Following attempts by successive governments to reform the private residential rental market in England, the Renters’ Right Act 2025 (“the Act”) will soon come into effect.
Landlords should pay close attention to any announcements made by the government about when the Act will commence and when exactly the changes will come into effect. Prior to the commencement of the Act, landlords should be aware of a number of changes.
Abolition of “No Fault” Evictions
Landlords will no longer be able to regain possession of their property by issuing a Section 21 notice and then seeking a court order for possession. Instead, landlords will need to give a valid reason for wanting the property back before the courts will grant a possession order. The reasons, known as grounds, are set out in the Act.
Grounds for Possession
The grounds for possession will be drastically altered and so will the notice periods that landlords need to give to tenants before they can commence court proceedings for possession.
Amongst other grounds, for example, if a landlord wants their tenant to move out so that they can move in or they are selling the property, then they must give 4 months’ notice and that notice cannot be given in the first 12 months of the tenancy.
In addition, the grounds for possession on the basis of rent arrears are changing. The tenant will need to be in at least 3 months of rent arrears if the rent is paid monthly, or 13 weeks if the rent is paid weekly. The landlord will then need to give the tenant 4 weeks’ notice before starting court proceedings to recover the rent and get back possession.
Periodic Tenancies and Security of Tenure
As well as changing the way that landlords can obtain possession of their property, the Act also fundamentally changes the way that residential properties will be let. On commencement of the Act, Assured Shorthold Tenancies will no longer exist, instead being replaced with periodic assured tenancies. Tenants will have the automatic right to terminate their tenancy on 2 months’ notice.
Another major change is how rent is increased. The Act sets out that rent can only be increased to reflect market rates. If the landlord wants to increase the rent, then they will need to issue a “section 13” notice to the tenant, giving 2 months’ notice before the new rate comes into effect. However, the tenant can challenge the proposed increase through the First-Tier Tribunal.
Can Landlords Still Issue Section 21 Notices?
At the moment and for the time-being, landlords can still issue Section 21 notices and apply to court for a possession order. The Section 21 notice will still be valid for 6 months after service and proceedings need to be commenced in that time. However, the Act does specify that if the notice is served prior to the commencement date of the Act, the notice will then only be valid for a maximum of 3 months after the commencement date.
Prior to the commencement of the Act, landlords should review their properties and current arrangements, and make sure that if they want to obtain possession of their properties, then any notice is served in good time. It is anticipated that the courts will experience a high volume of possession claims before the Act comes into force, so Landlords should be aware that it may take longer to get a possession order and they should act quickly.
If you are a landlord and considering seeking possession of one your properties, it is important that the correct notice is served properly. We can assist with serving notices and commencing court proceedings, whether now or under the Act.
For information, contact Timothy Green on 01952 566 907 or timothygreen@martinkaye.co.uk