Renters Rights Bill: What if a landlord wants possession to sell a property?
On 11 September 2024, the Labour Government published the “Renters Rights Bill” which is its version of what was, under the Conservative Government, the “Renters (Reform) Bill”, which did not quite make its way through Parliament.
At present, if a landlord wants to sell a property, a ‘no fault’ eviction notice can be served under Section 21 of the Housing Act 1988 (“the HA”). The notice period under Section 21, at present, is a period of at least 2 months.
Under the Renters (Reform) Bill, the proposal was to abolish Section 21, but open up a different Section of the HA 1988, namely Section 8, to enable a landlord wanting to sell a property to do so, provided that the tenant had been in occupation of the property for at least 6 months.
However, the newly proposed Renters Rights Bill differs significantly on this proposed ground for possession. There will be a new ‘Ground 1A’ inserted into Section 8 Under the Renters Rights Bill, but it will be less favourable for landlords than what was proposed under the Renters (Reform Bill) and certainly less favourable for landlords compared with the rules at present. This is because landlords seeking to rely on the new Ground 1A (a) will not be able to use the ground during the first 12 months of a new tenancy and (b) must provide a notice period of at least 4 months.
It is predicted that the Renters Rights Bill will come into effect around Summer 2025, from which point many landlords may well face significant issues when wanting to gain lawful possession of a property.
Should you wish to discuss this, please get in touch with Rikki Foster, Senior Solicitor in our property litigation team on 01482 601 234 or email rikki.foster@andrewjackson.co.uk.