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Renter’s Rights Bill – What does it mean for you?

Posted on by prateek

The renter’s rights bill was published last week. It is important to note that the following is not yet law as it must be passed through parliament. Many Landlords are apprehensive about these proposed sweeping changes to the private rental sector. So, let’s explore the bill’s key points and what this means for tenants and landlords.

THE ABOLITION OF SECTION 21 NOTICES –

Section 21 evictions have been long used by landlords as a means of terminating a tenancy agreement without any reason.  This system will be replaced by a new measure that will only permit evictions under certain conditions, such as rent arrears or the landlord wishing to sell up. Whilst this may initially be seen as restrictive, it has been on the horizon for a while as this was also a measure proposed in the Renters Rights Act, the previous bill by the conservative party, and we have previously spoken about the limited impact this change may have.

Going back to the point, landlords in Bath and beyond will now need to follow stricter legal grounds for eviction and ensure that they are treating their tenants fairly and making sure they are not displacing their tenants.

RENTAL INCREASES AND BIDDING WARS –

Rent control mechanisms in the Bill aim to standardize rent increases across the board. It has been proposed that landlords will only be allowed to raise rents once a year and tenants will have the power to challenge this, if they deem the rent increase as excessive, at a tribunal. The aim here is to prevent unfair rental hikes from being used as an undercover eviction. Despite this, Landlords will still be free to increase the rents in line with market rates.

Another significant proposed change is the prohibition of bidding wars. In recent years since the rental market demand has far exceeded supply, there has been an increase in these rental bidding wars where tenants are bidding higher than the advertised rent to secure a property they may know has been garnering a lot of interest. Under the Renters Rights Bill, this practice will be outlawed. Lettings agents and Landlords will be forced to publish a clear asking price for rent and will not be allowed to accept offers over this rate.

DECENT HOMES STANDARD AND AWAAB’S LAW –

The introduction of the Decent Homes Standard into law aims to make sure that all properties in the private rental sector abide by a minimum safety and quality standard. Landlords in Bath and beyond will need to make sure their properties comply with these standards or they will risk facing penalties. This is an expansion of the existing standard that applies to social housing, ensuring those in the private rental sector are entitled to the same level of safety and decency in their homes.

Awaab’s Law, named after a traffic case of a child who died from exposure to mould in social housing, will also be extended to the private rental sector. This will place a legal requirement on landlords to address serious health hazards within a specified time frame. Whilst this may seem like a major regulatory burden, many landlords are already maintaining these standards so will find compliance with these new regulations relatively straightforward.

RENTING WITH PETS –

Another headline from the bill is the enhanced ability for tenants to keep pets. Landlords will no longer be allowed to refuse pet requests without reasonable grounds. However, to address concerns about the potential damage a pet may cause to the property, landlords can now require pet insurance to cover any damage.

STRENGTHENED LOCAL AUTHORITY POWERS –

Local councils will be granted additional powers to enforce the rules laid out in the Bill. This included the ability to levy fines of up to £7,000 for initial breaches of the above, and escalating to £40,000 for repeat offences. Whilst these new powers may be daunting, they are largely targeted at rouge landlords, and those who already comply with existing regulations are likely to be unaffected.

If you have any further questions, then do not hesitate to get in touch and if you would like to read further into this then click the link below ⬇️

https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a

Reside Review: September 2021

Posted on by prateek

The latest in lettings, from Bath and beyond. This month: pets, notice periods and the Renters’ Reform Bill

Over the course of this year, we have firmly established that demand from tenants is comfortably exceeding property supply, with many tenants struggling to secure their property of choice. Reside’s vital statistics over the last month bear this out – average letting time of 3.5 days, achieving an average of 102% of the advertised rent, and agreeing more lets over the course of September than in any other month since the company’s inception.

At this time of year, we usually urge landlords to bring their property to the market as quickly as possible, to avoid the quiet winter market. Whilst that is still advisable, it is difficult to image demand dwindling during November and December, as there are still a great many home-hunters who have been unable to secure a property.

Supply is bound to reduce further between now and the end of the year, meaning that there will still be fierce competition for those properties that do come to the market.

Pet Deposit Peeve

The government has clarified that it will not revisit the deposit caps that were mandated by the Tenant Fees Act. Conservative MP and pets campaigner Andrew Rosindell has led calls for reforms that would make it easier for tenants with pets to secure properties, and the reintroduction of additional pet deposits was widely considered to be most practical way to achieve this.

Deposits are currently capped at 5 weeks’ rent, or 6 weeks’ for high rent properties. This has seen the majority of landlords adopt a more cautious approach to tenants with pets, due to concerns about additional damage being incurred and not adequately covered by the deposit.

