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Category: Tenants

Landlord Notice Periods To Be Shortened

Posted on by prateek

The government has announced that landlord notice periods will be reduced to four months, starting from the 1st of June 2021.

Under temporary legislation introduced in August 2020, notice periods were initially increased to three months, and more recently to six months, to provide tenants with greater security in their homes at the height of the pandemic.

Whilst the deadline to end these temporary measures has been pushed back several times, MHCLG has now confirmed that it will begin to taper notice periods, starting with a reduction to four months from the 1st of June. If the government’s Roadmap is successful, notice periods should return to their pre-pandemic levels by the 1st of October 2021.

Notice periods have presumably been tapered in this fashion for two reasons; firstly, so as not to dramatically remove this safety blanket from tenants, and secondly to discourage landlords who have already served their tenant with six months’ notice from re-serving a dramatically shorter notice.

“Subject to the public health advice and progress with the Roadmap, notice periods will return to pre-pandemic levels from 1 October. The measures will ensure renters continue to be protected with longer notice periods for the coming months, while allowing landlords to access justice – 45% of private landlords own just one property and are highly vulnerable to rent arrears.”
Housing Minister Chris Pincher

Notice periods for the most serious cases will remain lower, for example substantial rent arrears. If a tenant has accumulated more than four months’ arrears, they can be served four weeks’ notice to end the tenancy.

It was also announced that evictions will recommence on the 1st of June, meaning that bailiff action can again be enacted. However, there still remains a lengthy backlog of possession claims caused by the court closures in 2020, so landlords will have to show patience as their claims progress towards the eviction stage.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

The Queen’s Speech: what it means for landlords & tenants

Posted on by prateek

Those who tuned into the Queen’s Speech on the 11th of May can be forgiven for missing the very brief promise to ‘enhance the rights of those who rent’ – seemingly a very general pledge to review standards across the sector. A delve into the detailed briefing notes, however, reveals three details that will be of particular interest to landlords and tenants.

Abolish Section 21 Evictions

Long before the pandemic interrupted their plans, the government promised to abolish Section 21, or ‘no-fault’, evictions. This is the most straightforward and common way for a landlord to end a tenancy at their property, but its future is now back up for review. The government plans to publish a White Paper in the autumn which will detail plans to reform the evictions process.

Lifetime Deposits

Another long-running government scheme is the introduction of lifetime tenancy deposits, which would see dilapidation deposits move from property to property with the tenant. Under the current system, a tenant must pay a brand new deposit when moving to a new property, which can often cause cashflow issues for the tenant if they are still waiting for their deposit to be returned by their previous landlord.

It remains to be seen how the government’s scheme will offer simultaneous protection to two landlords where there is an overlap in tenancies. Again, more information has been promised in the autumn.

Redress Schemes for Private Landlords

One of the more unexpected announcements was the plan to require all private landlords to belong to a redress scheme, ‘to ensure that all tenants have a right to redress’.

Currently agents, rather than landlords, are required to belong to a redress scheme, such as the Property Redress Scheme, with which Reside are affiliated. If a tenant rents directly from a private landlord, with no agency involvement, their only current source of redress is through the courts. It is therefore likely that this new initiative is aimed at landlords who do not use a professional agency to manage their tenancy.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Reside Review: April 2021

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Tenant Demand Reaches A New High

Despite rarely having more than four properties on the market at any one time, we let more properties during April 2021 than in Aprils 2014, 2015, 2016, 2017, 2018, 2019 and 2020. Tenant demand is outstripping supply to such an extent that we are receiving multiple offers on most properties within days, or in some cases hours, of the property being listed on the market.

New applicant registrations were up by 1.3% on March 2021, and by 137% compared to April 2020.

New electrical regulations apply to all landlords

Last year, new electrical safety regulations were introduced that required safety testing to be carried out for all new tenancies. On the 1st of April, this was extended to cover all existing tenancies as well – so if you are with a landlord with an occupied property, you must now have an electrical safety certificate in place. This must be renewed every five years. Where category C1 or C2 issues are diagnosed by the electrician, remedial works must be carried out within 28 days and the local authority informed.

Tenants must be given ‘Breathing Space’

The government’s new Debt Respite Scheme, or ‘Breathing Space’, came into force on the 4th of May and entitles people in problem debt (e.g. a tenant) to a temporary period of respite from a creditor (e.g. a landlord or letting agent).

A Breathing Space will pause most enforcement action, creditor contact, and interest and charges on a person’s qualifying debts, so that they can consider their options and engage with professional debt advice.

We will bring you a more detailed blog about this scheme in the coming weeks.

