Will selling up be a mandatory ground in the Renters’ Reform Bill?

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9:35 AM, 1st June 2023, About 2 years ago 18

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Hello, will selling up be a mandatory ground in the Renters’ Reform Bill? Like others, I was concerned that while the white paper mentioned a new mandatory ground for persistent rent arrears the new proposed ground to enable a landlord to gain possession in order to sell or move themselves or a relative did not mention the word “mandatory”.

The feeling was that this could be a deliberate omission and not just an oversight and could open up the possibility that a court could prevent a landlord from selling when they wanted to. All I could find online in relation to the Renter’s Reform Bill as currently published (https://publications.parliament.uk/pa/bills/cbill/58-03/0308/220308.pdf) is basically a list of insertions and deletions to be made to the existing 1988 Housing Act rather than a document in its own right.

On the reasonable assumption that eviction Grounds 1-8 in Section 8 will still be mandatory as they are now, the Renters Reform Bill will add a couple of new mandatory items to Section 1 (which currently covers a landlord or relative moving in). The new sections 1A and 1B both have a common item as a Ground A: “The landlord who is seeking possession intends to sell the dwelling-house;” there are some other provisions under items 1A and 1B which do not appear to me to apply to a typical PRS landlord. So, maybe the concerns are unfounded, if they are it’s a pity the government didn’t make it crystal clear.

The current Section 8 does not make any provisions for selling up mandatory or otherwise as, presumably Section 21 currently would take care of this eventuality. As Selling up (and moving in) will be a mandatory ground and involves no more proof than the landlord expressing a desire to do so, this would lend itself to a simple online procedure with no need for court appearances. Just fill in an online form upload some documents like the tenancy agreement and gas certificate, pay a fee and that’s it, possession order is quickly granted to give to the tenant along with the Section 8 notice (or it could incorporate the Section 8 notice) and no court delays. Once the due leaving date has passed without the tenant leaving, the possession document could also serve as authorisation to appoint bailiffs. Maybe that is too much to hope for.

What is not clear is how a landlord would be prevented from evicting to sell or move in and then not actually doing either and re-letting the property. The solution could be in the proposed landlord registration scheme mentioned in the Bill. Not only will a landlord be registered but so will every property they rent out. Under the scheme it will be illegal to advertise a property for rent unless the property registration number is present (which is a good way to ensure everyone does register). In order to gain possession to sell the property the registration number would have to crop up somewhere in the proceedings.

So if the landlord tried to rent out the property again the property number could be cross referenced by a potential tenant or letting agent to see if the property was actually available to rent, a sort of reverse “right to rent” procedure. While the letting ban could last until the property is actually sold, maybe there could be a statute of limitations, if the landlord did not actually sell they would not be able to rent the property out again (officially at least) for, say, two years. If the property was actually sold the property could be removed from the register as part of the conveyancing process.

The act makes it quite likely that there could well be a charge for the registration scheme, the Ombudsman scheme etc. if the Secretary of State sees fit (and I am sure that they will) there will be nice contract up for grabs to set it all up. Hopefully the government will give the contract to a UK based contractor who had nothing to do with “Track and Trace” or the Post office “Horizon” system or anybody with government connections.

Yours,

Bob

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Tags: grounds for possession, Housing Act, mandatory, Renters Reform Bill, s21, s8, section 21, Section 8

Comments

Peter

16:38 PM, 2nd June 2023, About 2 years ago

Why isn't the Bill called a Renter's and Landlords Reform Bill rather than just a Renter's Reform Bill?
I think this says it all. And if they are calling for a Landlords Register then by the same token there has to be a Tenants Register - and whether you're a Tenant or Landlord the cost of registration should be the same price. I class myself as a good Tenant and have no problem whatsoever with appearing on a Register. I am however, extremely concerned that many good Landlords, like mine, will just sell up. I think it will be the last straw and force rents skyrocketing.

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J Green

18:57 PM, 2nd June 2023, About 2 years ago

If moving yourself to your property is not going to be included in the allowed list then that is the end of the consent to let sector. And this is going to further paralyse the labour market when people are unable to let their home out when trying a job in a new city when buying selling is cost prohibitive due to stamp duty and other costs.

And if selling property or moving yourself are not going to be allowed reasons then is the only way to get rid of property to default and let the bank gain possession to recoup their costs? And if tenants have caused massive damage and property owned through shammy Ltd with director on paper doesn't that encourage just defaulting on loans to cut your losses if the property is no longer worth the outstanding loans?

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paul robinson

7:30 AM, 3rd June 2023, About 2 years ago

I’m reading these post with interest, however safe in the knowledge that my last shared HMO will be for sale soon. Well done this joke of a government since 2019 you have continued to gas light HMO’s and in particular you plans have ruined a well run, mutually beneficial tenancy arrangements for my young professionals who used to live in my shared rentals before I sold them - now they have to pay more rent and very likely don’t get as good a service. This idiotic and self serving government have trashed a 20 year old successful & fair rental business and only made it harder for young professional tenants!

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10:39 AM, 3rd June 2023, About 2 years ago

Reply to the comment left by Tracy Fewtrell at 02/06/2023 - 16:38
Hi Tracy. It's nice to hear from a tenant who appreciates whats happening in the private rental sector.
I really do feel sorry for the effect this bill will have on tenants. My children rent and are fortunate to be a 'good risk' to a landlord but they have nevertheless had difficulty finding somewhere to rent. They are mobile 'young professionals' who don't want to buy anywhere yet.
I really despair at this government (who I voted for!) and their idiotic policies.
If Labour get in it will be even worse

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Michael Crofts

13:58 PM, 3rd June 2023, About 2 years ago

@Bob - original poster

Your principal question is whether the landlord's intention to sell the property will be a "mandatory" ground which compels the court to make an order for possession.

The answer is that as presently drafted the Renters (Reform) Bill would make this ground mandatory.

Housing Act 1988 Schedule 2 begins: 'SCHEDULE 2
Grounds for Possession of Dwelling-houses let on Assured Tenancies
Part I
Grounds on which Court must order possession'

The operative word is 'must', not "mandatory" but in this context it has the same effect.

The Renters (Reform) Bill as it stands at present has this:
'SCHEDULE 1
CHANGES TO GROUNDS FOR POSSESSION Introductory
5 1 Schedule 2 to the 1988 Act (grounds for possession of dwelling-houses let on assured tenancies) is amended as follows.'
and
'New grounds for sale of dwelling-house 3
After Ground 1 insert— “Ground 1A The following conditions are met— (a) the landlord who is seeking possession intends to sell the dwelling-house;

So, as we stand today, a decision to sell would compel the court to make an order for possession, but only if you can get a hearing and the judge decides to obey the law.

If this part of the Bill survives unscathed I will be surprised.

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dismayed landlord

19:55 PM, 3rd June 2023, About 2 years ago

And it still relies on getting a court date and a judge that will understand and actually follows the legislation. Without my that we are still shafted.

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SimonP

0:06 AM, 4th June 2023, About 2 years ago

Reply to the comment left by dismayed landlord at 02/06/2023 - 11:39
Does this "court princess" have a name?

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Luke P

1:53 AM, 4th June 2023, About 2 years ago

Reply to the comment left by dismayed landlord at 03/06/2023 - 19:55
Even if you get that, you’re shafted…check out this glimpse into the future…

https://www.landlordzone.co.uk/news/breaking-evictions-grind-to-a-halt-as-bailiffs-reduce-workload-over-health-and-safety/

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