THE POST-ELECTION PRS
First Published - 29th May 2024
JMW Solicitors
With the general election being called the Renters (Reform) Bill has been lost. It cannot be revived and any new government will need to start again from scratch. Inevitably this has people wondering what the PRS will look like under any new government. These are my thoughts, I stress that they are opinions only and not based on any commitments or statements by politicians or advisors in either party.
Court of Appeal Clarifies Formalities for Signing of s.8 Notices and Prescribed Information
Written by David Smith - Partner JMW Solicitors
Court of Appeal clarifies formalities for signing of s.8 notices and prescribed information certificates for corporate landlords
The Court of Appeal (the “CoA”) heard the second appeal of Northwood Solihull v Fearn & Ors last week. The outcome of this case has serious implications for landlords, tenants and agents in England and Wales and possibly in recognition of this, judgment was handed down today only 8 days after the hearing. JMW acted for the landlord.
The main questions before the CoA in summary were:
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What is the correct way for a deposit prescribed information certificate to be signed by a landlord who is a company?
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What is the correct way for a section 8 notice to be signed by a landlord who is a company?
The CoA also considered what the consequences are where these documents are not signed in compliance with the relevant statutory provisions.
In summary, the following cheat sheet contains the practical essence of the CoA’s decision:
i. Possession notices and prescribed information certificates may be validly signed by an authorised individual on behalf of a corporate landlord or agent.
ii. These documents may also be signed in accordance with s.44 of the Companies Act 2006.
iii. Non-compliance with i. & ii. or other relevant statutory requirements does not necessarily invalidate the document and the effect of non-compliance will depend on the specific defect and factual context.
Big Changes for Landlords and Tenants from 1 June
The Parliamentary CLG Select Committee recently asked that the MHCLG set out its plans for unwinding the various measures put in place to protect tenants during the pandemic. Yesterday they did just that.
The stay on bailiff and HCEO evictions ends completely on 1 June and so landlords will now be able to enforce the various court orders they have obtained. Landlords could in principle apply for warrants now for action after 1 June but I am not sure that the Bailiff’s offices will allow this. There are suggestions of a massive burst of evictions as a result of this but I doubt that will occur. The reality is that the county court bailiffs simply do not have the capacity to do much more than they were doing pre-Covid and so I do not expect them to be doing that many more evictions than they were before the pandemic. The MHLCG press release suggests that there will be priority given to ASB and fraud cases but doubtless there will also be an element of first come, first served. The removal of the stay will also mean that all protections given to tenancies that fall outside one of the statutory regimes (non-Housing Act tenancies) and residential licences will lose all their protection from 1 June.
Also from 1 June there will be the start of a taper in relation to section 8 and 21 notice periods, which have been extended for the pandemic and the regulations to do this have already been laid. The first stage of the taper will last until the end of September.