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The Coronavirus Act 2020: the impact on residential tenancies

Details

The Coronavirus Act 2020 (the ‘Act’) came into force on 25 March 2020 to implement an extensive package of measures, to protect both landlords and tenants, affected by the national coronavirus emergency.

Section 81 of the Act essentially provides for:

  • A complete suspension of new evictions from social or private rented accommodation while the coronavirus pandemic is taking place
  • No new possession proceedings to be commenced during the crisis
  • Protection for landlords as the three month mortgage payment holiday is extended to buy to let mortgages

The Act stipulates an extension to the usual notice periods provided for in possession claims and provides that, from 26 March 2020 until 30 September 2020, a three month notice period will apply to any notice seeking possession, or notice to quit, served on a tenant - including section 21 notices and possession claims based on anti-social behaviour.

The extended buffer period will apply in law until 30 September 2020 (the ‘relevant period’), and both the end point of the buffer period, and the three month notice period can be extended, if required, by up to six months.

The above changes to notice periods will apply to all of the following tenancies:

  • Rent Act 1977: protected and statutory tenancies
  • Secure tenancies
  • Flexible tenancies
  • Assured tenancies
  • Assured shorthold tenancies
  • Introductory tenancies
  • Demoted tenancies
  • Licenses covered by the Protection from Eviction Act 1977

In terms of notices which have been served before the commencement of the Act, those notices will remain valid for the purpose of issuing possession proceedings when the landlord is able to, which will be at the end of June 2020 at the earliest.

Landlords can also benefit from a three month mortgage payment holiday on buy to let mortgages, which has been introduced as a balancing act in anticipation of a downturn in rental income, that is expected as a consequence of the pandemic.

Notwithstanding the above, rent will continue to accrue and, if left unpaid, we are likely to see a spike in possession claims post-pandemic, which may leave the court system inundated and strained, resulting in even longer delays. Landlords and tenants are being strongly encouraged to enter into agreements for repayments.

The Master of the Rolls and the Lord Chancellor have implemented Practice Direction 51Z (‘PD’) in relation to ongoing possession proceedings during the coronavirus pandemic. The PD provides that all current proceedings for possession brought under CPR Part 55, and all proceedings seeking to enforce a court order for possession by way of a warrant or writ of possession, will also be stayed for a period of 90 days from 27 March 2020.

Additional considerations for landlords

Landlords should not in any event take evictions into their own hands - for example, changing the locks of a property to re-gain possession, as this will still be regarded as an unlawful eviction and will be dealt with accordingly.

Landlords should also note that they have the same responsibilities and legal obligations for repairing standards during the coronavirus outbreak. Landlords should therefore ensure that properties continue to meet the required repairing standards and that, urgent, essential health and safety repairs should be made.

If you are a landlord or tenant affected by any the above and, would like to discuss your options, please contact Megan Inman (Associate in Property Litigation) or another member of the property litigation team.

For further updates and other articles discussing the impact of the coronavirus please view our coronavirus hub.

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