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At present, the government is proposing a consultation on the abolition of Section 21 repossessions, in the private rented sector. Please be reassured, we will respond and keep you informed as and when updates are received.
The government will collaborate with and listen to tenants, landlords and others in the private rented sector to develop a new deal for renting.
https://www.gov.uk/government/news/government-announces-end-to-unfair-evictions
A new guide on how to complete inventories on tenant ‘check in’ and ‘check out’ has been designed to help landlords and agents avoid tenant disputes over fair deposit deductions.
The guide is produced by the Tenancy Deposit Scheme (TDS), the Association of Independent Inventory Clerks (AIIC) and the Association of Residential Letting Agents (ARLA).
Accurate inventories are vital for providing proof to support claims to deduct repair and replacement costs from tenant deposits.
From 01 June 2019, the Tenant Fees Act comes into force, from that date, the maximum refundable tenancy deposit that a landlord can request is up to 5 weeks worth of rent where the total annual rent is less that £50,000.00.
For further information see the recently published guidance;
Tenant Fees Act 2019 – comes into effect on 01 June 2019.
Included in the comprehensive guide;
The only payments you can charge in connection with a tenancy are:
a) the rent
b) a refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above
c) a refundable holding deposit (to reserve a property) capped at no more than one week’s rent
d) payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
e) payments associated with early termination of the tenancy, when requested by the tenant
f) payments in respect of utilities, communication services, TV licence and council tax; and
g) A default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement
More information can be found on the gov.uk website;
https://www.gov.uk/government/publications/tenant-fees-act-2019-guidance
On Tuesday 2nd April 2019, Iain Maitland (Vice Chair), Gillian (Office Manager) and Anna (Senior Administrator) attended the Landlord Expo event in Bristol organised by the 4 West of England Local Authorities. The theme of the event was ‘The Key to Staying Ahead’ and was open for all landlords in the private rented sector. There were seminars throughout the day, 60 exhibitor stands and was well attended by landlords.
The next Expo that SWLA will attend is the Teignbridge Landlord Open evening on Thursday 23rd May from 4.30pm – 8.30pm at Old Forde House in Newton Abbot. All private landlords are welcome to attend.
From 1st April 2019, letting and property management agents must belong to an approved CMP scheme.
As part of this scheme, they must;
– display a certificate within branch and on website
– produce a copy of the certificate to anyone who reasonably requires it (without charge)
– notify all clients within 14 days if their CMP membership is revoked or if they change to a different CMP scheme
– provide clients with the name and address of the scheme to which they become a member
The agent must also ensure the level of CMP membership provides enough cover to compensate clients for the maximum amount of client money that they hold.
Local Authorities will have powers to impose fines of up to £30,000.00 on agents who do not belong to a scheme beyond this date. They can also impose fines of up to £5,000.00 on agents who fail to display correct scheme membership details on their website and within branch.
The Ministry of Housing, Communities and Local Government have published the following guidance and advice for landlords about the minimum standards required to let domestic property;
There is also comprehensive guidance on your responsibilities as a landlord;
https://www.gov.uk/browse/housing-local-services/landlords
Introduced to raise the standards of living for tenants.
Landlords have no new obligations as part of this Act, however, landlords must meet existing responsibilities with regards to property standards/safety or risk legal action being taken against them by their tenant.
Any privately rented home must be fit to live in at the start of the tenancy and throughout. This includes common parts of a shared building. The landlord is considered responsible from the point in which a hazard is reported to them by the tenant. However, if the hazard is in the common part of a shared building (eg in a HMO or block of flats), the landlord would be immediately liable. The landlord has a reasonable amount of time to deal with the hazard. If a landlord is aware of a hazard and is not actively attempting to remedy it, the tenant can take their landlord to court.
The rules apply to all new tenancies including renewals from 20th march 2019. Existing tenancies which were periodic before this date will need to comply from 20 March 2020.
Who enforces this? The legislation allows for the tenant to bring court action directly without first involving the local authority. A judge will decide whether a property is unfit for human habitation based on evidence. The judge will make their assessment based on repairs, stability, damp, internal arrangement, natural lighting, ventilation, water supply, drainage, facilities for food preparation and hazards (under the Housing Health and Safety Rating System).
It is hoped that this Act will level the playing field for good landlords who maintain homes fit for human habitation by ensuring they are not undercut by landlords who persistently flout their responsibilities.
For further information;
Gillian Kerr (SWLA Office Manager) attended the meeting on 13th March 2019 hosted by Bristol City Council.
