Two Key Legal Updates on Housing Law: Section 21 Notices and Deposit Compliance
Recent court decisions have provided in two complex and often misunderstood areas of landlord-tenant law:
- service of the "How to Rent" guide for section 21 notices, and
- the legal standard for tenancy deposit prescribed information.
These rulings mark a shift towards greater fairness and practicality in housing law, giving landlords and agents better guidance on compliance and risk management. This will become all the more important as the use of section 21 notices are phased out.
1. Section 21 Notice Invalidated Over 'How to Rent' Guide Confusion
In Sanghera v Osagiede & Osagiede. Dartford County Court. 23 November 2023, a County Court appeal, a landlord’s Section 21 possession claim was dismissed after failing to prove that the correct version of the government’s How to Rent guide had been provided to the tenants.
The landlord’s evidence claimed the guide was served at the tenancy's start in June 2019, yet the version submitted in the claim was dated 29 July 2019—meaning it could not have been handed over on the stated date.
Further complications arose because multiple versions of the guide were released in quick succession during 2019, with content changes that affected legal compliance. Despite an agent’s witness statement asserting that the “then current” guide had been given, no clear version was identified, and a follow-up email from August 2019 appeared to contradict the claim by sending a newer version after the tenancy began. Since the guide must be provided in hard copy unless agreed otherwise —and no such agreement existed in this matter — the court found that the statutory requirement had not been met. As a result, the possession order was set aside and the claim dismissed. The landlord will need to start again.
2. Court of Appeal Confirms 'Reasonable Recipient' Test for Deposit Information
In Merryck Lowe v The Governors of Sutton’s Hospital in Charterhouse [2025], the Court of Appeal confirmed that tenancy deposit prescribed information should be assessed using a “reasonable recipient” standard.
This marks a departure from previous rulings that demanded technical perfection from landlords. Mr Lowe’s appeal argued that his landlord’s failure to sign the deposit certificate and incorrect clause references rendered the Section 21 notice invalid.
However, the court upheld the High Court’s ruling that such technical defects did not prejudice or confuse the tenant. The court focused on whether a reasonable tenant would have understood the information provided — and concluded that they would. This more flexible, substance-over-form approach stands in contrast to earlier landmark cases, where even minor omissions led to harsh penalties against landlords.
Importantly, the court also confirmed that claims under section 214 of the Housing Act 2004 are subject to a six-year limitation period, bringing further certainty to the sector.
Key Takeaways for Landlords
- Always serve the correct version of the How to Rent guide before issuing a Section 21 notice. Double-check version dates and avoid email delivery unless expressly agreed in writing.
- Substantial compliance with deposit rules is now sufficient, as long as the tenant is not misled or disadvantaged. Small technical mistakes may not automatically invalidate the process, but it would be best to avoid minor issues which can become major headaches if proceedings are issued.
- Document everything clearly, including how and when documents were served, and retain signed acknowledgements where possible.
Merryck shows a positive shift toward fairness and practicality, but the margin for error remains narrow. Landlords and agents should stay alert to detail while appreciating the courts' growing emphasis on real-world understanding over paperwork perfection.
As a standard, before serving a section 21 notice we review the tenancy to ensure compliance and avert issues such as these. We can fix most issues. If you are thinking of serving a section 21 notice before the Renters’ Rights Bill becomes law please call 01271 342271 and ask to speak with Robert or Georgia.