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Em

Em Morley

The government wants to make it easier for tenants to have pets

Published On: January 7, 2020 at 9:58 am

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pet-friendly homes

Housing Secretary Robert Jenrick has announced that he is planning to overhaul the government’s model contract to make it easier for tenants to have pets.

In a surprise statement on Saturday morning, the head of The Ministry of Housing, Communities and Local Government said that more young people and families are renting than ever before, and due to restrictive contracts, are missing out on the opportunity to own pets. 

Jenrick said that the plan is “part of this new government’s mission to improve life for tenants, recognising that more are renting and for longer in life.” 

He said that currently less than one in ten rental properties are advertised as allowing pets.

Those with animals often struggle to find a place to live, whilst those already in rented property face the prospect of potentially never having their own pets. 

Jenrick said:

“Pets bring a huge amount of joy and comfort to people’s lives, helping their owner’s through difficult times and improving their mental and physical wellbeing. So, it’s a shame that thousands of animal-loving tenants and their children can’t experience this because they rent their homes instead of owning property.

“So, I’m overhauling our model tenancy contract to encourage more landlords to consider opening their doors to responsible pet owners. And we will be listening to tenants and landlords to see what more we can do to tackle this issue in a way that is fair to both.”

The model tenancy contracts for renters are provided by the government to use as a basis for agreements between tenants and landlords. Jenrick says:

“[They] will now be revised to remove restrictions on well behaved pets – to ensure more landlords are catering for responsible pet owners wherever possible.

“The government is clear there should be a balance with responsible pet owners not being penalised and landlords being more flexible in their approach, and it is right that landlords’ properties should be protected from damage by badly behaved pets”

However, Jenrick adds that landlords will still be free to implement pet bans where there is good reason.

This contract overhaul forms part of the Government’s plan to improve life for tenants along with banning letting fees and capping deposits. The prospect of a Section 21 ban is still on the table also. 

Air pollution levels will need to be declared by landlords and home sellers

Published On: January 7, 2020 at 9:26 am

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Air pollution levels will need to be declared by landlords

National Trading Standards is implementing a new rule that requires those selling or letting a property to declare if there are high levels of air pollution in the district in which it is located.

They will have to disclose this “material information” clearly to renters and buyers.

The Negotiator magazine for residential agents highlights that some of the most expensive areas in the country also have the dirtiest air. In Central London, the boroughs of Kensington & Chelsea and Westminster maintain the highest housing costs, as well as the highest levels of pollution.

At an average cost of £2.5m to buy a property or rent of up to £7,000 a month, you would also be living in an area that exceeds the legal limit for air pollution (40 micrograms of nitrogen dioxide per cubic metre of air).

James Munro, head of the estate agent team at National Trading Standards, said: “Now that pollution mapping is more widely available, and the facility is there to search by postcode how badly a property is affected, we’re saying that this is material information.

“This is something people should know if they’re buying a house especially if they have children or elderly family members moving into the property.

“It can work both ways for the agent. If it’s a low rating, it could be a good marketing tool, but if it’s a high rating — of which there are quite a few hotspots in London — people need to know.

“The owner has a legal duty to provide the right details and not withhold anything but the agent is also under a legal duty to be aware of all the facts and to check them.”

Mark Hayward, Chief Executive of NAEA, comments: “In certain urban areas, buyers and tenants will look more closely before committing to a property, particularly if they have young families. It will be important. People are staying in their homes for 18 to 21 years when they buy, so you need to be careful when you commit.”

We have yet to hear exactly when this change will be introduced.

Funding to tackle criminal landlords welcomed but nowhere near enough

Published On: January 6, 2020 at 10:06 am

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Funding to tackle criminal landlords

The provision of Government funding to root out criminal landlords may be welcome but is it enough to tackle the scale of the problem? The Residential Landlords Association (RLA) does not think so.

With ministers confirming yesterday that more than 100 local authorities in England will share £4 million in new funding, the Government is expecting this to help “crackdown on criminal landlords”.

This focus on rooting them out has been welcomed by the RLA, but the organisation warns that the amount is nowhere near enough to tackle the crooks.

