The changes to the law regarding section 21 notices come into effect on 1 October 2015. Here's the good news and the bad news…
The good news
Parliament had now provided a clear prescribed form of section 21 notice. From 1 October 2015 landlords will need to use the new prescribed form to terminate an existing assured shorthold tenancy ("AST") or a new AST. A failure to do so will render the notice invalid. The form is provided in The Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015.
The form should make terminating an AST easier from an administration perspective. The prescribed form provided is clear and easy to follow, with good explanatory notes for both the person filling in the form and a clear outline of what it means to the tenant receiving it. There is also clear guidance on the form explaining how to serve the form.
The new prescribed form also reminds the landlord of the changes brought in as a result of the Deregulation Act 2015 and secondary legislation arising from it.
- A section 21 notice cannot be served in the first four months of the tenancy
- A landlord may not serve a section 21 notice within six months of an improvement notice or remedial notice being served by the local authority or after a tenant makes a legitimate request for repair works (this provision is only applied to new tenancies granted after 1 October 2015)
- A landlord must provide a tenant with a copy of the energy performance certificate and a copy of the gas safety record (there is no requirement to provide the actual certificate)
- The landlord must have protected the tenant's deposit under one of the Government's three approved Tenancy Deposit schemes
- If the property is in an area which requires a private rented property license, the landlord must have one of these.
In addition, the deposit must, of course, have been protected and the required information served.
The bad news
The bad news is that from 1 October 2015 a landlord must comply with all of these hurdles (where relevant) before he can serve a valid section 21 notice. If a landlord has failed to comply he will not be able to issue possession proceedings on the basis of the section 21 notice.
The regulations make it clear that a landlord will also need to provide a document entitled "How to rent: the checklist for renting in England", as published by the Department of Communities and Local Government, available here. This should be provided in hard copy or by email if the tenant has previously agreed to accept documents in connection with the tenancy by email. A landlord does not need to supply a new copy if the tenant renews his tenancy and he has already been sent a copy of the current version of the document. This is another additional burden for landlords.
The regulations do not specify when the gas safety record or energy performance certificate need to be supplied. However, we recommend as a matter of course that these are provided at the beginning of the tenancy. The Energy Performance of Buildings (England and Wales) Regulations 2012 Regulation 6(5) state that the energy performance certificate must be provided at the earliest opportunity to the tenant and should also be given to prospective tenants if it is requested. The certificate should also be provided free of charge.
If you would like to receive a word copy of the new section 21 notice please email Emma Watson and she will provide you with one.
