Renters' Rights Bill Part 2 - Sections 12 to 15 of the Renters’ Rights Bill: key considerations for Landlords

The Renters’ Rights Bill 2024 introduces significant changes to the private rented sector in England.

Sections 12 to 15 of the Bill address various aspects of tenancy agreements, possession grounds, and enforcement mechanisms.

Below we set out an overview of these critical sections:

1. Section 12: Abolition of Fixed-Term Assured Tenancies and Assured Shorthold Tenancies

Section 12 proposes the abolition of fixed-term assured tenancies and assured shorthold tenancies. This change means that all tenancies will become periodic by default. Landlords will need to rely on Section 8 of the Housing Act 1988, in order to regain possession of their properties.

2. Section 13: Grounds for Possession

Section 13 modifies and expands the grounds on which landlords can seek possession of their properties. These include:

• Ground 1 (Mandatory): Allows possession if the landlord or a close family member intends to occupy the property. Please note this ground cannot be used within the first 12 months of the tenancy.
• Ground 1A (Mandatory): Enables possession if the landlord wishes to sell the property. Please note this ground is also unavailable within the first 12 months of the tenancy.
• Ground 8 (Mandatory): This is the old ground that relates to rent arrears, but please note that it has now been amended. Landlords can seek possession if the tenant has at least three months’ rent arrears at both the time of serving the notice and at the possession hearing. The notice period for this ground has been extended from two to four weeks.

Additionally, new grounds such as Ground 4A (possession from full-time students in an HMO) and Ground 14A (domestic abuse cases) have been introduced.

3. Section 14: Notice Periods for Possession

Section 14 adjusts the notice periods required for possession under various grounds. For example:

• Grounds 1 and 1A: The notice period has been extended from two to four months.
• Ground 8: The notice period has been increased from two weeks to four weeks.

4. Section 15: Financial Penalties and Offences

Section 15 introduces financial penalties for landlords who breach certain provisions of the Renters’ Rights Bill. These penalties will be used for breaches  including misuse of possession grounds (such as serving Notice incorrectly)  and failure to provide required written statements of terms. Local housing authorities can impose fines of up to £7,000 if they are satisfied beyond reasonable doubt that a landlord has contravened these provisions. Alternatively, landlords found guilty through the courts may face fines of up to £40,000.

At Barwells we have advised Landlords for many years. We are committed to keeping you informed about legislative changes that affect your rights and responsibilities. Please contact our team for individual advice or assistance in adapting to these new regulations.