For some time now it has been raised to Ministers by the RLA that proper, multi-year funding needs to be provided for councils. This will enable them to plan long-term strategies to permanently root out criminal landlords who are bringing the sector into disrepute. This must involve sufficient funds to boost the number and skills of Environmental Health Officers.

David Smith, Policy Director for the Residential Landlords Association, has commented: “We welcome the Government’s focus on rooting out criminal landlords. 

“For too long the debate has been driven by ideological calls for more regulation of the sector. What is needed is better enforcement of the powers already available to tackle the minority who bring the sector into disrepute.

“Today’s (Thursday 2nd January 2020) funding though is nowhere near enough. Instead of offering inadequate and sporadic pots of money, it is critical that the Government provides proper, multi-year funding to enable councils to plan and prepare workable strategies to find the criminal landlords. 

“This should be supported by councils having the political will to prioritise enforcement against the crooks rather than tying good landlords up in licensing schemes which do nothing to protect tenants.”

Landlords need to prepare for new MEES regulations in April

Published On: January 6, 2020 at 9:44 am

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Landlords need to prepare for new MEES regulations in April

As of 1st April 2020, the Minimum Energy Efficiency Standards (MEES) regulations for new and existing tenancies in the private rental sector will change.

Going forward, they will be required to have a minimum energy performance rating of ‘E’ on the property’s Energy Performance Certificate (EPC).

This change has been on the way since 1st April 2018, when it became unlawful for a landlord to let a “non-compliant” or “sub-standard” building that has an EPC rating of F or G. The best possible rating is A.

As such, law firm Fladgate LLP has looked into what this will mean for landlords.

Exemptions to new EPC rules

There are a few ways in which a landlord may be exempt from this change in MEES regulations. Fladgate points out the following situations:

1. Exemption due to devaluation – a temporary exemption of 5 years will apply if a landlord can demonstrate that the installation of energy efficiency measures would reduce the market value of the property by more than 5%;

2. Exemption for new landlords – if a person becomes a landlord recently or suddenly in specified circumstances under the MEES Regulations, a temporary exemption of six months will apply; and/or

3. Third-party consent – if a landlord cannot obtain necessary third-party consents to improve the EPC rating of the property (including but not limited to lender consent, superior landlord consent and/or tenant consent), then a landlord may let a “sub-standard” property. 

If you are a landlord looking to rely on an exemption then you must register on the online PRS Exemptions Register, says Fladgate.

What if I don’t comply with the MEES Regulations?

If a landlord fails to comply with the new MEES regulations, they risk a financial penalty. This can vary depending upon the length of the breach.

Fladgate summarises:

  • A landlord renting out a “non-compliant” property (less than three months in breach) may be fined up to either £5,000 or 10% of a rateable value up to a maximum of £50,000, whichever is greater. 
  • A landlord renting out a “non-compliant” property (three months or more in breach) may be fined up to either £10,000 or 20% of the rateable value up to a maximum of £150,000, whichever is greater.
  • There is also a fine of up to £5,000 for providing false or misleading information or failing to comply with a compliance notice. 

What should I do to prepare for the new MEES regulations?

If you have a let property with an EPC rating of F or G then you should prepare now for the extension of the regulations to existing tenancies, says Fladgate.

As the deadline fast approaches, the law firm advises landlords to consider the following, in order to protect their assets:

1. Review your property or property portfolios to identify whether or not properties are compliant;

2. Consider the cost and extent of any works required;

3. Consider access to the properties (lease terms permitting) to carry out works required to bring the properties up to the minimum ‘E’ rating; and

4. Consider whether any exemptions may be relied upon. 

There is speculation that MEES will rise again in 2022, making ‘C’ or ‘D’ the new minimum requirement. When considering any works to upgrade a property to comply with the MEES Regulations for April 2020, landlords should also bear in mind the potential future impact of the regulations. 

Expectations for changes to the private rental sector in 2020

Published On: January 3, 2020 at 10:28 am

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changes to the private rental sector in 2020

As we enter a new year (and a new decade!), specialist landlord insurance provider Just Landlords has collated a list of the biggest changes it expects to see for the private rental sector (PRS).