Important Dates in May

The Queen’s Speech on the 11th of May promises to be an important one for landlords and letting agents. It is widely expected that the Prime Minister will return to the Renters’ Reform Bill, bringing the future of Section 21 back into sharp focus, alongside lifetime deposits for tenants.

Temporary legislation permitting landlords and agents to carry out Right to Rent checks virtually will come to an end on the 17th of May. From that date, all Right to Rent checks must once again take place in person.  However, after successful lobbying by ARLA Propertymark, a recent revision to the regulations now means that landlords will now not have to redo the virtual checks that have been carried out during the pandemic.

Update: since publishing this blog, the government has announced a one month extension to virtual Right to Rent checks. In-person checks will now be mandatory again from the 20th of June.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Reside Review: March 2021

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AWARDS RECOGNITION FOR RESIDE

We are delighted to have been recognised as the leading Bath lettings agency in the recent Bath Property Awards, an annual event hosted by Mediaclash (the terrific people behind Bath Life, Bath Boules) to celebrate the city’s property sector.

In an enterprising online ceremony, the panel of local judges commended Reside on our growth in 2020 and the way in which we responded to the challenges of the pandemic.

A great big thank you to our wonderful team and clients for helping us to achieve this award!

MARKET UPDATE

The rental market in March 2021 continued to follow the recent trend of high tenant demand, low property supply. Regardless of this, total lets agreed over the course of the month were still higher than March of last year.

Despite going into the first ever national lockdown in March 2020, it was still a relatively strong month for new lets, so to more lets this March demonstrates that we are still in a strong climate for landlords looking to bring their property to the rental market.

IMPROVED VIDEO TOURS

Video marketing has become essential when putting a property on the rental market. We are one of the only agencies to advertise every property with a video tour, but have still been working hard to improve this aspect of our service because of just how important it is.

Having invested in a new state of the art camera, we now record a 4K video tour for every property that we list on the market. This allows perspective tenants, no matter where in the country they are, to look around the property in crystal clear definition. Here is an example:

PROPTECH INSIGHT

We are delighted that our General Manager, Toby Martin, has been asked to join the Propertymark / REACH UK insight panel.

Toby will be joining hand-picked representatives from other forward thinking agencies across the UK to meet with property technology companies, to review and provide feedback on their products. This allows us early access to a great deal of the exciting new technology and software that is being developed for our sector, and will in the long run help to make us more dynamic and efficient.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Budget 2021: Key Points For Landlords & Tenants

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In this video, Reside’s Toby Martin summarises the main points of interest in the 2021 Budget for landlords and tenants.

These key points include the extension to the stamp duty holiday, the upcoming increase in corporation tax which may affect a very select few landlords, and a question mark over the future of capital gains tax.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Reside Review: February 2021

Posted on by prateek

There has been continued demand for rental properties in Bath throughout February 2021, maintaining the trends we saw in January when demand outstripped supply.

Smaller, more ‘typical’ investment properties have let very easily throughout the month, and while there has been fair demand for family homes, there have been precious few available on the market. At the very end of the month, we saw several larger properties return to the market as tenants gave their notice; as we grow closer to half term and Easter beyond, we will likely see this market become more active as families, who are traditionally reluctant to move during the winter months, start to make plans for the year ahead.

The lockdown that ran throughout February has not had a major impact on our activity; it has become common knowledge that our sector has been permitted to continue working, so tenants have been free to proceed with home moves and viewings. It has been encouraging to see how well clients have responded to the Covid safety measures we have in place, which have served us very well thus far.

On that note, B&NES council has made asymptomatic Covid testing available to local workforces who are unable to work from home, and come into regular contact with the public. This means that our staff will be able to get tested on a weekly basis, giving our clients even more reassurance that we are taking every precaution to safeguard their health.

Rightmove data shows a shift to rural areas

Data released by Rightmove during February shows a definite shift from major cities to more rural areas over the course of 2020. The area hit hardest was Greater London, which saw average rents drop by 6.4% over the year. In contrast, average rents in the South West increased by 5.4%, although it should be pointed out that parts of Devon and Cornwall, where rents are typically lower than in Bath, will have contributed to this figure.

Source: Rightmove.co.uk

The much-publicised exodus of renters from London is certainly something that we have witnessed in Bath, and we expect this to continue throughout the year as lockdown restrictions are relaxed. Cities such as Bath, with strong transport links into the capital, are prime destinations for renters looking to escape densely populated, built-up areas.

Bath Celebrates Its Property Sector

The Bath Property Awards are almost upon us, and we are delighted to be nominated as finalists. Held on Friday 12th March, the online ceremony brings together businesses from all corners of the property sector; it is remarkable to see the strength and diversity in the businesses nominated across the categories. Regardless of what happens in our ‘lettings agent’ category, it’s a pleasure to be in such enterprising and esteemed company.

