1 October: all change for residential landlords

This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.

Summary and implications

On 1 October 2015 the Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015 (the Regulations) and further provisions of the Deregulation Act 2015 (the Act) come into force, both of which affect whether or not a landlord can serve a section 21 notice seeking possession of a dwelling let on an assured shorthold tenancy (AST) in England.

The following changes apply to ASTs starting on or after 1 October 2015 (excluding statutory periodic tenancies arising after 1 October 2015):

• The Act prevents a landlord from serving a section 21 notice where the tenant has complained to the landlord in writing about the condition of the dwelling.
• A section 21 notice cannot be served during the first four months of an AST (excluding a statutory periodic tenancy).
• A section 21 notice cannot be served unless the tenant has been provided with:

• The requirement for a section 21 notice to end on the last day of a period of the tenancy has been removed. Two months' notice is all that is required (albeit a section 21 notice cannot specify a date which is earlier than the expiry of the fixed term of the AST). Any rent paid in advance which relates to the balance of the rent period must be repaid to the tenant if the tenant leaves.
• A claim for possession of the dwelling based on a section 21 notice must be started within six months of the date of the section 21 notice.
• The Regulations introduce a prescribed form of section 21 notice which must be used in respect of all ASTs starting on or after 1 October 2015. The prescribed form may also be used for ASTs starting before 1 October 2015.

These changes are likely to cause uncertainty and create disputes between landlords and tenants. However, what is certain is that the effect of these changes is to further complicate the once simple procedure under which a landlord could seek possession of a dwelling let on an AST.

Please contact us if you would like more information about the changes and how they might affect you.