Here’s a summary of what is likely to be just around the corner for landlords, letting agents and tenants:

  1. Section 21 – Abolishing this as an option for landlords looking to evict their tenants will mean big reforms to the Housing Act.
  2. EPC law – As of 1st April, landlords will need to ensure the properties of all private tenancy lets have an Energy Performance Certificate rating of E or higher.
  3. Grenfell Tower – All building types are under scrutiny, including those in the PRS, to make sure we’re doing all we can to avoid such a devastating event happening again.
  4. Rent controls – There has been a mixed reaction to this suggestion, so we’ll see if it comes up again in 2020.
  5. Mandatory three-year tenancies – The initial proposal was not well-received, but will we hear more on the matter? It has to be said that some would benefit from the option of a three-year contract.
  6. Rogue landlord database – Will tenants and prospective tenants finally be able to access this database to help avoid falling victim to rogue landlords?
  7. Landlord taxes – Already an issue driving many from the market, will our current Conservative government lessen the burden or increase it?
  8. Brexit – Are you as fed up with this portmanteau as we are? We’re Brired of Brearing about it… The official deadline is 31st January, so 2020 will be the first year we feel the effects of whatever decision is made.
  9.  Lifetime Rental Deposits – This one could really make a difference to the ease of renting for all involved. We hope the Government turns its attention to this sooner rather than later!

Em Morley, spokesperson for Just Landlords, comments: “We say these are our expectations, rather than predictions, as this is the least we’re expecting from the Government and local authorities.

“Progress is vital for the sector, as it’s about more than the businesses of landlords and letting agents. It’s also about the supply of safe, comfortable and affordable housing needed in the UK.”

Read Just Landlords’ full article on their blog.

Agents urged to update contract and eviction notices in preparation for Section 21 changes

Published On: January 3, 2020 at 9:18 am

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preparation for Section 21 changes

The Conservative Party is supportive of plans to reform the Housing Act, and, as such, PayProp has pointed out how beneficial it will be to start preparations early.

Updating key documentation and automating arrears management will help for a smoother transition when the big changes are eventually made.

Queen’s Speech confirms Section 21 removal

On 19th December 2019, it was confirmed in the Queen’s Speech that Section 21 will be scrapped in favour of a reformed evictions process.

The plan was at the forefront of the ‘Better Deal for Renters’ section of the Conservative Party’s manifesto. The Party also pledged to strengthen the rights of possession for good landlords through the Renters’ Reform Bill.

Neil Cobbold, Chief Operating Officer of PayProp, says: “For some time, the political will – regardless of party – has been to remove Section 21 from the Housing Act 1988 and reform the eviction system.

“Following the Queen’s Speech, letting agents and landlords need to start preparing for change and updating their processes accordingly as it has been confirmed that the evictions process will be reformed through the same Bill.”

The importance of updating key documents and processes

Cobbold highlights that agents will need to update their contract templates and eviction notices in preparation for Section 21 changes, which is highly likely to revolve around a strengthened Section 8.

He explains: “One of the most important aspects of eviction reform for agents will be educating and informing landlords and tenants about how the new system will work.

“However, on top of this, they will also need to make sure their documents are up-to-date and watertight to evidence their adherence to current and proposed legislation. This will give landlords and tenants the best chance of a smooth eviction process.

“Agents who adopt thorough record-keeping and arrears management can prove their worth to landlords and increase their chances of new business and client retention.

“Having the right technology and systems in place can be a huge help in making these changes seamless and efficient.”

Be proactive about reducing evictions! 

Letting agents should consider ways to reduce the chances of landlords needing to evict their tenants, Cobbold suggests.

He says that by removing Section 21, the methods used by landlords to regain possession of their properties could be impacted. The Government has acknowledged the need to improve the court process, but the reforming of the grounds for possession could have teething problems. Agents have the opportunity to mitigate this by improving their own internal procedures.

Cobbold concludes: “With this in mind, agents need to think about the ways they can help to reduce the frequency of evictions. Encouraging good relationships between landlords and tenants is all-important, as is staying on top of repairs and facilitating good communication between both parties.

“Rent arrears are one of the most common reasons for evictions, so agents can help landlords to keep them to a minimum by sending automated emails and text messages – which are proven to be more effective when it comes to chasing rent payments.

“Using technology and automation will be crucial for agents to stay on top of constantly changing industry regulation and legislation.”