How new rental plans will affect rural tenants and landlords

Abolishing “no-fault” evictions in England, a move described as the biggest overhaul for renters in a generation, could have a huge impact on rural landlords and agricultural tenants.

Prime minister Theresa May announced the plans on Monday 15 April, and housing secretary James Brokenshire said a consultation on the proposals will take place.

The Central Association of Agricultural Valuers (CAAV) has warned the government’s proposals could make it harder to find affordable housing in the countryside and may have consequences for agricultural tenants.

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The change involves scrapping section 21 of the Housing Act 1988 and will mean private landlords are no longer able to evict tenants on assured shorthold tenancies from their homes at short notice and without good reason.

Currently landlords can remove tenants with just eight weeks’ notice, following the conclusion of a fixed-term contract, without a specific reason.

Mr Brokenshire said section 21 evictions, which are notoriously hard to challenge, were one of the biggest causes of family homelessness.

Under the proposals, landlords seeking to remove tenants will instead have to use the section 8 process.

This can be implemented when a tenant has fallen into rent arrears, been involved in criminal or antisocial behaviour or broken the rent agreement’s terms, such as damaging the property.

Unlike section 21, tenants can challenge section 8 evictions in court.

The government has said it will amend section 8 to allow it to be used by landlords who want to sell the property or move back in themselves.

See also: Top 8 farm tenancy issues and how to solve them

‘Indefinite tenancies’

However, Richard Lambert, the chief executive of the National Landlords Association, has criticised the decision, saying it would essentially create indefinite tenancies and that there was often “no choice” but to use section 21.

“Landlords have no confidence in the ability or the capacity of the courts to deal with possession claims quickly and surely, regardless of the strength of the landlord’s case,” he said.

Wales has announced similar plans, but Northern Ireland has not.

In Scotland, new rules requiring landlords to give a reason for ending tenancies were introduced in 2017.

Kate Russell, policy and technical adviser at the CAAV, said the change in Scotland resulted in houses being used for holiday lets or sold, rather than residential lets, making it harder for those working in the countryside to find homes.

Agricultural tenants

There may also be consequences for agricultural tenants who sub-let farm cottages, Ms Russell warned.

“At the moment, a tenant farmer can often sub-let a surplus farm cottage, knowing it can be ended before the farm tenancy ends,” she said.

“However, these new proposals would make it impossible for the farm tenant to give vacant possession at the end of the tenancy if the cottage tenant has a secure tenancy, risking claims from the landlord against the farm tenant.”