Housing Possession From August 2020 - Update February 2021

Since the below was written the Government has lifted the ban on issuing possession claims through the Court there is currently a total ban on evictions based on possession orders granted following service of a section 21 notice until 31^st March 2021 (having recently been extended from 22 February 2021).

Such ban also applies to possession orders granted following service of a section 8 notice seeking possession on the grounds of rent arrears UNLESS there are arrears equal to 6 months in which case a landlord can apply to the Judge for an eviction date to be given before the 31^st March 2021. There is no eviction ban if a possession order has been granted on the grounds of antisocial behaviour.

Courts are now dealing with possession proceedings in respect of rental and mortgaged properties.

(Note that the Financial Conduct Authority (FCA) has directed banks to hold off enforcing possession orders until after 1^st April 2021. The FCA guidance usually only applies to consumers agreements NOT business ones. If in doubt, please seek our advice)

The following relates to residential tenancies only.

Landlords should be aware that the procedure to secure possession on the grounds of rent arrears is slower than it was before. Both Solicitors and the Court staff are overloaded with claims and then there will be the back log to deal with after the 31^st March 2021.

Currently, if there are more than 6 months rent arrears, a landlord can serve a 4 week notice (i.e. a section 8 notice) on a tenant. If there are less than 6 months arrears, the notice period has to be 6 months.

When a claim for possession on the grounds of rent arrears is issued, the Court first sets a Review Appointment. This is designed to allow the parties an opportunity to engage to try and reach a compromise. We strongly recommend that the parties, especially the tenant, engage at this point because failure to take up the opportunity to engage could go against you at the Substantive Hearing. A Substantive Hearing is set by the Court when the parties have not reached an agreement at the Review stage.

Any tenants facing possession should urgently seek advice because failure to do so could go against them if arrears have been allowed to increase.

BG Solicitors can provide advice and assistance to landlords under a fixed fee arrangement and legal aid to tenants if they are in receipt of qualifying benefits or on a low income.

Tenants should be warned that they could still be evicted at the whim of landlords. At present, tenants can be evicted under section 21 of the Housing Act 1988, which requires no specific reason for possession. At the moment, a landlord wishing to pursue possession under section 21 must give 6 months’ notice of intention to issue proceedings (before Covid-19 it was 2 months). Once the 6 months have expired, a possession claim can be issued and the procedure is usually dealt with quickly as a paper exercise only. In the main, obtaining a possession order under a section 21 notice is not taking as long as a claim on the grounds of rent arrears.

Often a landlord may choose to issue both a section 8 and 21 notice to cover all bases.

Landlords should take care to ensure their paperwork is correct before serving a section 21 notice and therefore we recommend seeking professional advice and assistance.

As always as long as the section 21 procedure has been followed correctly, possession will ultimately be granted.

Update – since the below was written the Government have extended the moratorium until 20^th September 2020. We are here to advise on the changes as and when they happen.

Details are slowly emerging as to how courts will deal with housing possession cases when they resume on Monday 24^th August. Existing and new possession proceedings have been on hold since March to protect private and social renters, and those with mortgages and licences covered by the Protection from Eviction Act 1977 during the Covid-19 crisis.

(Note that the Financial Conduct Authority has directed banks to hold off reinstating possession claims or starting new ones until the end of October 2020). The following relates to residential tenancies only.

Landlords should be aware that the procedure to secure possession on the grounds of rent arrears is going to be slower than it was before. Nothing is going to happen immediately. Both solicitors and the Court staff are getting to grips with the new rules and directions currently being drawn up. Even though we are only days away from the suspension being lifted, some forms/guidance is still in draft form.

Initially, the Court will begin looking at the backlog of cases and new ones coming through, and list them. Landlords with cases in the backlog will have to file at court and serve on the tenant, a reactivation notice. If such a Notice is not addressed by the 29^th January 2021, their case will be automatically stayed and they would then have to spend money applying for the stay to be lifted.

When submitting a reactivation notice or issuing new proceedings, Landlords will have to flag up any Covid-related issues and tenants will also be able to do so. New possession cases will be listed for a review date. This will enable tenants to get advice, likely by phone, from a court duty adviser in advance of any court hearing.

Any tenants facing possession should urgently seek advice because failure to do so could go against them if arrears have been allowed to increase.

BG Solicitors can provide advice and assistance to landlords under a fixed fee arrangement and legal aid to tenants if they are in receipt of qualifying benefits or on a low income.

Landlords should take care to ensure their paperwork is correct before serving a section 21 notice and therefore we recommend seeking our advice and assistance.

As long as the section 21 procedure has been followed correctly, possession will ultimately be granted and often, this is the best option for landlords with troublesome tenants.