Residential and Commercial Tenancies Update
Residential Tenancies – Wales
Notice periods for possession in Wales return to pre-pandemic lengths from 25 March 2022. From the 25 March 2022, the following notice periods will apply:
1. Section 21 Notice – 2 months.
2. Section 8 Notice on the following grounds:
a. 1, 2, 5 to 7, 9 or 16 – 2 months;
b. 3, 4, 8, 10 to 13, 14A, 15 or 17 – 2 weeks;
c. 7a – 1 month; and
d. 14 – Immediately after the notice is served.
Guidance on Section 21 and Section 8, and the Section 21 and Section 8 templates for Wales, will be available on the 25 March 2022.
When the Renting Homes (Wales) Act 2016 comes into force on 15 July 2022, there will be fundamental changes to the eviction procedures for new occupation contracts.
Commercial Tenancies – England and Wales
Most of the protective measures for commercial tenants in England and Wales, introduced during the pandemic, are due to end at the end of this month (save for those ring-fenced rent arrears which are to be protected under the Commercial Rent (Coronavirus) Bill, which is expected to come into force 25 March 2022):
1. The moratorium on forfeiture proceedings for commercial leases in England and Wales (where the landlord was forfeiting the lease for non-payment of rent) is in place until the 25 March 2022. From the 26 March 2022, the moratorium will no longer apply. The Welsh Government retains the power to extend the moratorium on forfeiture proceedings again in Wales (until 24 September 2022).
2. The extended Commercial Rent Arrears Recovery regime (‘CRAR’) will also end on the 25 March 2022 and will revert to pre-pandemic lengths (7 days’ worth of rent arrears).
3. The restriction on a landlord’s ability to serve statutory demands and issue winding-up petitions (as a means of recovering rent arrears which relate to the pandemic) is due to end on the 31 March 2022.
The Commercial Rent (Coronavirus) Bill is expected to come into force on the 25 March 2022 in England and Wales. It is in its final stages having passed through both Houses of Parliament. This Bill introduces a binding arbitration procedure for landlords and tenants who cannot reach an agreement on how to deal with rent arrears. Please see Commercial Rent (Coronavirus) Bill for further information on this Bill.
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.