The meeting included a licencing update from all West of England Local Authorities, legislation updates (Homes Fitness for Human Habitation 20/03/2019, Client Money Protection compulsory insurance for letting/managing agents 01/04/2019, Tenant Fees Bill 01/06/2019). Trading Standards at Bristol City Council being the lead authority for the Tenant Fees Bill.
MEES enforcement was discussed. Also the findings of the MHLGC English Private Landlord Survey.
Making Tax Digital; expected to affect the majority of landlords by April 2020 (date to be confirmed).
With the Government overhauling the housing complaints system, a housing redress scheme membership may be on the cards for all landlords.
Items discussed included energy efficiency ratings in the private rented sector; the next year will see many private rented properties having to be brought up to at least an E rating.
Since 1 April 2018, new tenancies, renewals or extensions require the property to have a minimum “E” energy rating. From 1 April 2020, all existing tenancies with a valid EPC must comply.
From 01 April 2019, landlords will be expected to make energy improvements costing up to £3,500.00 (including VAT) to bring properties up to the required energy efficiency standard. Prior to this date, improvements would have to have been made only if there was no cost to the landlord. If there were costs, the landlord could register an exemption. (The cost cap includes monies spent since 01 October 2017 on energy efficiency improvements).
Exemptions can still be registered in certain circumstances, including if £3,500.00 is spent and the property still falls below the expected standard.
For further information, please see the government guidance;
RSM UK Consulting presented their research findings on behalf of the Department for Business, Energy and Industrial Strategy.
Monday 3rd June 2019 – 9:30 – 4:30pm
Venue – Astor Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
Price – £65 for members of SWLA, £75 for non – members for one day course.
Course covers ASTs, Deposits, Section 21s, Section 8s, HMOs, Gas and Electrical Safety, Inventories and much more.
The course will provide you with all the skills to start, manage and finish a tenancy.
Places still available. Contact the office on 01752 510913 or via the website to book your place, places secured on receipt of payment.
Over 740 landlords have already completed this course since September 2011.
Course can lead to Accreditation, if required.
We are proud to announce Landlord Accreditation South West (LASW) are founder members of the West of England Rental Standard.
Compliance with the new rules on septic tanks is required by 1st January 2020.
Homeowners will need to upgrade their drainage systems in order to avoid fines from the Environment Agency. The rules prohibit the discharge of waste from septic tanks into watercourses due to the detrimental impact it can have on the environment.
You must use a small sewage treatment plant to treat the sewage if you’re discharging to a surface water such as a river or stream. A small sewage treatment plant (also known as a package treatment plant) uses mechanical parts to treat the liquid so it’s clean enough to go into a river or stream.
Rules originally came into force 01 January 2015 applying to new septic tank systems but from January 2020 they will be rolled out to include all systems – old and new.
For further information;
https://www.gov.uk/guidance/general-binding-rules-small-sewage-discharge-to-a-surface-water
From 1st April 2019, letting agents must belong to an approved CMP scheme. As part of this scheme, they must;
The agent must also ensure the level of CMP membership provides enough cover to compensate clients for the maximum amount of client money that they hold.
Local Authorities will have powers to impose fines of up to £30,000.00 on agents who do not belong to a scheme beyond this date. They can also impose fines of up to £5,000.00 on agents who fail to display correct scheme membership details on their website and within branch.
Article information from ARLA
Tuesday 30th April 2019 – 9:30am – 4:30pm
Venue – Charter Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
If you are accredited this will count towards your CPD hours, but the course is open to all.
Cost for SWLA members – £65. Cost for non-SWLA members – £75.
A must attend one day course covering the subjects below and more….
We will review and consider the effect of what has been a busy year of legislative change, look forward to a pivotal year for our industry and consider the impact of recent court cases.
Having progressed now through the House of Lords we will provide you with all the details of the tenant fee act and consider any regulations needed to implement it.
Places secured upon receipt of payment, book your place through the office 01752 510913.
Wednesday 27th February 2019, SWLA’s Vice Chair attended the liaison group meeting at Torquay Town Hall. Items discussed included the Extension of Mandatory HMO Licencing and it’s progress to date. Also a performance review and updates from police, fire and probation services. Further legislative changes were also discussed.
Steve Lees (SWLA Chair) and Iain Maitland (SWLA Vice Chair) attended a Refugee Awareness Conference at Plumer House, Plymouth on Tuesday 26th February hosted by the Refugee Integration Service. Representatives from Path, Start, ODILS and PDREC were in attendance. The meeting was opened by Councillor Penberthy and the initial address by Matt Garrett (PCC Community Connections Service Director).
