The new Labour Government has published its Renters' Rights Bill. What does it mean, for landlords and for tenants, and how does it differ from the previous government's Renters (Reform) Bill?
In this series of articles, members of the 42BR Housing Team stop off at different landmarks, considering the implications of the new Bill – this time in a red coloured bus.
Michael Grant compares and contrasts: the Renters (Reform) Bill vs. the Renters' Rights Bill – Grounds for Possession
In my previous post, I set out a commentary on the "new" grounds for possession (under the previous Bill), following the proposed abolition of the section 21 procedure.
What are the grounds for possession in Schedule 1 of the new Bill? Which aspects of its forerunner have been retained, which have been scrapped, and which have been altered?
Overview
Renters (Reform) Bill
- New Grounds: 1A, 1B, 2ZA, 2ZB, 2ZC, 2ZD, 4A, 5A-5H, 6A, 8A
- Amendments to existing Grounds: 1, 2, 4, 5, 6, 7, 8, 14
- Abolition of existing Grounds: 3
Renters' Rights Bill
- New Grounds: 1A, 1B, 2ZA, 2ZB, 2ZC, 2ZD, 4A, 5A-5H, 6A (but not "8A")
- Amendments to existing Grounds: 1, 2, 4, 5, 6, 7, 8 (but not to ground 14)
- Abolition of existing Grounds: 3
The previous Bill's new Ground 8A would have entitled a landlord to recover possession where rent had been unpaid for at least one day, on three separate occasions, over a three-year period: that is now gone.
While the new Bill appears largely the same as its predecessor (save for the important scrapping of the new Ground 8A), there are some subtle changes.
What has been retained without alteration?
A significant number of the proposed amendments to the current grounds for possession have been retained in the new Bill, without further alteration:
- New Ground 1B–"New ground for possession after rent-to-buy agreement"
- Amendment of Ground 2–"Amendments of Ground 2: sale by mortgagee"
- New Ground 2ZA–"New ground for possession when superior lease ends"
- New Grounds 2ZB, 2ZC and 2ZD–"New grounds for possession in cases where there is a superior lease"
- Repeal of Ground 3–"Repeal of Ground 3: holiday accommodation"
- Amendments of Ground 4–"Amendments of Ground 4: student accommodation"
- Amendment of Ground 5–"Amendment of Ground 5: ministers of religion"
- New Ground 5A–"New ground for possession for occupation by agricultural worker"
- New Ground 5B–"New ground for possession for occupation by person who meets employment requirements"
- Amendment of Ground 5C (re-numbered from Ground 16, making it a mandatory ground)–"The dwelling-house was let to the tenant in consequence of his employment by the landlord seeking possession or a previous landlord under the tenancy and the tenant has ceased to be in that employment."
- New Ground 5D–"New ground for possession for end of employment requirements"
- New Ground 5E– "New ground for possession for occupation as supported accommodation"
- New Grounds 5F and Ground 18–"New grounds for possession of dwelling-house occupied as supported accommodation"
- New Ground 5G–"New ground for possession for tenancy granted for homelessness duty"
- New Ground 6A–"New ground for possession to allow compliance with enforcement action"
What has been retained with alteration?
Amendments of Ground 1–"Amendments of Ground 1:
occupation by landlord or family"
- This is practically the same wording as before, save for the new
Bill altering the minimum duration of any prior tenancy from 6
months to 12 months; as seen in the previous Bill, the potential
occupiers of the home can include a cohabitee and even extended
family.
New Ground 1A–"New ground for sale of
dwelling-house"
- As with the amendment to Ground 1, the same wording has been
retained save for changing the minimum duration of any prior
tenancy from 6 months to 12 months.
New Ground 4A–"New ground for possession of
student accommodation for occupation by students"
- This is largely the same wording as the previous Bill, but with
one main difference: the new Bill qualifies this ground to relate
it specifically to students who have a joint tenancy of an HMO (it
is not entirely clear why this has been done; indeed, why this
ground has been retained at all).
New Ground 5H–"New ground for possession of
stepping stone accommodation"
- The new Bill includes some minor changes (largely stylistic)
without altering the essence of this Ground; however, included in
the new version is the definition of "eligibility
condition", whereas the previous Bill reserved the definition
for secondary legislation, although the new Bill does include
permission for the Secretary of State to pass secondary legislation
to either i) amend the ground, ii) add, vary, or remove any
eligibility condition, or iii) make provision about the meaning of
any eligibility condition.
Amendments of Ground 6–"Amendments of Ground 6: redevelopment"
- There are some minor changes:
- Minor stylistic changes (but the essence remains the same).
- Rather than omitting paragraph (b) of Ground 6 (as the previous Bill had done) the new Bill proposes to insert the words "where section 7(5ZA) applies in relation to the tenancy" at the start of paragraph (b): it is difficult to understand this amendment, when read with the rest of Ground 6.
- Also, within paragraph (6) under the definition of "relevant social landlord" there is clearly some duplication concerning sub-paragraphs (a) and (b) – "a non-profit registered provider of social housing". One expects this to be rectified by a subsequent draft of the Bill.
Amendments of Ground 7–"Amendments of Ground 7:
death of tenant"
- The amendments are the same, save that the previous Bill also
proposed extending the time for starting a claim from 12 months
after death, to 24 months after death; but this proposed extension
has not been retained in the new Bill.
Amendments of Ground 8–"Amendments of Ground 8:
rent arrears"
- The amendments proposed by the previous Bill have been retained,
but the new Bill proposes important additional amendments:
- Instead of 8 weeks' rent arrears for mandatory possession of weekly periodic tenancies, the new Ground 8 will require 13 weeks' arrears; and
- Instead of 2 months' rent arrears for mandatory possession of monthly periodic tenancies, the new Ground 8 will require 3 months' arrears.
Conclusion
The grounds for possession in the Renters' Rights Bill are by and large very similar to those in the Renters (Reform) Bill.
But there are some very notable differences (no new Ground 8A, and the amendments to Ground 8), which seem likely to have an even greater impact on the recoverability of possession than we saw with its predecessor.
It will be interesting to see which aspects of this first draft remain in place by the time the Bill is given Royal Assent. Only time will tell.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
