Changes to S21's

[Grampa]

Not sure if I have mentioned this before but it is all change again for Section 21 notices all thanks to the Deregulation Act 2015 

From 1st Oct 2015 the following takes effect:

1. With all new AST started after 01.11.15 the S21 cannot be served within the first 4 months of the tenancy which a lot of landlords and agents presently do.

2. The above rule doesn't apply after the AST becomes statutory periodic 

3. If a replacement/renewal AST is granted with same tenants and landlord the 4 month rule doesn't apply

4. These rules only apply to NEW AST's after 01.10.15. Any old AST's started previously to that date or become periodic before or after 01.10.15 the new rule the old rules apply

5. From 1st October 2018 the new rules will also apply to old pre 01.10.15 tenancies which I can see catching out many landlords..

6. If a tenant vacates a property after being served a S21 they are only responsible for rent up to the day they leave which opens up a huge can of worms and possible situations that could work against the landlord. Such as what if a tenants signs a AST for 12 months and landlord serves a s21 at month 10 because they want to move back in or sell etc. The tenant then starts looking for a new property and finds one they can move into a week later and moves out. The present landlord may lose nearly 2 months rent without recourse.

Oh the joys of being a landlord.

 

 

[Richlist]

Thanks for the info Grampa.....I wasn't previously aware of all the points in your post.

Changes that negatively affect landlords have a habit of biting back. It's often the tenant that comes out worst in these situation. Any impact affecting profitability will ultimately :

* be viewed as just another cost of doing business.

* the extra costs will be passed on to the tenant in higher rents.

* any loss of rent will be used to offset taxable profit.

The Gov can try to screw landlords all they like......and they will probably continue to do that. Their motives are good, in this case I guess they are trying to ease the burden on the tenant. Unfortunately, just like the tax system, people will always find a way around  and it's likely the tenant will suffer.

[Mortitia]

Yes thanks for that clarification Grandpa - I did not realise 1st Oct was the start date.

Here is another gem that may have been mentioned before but worth re-typing.

Once a tenancy is periodic the tenant must give at least one months notice ending at the end of a rental period.  So if tenancy started on the 1st the end of the rental period is last day of month.  (This has been the rule for many years and no change.)

BUT

Now if a landlord wants repossession under Section 21 a (periodic tenancy) he/she needs only give 2 months clear notice from date of service meaning that the old serving before a rent due date has gone.  This saves many days especially where there is rent debt/damage.