Will the new rules for tenants’ notices to quit actually benefit tenants?

The new rules coming into effect when the Renters Rights Bill is made law will result in significant differences in the way that tenancies are brought to an end. It will also change the balance between landlords and tenants.

Let’s first take a look at:

The law as it is now

Most tenancies now are assured shorthold tenancies and are granted for a period of time (a ‘fixed term‘).  Six months, a year or whatever. This works in the following way:

Neither the landlord nor the tenant can end the tenancy during the fixed term unless the other agrees. So this means that:

• Tenants cannot end tenancies early where they are unhappy with the condition of the property (for example, if it is dripping with damp and mould) or if they have to move due to a job change.
• However, they cannot be evicted by the landlord during the fixed term, unless they fall into arrears of rent or (in some cases) breach the terms of their contract.

Once the fixed term has ended, then:

• If the tenants have vacated, the tenancy is at an end. The landlord cannot charge any further rent (even if the tenancy agreement stipulates a notice period, this will not be effective under the unfair terms rules).
• If the tenants remain at the property, then the tenancy will continue either
  • As a new fixed-term tenancy, if the parties have signed a new agreement, or
  • As a statutory periodic tenancy under s5 of the Housing Act 1988, or
  • As a contractual periodic tenancy if their tenancy agreement provides for this.

So fixed terms are:

• Good for tenants in that they have security for the fixed term period – which can be for several years which many tenants want, for example if they have children at local schools, but
• Bad for tenants in that they cannot end the tenancy if the property is unsuitable for them, unless the landlord agrees. Which he does not have to do.

At the moment when a tenancy is periodic, the landlord can use the ‘no fault’ eviction procedure under section 21.

However, most tenancies are ended by tenants. Either

• leaving at the end of their fixed term, or
• giving a tenants notice to quit duing a periodic tenancy, or
• (but only if their landlord agrees) leaving part way through a fixed term.

The law once the Renters Rights Bill has become law

(Assuming it is not further amended)

All tenancies will convert automatically to assured tenancies on a date to be announced. Meaning that landlords will no longer be able to use section 21 (the ability to use section 21 is the main difference between assured and assured shorthold tenancies).

All tenancies will also, almost certainly on the same day, convert to periodic tenancies.

What will this mean?

Tenants will no longer have the security of a long fixed term.  As, after a year, landlords will have the ability to use the no-fault grounds

• ground 1 – if the landlord wants the property to live in for himself or his family, or
• ground 1A – if the landlord wants to sell the property.

If, after evicting the tenants, the landlords then relet the property to another tenant within 12 months of service of the section 8 notice, they can be fined up to £7,000 by the Local Authority. This, though, will not help the tenants who will have already left.

Apart from these two grounds for possession, landlords can only evict if they give a reason.  Which must be one of the grounds from Schedule 2 of the Housing Act 1988 (as amended by the then Renters Rights Act 2025).

It is arguable, therefore, that tenants will have greater security, despite having a periodic tenancy.

What if tenants want to leave?

• Tenants will be able to leave whenever they want
• Subject that is to serving two months ‘notice to quit’.

The legislation stipulates that

• The notice can be served at any time
• Landlords cannot specify ‘the mode by which the words of the notice are represented or reproduced in a visible form’, and
• The notice can be withdrawn by the tenant but only if the landlord agrees to this.

Lets consider these:

Service at any time

This means that it will be possible for a tenant to serve a two-month tenants notice to quit the day they move in. For example, a tenant might want to do this if they had not previously seen the property and found, when they moved in, that it was in poor condition and dripping with damp and mould.

This provision is particularly problematic for student landlords. If a student moves out early, the landlord will find it difficult to find a replacement out of the normal student signup time. In which case that landlord could suffer considerable financial losses.

This may prompt student landlords to leave the sector, which would be very bad for students as there is already a shortage of decent accommodation.

A prohibition on landlords requiring notices in a specific form

This means that if the tenancy agreement provides, for example, for specific wording to be used in the tenants notice to quit, this will be of no effect. Likewise, presumably, clauses requiring notices to be by letter only (e.g. not by text or email).

It’s unclear whether landlords will be able to specify when in the month tenants will be able to give notice, but I suspect such clauses will also be ineffective.

Withdrawing the notice

It is interesting that the legislation provides that withdrawal of tenants’ notices to quit can only be done if landlords agree.

Tenants changing their mind can be problematic for landlords, for example if they have already lined up inventory clerks, tradespeople and maybe new tenants to attend on what they had been told would be the tenants moving out date.

It looks as if (if a landlord refuses to accept the withdrawal of their tenants notice to quit) tenants can be evicted on the basis that they have given a notice to quit but have not vacated. This procedure is sometimes used by social landlords but rarely by landlords in the private sector.

Interestingly, this point is specifically covered in s168 onwards in the new Welsh legislation plus there are forms that must be used if the landlord decides to bring a claim.

It would be helpful if the situation in England could be clarified in a similar way.

Conclusion

The new rules will certainly help tenants who find themselves in unacceptable conditions. Their landlord will not be able to force them to remain and pay rent as they can now.

Meaning that bad landlords may find it difficult to retain tenants unless they upgrade their properties.

Tenants looking for long-term security of tenure may be worried as their security will only last for about a year. However, the fact is, most landlords hate ‘voids’ and want tenants to stay as long as possible.

Once things settle down, landlords wanting to sell up will be in the minority.

The biggest problem I can see with the new rules is with student lets.

If landlords find that students are regularly leaving early, they will have no choice but to sell up or move to another sector (such as renting to young professionals). Few landlords can afford to have their property lying empty for long periods of time.

This will make it even harder for students living away from home to find somewhere to live.

Hopefully, this point will be considered and hopefully resolved during the bill’s passage through the House of Lords.