Landlord Eviction Ban – What’s the latest?
The government extended the ban on evictions: what does this mean for landlords – can you still serve notice on your tenants?
The four-week extension on tenant evictions now means the ban won't be lifted until 20th September 2020, next week – and even that’s not a guaranteed date. The extension means landlords face a longer wait than anticipated before they can start court proceedings against tenants for issues such as failing to pay their rent. The latest extension means the ban will have been in place for a total of six months.
The government had already extended the ban
It follows a five-month ban on tenant evictions, which was due to be lifted on 23rd August.
That five-month ban consisted of an initial three-month ban and a previous two-month extension that was announced in June.
The government initially introduced the emergency legislation banning tenant evictions on 26th March, at the beginning of the lockdown. Its aim was to ensure no tenant was forcibly evicted during the beginning of the coronavirus pandemic.
Section 8 and Section 21 notice changes
If you are a private landlord, you can ask a tenant to move out by issuing a Section 21 or Section 8 notice. A Section 21 notice is commonly referred to as a "no-fault eviction" as you don't need to give a reason for evicting your tenant after their fixed-term tenancy period ends.
However, as of June this year, the Government now states landlords must submit evidence about how their tenants' circumstances may have been affected by coronavirus. If they don't, judges will be able to suspend the court proceedings until such details are provided. This means eviction proceedings for thousands of people could effectively be pushed back by months.
With a Section 8 notice, you already have a reason to evict your tenant, for example if they’ve fallen behind on their rent, have damaged the property or there are complaints from neighbours.
New six-month notice periods
Landlords are still able to serve notice of eviction now, even though tenants can’t legally be evicted. However, these eviction notices now come with a new six-month notice period.
Making the announcement, housing secretary Robert Jenrick MP said: “Six-month notice periods must be given to tenants, supporting renters over winter.”
There’s a backlog of cases facing courts
A backlog of cases means it will take longer than ever for proceedings to reach court – and ultimately for landlords to gain possession of their properties. It means landlords could face months without any rent. Many will rely on their own source of income.
Timothy Douglas, of ARLA Propertymark (the trade body for letting agents) said: “Now that the ban on evictions has been extended, the Government must use this time to introduce further guidance and prepare the sector. It is important to take steps back towards normality so that both landlords and tenants have access to the justice system, while putting measures in place to offer further support to tenants who have built up Covid-related arrears, and this four week extension will give Government the time to introduce such measures.
“Additionally, given the backlog of cases already facing courts, it’s key that the Government introduces sufficient guidance during this period to enable eviction proceedings to begin again smoothly and fairly when the ban is lifted.”
Landlords urge financial support for tenants
The National Resident Landlords Association is urging the government to develop a financial package to support tenants to pay off rent arrears built up as a result of coronavirus. Such a package has already been created in Wales.
This could mean a sigh of relief for both tenants and landlords, as eviction bans can go ahead without fear of homelessness, or money for back paid rent can be paid off using support packages.
What should you do now?
We always recommend talking to your local letting agent about your specific situation, and they’ll be able to give advice about the best way to proceed, whether that’s serving notice or not. It’s much more unlikely that the government will continue the ban past the new date and put strain on it’s already strained British landlords, so there is light at the end of the tunnel.
We’d be happy to help any struggling landlords take the next step towards protecting themselves financially – whether the issues are due to the eviction ban or just the constant changes in legislation being implemented throughout 2020. Get in touch to speak to our team of experts, and we can ensure you still keep your yields high into the future.