Serving Notices

Are you worried about a further time extension for you to serve a notice on your tenants? Worried about your finances with lost rental income? We take a look at the importance of serving notices in the correct way. If your Tenant is breaching their tenancy now is the time to serve your notices.   If a notice is served correctly, then the process is relatively straightforward, but any issues, regardless of how tiny they may appear, will result in your case being dismissed. If dismissed not only, will you suffer months and months of unpaid rent (lost rental income), but you could end up paying your tenants costs. What if your Lettings Agent drafts the notices, it will save you the cost right and we all want to save legal costs? 80% of the notices forwarded to us were originally served by lettings agents, and the vast majority were faulty is some way. Agents are not able to serve legal documents, sign on your behalf or attend hearings, as they have no rights of audience. Does it matter? Yes, because they will not have insurance, they will not know the case law to rely on, and the case will often be dismissed.  It sounds a good idea to let your Agent complete the process, but check they have the insurance to cover any faulty notices.  The vast majority do not, because they cannot give legal advice. What if they don’t have insurance? Then you suffer the loss as the Landlord. What if they have got away with it before? It just takes that one time to cost you many thousands of pounds in lost revenue and legal fees, and don’t forget that judgment on your credit file. With our fees of £50.00 + VAT* (*by quoting NEWB13 for October and November 21), it simply does not make this risk commercially viable.  Please phone us on 0330 123 1131 or complete our contact form, to ask our advice, and get it right first time. For more information on our eviction service please visit our Evictions & Serving Notice page
 

Six-month notice periods continue in Wales until the end of 2021

  Earlier this month, the Government had confirmed, in the Coronavirus Act 2020 (Residential Tenancies and Notices) (Amendment and Suspension) (England) Regulations 2021, that the notice periods for Section 8 and Section 21 Notices will return to pre-pandemic levels in England from October 1st, 2021.   For more information concerning notice periods in England, please refer to our recent blog post outlining these changes.   However, we have now been notified that notice periods will not return to pre-pandemic levels in Wales. Currently, landlords in Wales must provide six months' notice when terminating a tenancy; these measures were due to expire on 30th September 2021 but have now been extended until December 31st, 2021.   The explanatory notes, written in conjunction with the Coronavirus Act 2020, outlines reasons as to why the Welsh Government have taken this approach. The Welsh Government believe the extended notice periods will support the three overarching aims of the aforementioned Act:-  
  1. Containing and slowing the virus, 
  2. Easing the burden on frontline staff
  3. Supporting people. 
  The notes then goes onto detail how this decision supports those aims in arguing that extended notice periods will:  
  • Reduce homelessness,
  • Reduce pressure on services,
  • Increase scope to support individuals at risk of eviction,
  • Increase security for tenants and reduce anxiety.
  This decision is influenced by the Welsh Governments inability to accommodate evicted tenants (as the pandemic has already placed huge constraints and pressure on local authorities). The explanatory notes then highlight that these local authorities will “struggle to accommodate any significant rise in numbers presenting as homeless.”   In addition, it is noted that the Welsh Government considered reducing the notice periods but ultimately decided at this time it was not appropriate to do so. One motive for their decision is that a Notice issued in September with six months' notice would expire after a Notice issued in October (in the event that shorter notice periods would have applied).   We note that many landlords are also conscious of this and therefore wait for announcements from the Welsh Government. This gives rise to the concern that if landlords are waiting for notice periods to reduce, we could therefore see mass evictions. Notwithstanding, there has been no indication as to how the Welsh Government will prepare for this possible spike in evictions.   At NewBold Solicitors, we offer a free 15-minute telephone consultation to advise landlords of their potential options. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.   Jake Wesson – Graduate Solicitor – Property Litigation.
 

Notice periods for Section 8 and Section 21 Notices to reduce in England from October 1st 2021.

  In March 2020, the Government introduced emergency legislation which ensured tenancies were subject to a six-month notice period if a landlord sought to terminate the tenancy (with exceptions in certain serious cases). Section 8 and Section 21 notice periods were reduced in June 2021 (and August 2021 if a landlord was evicting a tenant due to unpaid rent); however, they have still not returned to pre-pandemic levels.   The Government has confirmed in the Coronavirus Act 2020 (Residential Tenancies and Notices) (Amendment and Suspension) (England) Regulations 2021, that Section 8 and Section 21 notice periods will reduce to pre-pandemic levels in England from October 1st 2021. In effect, the notice period required for a Section 21 Notice will reduce from 4 months to 2 months.   These changes apply to assured shorthold tenancy agreements in England.   It has now been 18 months since emergency legislation was enacted and some landlords have expressed disappointment over the perceived lack of measures to protect their rights. These changes will therefore be welcomed by many landlords in England.   It is important to note, that the Government retains the ability to reapply longer notice periods until March 25th 2022 should the future public health situation warrant a further extension. Ultimately, these changes depend largely on the severity of the pandemic and can be reversed at any time.   We await further updates from the Welsh Government to determine whether notice periods in Wales will also be reduced; the three-month extension to six-month notice periods imposed in June 2021 is due to expire on September 30th 2021.   At NewBold Solicitors, we can offer advice and assistance to landlords and tenants. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.   Jake Wesson – Graduate Solicitor – Property Litigation

