When are Section 8 and 21 Used in the Student Rental Market?

When are Section 8 and 21 used in the Student Renting Market?

In an assured shorthold tenancy (AST), there are two types of eviction notices, a Section 21 and a Section 8 notice. Landlords need to follow prescribed steps to obtain one. Even after the end of a fixed-term cannot evict tenants unless they have served the correct notice. For students, this is rarely a problem as most want to leave when the tenancy ends or have signed up for another fixed term earlier in the year.

Section 8

What Is Allowed?

A Section 8 notice can be used if the tenants have broken the terms of the tenancy. There are 17 different grounds for possession. Grounds 1 through 8 are mandatory, meaning if a landlord can prove any of them a court has to accept and order the tenants to leave the property. Grounds 9 through 17 are discretionary, meaning a landlord will need to show the court that the grounds for possession they’ve used are appropriate for the situation.

Mandatory Grounds

  1. Owner Occupation (Notice: 6 months)

    There are two situations this ground could apply:

    • The landlord lived in the property as their only or principal home at some time before the start of the tenancy
    • The landlord requires it as their only or principal home or for their spouse's only or principal home, providing they have not purchased the house during the tenancy
  2. Repossession by Lender (Notice: 6 months)

    The property is subject to a mortgage and the mortgagee is now entitled to exercise a power of sale. (Mortgagee: the lender, typically a bank)

  3. Out of Season Holiday Let (Notice: 6 months)

    The tenancy is a fixed term of no more than eight months and during the previous twelve months, the property was a holiday let.

  4. Lets to Students by Educational Institutions (Notice: 6 months)

    The tenancy is a fixed term of no more than twelve months and during the previous twelve months the accommodation must have been a student letting.

  5. Minister of Religion and Religious Use (Notice: 6 months)

    The property is held for use by a minister of religion to perform the duties of their office and is required for occupation by a minister of religion.

  6. Redevelopment (Notice: 6 months)

    The landlord must show they intend to demolish, reconstruct or carry out substantial works to the whole or a large part of the property. They must also show they cannot carry out the works if the tenant resides in the property. The landlord must prove that either the tenant will not agree to a variation in the terms of the tenancy, or accept a tenancy of a reduced part of the house or that neither of these is viable.

  7. Death of Tenant (Notice: 3 months)

    The tenant has passed away.

    1. Antisocial Behaviour (Notice: 1 month)

      There are 5 conditions relating to antisocial behaviours. These are:

      • Conviction of a serious offence
      • Breach of an injunction to prevent nuisance or annoyance (IPNA)
      • Breach of a criminal behaviour order
      • Closure order
      • Noise nuisance

      These conditions will not be met if an appeal against the conviction, order, or finding is pending or successful.

    2. No Right to Rent (Notice: 3 months)

      The Home Office has served notice on the landlord that one or more (but not all) of the tenants in the property has no right to rent because of their immigration status.

  8. Serious Rent Arrears (Notice: 4 weeks where arrears are at least 6 months. 6 months where arrears are less than 6 months)

    At the time of notice and at the time of the hearing the tenant must have at least:

    • Eight weeks rent owed when paying weekly/fortnightly
    • Two months' rent owed when paying monthly
    • Three months' rent owed when paying quarterly or annually

Discretionary Grounds

  1. Suitable Alternative Accommodation (Notice: 6 months)

    Suitable alternative accommodation must be available or will be available for the tenant.

  2. Rent Arrears (Notice: 4 weeks where arrears are at least 6 months. 6 months where arrears are less than 6 months)

    The tenant is in rent arrears at the time of serving notice, seeking possession and at the start of court proceedings.

  3. Persistent Delay In Rent Payments (Notice: 4 weeks where arrears are at least 6 months. 6 months where arrears are less than 6 months)

    There is no need for any current rent arrears, but the landlord must prove there is a history of late payment.

  4. Breach Of Tenancy Obligation (Notice: 6 months)

    There has been a breach in the tenancy agreement other than rent. For example, keeping a pet when pets are not allowed.

