Author: tonu

The government has back-tracked on its decision to publish the long-awaited Renters Reform Bill this week. The Mirror newspaper reports that “procedural issues” have been blamed for the delay in introducing the Bill to Parliament. The Bill was first pledged by the Conservative administration back in 2019 and only last week Housing Secretary Michael Gove told Sky News that it would, at last, see the light of day this week, just days after the Coronation.

But the Mirror this morning reports: “The government had vowed to finally publish the Renters Reform Bill this week, more than four years after the Tories first promised to scrap no fault evictions. But the long-awaited overhaul has been postponed due to ‘procedural issues’. ”Over the Bank Holiday weekend speculation was mounting that Tory backbenchers were unhappy with the pro-tenant, anti-landlord sentiment contained in the proposed legislation.

Another newspaper – the online i – used unnamed sources and reported: “A group of Conservative backbenchers – some of whom are landlords and, according to Westminster sources, reportedly include the former chairman of national estate agency chain Hunters, Kevin Hollinrake – are unhappy about the pro-renter legislation and have been lobbying against it.”

Today’s Mirror – a Labour-supporting publication – also carries a pledge from shadow housing secretary Lisa Nandy to introduce more far reaching reforms of the private rental sector. Nandy tells the paper: “Our message to the government is clear. So not backtrack on the promises you have made, do not drop any commitments, do not roll over to your backbenchers again.”

A Department for Levelling Up, Housing & Communities spokesman says: “We are absolutely committed to delivering a fairer deal for renters.“We will bring forward legislation very shortly, which will include a ban on ‘no fault’ evictions, so that all tenants have greater security in their homes and are empowered to challenge poor conditions.

“We are also introducing a Decent Homes Standard for the Private Rented Sector for the first time ever which will make sure privately rented homes are safe and decent.”

Original Post from lettingagenttoday.co.uk

Former housing minister Lord Greenhalgh has expressed doubts that leasehold reforms will be included in the King’s Speech this autumn.

In an interview with Leasehold Knowledge, he said that despite being very complex legislation, the background work had been done.

“Even if you ran out of time and you weren’t able to get the Bill through Parliament, at least there’s something that can go through the pre-legislative scrutiny, so you get a better Bill at the end of it. I am just sceptical of getting it through both houses in time.”

However, he said the good news for leaseholders was that every major political party wanted it to happen. “It’s now become above party. Everyone is in favour of reform.”

Radical reforms

The government is preparing to bring in legislation which includes reforming the process of enfranchisement valuation used to calculate the cost of extending a lease or buying the freehold, ditching rules that prevent owners from buying the freehold to their property if a small part of the building is given over to commercial use, and allowing owners of leasehold houses to be able to extend their leaseholds by 990 years at a zero ground rent.

Speaking about rules limiting the number of landlords affected by the cladding scandal who face the full remediation bills for their block, Lord Greenhalgh admitted he would have liked to see the threshold set higher to protect smaller landlords and those with retirement properties.

“We were worrying about this when the Building Safety Act was passing through the Lords and there was a bit of ping pong around the number of properties, and we increased the number of properties from two to three,” he said.

“You always finish your time in government feeling that you’ve done as much as you can in the time that you had. And then you realize that there are areas that still remain unresolved.”

Original Post from www.landlordzone.co.uk

Ministers are considering a punitive scheme to fine landlords up to £30,000 if they fail to upgrade their properties to a minimum band C by an extended deadline of 2028 instead of the current 2025.

The Department for Energy Security and Net Zero had previously proposed a deadline of 2025 for newly-let rentals to achieve an energy performance rating of at least C, and a deadline of 2028 for all other rented properties.

But now all rental properties will have to reach the minimum standard by 2028, it is claimed.

This adds fuel to an already flammable debate over how landlords are expected to pay for upgrading properties, particularly in areas where the circa £10,000 to £15,000 costs of meeting the EPC minimum represents a considerable chunk of the bricks and mortar’s value and/or annual rental income – particularly outside London and the SE.

The Daily Telegraph’s report is linked to the Government’s yet-to-be published results from its consultation on the issue, which was launched in early 2021.

If true, the proposals would see some two million landlords forced to upgrade their properties even though the maximum spend cap will be set at £10,000.

This cap, which was originally £3,500, is the upper limit of expenditure that landlords will be expected to fork out to upgrade properties without being banned form renting them out – or £6,500 more upfront than before.

It is reported that discussions had been held with stakeholders on the proposals, but ‘no decision has yet been made’.

Rik Smith, Head of Tenancy services at rent guarantee platform Goodlord, says: “I’m sure the sector will welcome the proposed extended deadline to get properties up to standard, but there’s an enormous amount to do before then.”

Original Post from www.landlordzone.co.uk

An 80-year-old disabled woman is being evicted from her home after more than 60 years because her property won’t pass tighter new EPC rules, a case which is believed to be the first of its kind.

Thoresby Estate which owns Anne Marsh’s property in Edwinstowe, Nottinghamshire (pictured), says it is no longer viable to rent it out, leaving the pensioner two months to find somewhere else to live.

A report on BBC East Midlands Today explained that although Newark & Sherwood Council is trying to find her a new home, it’s proving difficult as Marsh needs somewhere to park her valuable mobility scooter.

62 years

“I’ve been here 62 years – why do I want to go anywhere else?” she told the programme. “I will be isolated somewhere else and that’s very difficult for an old person – that’s what kills old people off.”

A spokesman for Thoresby Estate says it deeply regrets the situation. “However, the recent law changes with regards to energy performance certificates has made it no longer viable for us to rent out houses like this. Our sympathy goes out to everyone in this and similar situations.”

