Getting back to business as usual

NRLA Chief Executive Ben Beadle on the Government's announcement on plans to transition out of Covid restrictions.

The announcement that emergency restrictions affecting the private rented sector will start to be tapered down in just a few days comes as a huge relief to us all.

The news marks an important step in ensuring the sector’s recovery as the country opens up once again.

Changes are wide ranging and reflect the roadmap that we at the NRLA set out at the start of the year, prioritising the need to get back to normal as emergency public health measures lift, without placing an unmanageable burden on the courts.

Both our recommendations; for restrictions on enforcement to be lifted after May 31 and a staged return to pre-Covid notice periods were adopted by the Government following extensive talks with ministers and civil servants.

For those of you who are not familiar with it, the timeline for change is:

From June 1:

  • The default minimum notice required for possession will reduce to four months in most cases, including any new Section 21 notices that are served and most Section 8 notices.
  • Bailiffs and high court enforcement officers can begin operating again for all cases
  • The definition of ‘serious rent arrears’ – which enables access to a four-week notice period under Section 8 grounds 8, 10 and 11 – will reduce from six months’ to four months’ rent
  • Ground 7 (death of a tenant) and ground 7b (right to rent) will revert back to original periods of two months and two weeks respectively, alongside existing exceptions to the default notice period, such as antisocial behaviour
  • New prescribed forms for England come in to cover new the new notice periods – and the ‘breathing space’ regulations

June 21:

From August 1: 

  • Rent arrears grounds will only require two-months’ notice, even if the arrears are less than four months

From October 1:

  • All notice periods are set to return to their pre-Covid levels

There was more positive news, with NRLA campaigning resulting in the Government waiving the fee for the extension of possession warrants that expired (or are set to expire) between March 17 last year and August 31 this year.

Normally this would cost between £100 and £255.

Warrants of possession only last for a year after being issued, so this change means the landlords who had bailiff appointments cancelled at the start of the pandemic will no longer have to pay an additional fee to apply again.

The announcement comes on the back of successful lobbying throughout the pandemic which saw us secure access to a three-month payment deferral on buy-to-let mortgages and changes to Local Housing Allowance rates to support PRS tenants and help them pay their rent.

The challenges ahead

But while we welcome the recent announcements, there is still more to be done, particularly around court processes and happily we are involved at the highest level, through the Master of the Rolls working group.

When it comes to progressing cases and enforcement, a significant backlog has built, which is why we continue to campaign for court reform to speed up the process and encourage members to look for solutions outside the courtroom, through mediation and conciliation.

And with the number of private tenants in arrears having increased threefold since lockdown measures started we are also ramping up our campaign for a comprehensive package of financial support for the sector.

We want to see tenancies sustained wherever possible and, once again call on the Chancellor to step in and provide affected tenants with the support they need to pay off rent arrears built as a result of the pandemic.

More information:
 

  • To visit the NRLA guide explaining the changes click here.
  • NRLA policy director Chris Norris  has recorded a video explaining the changes – and the part the NLRA has played in encouraging the Government to take action. This can be viewed here and on the main Bulletin page.
  • To find out more about our campaign for a comprehensive package of financial support for the PRS click here.
  • If your tenant has fallen into arrears working with them or via a mediation service to find a suitable payment plan to reduce any rent arrears can avoid court or, at worst, show you have made every effort to avoid it. NRLA members can access a free mediation service provided by TDS.