Mandatory Redress Scheme - Private Rental Sector

The government’s housing minister last week warned landlords of an imminent, mandatory redress scheme.   A redress scheme is an independent body that seeks to resolve issues made by consumers about members of the scheme. In England, a property redress scheme is already in place which requires both Property Managers and Agents to be a member; provided either by The Property Redress Scheme or the Property Ombudsman. A similar scheme is in place in Wales through Rent Smart Wales, requiring either a license, registration or both for agents, property managers and private landlords. The basis of the scheme is to offer a cheaper, more accessible means for resolving disputes without the need for litigation. Members of the scheme face the threat of paying compensation to complainants, or even expulsion from the scheme if they fail to pay their fines.   Private landlords in England remain exempt from the Letting Agency Work and Property Management Work (Approval and Designation of Schemes) (England) Order 2013 which made membership mandatory and although the scheme is open to private landlords, few have joined. Further, it is only commercial landlords who require membership to the Property Redress Scheme in Wales.   The then Communities Secretary, James Brockenshire first announced a mandatory membership for private landlords in January 2019, but no detailed proposals have been published, nor any legislation into force since, but a clue to its introduction came in the Queen’s Speech in December 2019. The briefing notes highlighted that one of the benefits of the Renters Reform Bill would be ‘… all tenants having a right to redress if their rented properties are not safe and healthy. Later in March 2020, Robert Jenrick, Housing Secretary, confirmed during a speech in the House of Commons that the government would set up a mechanism for leaseholders to seek proper redress for their genuine grievances’. Again, in March this year, the topic was ignited once more when he stated in his speech at the National Housing Federation Summit that ‘tenants should be able to seek redress in reasonable time without an uphill struggle and know that they will be heard’. After a long conversation around the subject, the confirmation of a mandatory membership for private landlords came by way of Lord Greenhalgh, the governments’ housing minister in June of this year.   The introduction of a mandatory scheme would mean that the whole private rental sector would be accountable to a complaint process. Currently, approximately half of all landlords use a letting agent, but this legislation would mean that all DIY landlords would be subject to the same redress obligations. Greenhalgh believes that tenants with a legitimate complaint about their home will have access  to a more straight-forward, available resolution, while landlords will have a clearer understanding of their obligations. Sean Hooker, Head of Redress at the Property Redress Scheme believes that a mandatory scheme is long-overdue and that a single gateway for tenants to access complaint services would mean that ‘complainants would be able have their complaint signposted to the right service, that data could be shared allowing the complaint to be effectively dealt with as quickly and effectively as possible.’   But sceptics believe it will fall short of the ‘fix’ it aims to be. Social landlords already have a redress scheme, the Housing Ombudsman Scheme, and that does not eliminate poor practice. Further, there are many thorny crossovers that would need to be ironed out before any legislation came into force. If a property is managed by an agent, does the landlord need membership to a scheme too? If the landlord and agent are members of different schemes, which redress route would a tenant have to take? Would a redress scheme force unscrupulous landlords further under the radar? Would the absence of a registration prevent an eviction?   In the face of recent investigations, such as Daniel Hewitt’s report into moldy and poorly maintained homes, this reform deserves attention. An accessible scheme which holds all landlords to account and promises to be more effective then schemes currently in place will be more important than people may realise. The whole private rental sector could be facing an overdue, vigorous shake up. Please contact our Landlord and Tenant team to discuss any queries you may have on 0330 123 1131   Louise McGowan - Graduate Solicitor - Property Litigation

Tenancy Hardship Grants (Wales)

  The Welsh Government have announced a Tenancy Hardship Grant Scheme which aims to support tenants who are struggling with rent arrears due to the Coronavirus pandemic. The move comes as the eviction ban comes to an end in Wales on June 30th 2021.   The scheme is funded with an £10m cash injection from the Welsh Government; it will be administered by local authorities and will replace the Tenancy Saver Loan Scheme (which was introduced in December 2020).   Tenants can register their interest in the Grant from 1st July 2021, with funding to be made available towards the end of July.   If a tenant is successful in obtaining a grant, it will be paid directly into the landlords’ bank account; thus the scheme goes some way in addressing the unprecedented stress and hardship that many landlords’ have felt throughout the Coronavirus pandemic.   However, it is essential that the scheme is accessible for those that need the support. An Information Request revealed that only 41 loans had been awarded under the old Tenancy Saver Loan Scheme between October 2020 and April 2021. This reiterates the view that accessibility and availability of grants under the new Tenancy Hardship Grant Scheme will be crucial if it is to have a positive impact in helping tenants and private landlords.   The scheme puts increased pressure onto the English Government to introduce a similar rent arrears relief programme; however there has been no indication as to whether they intend to follow in introducing such scheme.   At NewBold Solicitors, we can offer advice to both Tenants and Landlords. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.   Jake Wesson - Graduate Solicitor - Property Litigation