  5. Deterioration In The Condition Of The Property Or Common Parts (Notice: 6 months)

    The tenant's actions or inactions has caused the condition of the property to deteriorate.

  6. Nuisance, Annoyance, Illegal Or Immoral Use Of The Property (Notice: None)

    The tenant or anyone visiting or living at the property has been:

    • Guilty of behaviour causing or likely to cause nuisance or annoyance to anyone living in, visiting or carrying out a lawful activity in the locality
    • Has been convicted for using the premises, or allowing them to be used, for illegal or immoral purposes
    • Has been convicted of an indictable offence committed in the locality
    1. Domestic Violence (Notice: 2 weeks)

      This ground only applies to social housing.

    2. Rioting (Notice: 2 weeks)(Clause 14.ZA)

      The tenant has been convicted of an indictable offence which took place during and at the scene of a riot anywhere in the UK.

  7. Deterioration Of Furniture (Notice: 6 months)

    Furniture belonging to the landlord has been damaged by the actions or inactions of the tenants.

  8. Employee Of Landlord (Notice: 6 months)

    The landlord or a previous landlord let the property in consequence of the tenant’s employment. The tenant’s employment has now ceased.

  9. Recovery Of Possession Where Grant Is Induced By False Statement (Notice: 2 weeks)

    The landlord granted the tenancy based on a false statement made by the tenant or someone acting on their behalf.

Section 21

What Is Allowed?

A Section 21 notice is used to evict tenants either after a fixed term tenancy ends if there is a written contract, or during a tenancy with no fixed date. Most students, if not all, will have a fixed-term tenancy so a Section 21 notice should not be a concern.

What Is Not Allowed?

Section 21 cannot be used in the following circumstances:

  1. It is less than four months since the tenancy started
  2. The fixed term has not ended and there is not a break clause in the contract
  3. The property is classified as a house in multiple occupation (HMO) and does not have the required licence
  4. Form 6a has not been served to the tenants alongside a Section 21 notice
  5. The local council has served an improvement notice on the property in the last six months
  6. The council has served a notice in the last six months that states it will do emergency works on the property
  7. The landlord has not repaid any unlawful fees or deposits that were charged to the tenants

Required Notice

  • Previously 2 months' notice was required
  • If a Section 21 notice was served between 26th March 2020 and 28th August 2020, the notice period is 3 months
  • If the notice was served on or after 29th August 2020, the notice period is 6 months (This is expected to last until 31st March 2021)

What Do Students Need To Think About?

In most cases, students will only need to think about Section 8 and mandatory grounds 1, 2, 4, 7A and 8 and discretionary grounds 10, 11, 12, 13, 14 and 15. Section 21 is rarely used for students as most tenancies are fixed term. As evictions are a long process, and often require as much as six months, student landlords rarely utilise them. Most student tenancies only last a year. Therefore there is little point in evicting a student unless the student has fallen into rent arrears or there are cases of antisocial behaviour.

What Do Landlords Need To Think About?

Due to long notice periods, there is often little point serving notice to students. For students that are breaking the rules, a calm and open conversation can often resolve the problem. Some students are unaware of their obligations that come with renting their first property. Landlords that have years of experience are in the perfect position to gently guide them in the right direction. One common problem that causes a communication breakdown is the lack of accurate information from the landlord about their obligations. With information so readily available online tenants can quickly verify the accuracy. One example I experienced was our landlord told us that it was our legal obligation to clean to property before a viewing which is not the case. There is no such legal obligation. I would have been more receptive if my landlord explained that a cleaner property would get let quicker and therefore end intrusive viewings.

Final Thoughts

Student evictions are very rare due to students themselves and the nature of the market. As I discussed in a previous article, students are better tenants when compared with the rest of the private rental market. Student landlords have the safety in knowing that they will seldom have to serve notice but the safety that the option is there. Both students and landlords operate on the assumption of automatic possession and is a market the Government should look to when considering the useful applications of automatic possession. It is particularly pertinent as the Government have announced the abolition Section 21. You can find out more about the abolition of Section 21 here.

**Correct as of 07/10/2020**
Have you had to evict student tenants? Let us know why in the comments below!