The Act is 358 pages long and covers every eventuality, from Volunteer and worker rights, to births, deaths and marriages, but most importantly this new legislation brings a change to how and when landlords can serve notice on their tenants.
Previously the Government had said it would BAN all evictions for 3 months, however these provisions have been watered down.
S81, Sch 29 details the new notice periods for all tenancy types.
But in summary, from 26th March 2020 any landlords serving notice to a tenant, whether under S21 or S8 must provide 3 months notice, this includes grounds under AntiSocial Behaviour and S8 grounds which would have normally given 2 weeks or 1 months notice.
S4 of Sch29 I feel is important, because it sets out how a Notice can be served, which is:
a) Leaving it at the property
b) Sending by post
Given that this is new legislation and will no doubt be challenged in court, I would advice landlords NOT to send any notice via any other channel other than that stated in the Schedule, this includes email.
The key point to remember here is that notices CAN still be served on tenants, but those notices will be a minimum of 3 months from today.
Court applications can be made for possession after the expiry of the 3 month notice, but at this stage we do not know if the courts will be open or what capacity they will have to process possession claims.
Rent Holiday - Free Rent period
Contrary to popular belief, the Government have never mentioned a rent free period, this seems to have been a social media phenomenon which evolved from the announcement of Mortgage breaks.
To be clear, within the details of the CVA2020 there is no provisions or interpretation of provisions for any rent holiday or non-payment period.
Rent remains due in full, however as landlords and business owners, it is strongly suggested that you work with your tenants to ensure some if not all rent is paid and where rent can’t be paid, you support tenants to claim all benefits they are entitled too and where necessary, agree a repayment plan for any rent owing, whether that be from and agreed deferment of payment or a lack of income.
Increase to Benefits
S77 of the CVA2020 sets out provisions that working tax credit and Universal credit standard element will be increased by £20 per week.
This combined with the increase in Local Housing Allowance would provided a single person over 25 years old approx £1100 per month income from benefits.
Business premises
S82 (1) provides business premises with protection from forfeiture and re-entry due to non-payment I’d rent during the relevant period, the relevant period being 26th March 2020 until 30th June 2020
All of these provisions are subject to change, as allowed for in the Act, including extending the 3 month notice period to 6 months, but this would be done after Government consultation, so would not happen over night.
A new S21 form ( 6A form) has been published by the Government, the link is below.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/824957/Form_6A_INTERACTIVE__1_.pdf
FILE_5834.pdf
