FAQs

A1 Subject to successful passage through parliament, the reforms are anticipated to come into force as early as April 2025. Some commentators suggest Summer 2025.

A2 Yes. The Government states that it intends to introduce the new periodic tenancy in one stage to prevent a two-tier system emerging. The Government says that:

"the new tenancy system will apply to all private tenancies - existing tenancies will convert to the new system, and any new tenancies signed on or after this date will also be governed by the new rules. Existing fixed terms will be converted to periodic tenancies, and landlords will no longer be able to serve new section 21 or old-style section 8 notices to evict their tenants. This single date will prevent a confusing 2-tier system, and give all tenants security immediately." (From the government's "Guide to the Renters' Rights Bill")

This means that the new reforms will apply to your existing tenancy, and it is important to check that it is compliant e.g. the property is physically up to standard, landlord checks are all up to date and you have factored in the restrictions on increasing rent and ending the tenancy into your plans for the property. (See FAQ 3 .)

A3 Yes – If you granted a fixed term AST under the old rules and the fixed term ends before the new legislation comes into force, the tenancy will automatically convert into one of the new assured rolling tenancies when the new legislation comes into force. (Your fixed term AST would already have become a periodic tenancy after the end of the fixed term unless you took steps to end the tenancy or put in place a new fixed term tenancy at the end of the fixed term. The main difference is that post reforms, your ability to end this periodic tenancy will become much more restricted and would no longer be terminable by simply serving a s.21 Notice giving two months’ notice at any time.

No new tenancy agreement is required to affect the automatic transfer of the tenancy from the assured shorthold rolling tenancy to the new assured rolling tenancy. As Managing Trustees you will however need to keep your tenancies under review to ensure the rent continues to be no less than market rate, you are on top of your statutory checks e.g. gas, electric, requirements to renew District consent are fulfilled and the new reforms are complied with e.g. properties are up to the new standard, documentation is kept up to date on the Landlord register and requirements to join the ombudsman scheme are met etc.

A4 If this tenancy is continuing on the day the new reforms come into force and no steps have been taken to end it e.g. service of a s.21 Notice, the tenancy will automatically convert into one of the new rolling tenancies and will then only be terminable under the new legislation. One of the prescribed grounds under which landlords will continue to be able to end a tenancy under s.8 of the Housing Act 1988 is amended Ground 5 (Ministers of religion). This is a mandatory ground and can be used where a property is held to house a Minister of religion. Please note that on current reading of the legislation the tenant would need to have been in the property for at least 12 months before you can end the tenancy under a s.8 notice. The notice period is two months. (Tenants enjoy an initial 12 months “protected” period.)

It appears that it will no longer be necessary to have served notice on your tenant before the start of a tenancy if that the property may be needed for this purpose (to house a Minister). This means that not serving prior notice should not block you from using this ground. However, the protected period of 12 months would make it very difficult to end the tenancy before the new Minister would need to move in under the new reforms. (Please see FAQ 5 for details of how to end a tenancy under s.8 of the Housing Act 1988)

If the fixed term expires before the new reforms come in, you may decide to seek possession using the s.21 notice method. This would not rely on prior notice having been served (in relation to Ground 5) as you would be using the current s.21 Notice procedure requiring two months’ notice. This notice can however only take effect after the end of the initial fixed terms which you have said is six months here. Service of the s.21 notice, and commencement of any associated possession proceedings would then be under the pre-reform rules. The Managing Trustees would need to time things very carefully and ensure all notices were served correctly to prevent the process having to be restarted under the new rules. One of the panel solicitors would be able to give you initial advice on timings and help you to ensure notices are drafted correctly so that you can try to protect the charity’s position and start the possession process under the current process to give you the best chance of ensuring your Manse is available for the new Minister. Your solicitors will be able to advise whether you need to make alternative arrangements for your incoming minister depending on whether the tenant moves out or if possession proceedings have to be commenced. Please keep TMCP up to date so that we can provide guidance and support along the way. If enforcement proceedings need to be issued – because the tenant does not move out on expiry of the s.21 Notice - we will help you take the steps that need to be taken before issuing possession proceedings. Please also see the litigation guidance here. (Note that these steps do not need to be taken before serving a notice for possession – only before issuing court proceedings.)