Do check out the Bath Property Awards website to read more about the other businesses involved.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

Chancellor Urged To Act On Tenant Debt

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A coalition of property and housing organisations, including Reside’s regulatory body ARLA Propertymark, have come together to call on Chancellor Rishi Sunak to help private renters pay off COVID-19 rent arrears and help sustain existing tenancies.

Across the nation, at least half a million private renters are in arrears due to the economic impact of COVID-19. The UK Government’s own research shows that ‘private renters report being hardest hit by the pandemic’.

The joint statement issued by Propertymark, NRLA, The Big Issue Ride Out Recession Alliance, Citizens Advice, Joseph Rowntree Foundation, Crisis, Money Advice Trust, Nationwide Building Society, The Mortgage Works, StepChange Debt Charity and Shelter welcomes many of the measures taken to date, but goes on to say that they do not go far enough to adequately protect renters going forward. Without additional support, more renters will lose their homes in the coming months, with the risk of an increase in homelessness.

In order to sustain tenancies wherever possible, these organisations maintain that these two pledges are required in the forthcoming budget:

1. A targeted financial package to help renters pay off arrears built since lockdown measures started in March 2020. This will help to sustain existing tenancies and keep renters in their homes, whilst also ensuring rental debt does not prevent them from finding homes in the future.

2. A welfare system that provides renters with the security of knowing that they can afford their homes. The pandemic has shown how vital this is to providing security at a time of crisis. The Government increased Universal Credit and Housing Benefit because it recognised that the system was not doing enough to support people in the first place, yet it has chosen to freeze Housing Benefit rates again from April and is considering cutting Universal Credit at the same time. It cannot be right that these measures could be pulled away from renters during continued economic uncertainty.

The Chancellor is being urged to take action now to avoid renters being scarred by debts they have no hope of clearing and a wave of people having to leave their homes in the months to come.

At Reside, we have worked with our tenants to keep levels of rent arrears very low, however we recognise that the end of the Job Retention and Self-Employment Income Support schemes will present fresh challenges. Additional support for tenants will be needed to avoid a dramatic drop-off in income, for those who are currently reliant on the furlough scheme and self-employment support grants.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

The Great Pet Debate

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What does the government’s new stance on pets mean for tenants and landlords?

Despite being a constant threat to Zoom meetings, pets have provided a valuable lifeline during the Covid-19 pandemic; they are known to decrease anxiety, save us from loneliness and help establish daily routines. It is therefore perhaps unsurprising that The Kennel Club has reported a 180% increase in enquiries from potential dog owners, and visits to the puppy fostering pages of the RSPCA website have soared by 600%.

Pet ownership in privately rented properties has, however, never been straightforward. The decision on whether to permit a pet in the property lies entirely with the landlord and, whilst some are very accommodating of their tenants’ requests, others approach the subject with more caution.

Landlord Concerns

So why would a landlord decline a tenant’s request to keep a dog or cat in their home? Usually, it boils down to concerns over increased wear and damage during the tenancy. When a pet is allowed by the landlord, the pet is considered an ‘occupier’ of the property; they will therefore contribute to the fair wear and tear that the landlord must accept is inevitable, for which the tenant must not be held accountable. Many landlords also fear for increased damage over the course of the tenancy and, whilst damage can be attributed to the tenant, the introduction of deposit caps put an end to the practice of additional pet deposits. This has predicated a more cautious approach among many landlords, who feel it sensible to reduce the risk of tenant damages to a minimum.

Another frequently cited reason for declining a pet request is a restrictive covenant in the building’s head lease. An occupier of a property that is subject to a head lease may find that the lease prohibits pets of any kind in the building, usually in an effort to reduce noise complaints between apartments. If this is the case, there is little that a landlord can do to accommodate their tenant’s request.

Pet Consent By Default

Last week, the government updated its standard Assured Shorthold Tenancy Agreement to give tenants more freedom to keep pets in their properties. It is not a requirement to use the government’s model AST, we at Reside use the ARLA Propertymark tenancy agreement, but it perhaps gives us an insight into the government’s future intentions.

Under the new clause in the government’s tenancy agreement, it is deemed that the landlord has granted permission for pets to be kept at the property, unless they provide the tenant with a good reason why this cannot be permitted within 28 days of receiving such a request:

The Landlord should accept such a request where they are satisfied the Tenant is a responsible pet owner and the pet is of a kind that is suitable in relation to the nature of the premises at which it will be kept. Consent is deemed to be granted unless the written request is turned down by a Landlord with good reason in writing within 28 days of receiving the request.

