Residential Tenancies Update
In March 2020, the government extended the minimum notice period for
residential possession claims from 2 months to 3 months for claims made up
to 30 September. This applied to tenancies in both England and Wales.
From 24 July, the Welsh government extended the notice period to 6 months
for properties in Wales until 30 September. It is likely that this
arrangement will continue beyond 30 September, but at the time of writing
we await details.
From 29 August, the government extended the notice period in England to 6
months until 31 March 2021. This applies to all Section 21 claims and the
majority of Section 8 claims. However, the notice period has been reduced
to pre-Covid levels for claims based on the tenant’s anti-social behaviour,
and only 4 weeks’ notice is required where there are more than six months’
rent arrears.
Our documents relating to possession proceedings under Section 8 and
Section 21 of the Housing Act 1988 have been amended to reflect the new
notice periods in England. Further amendments will be made if required when
we know the position for properties in Wales from 1 October.
Commercial Tenancies Updates
Commercial Rent Arrears Recovery (CRAR) rights are usually exercisable when
there are 7 days’ worth of rent arrears. The government amended this in
April to require 90 days’ worth of rent arrears and in June to require 189
days’ rent arrears. Further amendments have been made to require at least
276 days’ arrears from 29 September, and 366 days' arrears from 25
December. This will apply until 31 December or such later date as the
government may specify. Our CRAR documents remain suitable for use, but
landlords should note the new rent arrears requirements.
In March, the government placed a moratorium on forfeiture proceedings for
commercial leases until 30 June, where the landlord was forfeiting the
lease for non-payment of rent. The moratorium has now been extended until
31 December.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific
legal matter.