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.
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.
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.
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.
UPDATE: On the 14th February, just a week before the revised deadline mentioned in the blog below, Robert Jenrick MP announced a further extension to the evictions ban – until 31st March 2021. All other details in the below post remain accurate at time of writing.
The government has announced a further extension to the ban on bailiff-enforced evictions for private renters in England. The previous restrictions were due to end on Monday the 11th of January, following a month-long ban over the Christmas period. The new extension will be until the 21st of February 2021 and reviewed regularly, meaning that there could yet be another extension.
There are exemptions to the regulations, which include:
Illegal occupation
Anti-social behaviour
Where a property is unoccupied following the death of a tenant
Extreme rent arrears (equivalent to nine months’ rent, excluding any arrears accrued since the 23rd of March)
Claims for possession can still progress through the courts, however a large backlog of claims built up during the Covid-enforced court closure last year. This means that landlords making new possessions claims may face a lengthy wait for their claim to be heard. However, eviction notices will not be enacted by bailiffs until after the evictions ban has been lifted on the 21st of February at the earliest.
Confused?
Even without all of the temporary legislation that has been introduced over the last year, the private rental market is becoming more regulated than ever before. A previous blog revealed that landlords are now required to comply with 156 different laws over the course of a tenancy; it has never been more important for your tenancy to be managed by a knowledgeable, professional and regulated agency.
For guidance on all aspects of tenancy management, or if you are considering letting your property in Bath, contact us on 01225 445777 or info@localhost.
The Ministry of Housing, Communities and Local Government (MHCLG) has confirmed that it is to extend the evictions ban in England until the 20th of September 2020, and will also introduce six-month long notice periods that will run until the 31st of March 2021.
The ban, which was announced in March as a result of the Coronavirus pandemic, was to end on the 23rd of August, with some cases due to be heard immediately at the newly approved Nightingale courts. It has also been confirmed that once the courts do re-open, only serious cases such as those involving anti-social behaviour and domestic abuse will be prioritised.
Now that the ban on evictions has been extended, the Government must use this time to introduce further guidance and prepare the sector. It is important to take steps back towards normality so that both landlords and tenants have access to the justice system while putting measures in place to offer further support to tenants who have built up COVID-related arrears and this four-week extension will give Government the time to introduce such measures.
Timothy Douglas, ARLA Propertymark
MHCLG has advised landlords to work with tenants who are experiencing financial difficulties as a result of the pandemic and consider all possible options – such as flexible payment plans which take into account both parties’ circumstances – to ensure cases only end up in court as an absolute last resort.
Landlords must disclose impact of COVID-19 on tenant
Those cases which do make it to court will be affected by new rules requiring landlords in England and Wales seeking possession of their properties to set out in their claim any relevant information about a tenant’s circumstances.
This information includes what effect COVID-19 has had on a tenant’s vulnerability or whether they are claiming benefits – information should also be provided on how the pandemic has affected a tenant’s dependents, if they have any. However, the rules do not require agents or landlords to actively seek out information but merely to make the court aware of what information is known.
The rules do not change the regulations around possession for landlords and they do not amend Section 21 claims or Section 8 arrears claims. What is changing is some of the steps that landlords must follow if they want to apply for possession through the courts.
STAY COMPLIANT WITH PROFESSIONAL MANAGEMENT
With landlords now needing to comply with nearly 150 pieces of law, it has never been more important for your tenancy to be managed by a knowledgeable, professional and regulated agency.
For guidance on all aspects of tenancy management, or if you are considering letting your property in Bath, contact us on 01225 445777 or info@localhost.
On Wednesday 13th of May, the government removed restrictions on residential lettings and issued strict guidelines, specifying how we can return to work. Safety remains paramount and we have had to radically adapt our methods to ensure that our staff and our customers are safe. The peak of the epidemic may have passed but the virus is still a very real threat and we have a clear duty of care towards everyone we engage with.
From Monday the 18th of May, our office will be staffed, however it will not be open to the general public for safety reasons. We have a self-contained space adjacent to our office (pictured), which is COVID-Safe and can be used for meetings by prior arrangement, if you need to see us in person. Even so, it would be safest for everyone if you were to contact us via email or phone.
