Selling a rental property can be a complex process, especially when it comes to dealing with tenants. One common issue landlords face is whether they can evict tenants when selling the property. In the UK, this often falls under the process of no-fault eviction, which allows landlords to regain possession of the property without the tenant having breached their rental agreement.
In this article, we'll explore what a no-fault eviction is, how it works in the context of selling a house, and what landlords need to know to navigate the process legally and ethically.
A no-fault eviction refers to the legal process by which a landlord can reclaim possession of their property without the tenant being at fault. In the UK, this is usually done through a Section 21 notice, which is part of the Housing Act 1988. Under this notice, landlords can evict tenants once the fixed term of the rental contract has ended or during a rolling (periodic) tenancy, provided that the landlord gives the correct notice period and follows all legal procedures.
Unlike a Section 8 eviction, which is used when tenants have breached their agreement (such as failing to pay rent or causing damage to the property), a Section 21 eviction does not require the landlord to provide a reason for ending the tenancy.
Yes, landlords can serve a Section 21 notice to evict tenants if they wish to sell the property. However, it's important to follow the legal process closely to ensure compliance with UK law and avoid potential disputes with tenants. Here's what landlords need to consider:
Proper Notice Period: When issuing a Section 21 notice, landlords must provide tenants with a minimum of two months’ notice. This notice period must align with the end of a fixed-term tenancy or be served during a periodic tenancy.
Legal Requirements for Serving a Section 21 Notice: Before serving a no-fault eviction notice, landlords must meet specific legal conditions:
Eviction Ban Considerations: In recent years, the UK government has introduced temporary bans on evictions during periods of national crisis, such as the COVID-19 pandemic. While most restrictions have now lifted, it’s essential to stay informed about any changes in legislation that could affect your ability to evict tenants.
Tenant Relocation During a Property Sale: Some landlords may prefer to work with tenants rather than proceed with an eviction. Offering tenants incentives to leave voluntarily, such as financial compensation or assistance in finding new accommodation, can be a less contentious option. This also allows landlords to avoid delays that could arise from serving an eviction notice.
In some cases, landlords choose to sell the property with the tenants still in place, especially if the buyer is looking to maintain the property as a rental investment. Selling a property with sitting tenants can be attractive to investors, as it provides an immediate income stream without the hassle of finding new tenants.
However, selling with sitting tenants can also narrow your buyer pool, as many owner-occupiers prefer to buy a vacant property.
It’s essential to follow the correct procedures when evicting tenants or selling a property with tenants in situ. Here are some legal tips for landlords:
Serve Notice Correctly: A Section 21 notice must be served correctly, in writing, and with the appropriate notice period. Errors in the notice can result in delays or legal challenges.
Document Compliance: Keep records of all necessary documents, such as the EPC, gas safety certificates, and deposit protection scheme paperwork, to avoid invalidating the notice.
Seek Legal Advice: If you're unsure about the legalities of evicting tenants or selling your property with tenants in place, it’s wise to consult with a solicitor or property specialist who can guide you through the process.
At Fraser Bond, we understand that selling a property with tenants can be a delicate process. Whether you're planning to issue a no-fault eviction or sell your house with tenants in place, our team of experts can guide you through every step. We offer tailored advice for landlords, ensuring that all legal requirements are met, and we help facilitate smooth transactions for both parties involved.
Fraser Bond also specializes in marketing properties to the right buyers, whether they’re looking for a vacant home or an investment opportunity. With our in-depth knowledge of the London property market, we’ll help you maximize the value of your property and navigate the complexities of tenant eviction if necessary.
