Regaining earlier possession is possible under little-known estate management grounds
The introduction of The Renting Homes (Wales) Act in 2022 rewrote the rulebook on how landlords regain possession of their property.
A quick possession recap
So-called “no fault evictions” – where landlords only previously had to issue their tenants with two months’ notice of possession – have changed to a six-month notice, which can only be served outside of a fixed-term contract. This, combined with not being able to issue said notice within the first six months of occupation, has guaranteed occupants a minimum 12-month tenancy.
Conversely, where there has been a breach of contract, landlords can issue their contract-holders with a one-month possession notice (or a 14-day notice if there are serious rent arrears, e.g. 2+ months’ rent owed).
Of course, if the occupant fails to vacate following the expiry of the possession notice, the landlord must apply to the court for a possession order. Provided the notice was issued to the contract holder correctly, judges must award the landlord possession in ‘no fault eviction’ and serious rent arrears cases, but in all other cases it is at their discretion.
“So unless there’s been a breach, I have to wait at least 6 months to regain possession?”
This is the message that has been widely-reported in the media, but there’s a little-known section of the legislation that allows landlords to exercise “estate management” grounds.
If one of these grounds applies to the situation the landlord finds themselves in, they needn’t wait at least 6 months to regain possession where there has been no breach of contract. Instead, they can serve a one-month possession notice (even if it’s inside the fixed-term), citing one or more of these grounds.
What are the estate management grounds?
There are nine estate management grounds (A-I) in total.
The vast majority, we’d suggest, are unlikely to ever apply to most landlords, such as “landlord is a charity and the contract-holder's continued occupation of the dwelling would conflict with the objects of the charity” or “dwelling constitutes part of a group of dwellings which it is the practice of the landlord to make available for occupation by persons with special needs”.
However, there are two particular grounds that could be relevant:
Ground A: Building work
This ground states:
“The landlord intends, within a reasonable time of obtaining possession of the dwelling, to either:
- demolish or reconstruct the building or part of the building comprising the dwelling, or
- to carry out work on that building or on land treated as part of the dwelling,
and cannot reasonably do so without obtaining possession of the dwelling.”
This would appear to allow a landlord to issue a one-month possession notice if they intend to carry out work – possibly renovation or refurbishment work – and cannot reasonably do so whilst the contract-holder is in occupation.
Ground I: Other estate management reasons
This ground states:
“This ground arises where it is desirable for some other substantial estate management reason that the landlord should obtain possession of the dwelling. An estate management reason may, in particular, relate to—
- all or part of the dwelling, or
- any other premises of the landlord to which the dwelling is connected, whether by reason of proximity or the purposes for which they are used, or in any other manner.”
As you’ll see from the wording, this ground is a lot more open and flexible. What is a “substantial estate management reason” is anyone’s guess at this point in the legislation’s infancy, but if a substantial reason applies, a one-month possession notice can be issued.
What happens if the contract-holder doesn’t leave once the one-month possession notice based on estate management grounds has expired?
As with any possession notice, if the occupant doesn’t leave following its expiry, the landlord must make an application to the court for a possession order.
As long as the judge is satisfied that the ground(s) is correctly being relied upon and there is suitable alternative accommodation available to the occupant, they must award possession.
What comes into the judge’s thinking when determining if there is suitable alternative accommodation available?
There’s a whole section of the Act that the judge needs to consider when determining if alternative accommodation is available, which includes the needs of the contract-holder and, if applicable, their family.
It doesn’t specify that the landlord must lay on the alternative accommodation.
If the contract-holder has a certificate from the local housing authority for the area in which the current property is situated and it certifies that the authority will provide suitable alternative accommodation for the contract-holder by a date specified in the certificate, the judge must treat this as conclusive evidence that suitable alternative accommodation will be available for the contract-holder by that date.
Must the landlord pay compensation to the outgoing contract-holder if possession is gained using one of the two grounds?
If a court awards possession based on Ground I (“Other estate management reasons”), the landlord must pay to the occupant a sum equal to the reasonable expenses likely to be incurred by them in moving from the dwelling. However, no compensation is payable if a court awards possession based on Ground A (“Building work”).
At CPS Homes, we've become the go-to agent for landlords looking for ironclad contracts and complete legal protection. We're experts on The Renting Homes (Wales) 2016 Act and are constantly monitoring Welsh landlord legislation to safeguard our clients and protect their investments. If you have any questions or would like to hear more about how our managed services can help, please don't hesitate to contact our team on 02920 668585 or email lettings@cpshomes.co.uk.