We are now able to respond to non-urgent repairs, however many trades have not yet returned to work, and many are finding it difficult to source parts and materials. As a result, there may be a delay in some issues being resolved.
Like many others, we have adapted our processes and procedures during the lockdown period, making use of video technologies and remote working.
Although we are now permitted to return to work and visit properties, many of our clients will continue to act with caution and may prefer to meet with us remotely. If you would like to discuss letting your property, please contact us to arrange a full market appraisal via video call, or in person.
Please note that this blog has been superseded by a more recent post, which details our plans to re-open our office for business. This can be found here.
In response to the ongoing COVID-19 pandemic, we have put in place the below action plan to minimise any disruption to our services, and limit the risk of spreading the virus.
The government has published a document containing guidance for landlords and tenants. The document, which addresses issues including payment of rent, house moves and maintenance, can be found here.
Please note that until further notice, we will be closed on Saturdays. We will also be closed on the early May Bank Holiday, Friday 8th of May. Urgent issues and emergencies can still be reported on our out of hours telephone number – 01225 690069.
Business Continuity Plan
Preventative Measures
How can we prevent spreading the virus?
As of 24 March 2020, all Reside staff will work from home until further notice, and meetings in person will be avoided where possible
Ensure staff have all read and are familiar with this Action Plan; regular team meetings will be held to discuss any potential hazards or concerns
Staff to wash their hands in accordance with NHS guidelines throughout the day, and whenever they return to the office from an appointment
Staff will not share phones
Office door handles, handrails, phones, keyboards and other surfaces to be wiped down regularly with alcohol wipes
It is Reside policy not to shake hands with clients and to maintain at least 2 meter distance when possible
Clear records will be kept of any clients who are vulnerable and / or self-isolating
Staff will make reasonable checks with prospective and current tenants when scheduling viewings, and offer remote viewings if any party has relevant symptoms
Ensure extensive cleaning takes place at tenanted properties in between tenancies
Ask contractors to ensure engineers suffering from relevant symptoms are not sent to managed properties
Reside Staff Self-Isolating
What measures are in place to ensure minimal disruption to our services in the event of full or partial office closure?
All Reside staff have remote access to emails, CRM software and shared folders
Staff have work mobile phones, so can be contacted by colleagues and clients
In the event of a full office closure, telephone calls to the Reside office will divert to the staff’s mobile handsets
Landlords and tenants will receive regular email bulletins, informing them of the office status and any special measures that have been implemented
Our Financial Controller and Managing Director can remotely run payments and send statements of account
Tenants Self-Isolating
How will Reside continue to operate services to landlords, if tenants or prospective tenants are self-isolating?
If prospective tenants or tenants of currently available properties are self-isolating or vulnerable, property viewings cannot take place. Our lettings team has already recorded video property tours, which can be sent out to interested parties
We will ensure compliance with Consumer Protection Regulations by providing to prospective tenants reasonable information about prior residents in relation to the infection and appropriate cleaning measures to take
Routine property inspections will be suspended until further notice. If a specific concern is raised about a property, an inspection will be arranged unless the tenants are vulnerable or self-isolating. Once measures are relaxed, we will catch up on any delayed inspections.
Essential property maintenance and mandatory safety testing will be carried out, unless access is refused by the tenant. Written records will be kept of any instances wherein a tenant has refused access to the property due to self-isolation.
If a tenant advises Reside that they are facing a loss of income due to the Coronavirus, resulting in lack of funds to pay rent, we will notify the landlord immediately and discuss next steps. If the landlord’s mortgage lender requires proof of sickness, we will ask the tenant to supply a copy of their medical certificate.
We will keep tenants informed of government support available to them, so that they can continue to make rent payments
We will notify landlords by email of any temporary changes to our standard services and business terms.
We have temporarily suspended our Guaranteed Payday service until further notice. Whilst we wish to offer landlords the reassurance that this will be reintroduced as soon as possible, the service was not designed or built to endure such an unprecedented scenario.
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.
