They will not be able to serve tenants a Section 21 eviction notice and most tenancies will become rolling tenancies.
The government said these rules apply even if they have subletting permission from their landlord, requiring them to use an assured shorthold tenancy or section 21.
Shared owners may also need to give tenants an information sheet on the Renters’ Rights Act, similar to expectations for landlords.
Shared owners will be able to evict a tenant with a Section 8 notice if they are moving back in or plan to sell their home. In these circumstances, they must give at least four months’ notice and the tenant cannot be asked to leave earlier than 12 months into their tenancy.
A shared owner’s landlord must give them at least six months’ notice if their permission to sublet is ending, and if they want to replace a leaving tenant, they must seek permission from their landlords.
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Shared owners may be exempt from the rule stating landlords cannot market a let or re-let a property for 12 months after using grounds for selling to evict a tenant.
To be exempt, they must tell the future tenant that they are a shared owner, inform their shared ownership provider of their intention to sell before the end of the possession notice period and get a valuation or put their home on the market before attempting to re-let.
Further, the government confirmed that new and existing shared ownership leases will no longer be part of the assured regime, saying this would bring security for shared owners as homes can no longer be repossessed under Ground 8 of the Housing Act 1988 for rent arrears.
This week, Matthew Pennycook, Housing and Planning Minister, wrote to shared ownership providers, instructing them to act on the changes and consider how the law would impact their processes and policies.