According to a guidance note, a ‘good reason’ to decline a pet request would be ‘large pets in smaller properties or flats, or otherwise properties where having a pet could be impractical’. These definitions are open to interpretation, and it remains to be seen how the government would define this in law.

On The Agenda

Prior to the last general election, the Labour Party outlined a policy that would give renters a default right to keep a pet. With the Conservative government now adopting a similar stance, albeit currently in a non-binding way, there seems to be cross-party support for the initiative. With the Tenant Reform Bill due to be revisited later in the year, it would be no surprise if the government introduced legislation in line with the recent changes to their model AST, something that was perhaps alluded to by Housing Minister Robert Jenrick when launching the new model tenancy agreement: “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.”

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.

5 Reasons To Be Positive About The Rental Market In 2021

Posted on by prateek

Despite the current lockdown restrictions, we are all eager to find reasons for optimism in the year ahead. The cloud that engulfed 2020 has certainly not given way, but it has perhaps been lanced by some stray rays of sun thanks to the vaccine rollout.
Given the current need for positivity, what reasons are there to be cheerful about the property rental market over the next 12 months?

1. The Market in 2020

Rather unexpectedly, the rental market in 2020 remained buoyant to the end. The lengthy slump in activity that we all anticipated during the first national lockdown never came about, as agents and tenants adapted, and video tours came to the fore. Between March and September 2020, a staggering 54% of properties let by Reside were achieved without the need for a physical viewing – such was the success of our virtual tours. When the second national lockdown came around in September, the government took the decision to keep the property market open and allow viewings to continue, a policy that they have thus far maintained.

Strong demand from tenants, allied with a healthy supply of properties (partially from landlords exiting the holiday rental market) meant that 2020 was a remarkably busy year. We let more properties during 2020 than in any other year in the Reside’s history – a staggering outcome, all things considered.

There is no reason why this should change in 2021, so we expect it to be another strong year for both supply and demand of rental property.

2. Whatever Happens, We’re Ready

Whilst we hope that there are brighter times ahead, it seems likely that there could be further lockdown restrictions before things start to improve. But whatever 2021 throws at us – we’re ready.

Every aspect of our management service can be carried out from home, if need be. Every member of staff is set up with home access to our phone and computer system; property inspections can now be done remotely; we have a system for contactless check ins and check outs; contracts can be signed remotely; Right to Rent checks are carried out virtually and, as we’ve already established, properties can be marketed very effectively without anyone needing to leave their home.

Regardless of any restrictions that are put in place over the course of this year, we will be able to provide a full and professional service to our tenants and landlords.

3. Destination: Bath

Bath landlords can look forward to increased demand in 2021, as we expect the city to be a popular destination for renters leaving London (no, let’s not call it Lexit). It is widely thought that there may be something of an exodus from the capital post-Covid-19, as new working from home regimes reduce the need to commute so frequently.

4. Return of the Renters’ Reform Bill

The much-discussed Renters’ Reform Bill is slated make a reappearance later in the year. It formed part of the Queen’s Speech in December 2019 and was widely expected to progress through Parliament in 2020, until the government became preoccupied by more important matters. But with the private rental sector being inundated by so much new legislation, why is this a cause for optimism?

The Bill’s two main promises that have been outlined so far are to scrap Section 21 evictions, and to introduce lifetime deposits for tenants. If done correctly, both of these changes could be positive for landlords and tenants, so this key piece of legislation is an opportunity to improve the current system.

Lifetime deposits will travel with tenants from property to property, reducing moving costs for tenants and making the moving process easier and less costly.

Section 21 (or ‘no-fault’) evictions have long been in the crosshairs of the main political parties, and its departure is inevitable. ARLA Propertymark has lobbied the government to replace Section 21 with a more efficient system that would be fair to diligent landlords, and provide tenants with security of tenure. The detail of ARLA’s proposal can be found here, but it is not yet known what the government’s approach will be.

5. A return to normal

We have become so entrenched in our ‘new normal’, that the prospect of a return to the ‘old normal’ seems unfathomable. Nonetheless, if the vaccine rollout is successful, we can dare to dream of a return to some sort of normality later in the year.

Whilst it remains to be seen what a post-Covid world looks like, we will bring many lessons learned from the pandemic forward with us. Over the last year, we have been forced to embrace new technologies, pair back and hone our services, and work more diligently and harder than ever before. Although we wish this had never been necessary, we have discovered ways to be more efficient and innovative than ever before. Whenever we do finally emerge from the pandemic, Reside will be stronger and better for it.

Reside is an award-winning independent letting agent in Bath. Please get in touch if you would like to discuss any aspect of letting or managing your property; we would love to hear from you.