Update written by Hannah Stevens, Litigation Solicitor
As the Renters’ Rights Bill (the “Bill”) gets every closer to becoming law, we are continuing to monitor its progress through Parliament. As of 15 May 2025, the Committee Stage within the House of Lords came to an end. The final day saw a line by line examination of the Bill and some agreed amendments. The latest version of the Bill is not yet available online, however we know that six amendments were agreed and the Bill was reported with these amendments. The next stage, which is likely to be quicker than the Committee Stage, is the Report Stage. This stage gives the members of the House of Lords a further opportunity to examine the Bill and make any changes to it. No date has been scheduled for the beginning of this next stage, however it usually starts 14 days after the committee stage ends. We will provide further updates on this as and when they become available.
Whilst the Bill progresses through Parliament, we will continue to provide information on the changes the Bill will likely enforce to the private rented sector. This article will focus on how a landlord will seek to recover possession of a property under the Bill in its current draft in order to sell it or move into it. Please note that this article is based on the version of the Bill published online on 15 January 2025.
As it stands, if a landlord wanted to sell or move in to their property they could attempt to evict their tenant(s) under Section 21 of the Housing Act 1988 (the “HA 1988”) without having to give a reason. However, it is highly likely that the Bill will abolish evictions under section 21 (please click here for more information on this). Consideration has therefore been had for how best to strengthen a landlords rights to reclaim their property when they want to sell or move in.
This has come in the form of proposed amendments to Ground 1 to Schedule 2 of the HA 1988, as well as the addition of a new Ground 1A. These are both mandatory grounds, meaning that if the court is satisfied the grounds have been met then they must order the tenant to give up vacant possession. As currently drafted, Ground 1 will be available for use when a landlord, or their close family member, wishes to move into the property and Ground 1A for when a landlord wishes to sell the property.
Under these grounds, landlords will need to give their tenant(s) at least four months’ notice when seeking to evict them. Tenants will also have a 12 month protection period running from the start of their tenancy, during which time landlords cannot use these grounds for eviction. This is not to say that a landlord cannot evict their tenant within the first 12 months of the tenancy, it just means that another ground that allows this would need to be relied upon. The rationale for the protection period is to allow tenants more time to find a new home and so reducing the risk of homelessness. It was also suggested that the changes would provide more fairness between landlords and tenants. It does appear less favourable to landlords compared to the current procedure under Section 21 of the HA 1988 however, as it means landlords will have to wait even longer to be able to evict their tenants when wanting to sell.
When these changes come into force, we would suggest landlords think strategically about the timings of serving a notice on their tenant and placing the property on the market. This is especially since under the Bill you will not be able to re-let the property for a specified period of 12 months. This is to prevent landlords evicting tenants under the pretence of selling the property and then simply re-letting it straight away once the tenant has vacated. Whilst this provides more protection for tenants, it could lead to issues for landlords if they are unable to sell their property and cannot return it to the rental market immediately. This could cause extended periods where properties are vacant and landlords are not able to make any rental income.
If you are considering selling your rental property, we would suggest starting the process of evicting your tenants under section 21 of the HA 1988 whilst you still can. For further advice and assistance, please feel free to email me or contact the team on 020 8858 6971.