4. Recovering rented property
Before a landlord can take court action to repossess the client’s home, it must serve a formal notice on the client that contains the date after which court action can be started (usually four weeks or longer for a section 21 notice).1See In the case of rent arrears, the client should try to come to an arrangement with their landlord before court action begins to pay the arrears in addition to the ongoing rent. In Wales, from 1 December 2022, most tenants and licensees became ‘contract holders’ and occupy their properties under an ‘occupation contract’.2See Landlords now fall into two groups: •community landlords (which include local authorities and housing associations; and
•private landlords (which includes all landlords who are not community landlords.
Community landlords generally provide what are called ‘secure contracts’. Private landlords generally provide what are called ‘standard contracts’ but can choose to provide secure contracts. Secure contracts are always periodic, but standard contracts may be periodic or fixed term. Most existing tenants and licensees automatically converted to a secure or standard occupation contract on 1 December 2022. These are known as ‘converted contracts’. It is important to differentiate between converted and new contracts due to the ‘grace periods’ allowed for converted contracts to comply with the new legislation.
Tenancy agreements and licences are replaced by a written statement of the occupation contract’s terms. The landlord must provide this written statement to the contract holder either:
•within 14 days where the contract started on or after 1 December 2022; or
•by 1 June 2023 where existing tenancies or licences were converted to occupation contracts.
There are penalties for non-compliance and the client can apply to the court for a declaration of the terms of the contract.
To terminate an occupation contract, the landlord is required to serve a notice on one or more of the relevant prescribed grounds in a prescribed form. Once the notice has expired, the landlord must apply to the court in order to obtain possession of the property. ‘Serious rent arrears’ (ie, rent arrears of more than two months or eight weeks) is a mandatory ground which means the court must make a possession order if there were serious rent arrears both at the date of the notice and the date of hearing. In other rent arrears cases, the notice is served on the ground of a breach of contract and is a discretionary ground which means the court can only make a possession order if it considers it reasonable to do so and can postpone or suspend any order made.
In the case of a breach of contract, the landlord must give the contract holder one month’s notice of their intention to make a possession claim, but, in the case of serious rent arrears, the notice period is 14 days. The landlord must bring possession proceedings no later than six months after the date of expiry of the notice. If the landlord fails to do so, they must give the contract holder a new notice with a fresh notice period.
Possession actions started before 1 December 2012 continue under the old rules. Notices given prior to 1 December 2012 under the old grounds expired within 12 months of being given or on 1 June 2023, whichever was earlier and so the landlord can no longer rely on such notices. Since 1 June 2023:
•in most cases, the landlord is required to provide at least six months’ notice when issuing a ‘no fault’ notice;
•the landlord can no longer rely on notices served under sections 8 or 21 Housing Act 1988 to apply for a possession order;
•for most converted contracts, the landlord had until 1 June 2023 to issue a written statement (for new contracts started after 1 December 2022, the landlord must issue a written statement within 14 days of the contract starting).
For further information, you can read the on-going series of articles written by the housing specialists in the Citizens Advice Expert Advice Team at . See also Part 55 CPR sections IV and V and CPR PD 55A section V.