COVID-19 and Residential Tenancies
The Coronavirus Act 2020 (CVA 2020) has changed the landscape for thousands of residential landlords and tenants, following a decision by the Government, which has effectively suspended residential possession proceedings for three months.
Whilst this is no doubt frustrating for many residential landlords it is important to remember that the current position is only intended to be temporary and does not remove the tenant’s obligations to pay rent and comply with their other obligations under the tenancy. Moreover, the landlord should consider taking steps in the meantime to ensure that they can obtain possession as swiftly as possible once these timeframes have expired.
Timing of the Coronavirus Act 2020
This took effect on 26 March 2020 and ends on 30 September 2020 (the Relevant Period). Consequently, this affects any notices or possession proceedings served or issued during the Relevant Period. It also provides that the Relevant Period may be extended.
Rent Arrears – Section 8 Procedure
The procedure for obtaining possession of an assured shorthold tenancy during the term of the lease(such as for rent arrears) is governed by section 8 of the Housing Act 1988. This previously required service of a two-week notice (with additional time to effect service) before a landlord could commence proceedings for possession, based on rent arrears. Under paragraphs 11 and 12, Schedule 29, of the CVA 2020, this period has now been extended to three months, for any section 8 notices served during the Relevant Period.
End of Lease – Section 21 Procedure
In addition to rent arrears, the procedure for obtaining possession of an assured shorthold tenancy based on the end of the lease is governed by section 21 of the Housing Act 1988. This previously required service of a two-month notice (with additional time to effect service) before the landlord could commence possession proceedings (which they are then entitled to commence under the accelerated possession procedure). Under paragraph 12, Schedule 29, CVA 2020, this period has now been extended to three months, for any section 21 notices served during the Relevant Period.
Possession Proceedings
The Civil Procedure Rules also introduced a new practice direction (51Z), which states that all possession proceedings are automatically stayed for 90 days from 27 March 2020. This includes both residential and non-residential possession proceedings but specifically excludes injunctions.
Summary
In summary:
any section 8 notice served from 26 March 2020 must now be for three months;
any Section 21 notice served from 26 March 2020 must now be for three months; and
any possession proceedings (with limited exemptions) are now automatically stayed for a 90-day period, from 27 March 2020.