Renters’ Rights Act – Possession, Rent, and Tenant Rights Under the New Law (Part 2)

Renters' Rights Act - Possession, Rent, and Tenant Rights Under the New Law (Part 2)

This article explains how the removal of Section 21 will change the possession process, what new grounds are available under Section 8, and how rent increases, notice periods, and the upcoming ban on rental bidding will work in practice.

Information in this article is based on guidance from the National Residential Landlords Association (NRLA).

What if my tenant is in arrears and I need to gain possession?

You will still be able to use a Section 8 notice to seek possession if your tenant is in arrears but there have been some changes to the existing mandatory ground.

Under the current rules you can use the mandatory rent arrears possession ground (Ground 8) if the tenant is in two months or more of arrears. After the Renters’ Rights Act commences, it will be only be available when the tenant goes into 3 months or more of arrears. The required notice will also increase from two weeks to four weeks.

The Act also excludes arrears due to a delayed Universal Credit (UC) payment from the arrears threshold. This means that Ground 8 will be unavailable to landlords if arrears arise from non-payment of UC so you should make sure to keep good records and support tenants wherever possible with their benefit applications.

What if my tenant is in arrears and I need to gain possession?

You will still be able to use a Section 8 notice to seek possession if your tenant is in arrears but there have been some changes to the existing mandatory ground.

What is the restricted period for reletting under Ground 1 and Ground 1A?

Under Grounds 1 and 1A, you cannot re-let or advertise the property for re-let during the “restricted period”. This period starts on the date the notice is served to the latter of: 12 months after the expiry date specified in the notice; or the date a possession claim is filed with the court.

It is an offence for a landlord or agent to let or market the property during this restricted period.

Are shared owners affected by Ground 1 and Ground 1A?

Shared owners part-own and part-rent their homes through a housing association or registered provider. Their leases include protections for when the property is sublet.

An amendment agreed during the Act’s final stages allows shared owners to let their property immediately if they can prove they’ve genuinely tried to sell it.

To qualify, three conditions must be met:

Tenants are told in writing at the start of their tenancy that their landlord is a shared owner.
The landlord owns less than 100% of the property.
The landlord notifies the housing provider before issuing a Ground 1A notice that they plan to sell their share.

The exemption was accepted because selling shared ownership properties can be complicated, especially in blocks requiring fire safety remediation, and tenants can find themselves in severe financial hardship.

What notice will a tenant need to give?

Your tenants will be able to end a tenancy by serving two months’ notice in any written format, including via text or WhatsApp. This notice can be served from the first day of a tenancy.

If a joint tenancy is in place and one tenant serves a valid notice, the notice will end the tenancy for all tenants.

How will I be able to increase the rent? Can I take rent in advance?

How will I be able to increase the rent?

When the Act comes into force, you will only be able to propose a new rent via a Section 13 notice, which you can find here. This notice can only be served once a year, and a minimum of two months’ notice is required.

As is presently the case, tenants will have the right to refer any rent increase request to the First-tier Tribunal for free. The Tribunal will then determine the rent, which cannot be higher than that proposed by the landlord. You can read more about the Tribunal process here.

Can I take rent in advance?

You will not be able to take accept any rent before entering into an assured tenancy agreement. Once the tenancy has been signed, you will be able to request up to one month’s rent in advance.

After this initial payment in a new tenancy, you will only be able to require rent to be paid for each rental period, which is limited to one month.

However, landlords with existing tenancies will still be able to require that rent be paid quarterly, 6-monthly, etc.

How will the ban on rental bidding work?

When listing a property for rent, you will be required to advertise a specific asking rent. You will then be prohibited from encouraging or accepting offers above this asking rent.

If you are found to be in breach of the ban on rental bidding, the Local Authority can impose a civil penalty of up to £7,000.

Renters’ Rights Act – Possession, Rent, and Tenant Rights Under the New Law (Part 2)