Posts with tag: serving a section 21 notice

Important Section 21 Changes

Published On: August 26, 2015 at 11:50 am

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Important changes regarding section 21 notices, affecting landlords and letting agents, will be implemented in a matter of weeks through the Deregulation Act 2015.

The main changes apply to the rules on serving a section 21 notice, via the Housing Act 1988, which terminates a tenancy.

The new rules will be enforced on 1st October and apply to tenancy agreements entered into on or after that date.

A lawyer of Greenwoods Solicitors, Michelle Cox, has compiled the following guidance.

“The main changes to be aware of are:

  • “It will no longer be possible to serve a section 21 notice until the tenant has lived in the property for a minimum of four months. This is designed to stop landlords serving a section 21 notice as soon as a tenant moves in. As before, the notice can’t expire in any event before the end of any fixed term.
  • “A section 21 notice will only be valid for six months from the date it was given. This means that if the tenant doesn’t leave, possession proceedings must be commenced within six months of the service of the section 21 notice. Different rules apply where the notice period set out in the tenancy agreement is more than two months.
  • “A section 21 notice will no longer be invalid if the date of possession given on it is not the last day of a tenancy period. This has traditionally been one of the main reasons that a section 21 notice fails. As long as a full two months’ notice is given, then unless another unconnected error is made, the section 21 notice will be valid.
  • “Landlords will be unable to serve a section 21 notice in circumstances where it is in breach of its legal obligations to a tenant. This includes obligations as to the condition of the property, the health and safety of the occupants and failure to provide an Energy Performance Certificate [EPC] or a valid gas certificate for the property.
  • “When a section 21 notice is served, all rent that has been paid for any period where the tenant ceases to live in the property must be repaid to the tenant. This has implications where a tenant who has paid their rent decides to leave when they receive the section 21 notice rather than when the notice expires. Where a tenant pays a full month’s rent but then is required by the section 21 notice to vacate or voluntarily vacates mid-way through the month, the tenant is entitled to be reimbursed the overpayment of rent for that period.
  • “One change that is already in force relates to the protection of deposits. All deposits ever taken which are still being held must now be protected. Once complete, the deposit protection certificate and all prescribed information must be served on the tenant. If any deposit has not been protected or returned to the tenant, a section 21 notice cannot be served.”1

1 http://www.propertyindustryeye.com/essential-update-for-letting-agents-important-changes-coming-up-to-section-21/

 

 

 

Landlords Must Safeguard Tenancy Deposits

Published On: February 12, 2015 at 11:25 am

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It is vital that landlords take appropriate action and protect their tenancy deposits when issuing an Assured Shorthold Tenancy (AST).

Landlords Must Safeguard Tenancy Deposits

Landlords Must Safeguard Tenancy Deposits

In a recent case, a landlord who served a section 21 notice, to gain possession of the property, was told that this was invalid, as they had not held the tenant’s deposit in an authorised scheme.

Cases similar to this indicate to landlords and letting agents the importance of staying aware of changes in legislation that could affect them and their tenants.

Landlords and letting agents must protect the deposit, or they could risk having to return the tenants’ deposit before being able to serve a section 21 notice.

It is now illegal for a deposit to be held, unless it is in an authorised scheme. The deposit must be registered in one of three schemes: the Deposit Protection Service, mydeposits, and the Tenancy Deposit Scheme.

For landlords and agents who may not be aware of any legal implications, the result of not protecting a deposit could lead to them not being able to evict tenants until they have returned the deposit. Even then, they could face a damages claim.

Tenants can claim for three times the amount of the original deposit, and this would have a massive impact on a landlord’s finances. Landlords may think that if a deposit was paid before the 6th April 2007 enforcement date, they are exempt from the regulations.

Jobs and income are both still vulnerable, and long-term, reliable tenants can still suffer monetary issues and be unable to pay their rent on time. This could leave landlords who have not protected the deposit in a difficult position.

Landlords should keep a positive relationship with their tenants, and have a reputable law firm at hand, who can minimise risk, keep landlord’s aware of changes in legislation, and make changes in an effective manner.