Hayward Moon’s Rachel Field reveals the impact of the new Renters’ rights reform from a conveyancing standpoint and details how its effects will be felt by renters and landlords alike.
The Renters’ Rights reforms represent one of the most significant shifts in the private rented sector in decades. Designed to strengthen tenant security and improve housing standards, the changes also have important consequences for residential conveyancing — particularly where properties are sold with tenants in-situ or where vacant possession is required on completion.
For conveyancers, the reforms increase due diligence obligations, introduce greater transactional uncertainty, and reshape how risk is allocated between buyers and sellers.
The challenge of vacant possession
At the heart of the reforms is the abolition of Section 21 ‘no-fault’ evictions. Previously, landlords could recover possession at the end of an assured shorthold tenancy without proving a statutory ground. With Section 21 removed, landlords must rely on statutory grounds for possession (such as an intention to sell). These grounds include:
- Require formal notice
- May involve longer notice periods
- Can be challenged by tenants
- Often require court proceedings.
Conveyancing impact
It has always been good practice for vacant possession to be obtained by a seller in advance of exchanging contracts. Now, however, it is of paramount importance to ensure that possession has actually been obtained — not simply initiated by the seller serving a notice. Otherwise, this could have practical consequences including:
- Increased risk of delayed completion
- Greater likelihood of conditional exchanges
- Potential for contractual disputes if tenants remain in occupation
- Pressure on mortgage offers expiring during possession proceedings.
Vacant possession is no longer a procedural formality — it is now a material transactional risk. Buyers’ conveyancers must clearly advise clients that exchange should not occur until possession is secured, unless the client is prepared to assume the associated risk.
Some lenders may require confirmation of actual vacant possession prior to releasing funds. This adds another layer of timing pressure and coordination.
Periodic tenancies as the default
Under the reforms, assured tenancies become periodic by default. The concept of fixed-term certainty is significantly reduced. Buyers purchasing investment properties inherit ongoing periodic tenancies. There is no fixed end date to rely upon, and termination depends on statutory grounds.
Buyers must:
• Review and ensure they obtain sufficient advice on any existing tenancy agreements
• Confirm the rent level and payment history
• Establish whether any rent review mechanisms exist
• Assess compliance with statutory requirements that affect enforceability
Increased compliance scrutiny may impact timelines
The reforms strengthen regulatory oversight of Landlords. Compliance failures may prevent possession claims or expose a buyer to liability post-completion. Typical areas requiring investigation can include:
• Gas safety certification
• Electrical safety compliance
• Energy Performance Certificates
• Deposit protection
• Service of prescribed information
• Licensing (HMO or selective licensing)
• Registration requirements (where applicable).
Failure in any of these areas may invalidate possession grounds; lead to financial penalties and possibly affect valuation and mortgageability.
Accordingly, enquiries relating to tenanted properties are becoming more detailed and document-heavy. For sellers, providing early transparency about tenancy status and compliance documentation is now essential to avoid abortive transactions.
All parties should be aware that conveyancing timelines are likely to lengthen where tenants are involved. Transactions that might previously have completed within 8–12 weeks may now face significantly longer timescales if tenant issues arise.
HI HUB sponsors, Hayward Moon, are conveyancing specialists throughout East Anglia with an office on Histon High Street. To find out more, visit www.haywardmoon.co.uk
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