GROUNDS FOR POSSESSION - SELLING
Under the Renters Rights Bill, landlords wishing to sell their investment property must now meet stricter criteria and follow a defined legal process to avoid penalties. Tenants will benefit from a 12-month protected period at the beginning of a tenancy, during which landlords cannot evict them to move in or sell the property. Landlords must provide tenants with 4 months notice of an intention to sell and also demonstrate genuine intent to sell. Landlords must ensure that the process is transparent and well-documented to prevent allegations of misuse of the sale ground. To deter misuse of the grounds for sale, the Bill introduces significant fines and penalties for landlords who attempt to avoid these regulations. If a landlord initiates an eviction under the pretence of selling the property but fails to follow through or immediately relets the property without adequate proof of a sales process, they could face steep fines imposed by local authorities. These penalties could range from thousands to tens of thousands of pounds, depending on the severity and intent of the violation. Local councils are empowered to closely monitor compliance, so landlords need to ensure all actions align with the stated purpose of sale and that comprehensive records are kept throughout the process. This regulatory tightening means landlords must approach the sale of their rental properties with careful planning and strict adherence to legal requirements, as any perceived misuse can lead to substantial financial consequences and damage to their credibility as property owners.
GROUNDS FOR POSSESSION - ARREARS
CURRENT: Susan Cope Court backlogs, combined with procedural requirements for evidencing arrears and adherence to all compliance steps, contribute to a potentially lengthy and costly repossession process. This shift emphasises the importance of early, proactive tenant engagement and precise record-keeping to avoid extended financial disruptions due to non-payment. The Renters Rights Bill introduces revised grounds and new protocols for repossession due to rent arrears, significantly impacting landlords’ ability to address non-payment quickly. The new regulations protect tenants who fall into temporary arrears by increasing the mandatory threshold for eviction from two months to three and extending the notice period from two weeks to four . These new, longer notice periods are intended to give tenants greater security and flexibility in challenging or addressing financial difficulties, but they also delay landlords’ ability to regain possession. A robust rent guarantee policy has never been more important for landlords. Realistically, these procedural changes mean that the timeline for repossession has been lengthened. Landlords may face delays of several months to over a year before they can regain control of the property, especially if the case goes to court.
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