COVID-19 and the Coronavirus Act 2020 for residential landlords
InsightsThe Coronavirus Act 2020 (the “Act”) was given Royal Assent overnight on 25 March 2020 and deals with protection from eviction for residential tenants.
As the impact of the Coronavirus pandemic has continued, the Government announced on 21 August 2020 that the stay on possession proceedings under Practice Direction 51Z and CPR 55.29, which was due to expire on 23 August 2020, was to be extended by a further four weeks until 20 September 2020.
As we approach 20 September 2020, we will be on hand to assist landlords who have outstanding possession proceedings which are subject to the stay under Practice Direction 51Z and CPR 55.29 with what comes next. Keep an eye on our website for further updates in relation to the requirements to be met to reinstate claims, to be published in due course.
New Notice Periods
In the meantime, on 29 August 2020, the Government brought into force the Coronavirus Act 2020 (Residential Tenancies: Protection from Eviction) (Amendment) (England) Regulations 2020 (‘the Regulations’). The Regulations amend the Coronavirus Act 2020 (‘the Act’), which has been in force since March 2020, with effect from 29 August 2020. The amendments extend the notice that must be given to tenants before possession proceedings may be commenced in many circumstances from 3 months to 6 months (section 81 and Schedule 29 of the Act (as amended)).
The new 6-month notice period applies to most notices and tenancies with a few exceptions (see below). This means that landlords will now have to wait 6 months in most circumstances before commencing possession proceedings.
Extension to “Relevant Period”
When the Act first came into force the extended notice period only applied to notices served during the “relevant period” (26 March 2020 to 30 September 2020). The Act contained a reserved power to alter the 3-month notice period and extend the ‘relevant period’. The relevant period has been extended to 31 March 2021 so that the new notice periods which came into effect on 29 August 2020 will apply to notices served until 31 March 2021.
Deemed Service Cut Off Point
Thankfully, the amendments to the Act are not retrospective. Therefore, any notices already sent out and ‘deemed’ served on and before 28 August 2020, will not need to be re-served as a result of the amendments. However, notices ‘deemed’ served on and after 29 August 2020 are caught by the changes. These will need to be re-served giving the new notice period and using the new prescribed form which was published on 2 September 2020.
Landlords should calculate the deemed day of service of any notices served close to the cut-off date (29 August 2020) to ascertain whether these need to be re-served or not.
New Notice Periods
Our interpretation of the new notice requirements is outlined below.
Secure Tenancies
Assured Tenancies
Assured Shorthold Tenancies
Contractual Tenancies
Please note that the above is a brief outline of our understanding of the Act and should not be relied on in place of detailed legal advice on a case-by-case basis, particularly given the regularity of the changes being made. Landlords should get in touch for further information, help and advice.
Correct at time of drafting
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