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Coronavirus Bill 2020 - what does it mean for Landlords?
c.jermyn • Mar 26, 2020
Three months notice to be given the tenants
On 18 March 2020 it was announced that the Government intended to introduce emergency legislation to suspend all new evictions from social or private rented accommodation during the COVID-19 outbreak crisis.
It was originally advised that no new court claims for possession could be issued for at least a 3 month period; and at the end of that period landlords and tenants should work together to establish an affordable repayment plan. The press release also indicated that the Pre Action Protocol on possession proceedings would be widened to include private renter.
The position appears to have now changed....
Rather than a blanket ban on possession claims, the Government appears to have taken a more simplified approach. The draft legislation released simply extends the period of notice to be given in a notice seeking possession to 3 months.
So any section 8 or section 21 notice served after the commencement date of the legislation, must give the tenant at least 3 month notice before proceedings can be issued. There is also provision for the Government to extend the notice period further for up to 6 months due to the uncertainty of the pandemic.
It appears that notices issued before the commencement date of the legislation will still be valid and can be issued at court. However, there seems to be some confusion currently in the courts whether they should still be issuing these claims . We have in fact had a set of proceedings returned to us today on that very basis. However, we are all finding our way through this unprecedented situation, the courts included. We hope therefore that once the legislation comes into force, the courts will have received appropriate guidance and these claims will be issued.
If you want something to read in between the raft of COVID-19 memes, then the draft law can be found below. We expect that the final version will not be released until at least Friday 27 March 2020; so it is important to note that the law could be subject to further change.
https://publications.parliament.uk/pa/bills/cbill/58-01/0122/amend/coronavirus_daily_cwh_0323.55-60.html
So what about existing cases that have already been issued?
Following the recent Government guidance on social distancing, the court is now actively adjourning all face to face possession hearings. The key concern with possession hearings is the bulk listings, which inevitably mean a lot of people are sat waiting in the courts to go before the judge. This creates an environment which is almost impossible to practice effective social distancing.
It is not all bad news though, as we have been informed that hearings may be relisted to be heard by phone or video link instead.
What if you have a possession order and the tenant doesn’t vacate?
Practically, in the current crisis, and the restrictions in place, it is extremely difficult for someone to move from one home to another. It is likely therefore, that a significant number of tenants won’t vacate as ordered by the court.
Bailiff appointments have unsurprisingly been delayed until it is safe for appointments to resume. The same goes for appointments with High Court Enforcement Officers.
That being said, there is nothing stopping a landlord for applying for a warrant of possession and requesting an appointment as soon as it is considered safe to resume normal practice. It is perhaps a case of getting yourself to the front of what will be a very busy queue.
There will no doubt be a will further increase in the time landlords have to wait for an appointment with the bailiffs. Landlords should therefore consider making an application for permission to transfer enforcement to the High Court to enable them to use a High Court Enforcement Officer which would no doubt provide a faster route to obtaining possession.
Communication is key
Tenants should not view this as a rent-free period. Whilst we do urge landlords to consider tenants’ circumstances during this difficult time, the rent remains due. It is strongly recommended to keep the lines of communication open and landlords should assist tenants where possible, for instance, by agreeing interim rent reductions or a surrender of the tenancy.
As always, the team at Woodstock are here to help you through this extremely difficult time. We are up and running as usual and here to assist you with any queries you may have. Please do not hesitate to get in touch with us, whether you require any advice on issuing notices, negotiating with your tenant or you would simply like to chat about something non Covid-19 related!
Most importantly, we wish you all well and we hope you are staying safe.
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