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Em

Em Morley

Important Section 21 Changes

Published On: August 26, 2015 at 11:50 am

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Important changes regarding section 21 notices, affecting landlords and letting agents, will be implemented in a matter of weeks through the Deregulation Act 2015.

The main changes apply to the rules on serving a section 21 notice, via the Housing Act 1988, which terminates a tenancy.

The new rules will be enforced on 1st October and apply to tenancy agreements entered into on or after that date.

A lawyer of Greenwoods Solicitors, Michelle Cox, has compiled the following guidance.

“The main changes to be aware of are:

  • “It will no longer be possible to serve a section 21 notice until the tenant has lived in the property for a minimum of four months. This is designed to stop landlords serving a section 21 notice as soon as a tenant moves in. As before, the notice can’t expire in any event before the end of any fixed term.
  • “A section 21 notice will only be valid for six months from the date it was given. This means that if the tenant doesn’t leave, possession proceedings must be commenced within six months of the service of the section 21 notice. Different rules apply where the notice period set out in the tenancy agreement is more than two months.
  • “A section 21 notice will no longer be invalid if the date of possession given on it is not the last day of a tenancy period. This has traditionally been one of the main reasons that a section 21 notice fails. As long as a full two months’ notice is given, then unless another unconnected error is made, the section 21 notice will be valid.
  • “Landlords will be unable to serve a section 21 notice in circumstances where it is in breach of its legal obligations to a tenant. This includes obligations as to the condition of the property, the health and safety of the occupants and failure to provide an Energy Performance Certificate [EPC] or a valid gas certificate for the property.
  • “When a section 21 notice is served, all rent that has been paid for any period where the tenant ceases to live in the property must be repaid to the tenant. This has implications where a tenant who has paid their rent decides to leave when they receive the section 21 notice rather than when the notice expires. Where a tenant pays a full month’s rent but then is required by the section 21 notice to vacate or voluntarily vacates mid-way through the month, the tenant is entitled to be reimbursed the overpayment of rent for that period.
  • “One change that is already in force relates to the protection of deposits. All deposits ever taken which are still being held must now be protected. Once complete, the deposit protection certificate and all prescribed information must be served on the tenant. If any deposit has not been protected or returned to the tenant, a section 21 notice cannot be served.”1

1 http://www.propertyindustryeye.com/essential-update-for-letting-agents-important-changes-coming-up-to-section-21/

 

 

 

Landlords and Letting Agents in Scotland and Wales Prepare for Licensing

Published On: August 26, 2015 at 10:48 am

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The Scottish Government has launched a consultation on a new code of practice for letting agents and a compulsory requirement for agents to undertake training before they can register.

Additionally, landlords and agents in Wales are preparing for mandatory training and registration. Although an exact date has not been specified, enforcement of the Rent Smart Wales scheme is due for this autumn.

In England, the Housing Minister, Brandon Lewis, has insisted that the lettings industry will not be regulated, despite concerns surrounding the sector. Recently, a franchise of Enfields suddenly closed, leaving tenants and landlords worried about the consequences. Find out more: /police-called-to-investigate-agency-that-suddenly-closed/

Landlords and Letting Agents in Scotland and Wales Prepare for Licensing

Landlords and Letting Agents in Scotland and Wales Prepare for Licensing

The Housing (Scotland) Act provides an outline of the regulation of letting agents in Scotland. It includes:

  • A mandatory register of letting agents, including a fit and property person test.
  • Required training before admission to the register.
  • A statutory code of practice for all letting agents.
  • A system for tenants and landlords to resolve disputes with letting agents for breaches of the code of practice, via a new specialist First-tier Tribunal.
  • Powers for Scottish ministers to obtain information, monitor compliance and enforce regulatory requirements.

Scottish Housing Minister, Margaret Burgess, says: “The Scottish Government wants to see a private rented sector that provides good quality homes and high management standards, inspires consumer confidence and encourages growth.

“Letting agents are vital to helping achieve this vision, and this new framework, including the code of practice, will support the industry to improve standards, provide a good service to both landlords and tenants and empower customers.”1 

The Scottish consultation, which closes on 15th November, can be found here: https://consult.scotland.gov.uk/better-homes-division/lettingagentconsultation

In Wales, the new registration and licensing scheme, Rent Smart Wales, will be introduced this autumn. It involves:

  • The legal requirement for all private landlords to register with Rent Smart Wales and to register their properties.
  • Whoever manages the properties – the landlord or appointed agent – must be licensed and show that they are fit and proper to hold a license and undergo approved training.
  • Once part of the scheme, landlords and agents must keep their information up-to-date and comply with all requirements.

Tenants in Scotland More Likely to be in Arrears

Published On: August 26, 2015 at 9:44 am

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Tenants in Scotland More Likely to be in Arrears

Tenants in Scotland More Likely to be in Arrears

Rent arrears have increased in Scotland, to 9.6% of all rents in July.

Your Move reveals that the level of tenant arrears in Scotland has been growing, from 6.2% in July last year.

