Summary
Since the lifting of the moratorium on evictions imposed during the pandemic, the topic of the protection of private renters has been particularly prevalent. In this article, we consider the much-anticipated Renters Reform Bill which proposes to abolish "no fault" evictions under section 21 of the Housing Act 1988 amongst other reforms. We also consider the recent case of Lees v Kaye & Dixon [2022] EWHC 1151 (QB). The case, which was heard by the High Court, concerned the debt respite scheme introduced last year.
Renters Reform Bill 2022
The concept of a "better deal" for renters has been on the government's agenda since its 2019 manifesto first alluded to widespread reforms in the private rented sector. After the Renters Reform Bill (the Bill) was included in the Queen's speech in May 2022, it appears that this long-awaited "shake up" of the sector is on its way to becoming reality.
On 16 June 2022, the government released more details on the proposed contents of the Bill in its "Fairer Private Rented Sector" White Paper. While the Bill seeks to introduce several reforms to private renting, one of the most heralded changes is the abolition of so-called section 21 "no fault" evictions.
Under existing legislation, landlords can serve a section 21 notice on tenants on a rolling periodic tenancy or at the end of a fixed term tenancy without providing a reason for their eviction. In a bid to bring increased stability for private renters, the Bill proposes to remove this practice and instead move tenants with an assured tenancy or assured shorthold tenancy onto a single system of periodic tenancies requiring tenants to give two months' notice when they would like to leave. In the absence of section 21 notices, landlords will only be able to end the tenancy if they have a valid reason, as defined in law.
Other key changes proposed in the White Paper include:
- The introduction of new mandatory grounds for possession in respect of "repeated rent arrears" and if the landlord wishes to move into the property or sell it. The Bill will also lower notice periods for landlords seeking to rely on grounds relating to criminal or serious anti-social behaviour.
- Extending the Decent Homes Standard to cover private renting and empowering tenants to challenge landlords and claim back rent where their home doesn't meet this standard.
- Allowing tenants the right to request a pet in their home, which the landlord must consider and cannot unreasonably refuse.
- Ending the use of arbitrary rent review clauses and requiring landlords to give tenants two months' notice of any rent increase. The Bill also proposes to create a new Private Renters' Ombudsman to provide tenants with a platform to challenge any unjustified rent increases.
- Outlawing blanket bans on renting to families with children or those in receipt of benefits.
It remains to be seen how these reforms will be incorporated into the Bill once it is introduced in Parliament later this year and the devil will no doubt be in the detail. However, in the meantime, existing landlords and tenants are advised to consider how the proposals will impact their individual circumstances so that they are best prepared for when the legislation comes into force.
We will be closely monitoring further updates on the Bill and will provide further updates once additional information is released.
Lees v Kaye & Dixon [2022] EWHC 1151 (QB)
We discussed the introduction of the Debt Respite Scheme (also known as the Breathing Space and Mental Health moratorium) in a previous article which can be found here. The scheme is still relatively new and only a few cases have found themselves before the Courts.
In the most recent case of Lees v Kaye & Dixon, the High Court was asked to consider whether an eviction and subsequent sale of a flat were null and void due to the leaseholder being placed in a mental health crisis moratorium just before the eviction date.
The facts in this case were as follows:
- The first defendant, Mr Kaye, had previously obtained a court order against the claimant, Ms Lees, for nuisance and harassment and was awarded damages for distress and anxiety. Mr Kaye obtained a charging order over the lease of Ms Lees to enforce the judgment and subsequently obtained an order for possession and sale of the property after Ms Lees failed to settle the judgment debt.
- On 12 January 2022, Ms Lees was granted a mental health crisis moratorium under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (the Regulations). While this moratorium is in place, creditors are prevented from taking any enforcement action in respect of "moratorium debt".
- Mr Kaye proceeded to evict Ms Lees from her flat on 13 January 2022 and subsequently purported to sell the property to the second defendant, Ms Dixon. Mr Kaye argued that the eviction and sale were valid as the debt owed by Ms Lees did not constitute "moratorium debt" under the 2020 Regulations because it was damages for personal injury.
Ms Lees was successful in her claim. The High Court found that the damages owed to Mr Kaye did not constitute damages for "personal injury". As a result, the debt was a "moratorium debt" and the eviction and sale constituted enforcement of that debt and were null and void under the Regulations.
