MORE CHANGES WITH THE SERVING OF NOTICE PERIODS IN WALES 

From 25 March 2022, Landlords will be able to give their tenants only 2 months notice of their intention to evict them (no-fault evictions pursuant to Section 21) and only 2 weeks notice (substantial rent arrears pursuant to S8).

Good news for Landlords who are struggling to make mortgage payments, but for Tenants who are struggling with their rental payments, this can be a very stressful time.

If you are a tenant, then it is important that you do not ignore the problem, you seek help as soon as you are having difficulty with paying your rent.  Speak to a debt counsellor, speak to Shelter, or the CAB, keep engaging with your landlord.

There are tenants who simply do not care they are missing their rental payments, they may be breaching their tenancy conditions and causing damage to the property, in which case, a Landlord should consider whether to re-serve a notice to take advantage of the change in legislation.

If you are a Landlord with a property in Wales, then please phone us as because we are fully experienced in both English and Welsh housing law legislation, and we can explain the changes now, and the changes coming into force this summer.

The law is becoming more complex and the difference between English and Welsh legislation is becoming further apart.  If you have a home or property in Wales, then speak to us.

 

A Landlord has very recently been ordered to pay a fine of £45,000 and costs of £5,000 for failing to have a HMO Licence. A lot of Clients are aware of the need to have a HMO Licence, but many of our Clients have breached the law but were unaware that they had. An example is, one Client asked a friend of his to look after his rental property in Newport, but the 'friend' allowed other occupiers to live in the property and did not tell the Landlord.  The Landlord was not just fined, but also had his assets frozen under the 'Proceeds of Crime Act' Legislation.   Another example is a Client who was living abroad and allowed his Agent to handle all the regulatory aspects of his property rental.  The Agent had allowed the property to be occupied by over 3 family units, and the landlord faced a fine in excess of £30,000.00. It is important that when you rent a property you have good lines of communication between you and your tenants; that you inspect the property (lawfully of course), and you are always aware of the changes in legislation because ignorance is sadly no defence to breaching the law. If you have an Agent who has caused you to suffer a loss and/or you have breached a regulation whilst they are managing your property, then you will have a claim for negligence against them. If you have an issue with a HMO, if you want to watch one of our VLOGS, then please get in touch.  We firmly believe that creative thinking leads to positive results.

 

Serving Notices

Are you worried about a further time extension for you to serve a notice on your tenants? Worried about your finances with lost rental income? We take a look at the importance of serving notices in the correct way.

If your Tenant is breaching their tenancy now is the time to serve your notices.   If a notice is served correctly, then the process is relatively straightforward, but any issues, regardless of how tiny they may appear, will result in your case being dismissed.

If dismissed not only, will you suffer months and months of unpaid rent (lost rental income), but you could end up paying your tenants costs.

What if your Lettings Agent drafts the notices, it will save you the cost right and we all want to save legal costs? 80% of the notices forwarded to us were originally served by lettings agents, and the vast majority were faulty is some way.

Agents are not able to serve legal documents, sign on your behalf or attend hearings, as they have no rights of audience.

Does it matter? Yes, because they will not have insurance, they will not know the case law to rely on, and the case will often be dismissed.  It sounds a good idea to let your Agent complete the process, but check they have the insurance to cover any faulty notices.  The vast majority do not, because they cannot give legal advice.

What if they don’t have insurance? Then you suffer the loss as the Landlord.

What if they have got away with it before? It just takes that one time to cost you many thousands of pounds in lost revenue and legal fees, and don’t forget that judgment on your credit file.

With our fees of £50.00 + VAT* (*by quoting NEWB13 for October and November 21), it simply does not make this risk commercially viable.  Please phone us on 0330 123 1131 or complete our contact form, to ask our advice, and get it right first time.

For more information on our eviction service please visit our Evictions & Serving Notice page

 

Six-month notice periods continue in Wales until the end of 2021

 

Earlier this month, the Government had confirmed, in the Coronavirus Act 2020 (Residential Tenancies and Notices) (Amendment and Suspension) (England) Regulations 2021, that the notice periods for Section 8 and Section 21 Notices will return to pre-pandemic levels in England from October 1st, 2021.

For more information concerning notice periods in England, please refer to our recent blog post outlining these changes.

However, we have now been notified that notice periods will not return to pre-pandemic levels in Wales. Currently, landlords in Wales must provide six months' notice when terminating a tenancy; these measures were due to expire on 30th September 2021 but have now been extended until December 31st, 2021.

The explanatory notes, written in conjunction with the Coronavirus Act 2020, outlines reasons as to why the Welsh Government have taken this approach. The Welsh Government believe the extended notice periods will support the three overarching aims of the aforementioned Act:-

 

  1. Containing and slowing the virus, 
  2. Easing the burden on frontline staff
  3. Supporting people. 
 

The notes then goes onto detail how this decision supports those aims in arguing that extended notice periods will:

 

  • Reduce homelessness,
  • Reduce pressure on services,
  • Increase scope to support individuals at risk of eviction,
  • Increase security for tenants and reduce anxiety.
 

This decision is influenced by the Welsh Governments inability to accommodate evicted tenants (as the pandemic has already placed huge constraints and pressure on local authorities). The explanatory notes then highlight that these local authorities will “struggle to accommodate any significant rise in numbers presenting as homeless.”

In addition, it is noted that the Welsh Government considered reducing the notice periods but ultimately decided at this time it was not appropriate to do so. One motive for their decision is that a Notice issued in September with six months' notice would expire after a Notice issued in October (in the event that shorter notice periods would have applied).

We note that many landlords are also conscious of this and therefore wait for announcements from the Welsh Government. This gives rise to the concern that if landlords are waiting for notice periods to reduce, we could therefore see mass evictions. Notwithstanding, there has been no indication as to how the Welsh Government will prepare for this possible spike in evictions.

At NewBold Solicitors, we offer a free 15-minute telephone consultation to advise landlords of their potential options. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.

Jake Wesson – Graduate Solicitor – Property Litigation.

 

Notice periods for Section 8 and Section 21 Notices to reduce in England from October 1st 2021.

 

In March 2020, the Government introduced emergency legislation which ensured tenancies were subject to a six-month notice period if a landlord sought to terminate the tenancy (with exceptions in certain serious cases). Section 8 and Section 21 notice periods were reduced in June 2021 (and August 2021 if a landlord was evicting a tenant due to unpaid rent); however, they have still not returned to pre-pandemic levels.

The Government has confirmed in the Coronavirus Act 2020 (Residential Tenancies and Notices) (Amendment and Suspension) (England) Regulations 2021, that Section 8 and Section 21 notice periods will reduce to pre-pandemic levels in England from October 1st 2021. In effect, the notice period required for a Section 21 Notice will reduce from 4 months to 2 months.

These changes apply to assured shorthold tenancy agreements in England.

It has now been 18 months since emergency legislation was enacted and some landlords have expressed disappointment over the perceived lack of measures to protect their rights. These changes will therefore be welcomed by many landlords in England.

It is important to note, that the Government retains the ability to reapply longer notice periods until March 25th 2022 should the future public health situation warrant a further extension. Ultimately, these changes depend largely on the severity of the pandemic and can be reversed at any time.

We await further updates from the Welsh Government to determine whether notice periods in Wales will also be reduced; the three-month extension to six-month notice periods imposed in June 2021 is due to expire on September 30th 2021.

At NewBold Solicitors, we can offer advice and assistance to landlords and tenants. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.

Jake Wesson – Graduate Solicitor – Property Litigation