Scottish tenants are also more likely to be in arrears than renters in England and Wales, 8.4% of which were in arrears at the end of July.

Additionally, Your Move found that rents in Scotland have hit record highs, rising to an average of £549 per month.

Scottish renters now pay 2.8% more than they did last year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ARLA and the Gas Safe Register Link Up

Published On: August 26, 2015 at 8:47 am

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ARLA and the Gas Safe Register Link Up

ARLA and the Gas Safe Register Link Up

The Association of Residential Letting Agents (ARLA) and the Gas Safe Register have announced that they will be linking up to form a closer working relationship.

The groups will emphasise gas safety messages to consumers, landlords, tenants and all involved in the private rental sector.

These plans, which will roll out in the next few months, will strengthen the aims of both organisations as trusted sources of information for landlords and tenants.

Chief Executive of the Gas Safe Register, Jonathan Samuel, says: “We are delighted to be working alongside ARLA to ensure that these vital gas safety messages are understood by all across the rental sector.

“ARLA is well recognised and trusted by landlords and together we can do even more to help people understand their rights and responsibilities and improve gas safety.”1

Managing Director of ARLA, David Cox, comments: “It is vital that agents and landlords who are legally responsible for their tenants make sure maintenance and annual safety checks on gas appliances are carried out by a Gas Safe registered engineer.”1

The Gas Safe Register is the official list of gas engineers that are qualified to work safely and legally on gas appliances. By law, all gas engineers must be on the Gas Safe Register.

ARLA and the Gas Safe Register are urging landlords to make sure that only Gas Safe registered engineers conduct maintenance and annual safety checks on gas appliances.

1 http://www.propertyreporter.co.uk/property/arla-and-gas-safe-register-join-forces.html

 

 

 

 

York Council Discussing Landlord and Letting Agent Law

Published On: August 25, 2015 at 5:32 pm

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York Council Discussing Landlord and Letting Agent Law

York Council Discussing Landlord and Letting Agent Law

The City of York Council is holding a decision session today to discuss the introduction of fixed penalty notices for landlords and letting agents that break the law.

Specifically, the council is looking at three pieces of legislation:

  • All letting and management agents must belong to a redress scheme so that any complaints by landlords or tenants are dealt with fairly.
  • All letting agents must display details of their fees and charges on their websites and in their offices.
  • All landlords must install smoke alarms on every storey of their rental properties and fit carbon monoxide alarms in every room that has a solid fuel-burning appliance.

The council’s executive member will also be asked to agree to how the new laws are enforced and set levels of fines that the council can charge for non-compliance. It is recommended that a maximum penalty of £5,000 be charged for each case of non-compliance. The power to lower the fine in extenuating circumstances will be delegated to the housing services manager.

Councillor David Carr, Executive Member for Housing and Safer Neighbourhoods, comments: “While we acknowledge that the majority of York’s letting agents serve landlords and tenants well, we want to support and recognise good practice while penalising those who fall below required standards.

“The city’s private rented sector has grown significantly and accommodates some of our most vulnerable households and we want to ensure they get a fair deal.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/8/york-council-meet-to-discuss-landlord-and-letting-agent-fines

Remortgage Lending Almost Doubled Last Month

Published On: August 25, 2015 at 4:35 pm

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The amount of remortgage loans hit 46,000 in July, 47% higher than the previous month and the highest number recorded since November 2008.

Conveyancer experts, LMS, calculates that the value of monthly gross remortgage lending rose by 41% to £7.2 billion in July and increased by 89% from July last year. This is the greatest growth seen since

Remortgage Lending Almost Doubled Last Month

Remortgage Lending Almost Doubled Last Month

October 2008 and is a huge boost to the industry after a slow start to the year.

The total amount of equity withdrawn from remortgaging in July was £1.27 billion, up 16% monthly and 183% annually, when equity was at £449m in July 2014. This is the largest amount withdrawn since April 2008, when £1.35 billion was withdrawn through remortgaging.

Improved affordability of remortgaging and the significant savings that borrowers can make due to record low rates have encouraged higher levels of activity, says LMS.

Chief Executive of LMS, Andy Knee, states: “Remortgaging has come back with a bite in July, following sluggish levels of activity throughout the latter part of 2014 and first months of 2015.

“We are confident these levels will be maintained with a steady stream of customers for the remainder of the year as record low affordability encourages borrowers to lock in competitive rates.

“Despite news that a base rate rise may be on the cards, lenders have not hiked rates and there are still many excellent deals to be had as lenders compete for business. But these will not last forever and borrowers should consider remortgaging now to avoid missing out.

“The current economic climate and rising average incomes mean households are typically less stretched than previously. Remortgaging has never been as affordable and can offer huge monthly savings as the gulf between new purchase and remortgage payments as a percentage of income grew, to 2.7%.

“A six-year high in the amount of equity withdrawn through remortgaging shows financially shrewd borrowers are keen to capitalise on these potential savings.”1 

1 http://www.financialreporter.co.uk/mortgages/remortgage-lending-hits-72bn-in-july.html?utm_content=bufferb70c4&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer