If you are renting a property and your landlord decides to sell up, you may feel confused, vulnerable and worried about what it means for you as a tenant.
You might be questioning whether this means you will need to move out, or if your rent payments will go up. In this article we look at what rights tenants have, and what happens if your landlord decides to sell.
Private landlords
If you have a private landlord (not part of a housing association or council), they can sell the property with tenants living in it. The new owner will become the tenant’s new landlord, and they will take over the previous landlord’s tenancy agreement.
The tenancy should continue as normal, and no new tenancy or written agreement is required. However, if the tenant is asked to sign a new agreement, they should carefully check the new terms of any contract they are asked to sign.
New landlords
The tenant has the right to know the name and address of their new landlord. The landlord who sells the property should inform the tenants about the sale and hand over the details of the new landlord.
Meanwhile, the new landlord must inform the tenant of their name and address within two months of purchasing the property.
If rent is not payable during that period, the landlord must inform the tenant of their name and address no later than the next date that rent is due.
There is no specified prescribed form for the notice of assignment, but the notice must be in writing and provide:
- The date of sale
- The new landlord’s name and address
What happens if the new landlord’s details are not provided?
If the new landlord does not provide the tenant with their name and address, the old landlord remains liable for any breach of the tenancy agreement until it is provided.
Rent is not lawfully due from the tenant until the landlord provides an address in England or Wales. Once the name and address have been provided, the rent becomes due immediately, so a tenant should keep the money to one side.
A tenant who has not been provided with the details of their new landlord could search on the Land Registry. It might take some time for the Land Registry records to be updated. A tenant can check Land Registry details via gov.uk.
What are my rights when a landlord wants to arrange viewings?
If your landlord is putting their property up for sale, there’s a high chance that they will want to arrange viewings for potential buyers. However, this can be frustrating as a tenant, especially if the property takes a while to sell, with strangers traipsing through your home.
But there are legal rights in place to keep this to a minimum. In most cases, a landlord must give at least 24 hours written notice if they want to inspect the property. For example, to check the condition of the property, however, this would not include viewings for prospective tenants or purchasers.
A tenancy agreement might include a clause stating that the tenant should allow access to viewings at the end of the tenancy. Some clauses might only specify that the tenant must allow access for viewings for prospective new tenants, not prospective buyers.
A tenant who refuses to allow viewings should consider the risk of an impact on references from the landlord. The landlord could serve a section 21 notice if the tenant is an assured shorthold tenant.
A tenant can ask the landlord to rearrange if the proposed time is not convenient for them.
Will my rent go up with a new landlord?
If your old landlord has sold the property, and you are now paying rent to a new landlord, you might be thinking about whether your rent will go up because of this. But your tenancy agreement should continue on the same terms when the landlord sells.
If a landlord wants to change the terms of the tenancy agreement, they must follow the correct process for it to be legal.
Rent increases
The rent can only increase during a fixed-term tenancy if there is a rent review clause or if the tenant agrees.
Assured shorthold tenancies
The landlord must follow specific rules to increase the rent if there is no rent review clause and the tenant does not agree to an increase.
Regulated tenancies
Regulated tenants have the right to have a fair rent registered. A regulated tenancy is a tenancy created before 15 January 1989 and it exists in one of the two stages: the contractual/protected or the statutory tenancy. Regulated tenancies have more protections than assured shorthold tenancies.
What will happen to my deposit if I get a new landlord?
If you have paid a tenancy deposit, the deposit should remain protected after the landlord sells.
The landlord who is selling should inform the deposit protection scheme they are registered with. The new landlord should ensure that the deposit remains protected.
A tenancy deposit must be protected throughout the tenancy. A tenant can claim compensation if their deposit is not protected at any stage.
What should I do if I have rent in arrears?
If you owe a landlord rent arrears, the money will be owed to the new landlord.
The new landlord has the same options to deal with the arrears as the former landlord. For example, the landlord of an assured shorthold tenant could serve a Section 8 notice or a Section 21 notice.
Can my landlord end the tenancy?
Some landlords who want to sell might serve their tenants with a notice to end the tenancy with the intention of selling the property when it is vacant. Meanwhile, a new landlord might wish to evict the tenants once they have bought the property.
Their options for evicting the tenant depend on the tenancy type.
Assured shorthold tenancies
A landlord can end an assured shorthold tenancy by serving a section 21 notice.
A section 21 notice is a ‘no fault’ notice and requires the landlord to give two months’ notice.
A landlord cannot serve a section 21 notice in the first four months of a tenancy. A landlord can serve a section 21 notice during a fixed-term tenancy, but cannot start possession proceedings until either:
- The date the fixed term ends
- The date the tenancy can be ended by any break clause in the agreement
The notice must be valid. For example, the deposit must be protected and the landlord must have provided the tenant with certain documentation.
A landlord can also serve a section 8 notice if they have grounds. For example, rent arrears or antisocial behaviour.
Regulated tenancies
A regulated tenant has strong rights that are retained if the property is sold. A landlord can only end a regulated tenancy where they have grounds. Grounds can be mandatory or discretionary.
Further reading
Purchases – Oakwood Property Solicitors
WHAT TO DO NEXT
To make a start on the next step in your property journey, get in touch today to book a consultation with a member of our team. Call us on 0113 218 5727 to find out how we can help you.