The NRLA, along with many other groups, has been urging the government to announce more financial help for the PRS to make energy efficiency improvements ahead of looming new rules that could see all tenancies forced to have a C EPC by 2028.

Just the start

Nottingham landlord Mick Roberts (pictured) believes this eviction is only just the start. “The government needs to sort this out,” he tells LandlordZONE.

“Half of my properties won’t get to a C band without spending £30,000 and that isn’t happening when tenants are paying 70% of market rent. Some have had a new boiler and double glazing and are still a D rating.”

Adds Roberts: “It should be up to tenants – I’ve asked some and they are quite happy with their houses and don’t want anything done because they don’t want to pay more rent.”

Original Post from landlordzone.co.uk

Sunday Times’ economics editor David Smith has expressed sympathy for private landlords who he believes feel bruised by increasing regulation in the sector.

He says higher mortgage rates might be the straw that breaks the camel’s back for many, with some already selling up and financial institutions moving in by building homes to rent and becoming bigger property owners, often adapting models seen in successful student accommodation.

Speaking on the Talk Property with Ian Collins podcast, Smith said the big changes began during George Osborne’s stint as Chancellor and would continue under this government with the end of no fault evictions and updated energy performance certificate standards.

“The government was under pressure from generation rent who felt they weren’t well treated,” he told Collins. “The effect such as rent controls in Scotland is now limiting supply of rental property particularly for young people and there is a great danger of unintended consequences with these interventions.

Enough is enough

“It’s been one thing after the other for landlords who feel quite bruised by it – for some of them, enough is enough.”

The economics expert predicts that we might have to get used to higher interest rates for some time, however, he is convinced the housing market is robust and predicts that in the next 12 months, prices will only drop by 5 or 10% – or even less.

“After the mini Budget when mortgage rates went up, people got scared, appetite and interest went away for a few weeks,” he added.

“There’s currently a standoff between buyers who are a bit scared of higher mortgage rates and sellers who don’t want to sell into a market they don’t see as very strong – but there are signs buyers are coming back.”

Original Post from landlordzone.co.uk

The Court of Appeal has dismissed the case of a landlord who tried to evict a tenant in arrears after getting the date wrong on a Section 13 notice.

Tenant Victoria Whiteland had lived in her cottage in Llanbydder, Carmarthenshire, since May 1991 but although the rent was due every Monday, had always paid on the preceding Friday of each week.

However, when landlord Christopher Mooney bought the property in 2017 and served a notice proposing an increase in the weekly rent from £25 to £100, this stated that the new rent should take effect from Friday 7th December, rather than Monday 10th December 2018.

Typically, if a tenant doesn’t take the matter to a First Tier Property Tribunal, the increase takes effect automatically.

The landlord argued that as she had not done this, it was too late to challenge the validity of the notice.

He believed a reasonable tenant would understand that the landlord meant Monday and not Friday, however, the Court of Appeal disagreed. It also dismissed his argument that the correct date was a Friday because he had already pleaded that the proper date was Monday.

Renters Reform changes

David Smith, property lawyer at JMW, explains: “It is quite likely that the Renters Reform Bill will make Section 13 notices the only way to increase rent. If so, then it will be important that agents and landlords are getting the dates on them right.”

Smith adds that the s13 process no longer exists in Wales as it was removed by the Renting Homes (Wales) Act on 1st December.

“The judgment remains valid in England though and is an odd example of the curious effects of devolution in that a case about a Welsh property has changed the law for England but not that for Wales.”

The judges ruled that a tribunal is there to determine the proper rent for a property and can also determine the validity of a notice.

His tenant did not accept the validity of this notice and maintained a previous landlord had told her that the rent would be £25 per week for as long as she lived at the property. Mooney then started possession proceedings.

Read a guide to Section 13 notices.

Original Post from landlordzone.co.uk

The National Residential Landlords Association (NRLA) has welcomed a landmark ruling from the Supreme Court which provides vital clarification about the responsibilities of so called ‘rent-to-rent’ companies.

The ruling in the case of Rakusen v Jepsen will have important implications for the private rented sector as a whole.

In the case, the landlord, Rakusen, agreed to let a flat to a rent-to-rent company. The property required a licence, but the company did not apply for one.

As a result of the failure to be licenced, the former tenants of the flat sought a Rent Repayment Order against Rakusen rather than the rent-to-rent company – even though he had not received rent directly from the tenants.

Rent-to-rent companies take over the running of a property for a landlord.

At an initial tribunal it was ruled that the Rent Repayment Order could be applied for against Rakusen. The Court of Appeal however later overturned the decision and ruled in Rakusen’s favour.

Yesterday, the Supreme Court has ruled that where rent-to-rent companies take over the running of a property, they cannot shirk responsibility and expect to leave the landlord to pay for their legal failings.

Ben Beadle, chief executive of the NRLA, said: “This case has never been about whether legal obligations should be met, but about who should be responsible for them in rent-to-rent cases.

“We therefore welcome today’s ruling which accepted many of the arguments made by the NRLA and provides important clarity for landlords and tenants alike.

“The ruling makes clear that it is the responsibility of rent-to-rent companies acting as a landlord to ensure that relevant legal requirements are met, since it is they who receive tenants’ rent. It is simply not right that such companies can take money from people without any responsibility for the property they are running.”

Original Post from propertyindustryeye.com

Exclusive new research commissioned by the NRLA shows a vibrant PRS is vital to the social and economic wellbeing of the country.

Here, in his regular column for Property Notify®, Ben Beadle, chief executive of the NRLA, explains the importance of the findings – and what the Government needs to do next.

Soaring costs, rising interest rates and the promise of yet more regulation up ahead make this a difficult time to be a landlord and as a consequence, a tenant.

Original Post from propertynotify.co.uk

Original Post from bbc.com