A5 Yes, although you will need to allow time for the tenancy to end should the tenant not move out at the end of the notice period.

Under the new reforms, landlords will still be able to end tenancies under s.8 of the Housing Act 1988. This involves serving notice on the tenant setting out one or more of the statutory grounds for possession (the grounds set out will dictate the length of notice that has to be given). One of the prescribed grounds that Managing Trustees will be able to rely on for Manses is amended Ground 5 which requires two months’ notice. This ground is mandatory and can be used where a property is held to house a Minister of religion. Although it is no longer necessary to serve notice on the tenant before the start of a tenancy stating that the property may be needed for this purpose (to house a Minister), it is recommended that landlords include notice in the tenancy agreement that possession might be recovered using this ground.

When you know that the property will be required for an incoming Minister, diarise the date on which you must serve notice. Note that this can only take effect after the tenant’s initial 12 month “protected” period. It is recommended that you speak to one of the panel solicitors before deciding on a date to serve notice on your tenant. Two months’ notice must be served under Ground 5. However, your solicitor would be able to recommend how soon you should serve notice bearing in mind the protected period and other factors such as the potential time that would be involved in pursuing a claim for possession through the courts, if the tenant fails to move out. Your solicitor would also be able to help you ensure that you are able to serve the notice and that it is drafted correctly so that you can rely on it. They may recommend that you set out any additional grounds that may apply to strengthen the charity’s possession.

If the tenant fails to move out on expiry of the notice, then you would need to issue a claim for possession in the court. There are various steps that need to be taken under Methodist law and policy before issuing a claim so please keep TMCP up to date so that we can assist you with this. Please also see the litigation guidance here. (Note that these steps do not need to be taken before serving a notice for possession – only before issuing court proceedings.) Please note that as Ground 5 is a mandatory ground, the court must grant your claim for possession if the criteria are met. However, the Managing Trustees need to bear in mind the time it is likely to take for the court case to be heard and the costs of bringing the claim to court. A tenant may also ask the court to give them more time to find an alternative place to live (a stay of execution), even if you do receive your possession order.

If the tenant still refuses to leave the Manse, the Managing Trustees may need to reapply to the court for action to enforce the order for possession e.g. for court bailiffs to evict the tenant.

Although it is possible to end a tenancy in order to house a new Minister, Managing Trustees need to bear in mind that this may not always be easy. The process can be costly and time consuming if the tenant refuses or is simply not able to move out of the property. This needs to be factored into your timetable otherwise, the Managing Trustees could then face difficulty finding suitable alternative accommodation pending the Manse becoming available.

A6 It will not be possible to enter into a fixed term tenancy under the new rules even if your tenants are happy to agree this. Note that if the Local Authority became aware that a fixed term had been agreed, they could take costly enforcement action against the trustees. This means that you could not enter into a short-term tenancy of two or three months even if this would really help the family in question.

If you decide to allow the family to live in the Manse, then this can only be on the basis of a rolling tenancy with no end-date. It may be that the family do decide to move out as intended and serve notice on you to end the tenancy. However, if anything goes wrong with their intended move and they are unable to move out, the Managing Trustees would be powerless to do anything until the family had at least lived in the property for 12 months. While everyone could enter into the arrangement with the expectation that it would just be for the short term (without agreeing a prohibited short, fixed term), circumstances outside of everybody’s control could mean that the property is then not available for the incoming Minister. As prudent charity trustees, is this a risk that you can take?

Please also bear in mind that you would need to fulfil all the usual charity law and Methodist law and policy requirements that need to be fulfilled before entering into a residential tenancy as outlined in the Residential Tenancy Checklist.

