A Noticeable Change: Section 21 Housing Act

The Court of Appeal has recently decided that provided a periodic Assured Shorthold Tenancy commenced as a fixed term, a Landlord is only required to give two months’ notice under the Section 21 Housing Act; Section 21(1) of the Housing Act 1988 and need not worry about the rigours of using the correct word and the correct date under section 21(4).

“Whilst to obtain a possession order for residential property a landlord must follow the requirements as set out in Section 21 Housing Act, those requirements, which have been strictly followed by District Judges, now appear to have been relaxed by the Court of Appeal following the case of Spencer v Taylor” so says Liam O’Shea, a Director at Astle Paterson.

Liam continues that “Landlords have encountered District Judge’s across England & Wales deciding that their Notice seeking possession of the property as served under Section 21 Housing Act is invalid.   Landlords will no doubt be comforted by the decision of Spencer v Taylor which appears to confirm that provided a periodic AST commenced as a fixed term, the only requirement is to give a ‘simple’ two months’ notice under section 21(1) – rather than the more complex notice of a notice under section 21(4).

A few words of caution; first it is not known whether the tenant in the case will seek to appeal the decision of the Court of Appeal and, secondly, it is currently unclear how readily District Judges will follow the guidance laid down by Spencer v Taylor.

It is therefore important that before you serve notices on your tenant you seek legal advice.”

Liam O’Shea of Astle Paterson specialises in the law of Landlord & Tenant and carries out work on behalf of Landlords throughout Burton upon Trent and the surrounding areas – please contact him on 01283 531366 or by email at loshea@astlepaterson.co.uk.

Should you wish to read the Judgment of Spencer v Taylor [2013] EWCA Civ 1600 then please click here.

What is Section 21 Housing Act 1988?

Section 21 Housing Act 1988 relates to the eviction of tenants in the private rental sector. Please note that the information provided might not reflect any recent changes or updates to the law. It’s essential to consult the latest legislation or seek legal advice for the most accurate and up-to-date information.

Under Section 21 of the Housing Act 1988, landlords in England and Wales have the right to evict tenants without providing a specific reason for doing so. This provision is commonly known as a “no-fault eviction.” Landlords can serve a Section 21 notice to tenants, which gives them a minimum of two months’ notice to vacate the property.

However, it’s worth mentioning that in recent years, there have been changes to the Section 21 rules in England. The government has introduced new regulations to protect tenants’ rights and improve stability in the rental sector. These changes include the introduction of the Tenant Fees Act 2019 and the abolishment of Section 21 evictions, which is expected to take effect in the future.

Why Section 21 Housing Act 1988 is important?

Section 21 Housing Act 1988, or the provision for “no-fault evictions,” has been considered important for landlords in the private rental sector for several reasons:

1. Possession of property: Section 21 Housing Act provides landlords with a legal mechanism to regain possession of their property without having to provide a specific reason for eviction. This can be beneficial in cases where a landlord simply wishes to regain possession for legitimate reasons, such as selling the property or moving into it themselves.
2. Flexibility: Section 21 offers flexibility to landlords by allowing them to end a tenancy agreement at the end of a fixed term or during a periodic tenancy without having to establish fault on the part of the tenant. This enables landlords to maintain control over their property and make decisions based on their individual circumstances.
3. Efficiency: The no-fault eviction process under Section 21 Housing Act is generally considered to be more straightforward and efficient compared to alternative eviction routes that require proving fault or specific grounds for eviction. It simplifies the legal process and can potentially save time and costs for landlords.
4. Encouraging supply: Proponents argue that Section 21 Housing Act has provided confidence to landlords, encouraging investment in the private rental sector and thereby increasing the supply of rental housing options. The availability of rental properties is important for meeting the housing needs of tenants.

However, it’s worth noting that Section 21 Housing Act has also been subject to criticism and debate. Critics argue that it can contribute to insecurity for tenants, particularly in cases of retaliatory or unfair evictions, and may lead to homelessness or housing instability. This has prompted discussions and changes in legislation to strike a balance between the rights of landlords and tenants, ensuring proper protections are in place for both parties.