Urgent need to review Section 8

Urgent need to review Section 8

8:34 AM, 14th November 2018, About 6 years ago 26

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The National Landlords Association (NLA) is calling for the Government to review the section 8 possession process.

The section 8 possession process requires landlords to seek a court order to gain possession of their property where the tenant has breached the terms of their tenancy agreement. However, tenants can challenge the possession claim and remain in the property.

For the successful possession claims, there is an average period of 18 weeks between claims and repossessions¹, which can cost up to £355 per claim² in court fees alone. The landlord also has to cover legal costs and may face losses when tenants are in arrears and stop paying rent. The NLA’s latest survey of landlords shows that it can take an average of 145 days to regain possession of a property at a cost of £5,730³.

Rent arrears is the most common reason for a landlord to file a section 8 possession claim. Our landlords panel found that 36 percent of landlords experienced rent arrears and 15 percent have sought to regain possession in the last year³.

The alternative to section 8 is section 21, where no reason is needed and gives tenants two months’ notice. However, this can only be used after a fixed-term tenancy ends or during a periodic tenancy. Landlords often serve both notices simultaneously as it provides greater certainty of vacant possession. This can be vital when a landlord needs to sell the property or move in themselves.

Richard Lambert, CEO of the NLA, says:

“As it stands, the system is failing and needs urgent reform. Landlords are forced to rely on section 21 ‘no fault’ notices, even when there is a breach in tenancy. This is essentially a sticking plaster covering the fundamental issue – that the section 8 process is no longer fit for purpose.

“While the majority of tenancies are ended by the tenant, landlords need to be confident they can regain possession of their properties efficiently in the event of a breach of tenancy to effectively manage their business risk.”

¹ Ministry of Justice Mortgage and Landlord Possession Statistics in England and Wales, April to June 2018

² Ministry of Justice Civil and Family Court Fees (from February 2018)

³ NLA Landlord Panel Survey Q3 2018 (690 respondents)


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Mike

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10:24 AM, 17th November 2018, About 6 years ago

One way a landlord of a property where gas supply is not installed or where a supply is disconnected at the property boundary, landlord could protect himself against any tenant defending S21 is by clearly and explicitly stating on his tenancy agreement that the property does not have a gas supply connected to a gas mains, or there is no meter at the property gas pipe is capped off before it enters the property boundary, and does not use any pother form of gas heating such as portable gas cylinders, therefore no gas safety checks are necessary and no GSC will be issued, it is same as if a landlord does not take deposit and therefore he does not have to protect it and issue prescribed instructions.

And on top of this landlord could add a strict clause regarding the tenant ordering a gas supplier to install a pipeline and a meter to the property without the owner/landlord's written consent, failing which the landlord will not be liable for not giving the tenant a GSC if he was not informed and permission sought from him.

Mike

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11:14 AM, 17th November 2018, About 6 years ago

People keep talking about the S21 where a landlord had not had the opportunity to serve a GSC upfront of tenants moving in, for whatever reason, we of course need to find a way around this where the gas supply was connected but not in use or even if it was in use but the landlord failed to give the GSC to the tenant but there was one in force at the time, only that a copy was not given to a tenant.

And what about those landlords where previously they had other form of heating and now going for gas heating, assuming even the meter was not fitted and pipes were capped off from the mains outside the property boundary?
Would it be possible to throw an incentive at old tenants to voluntarily surrender their tenancy against 1 months rent free occupation and sign up a new tenancy this time making sure all paper work is in order, I cannot see this being illegal as it does not state in the legislation we cannot do this.

What this means is that we got to fight technicalities with our own technicalities, and of course we can do that legally.

Mike

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11:33 AM, 17th November 2018, About 6 years ago

Having said above, offering one months rent free would mean the property was vacant and the old tenant left and then came back again, and you can explain the tenant why you need to do this, because new rules came into force from October 2018, and to comply with them they would need to surrender their old tenancy and get them to sign surrender document and re-let them under the same terms except this time you make sure all paperwork is given to them before they sign the new AST, return their deposit and re-take deposit and re-protect it, cover all technical angles. This of course would not apply to pre-October 2015 ASTs.

Michael Barnes

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12:58 PM, 18th November 2018, About 6 years ago

@Mike.
1. The requirement is to serve GSC before tenant occupies the property. A new tenancy is not going to fix that.
2. As far as I know the Oct 2018 changes are only for pre-October 2015 tenancies, and the only change is to use the prescribed S21 form. Therefore "you can explain the tenant why you need to do this, because new rules came into force from October 2018" is meaningless.

Chris @ Possession Friend

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17:35 PM, 18th November 2018, About 6 years ago

Reply to the comment left by Michael Barnes at 18/11/2018 - 12:58
Re, a 'New tenancy is not going to fix the lack of initial service of a gas certificate '
The truth is, we don't know. A number of solicitor have suggested that its not known, some suggesting as Michael has above that it won't, and others saying they're not sure and you won't know until you try.
I have certainly read a divergence of legal views on the subject.

Mike

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10:41 AM, 19th November 2018, About 6 years ago

Reply to the comment left by Michael Barnes at 18/11/2018 - 12:58that said, of course it might not work with a tenant who already knows that when he moved in there was no GSC or if there was then he was not given one upfront, and especially if the tenant does not want to move out, then you may be stuck with it for a good few years, but water always finds a route around obstructions eventually, nothing is absolute.

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