In this article, we have rounded up a few things you should know if your landlord decides to sell their property or if they have sold it
Landlords are selling up and leaving the rental market in droves, thanks to rising interest rates and tougher protections for renters – so what are your rights as a tenant if your home is being sold?
Under current law, a landlord does have the right to sell their rental property when they want – which also includes when they have tenants. Sometimes, the property is sold to another landlord so not much changes, and some tenants might not have a problem if their landlords decide to sell and will simply end the tenancy agreement.
For others, though, it’s a very different story. Moving house can cost hundreds of pounds and it’s likely the rent on a new tenancy will be much higher – and that’s if it’s even possible to find another home in the right area. If this happens to you, then you need to know what your rights are. In this article, we have rounded up a few things you should know if your landlord decides to sell their property or if they have sold it.
Are you worried about facing eviction? Let us know: mirror.money.saving@mirror.co.uk
Can my landlord evict me if they want to sell?
Your landlord does have the ability to evict you through a “no fault” section 21 notice. These are commonly called the “no fault possession notice” as landlords don’t have to give a reason for wanting to take possession of the property. Around 26% of landlords said the reason behind their Section 21 notice was them wanting to sell their property, according to a study by Landlord Action. If you receive one, you will be given two months to vacate the property.
The notice will usually provide the date on which you should have left the property. If you stay beyond this date, the landlord can seek a court order to have you removed. They cannot start court proceedings until after this date. Section 21 can only be used to evict tenants on an assured shorthold tenancy agreement or periodic tenancy in England – so if you are on a week-by-week, or month-by-month contract with no fixed end date, according to charities Shelter and Citizens Advice.
If you are on a fixed term contract, you have the right to stay for the duration of the fixed term, unless there is a clause in your contract. So for example, if you signed up for a 12 month fixed-term tenancy and it includes a six month “break clause” the landlord can ask you to leave after six months.
The landlord cannot evict you within the first four months of your tenancy, whether you’re on a fixed term contract or a flexible contract. A landlord can also evict a tenant using what is known as a Section 8 notice. However, in this situation, a reason has to be given, such as non-payment of rent.
If you receive a Section 21 notice, you should first check whether it is valid. If it is not, then you do not have to leave your home. According to Shelter, there are many reasons why a Section 21 notice may not be valid and these include dates being wrong, your deposit wasn’t protected, or safety checks were not carried out on the property. You can find all these reasons on the Shelter website.
What are your rights during the sale?
If your landlord is selling their property then prospective buyers will likely be coming into your home for viewings. Under UK law, a landlord or letting agent must provide you with a 24-hour notice of when they want to enter your home and these viewings must only take place at reasonable times of day according to Shelter. This means viewings to your home cannot take place late at night or early in the morning.
If they are not mentioned in your contract, you are allowed to decline viewings and you can deny anyone entry into your home if they do not have a court order. However, landlords are allowed to enter in cases of emergencies like fires or gas leaks. You should be aware that If you refuse viewings and your agreement says you must allow access, you might find it difficult to get a reference or have problems with getting your deposit back.
In regard to repairs, landlords and letting agents must continue to fix and maintain any issues that arise in the property during the sales process. So if your boiler breaks during this time, you should report it and if you have a loss of heating, hot water, or gas, then you should have it fixed within one working day. Landlords can taken to court if they allow for the property to become unsafe or hazardous to tenants.
What happens to my deposit when my landlord sells?
If your property is sold to a new landlord then your deposit is usually passed onto them. They will then have 30 days to protect it in a “deposit protection scheme” and give you the information on which scheme it is in. If this doesn’t happen you can claim compensation according to Shelter.
If you are leaving your home, then the landlord must return the deposit to the tenant within 10 days of the final deposit amount being agreed between both parties. Money can be taken off your deposit if you owe rent, have damaged the property, or lost or broken items on the inventory. You will be told by your letting agent if they are taking money off and the reasons why.
Your landlord or letting agent can’t take money from your deposit for ‘reasonable wear and tear’. This means things that gradually get worse or need replacing over time, for example, paintwork, or a piece of furniture. You can raise a dispute with the scheme if you disagree with any deductions the landlord wants to make.
If your property is sold before you leave, then like with other deposits, the landlord would need to go through a third-party scheme to claim any of the deposit for cleaning or maintenance costs. If the scheme thinks is reasonable they will grant that request, and if not, the deposit should be returned to the tenant.
What happens if my home is sold to another landlord?
Some rental homes are put up for sale with the tenant “in situ” and this means that you can stay in the property and the next owner will become your landlord. If this happens, and there is a valid tenancy agreement in place, then the new landlord is obligated to perform all the duties that are within the original tenancy agreement that has been signed by the previous landlord.
As well as this, your new landlord must contact you no later than two months after the sale has gone through and let you know that the ownership has changed. They must provide their name, address and contact details. However, your new landlord can still use eviction procedures against you, but they need to follow the established rules.
If you are facing eviction or need advice on your rights whilst renting you should contact your local Citizens Advice or the housing charity Shelter.
