Paragon Asra Housing v Sandra Sydone Rainford

Following the decision in Paragon Asra Housing v Rainford, we now have a decision on the validity of section 21 notices which (1) specify a date of expiry before the end of a fixed term tenancy and (2) there is no contractual break clause. Below, we have summarised the recent decision in Paragon. Following this, we discuss the implications for Landlords seeking to serve section 21 notice, between now and their abolition.

Ms Rainford occupied the subject property initially under what was described as an “Assured Shorthold Tenancy with Probationary Terms”. This was granted for a fixed term of 12 months. Paragon then granted a fixed six-month extension. There was no contractual break clause in the sixth month fixed term tenancy. Both tenancies were considered ASTs and therefore subject to section 21 of the Housing Act 1988.

The six-month fixed term AST was due to expire on 25 December 2021. Paragon served a s21 notice on 5 August 2021. The notice specified that Ms Rainford must leave on 5 December 2021. Ms Rainford did not vacate on this date. Possession proceedings were issued by Paragon. Ms Rainford defended the claim, but at first instance, an order for possession was granted.

Ms Rainford appealed this decision. Although not explicitly stated in the grounds of appeal, it was inferred the appeal was made on the basis DJ Glassford erred in Law. The following reasons were submitted in support:

1. the notice was untrue and misleading;
2. the notice failed to comply with the statutory requirements under section 21; and
3. the tenancy was subject to public law principles.

HHJ Hedley held that DJ Glassford did not ere in law. However, there was some other compelling reason for the appeal to be heard. On that basis, HHJ Headley held the s21 notice was invalid. It specified a date of expiry before the end of the six-month fixed term tenancy. Further, there was no contractual break clause allowing earlier termination.

Whilst not binding and made very close to the abolition date of s21 notices, this decision is likely to be persuasive in the coming months. Landlords have until 1 May 2026 to serve a section 21 notice. They will then have until 1 August 2026, or six months from the date the notice was served (whichever is sooner) to issue proceedings. There will undoubtedly be a flurry of s21 possession matters between now and 1 May 2025.

When planning to serve section 21 notices in the coming months, landlords will need to take even greater care. Effectively, they have only one opportunity to serve a valid notice. If landlords plan to serve a s21 notice in the coming months, they should carefully review their portfolios now and take legal advice. Landlords will also need to be mindful of the length of the tenancies they have granted, or to be granted and any contractual break clauses.