Section 21 notices, also known as ‘No-fault evictions’ are being removed in the Renters Rights Bill, so what will landlords use to get their property back when its necessary?
In the majority of cases, the answer is Section 8, which is a notice that landlords can use to regain possession to their property so long as there is a valid reason to do so.
What is Section 8?
A Section 8 notice (of the Housing Act 1988) is a formal notice which essentially permits a landlord to regain possession of their property from a tenant for a specific reason, typically due to a change in circumstances, or a breach of contract.
Rather than Section 21 notices, which did not require justification to be served, Section 8 has “grounds” (reasons) as to why the landlord is seeking possession.
These grounds can permit a landlord to end a rental agreement for an express purpose, such as rental arrears or wanting to sell the property.
Section 8 usually requires a court hearing to determine whether the grounds for possession are justified.
Due to the abolition of Section 21, the Renters’ Rights Bill is strengthening Section 8, adding over 20 new grounds for more varied use cases.
Types of grounds: Mandatory vs. Discretionary
There are two types of grounds for different use cases: ‘Mandatory’, and ‘Discretionary’, and both relate to how the case is heard in court.
Mandatory grounds
Where a Section 8 is served on a mandatory ground, the court must grant possession; some examples of mandatory grounds include:
- Landlord wants to move into the property themselves [Section 8, Ground 1]
- The landlord wishes to sell the property [Section 8, Ground 2]
- The tenant is in arrears of more than two months [Section 8, Ground 8]
Discretionary grounds
If a Section 8 is served on a discretionary ground, the court may grant possession subject to the hearing.
As the name suggests, discretionary grounds are used in instances where wrongdoing must be proven, such as:
- Persistent delay in rent payment [Section 8, Ground 11]
- Breaches of tenancy [Section 8, Ground 12]
- Anti-social behaviour [Section 8, Ground 14]
Renters Rights Bill
As Section 21 is going to be abolished in the Renters’ Rights Bill, landlords must be aware of the Section 8 grounds available to them so that they can regain possession if it is necessary.
The bill is strengthening the grounds for Section 8, adding over 20 new grounds, you can see the list of Section 8 grounds before and after the Renters Rights Bill here.
What impact will the Section 21 ban have on the private rented sector?
The Renters’ Rights Bill is touted to receive Royal Assent this summer, with the commencement date following shortly thereafter.
So how will its removal of Section 21 affect landlords in the PRS?
For many upstanding landlords, Section 21 is rarely used indiscriminately, but rather as a less complicated method of seeking possession than Section 8 – as there are no grounds to serve.
It’s also sometimes served alongside Section 8 notices for greater assurance that possession will be granted.
As it does not make sense in a professional context to randomly serve a tenant notice, the only time many landlords will ever require possession of their property is when it is required for an express purpose, or the tenant has breached the terms of the agreement.
In both instances, Section 8 can be used, as there are grounds covering both cases.
So, whilst it’s true that serving a Section 8 is more complicated than serving a Section 21, it still allows landlords to regain possession of their property when it is required.
We recommend that any landlord looking to use Section 8 should seek legal advice to avoid delays and risk having your case thrown out.
Want more information about using Section 8? Get in touch with us today and discuss your property