We reported in March 2020 (here) that all residential possession proceedings had been put "on hold" until 25 June 2020.
Extension of moratorium on possession proceedings to 23 August 2020
According to the press release on 5 June 2020 from the Ministry of Housing, Communities & Local Government, that moratorium is to be extended for a further two months to 23 August 2020. The MHCLG has also announced that possession hearings will not be heard in courts until the end of August and no possession orders will be made due to coronavirus. It is not clear what legislative measures are to be taken following this announcement, but it will almost certainly entail amendments to the Schedule 29 of the Coronavirus Act 2020 and the Practice Direction 51Z.
Further protections from September 2020 onwards
MHCLG have also indicated that when possession proceedings recommence, "appropriate protections" will be provided for those who have been particularly affected by coronavirus – including those tenants who have been shielding.
Obligation to pay rent unaffected
As we reported in the FT on 5 June 2020, tenants’ obligation to pay rent (and any interest on the arrears) is unaffected by any of the new provisions.
Where tenants fall into arrears, in some cases, a dialogue with the tenant to make adjustments and agree time to pay may be enough. However, if the relationship has broken down and landlords want to serve a Section 8 Notice, which enables landlords to take back possession of the property if a tenancy has been breached, or a Section 21 Notice, which enables landlords to take back possession after a tenancy’s fixed term ends, the notice period has increased.
Minimum notice period
The minimum notice period for ordinary residential tenancies remains three months before any proceedings can start.
Alternative enforcement measures
There is nothing to stop landlords bringing a money claim for payment of the arrears or bankruptcy proceedings, the threat of which may focus the tenants’ minds on what they can pay.
Trespassers
Possession and injunction claims against trespassers are unaffected.
Millions of renters across England and Wales will receive greater protection after the government extended the suspension of new evictions until 23 August. The extension announced by the Housing Secretary today (5 June 2020) takes the moratorium on evictions to a total of 5 months to ensure that renters continue to have certainty and security.
https://www.gov.uk/government/news/ban-on-evictions-extended-by-2-months-to-further-protect-renters
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