notice periods until at least the end of October. Notice periods that were extended as a result of the covid crisis are gradually being reduced. The minimum for every case now is 6 months. (Section 21s and Section 8s). Unless there is an extreme case, such as domestic abuse, anti-social behaviour, or rent arrears.  

Main changes:  

·        Section 21 (Form 6a) 

From 1st June the minimum notice period on Section 21 (Form 6a) will be reduced to 4 months.  

·        Section 8 (Form 3) 

From 1st June notices that currently 6 months will be reduced to at least 4 months. For arrears which are 4 months or more will require a 4-week notice period. Serious cases as shown below will be reduced to the following:  

·        Anti-social behaviour - Immediate to 4 weeks’ notice

·        Domestic abuse in the social sector - 2 to 4 weeks’ notice

·        False statement - 2 to 4 weeks’ notice

·        Over 4 months’ accumulated rent arrears - 4 weeks’ notice

·        Breach of immigration rules/right to rent - 2 weeks’ notice

·        Death of a tenant - 2 months’ notice

EVICTIONS  

From 1st August - Notice periods for cases where rent arrears are 4 months or more will be reduced to 2 months arrears which are 4 months or more will require a 4-week notice period. 

The ban on bailiff-forced evictions will be lifted on 31st May 2021. The notice period before evictions take place will be 14 days unless it is an extreme occasion.  

Bailiffs will be asked to not carry out an eviction if they have been told that someone in the property is self-isolating or showing signs of COVID-19. 

 Notice periods will return to pre-pandemic levels from 1st October, Subject to public health advice and progress with the Government’s roadmap. 

 The government has announced that a White Paper will be published with the aim to create a fairer private rented sector that will benefit both the tenants and the landlords. This will also include proposals for the abolition of section 21 ‘no-fault evictions to give tenants more security and a new ‘lifetime deposit’ to ease the burden when moving property. 

There is a belief that in the next few months when furloughing finally stops that around a million people will be unemployed and this could have a dent on the market. 

According to the Citizens Advice Bureau, over half a million tenants were in arrears three months ago and this has certainly increased in the last quarter. This represents approximately 12% of all tenancies are now in default. 

However, the current property market is very strong, with the new 5% deposits for first-time buyers really helping to lead so many people looking to get on the property ladder. Bournemouth based property agents Martin and Co have seen the rental market appreciate by almost 10% in the last 6 months and the housing market has been around the same. 

They said: “A surprising factor has been so many new first-time investors looking for a property, as they believe this is the way forward with interest rates so low and the uncertainty of long-term pensions”. Source: Martin and Co, Bournemouth. 

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