Many discussions and workshops took place. There were over 100 delegates in attendance.
Wednesday 24th April 2019 7.30pm
Future Inn Hotel – Plymouth- 1 William Prance Rd, Plymouth PL6 5ZD
Speakers;
Today we have published our new Assured Shorthold Tenancy Agreement document.
There are a few minor amendments to allow for the changes that are imminent such as the Tenant Fee Bill (01 June 2019) and mandatory 5 year Electrical Installation Safety Checks (date to be confirmed).
The new AST can be found on the members area of our website for free download.
The old SWLA Assured Shorthold Tenancy document (last updated October 2015) is still valid so can still be used for new tenancies. Moving forward, any new tenancies, please use the new revised document where possible.
24th April 2019
Future Inn Hotel
7.30pm
Speakers/Subjects – Tax Updates, Making Tax Digital, Sheriff’s Office
On 29th January 2019 the Ministry of Housing, Communities and Local Government announced that 5 year electrical installation checks will be mandatory on private rented accommodation in England.
The implementation date has not been confirmed. Landlords and Agents will be given at least a 6 month time frame to familiarise themselves before it comes into force. It will be introduced in a phased approach, in year one, all new tenancies will be affected and in year 2 all existing tenancies will come within scope.
Properties that already have a valid electrical installation condition report (EICR) will not need to replace it until 5 years have passed since it’s issue.
Inspectors must hold the correct qualifications and be competent to carry out the inspection. Financial penalties will apply if this is not complied with.
We will update our members with further information as soon as a date of implementation is confirmed by the government.
Monday 8th April 2019 – 9:30am – 4:30pm
Venue – Astor Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
If you are accredited this will count towards your CPD hours, but the course is open to all.
Cost for SWLA members – £65. Cost for non-SWLA members – £75.
A must attend one day course covering the subjects below and more….
We will review and consider the effect of what has been a busy year of legislative change, look forward to a pivotal year for our industry and consider the impact of recent court cases.
Having progressed now through the House of Lords we will provide you with all the details of the tenant fee act and consider any regulations needed to implement it.
Places secured upon receipt of payment, book your place through the office 01752 510913.
Course will be instructed by Stephen Fowler from Training for Professionals.
SWLA held their Annual General Meeting on Wednesday 23rd January.
Thank you to our members who attended.
A coat was left behind at the meeting, please contact the office if it’s yours.
On Tuesday 22nd January 2019, Cornwall Council hosted the meeting in St Austell, chaired by Joe Roberts (Private Sector Housing Manager). Items discussed included Revenue and Assessment Services update, Home Solutions Team Adaptation Policy update, CRLS update and a plan discussed for the following year’s aims of the group. The progress of the extension of mandatory HMO licencing was also discussed together with notices and prosecutions.
Iain Maitland (Vice-Chair, representing SWLA) and Gillian Kerr (Office Manager and Accreditation Co-Ordinator representing Landlord Accreditation South West) attended the Plymouth Charter meeting on Monday 21st January 2019 to discuss and review the aims and objectives of the Charter.
The committee was chaired by Councillor Penberthy (Portfolio Holder for Housing and Co-Operative Development) assisted by Matt Garrett (Community Connections Service Director). Other attendees were representative of letting agents, housing charities, the social sector, Shelter and CAB.
14th January 2019 saw the 3rd and final reading of the Tenant Fees Bill in the House of Lords. Lord Bourne of Aberystwyth confirmed on the afternoon of 15th January 2019 that subject to the Bill getting Royal Assent, the Tenant Fees Bill will come into effect on 1st June 2019 for all tenancies signed on or after that date.
Throughout the report stage amendments have been made; the deposit cap lowered from 6 weeks rent max to 5 weeks rent max for properties with an annual rent of less than £50,000.00.
The Ministry of Housing, Communities and Local Government believe that the amendments ‘strike a fair balance between improving affordability for tenants whilst ensuring that landlords and agents have the financial security they need’.
The final content of the legislation is not yet confirmed, however key points of the Bill are as follows;
What is exempted form the banned list? Holding deposits, rent, deposits and charges for defaulting on the contract are all exempted however are subject to additional restrictions as part as part of the legislation.
A lead local authority will oversee and police the new measures.
For further information on the Tenant Fees Ban in England;
https://www.rla.org.uk/landlord/guides/tenant-fees-ban-guidance.shtml
Article Abridged from NLA & RLA