A7 Although Managing Trustees will no longer be able to serve a s.21 Notice on their tenants to end a tenancy, it continues to be possible to bring a tenancy to an end. Managing Trustees will still be able to end tenancies under s.8 of the Housing Act 1988. This involves serving notice on the tenant(s) seeking possession based on one or more of the mandatory or discretionary statutory grounds for possession. These reformed grounds with the notice periods are set out in Schedule 1 of the Bill. (See the summary in Table 1 “Grounds for Possession” in the explanatory notes here.) The grounds include three months’ non-payment of rent, sale of the property, housing a Minister or breach of tenancy. If the tenant does not leave at the end of the notice period, the Managing Trustees would then need to apply to court to demonstrate those grounds are satisfied. If the tenant still refuses to leave, the Managing Trustees may need to reapply to the court for action to enforce the order for possession e.g. for court bailiffs to evict the tenant.

Please refer to FAQ 5 for more details and links to the litigation guidance on TMCP’s website.

A8 There is a lot of guidance available online about the Renters’ Rights Bill.

TMCP’s guidance can be found in the article: Renters’ Rights Bill – What you need to know as a Managing Trustee Landlord ” The following resources are a good place to start being guides produced by the Government:

• Guide to the Renters’ Rights Bill – Published by The Ministry of Housing, Communities and Local Government

• Renters' Rights Bill – The Bill in its current form

• Explanatory Notes: Renters' Rights Bill – Briefing note on the current form of the Bill

A9 The definition of what is a “decent” home is quite technical. You may like to ask your agent to visit the property you are intending to let out and confirm whether it meets the standard set by the reforms. They should be able to tell you what if any work you need to do to the property to bring it up to an acceptable standard to be let out. You can then discuss this with the surveyor who carries out your quinquennial inspections. How much would it cost? What impact would this have on the value of the property? Is it cost effective given the likely rent?

Please bear in mind that the local council will be given powers to enforce these standards with fines of up to £7,000 to be issued.

The Bill allows for regulations to be made to set out exactly what a decent home is. It is anticipated that the “decent” home standard will reflect the Housing Health and Safety Rating System (HHSRS). The term appears to be taken from the June 2006 Department for Communities and Local Government document: “A Decent Home: Definition and guidance for implementation”. A decent home meets the following four criteria:

1. It meets the current statutory minimum standard for housing (Dwellings which fail to meet this criterion are those containing one or more hazards assessed as serious (‘Category 1’) under the HHSRS).

2. It is in a reasonable state of repair (Dwellings which fail to meet this criterion are those where either: one or more of the key building components are old and, because of their condition, need replacing or major repair; or two or more of the other building components are old and, because of their condition, need replacing or major repair.) 

3. It has reasonably modern facilities and services (Dwellings which fail to meet this criterion are those which lack three or more of the following:

a. a reasonably modern kitchen (20 years old or less);

b. a kitchen with adequate space and layout; 

c. a reasonably modern bathroom (30 years old or less);

d. an appropriately located bathroom and WC;

e. adequate insulation against external noise (where external noise is a problem); and 

f. adequate size and layout of common areas for blocks of flats

4. It provides a reasonable degree of thermal comfort (This criterion requires dwellings to have both effective insulation and efficient heating.) 

A10 TMCP will monitor the Bill's progression and will provide further updates and guidance when the details become clearer.

However, the changes introduced by the Renters’ Rights Bill (as detailed in the article on the Newshub section of our website: “Renters’ Rights Bill – What you need to know as a Managing Trustee Landlord” ) should be considered by Managing Trustees who are considering letting out a vacant property - or renewing a tenancy with an existing tenant before the Bill comes into force - and all Managing Trustees who are currently letting out property. It is expected that the Act will take effect in relation to both new and existing tenancies to prevent a two-two rental system emerging.