Think tank

A throw-away question

My association is thinking about reviewing its policy on disposal of tenants’ property when tenancies are ended, whether by termination, eviction or succession. What are our legal obligations and responsibilities and how long we must store or hold items for?

Also, what’s the best way to notify the ex-tenant that we are getting rid of goods without incurring any legal comeback?

When a tenancy comes to an end – through eviction, abandonment or otherwise – the landlord becomes a so-called involuntary bailee of belongings left behind by the tenant. Such bailees are required to ensure goods are kept safe but can dispose of them if they follow procedures laid out in the Torts (Interference with Goods) Act 1977.

First they must serve a notice (often called a “torts notice”) on the tenant or at the property. This deals with your query about notifying the tenant – if you haven’t been able to trace them, a notice pinned to the door will be fine.

The notice will say that the goods must be collected within a reasonable time – usually between 14 and 28 days depending on circumstances – and that they will be disposed of if they’re not. If the items have some value, the landlord must arrange for their sale and keep the proceeds for the tenant, though the cost of arranging a sale can be deducted from them.

As a rule of thumb, the goods need to be worth in excess of £250 to exceed the likely costs of arranging a sale. A well-devised tenancy agreement will usually repeat these provisions in the moving-out clause, and specify that proceeds can be set against debt owed by the tenant or put towards the landlord’s own (charitable) objects. This means the money can be kept by the landlord, rather than held in a bank account for the tenant. 

Nick Billingham, Partner and head of housing management litigation at law firm Devonshires

Judge’s fudge

We are having a debate here over assured shorthold tenancies. We think that when a tenant is served a two-month notice (after the initial shorthold period of six months has expired) then there is nothing they can do to stay in the property.

But we had an instance of a county court judge suspending an order on an assured shorthold on the basis that “he had the discretion to do this”. Was the judge right?

If the claim for possession was brought on the back of a notice requiring possession (a section 21 notice), then the judge was wrong. Provided paperwork was in order, the judge had to grant an outright order for possession. There is no jurisdiction for suspending the order for possession – unless possession was applied for relying on grounds for possession and having served a notice of seeking possession, as is also possible with an assured shorthold.

The only power the court has (if you are entitled to possession) is to postpone possession for a maximum of 42 days; and then only if the tenant can show exceptional hardship. After the 42-day period, the tenant cannot even apply to suspend any warrant you issue. You should appeal. 

Nick Billingham Partner and head of housing management litigation at law firm Devonshires

Will we be the ones who pay?

In your 8 April issue, Rosemary Hart answered a question on whether tenants could be charged for right-to-acquire valuations, saying that a landlord must do the valuation and the tenant doesn’t have to pay for it. But as the empIoyee of a Welsh housing landlord, I’d like to ask: can the landlord claim the fees from the Welsh Assembly or a Welsh funding body?

No, the landlord can’t. But it will be able to reclaim the money indirectly where the property has been grant funded. The reasonable costs of obtaining valuations can be set off against sale proceeds when calculating any grant repayment. These provisions apply to grant repayments to the Housing Corporation in England as well. They will include the cost of abortive valuations, or legal and survey fees on an application for right to acquire that did not go ahead but which can be claimed on the subsequent sale of the property.

Rosemary Hart, Partner and housing specialist, Trowers & Hamlins