Notice Periods Return to Normal

Notice periods finally returned to their pre-pandemic levels on the 1st of October, for the first time since March 2020. Landlords, who had previously been required to serve three, then six, then four months’ notice on their tenants under Section 21, are again able to serve two months’ notice to bring their tenancy to an end. Tenants, whose notice period remained unaffected throughout the pandemic, can serve one month’s notice to end a tenancy.

Reform In The Pipeline

This year’s Queen’s Speech put us on notice that a significant White Paper would be delivered by the government this Autumn, which will propose significant changes to the private rented sector. Whilst recent comments by Housing Minister Eddie Hughes from the Department of Levelling Up, Housing & Communities have suggested that these are still some weeks away, the minister did clarify that lifetime deposits and Section 21 are very much on the agenda.

We want to get this right. For example if we start from a position of ‘Landlords Bad/Tenants Good’ then the approach might be too stringent for landlords and they’ll be forced out of the market. We don’t want that.
Eddie Hughes MP

Lifetime deposits will allow a tenant to port a single deposit between tenancies, avoiding the need to pay a new deposit at the start of each new tenancy.

Section 21, also known as ‘no-fault evictions’ has long been in the crosshairs of the government, but it remains to be seen how the evictions system will be reformed.

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.

Tenants: 5 Tips To Help You Secure That Property

Posted on by prateek

Reside’s Toby Martin on how to get to the front of the queue in such a competitive market.

Since the beginning of 2021, the rental market has been overwhelmed by demand from tenants looking for new homes. At the same time, supply of available properties has dwindled, thereby creating a very difficult environment in which to secure your next move.

Here are our top 5 tips to beat the competition and secure that perfect property:

1. Register with the local letting agents

If we have a registered tenant on our books who we think would suit a newly available property, we will share it with them before the property comes onto the open market; our last few properties have all been let in this way, without the need to list them on Rightmove. If you are scanning Rightmove or On The Market on a daily basis, or waiting for their property alerts to arrive in your inbox, you will miss out on a great many properties.

Speak with the local agencies and make sure you are registered and known to them; you might just be given the opportunity to rent a property that never comes to the market.

2. Embrace technology

Video technology has really come to the fore during the pandemic, and our video tours have enabled a great many people to view and rent properties without needing to leave their homes. As we are now emerging from lockdown restrictions, these video tours have taken on a new use – enabling tenants to be the first to view a property, and get ahead of the rush. We are still agreeing many lets without carrying out physical viewings, thanks to our high quality and comprehensive video tours.

3. Be decisive

If you think you have found the right property, don’t waste time in expressing your interest and submitting an offer. If you take too much time to consider your options and view other properties, you may well miss out.

4. Make your first offer your best offer

In a normal market, we are quite accustomed to receiving an ‘initial’ offer from a prospective tenant, who is anticipating a negotiation with the landlord before agreeing terms. In the current climate, we are frequently seeing tenants submit their best and final offer from the outset, in the knowledge that they may face competition to secure the property.

5. Express yourself

Don’t be afraid to let your personality come across to the landlord. Landlords are not purely swayed by the terms of your offer, they are also looking for tenants who come across as friendly, reliable people – someone who will care for the property in which they live.

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

Posted on by prateek

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.

General Election 2019

Posted on by prateek

WHAT IT MEANS FOR THE PRIVATE RENTAL SECTOR

Heated debates over Brexit and the future of the NHS may have dominated headlines in the run-up to this year’s snap General Election, but when voters go to the polls on 12 December they will also have their say on a broad spectrum of policies which will plot the direction of the United Kingdom for the foreseeable future. Flagship housing policies have been announced by all of the main parties, each of which would mean significant changes for the private rental sector. Change is coming for landlords and tenants alike, regardless of who has the Downing Street keys come the New Year.

Armed with a strong brew and a highlighter, we trawled the manifestos to bring you a summary of the main partys’ plans for the sector.

The Conservative Party

Before an election had even been called, the Conservatives outlined their intention to abolish Section 21, or ‘no-fault’ evictions; their manifesto follows through on this promise. It is expected that Section 21 of the Housing Act will be replaced by a reworked version of Section 8, which would allow landlords to take back possession of their property if they had a valid reason, for example a breach of contract or to sell. The government sold this as a fairer solution for both tenants and landlords by promising greater security to tenants, and a simpler, faster eviction process for landlords with a genuine reason for seeking possession.

We will bring in a Better Deal for Renters, including abolishing ‘no fault’ evictions and only requiring one ‘lifetime’ deposit which moves with the tenant.

The Tories’ manifesto also plans to introduce a ‘lifetime’ deposit which moves with the tenant from property to property, also known as tenant deposit passports. In practice, this will allow a tenant to port their existing security deposit to their next tenancy; it is not yet known how deposit deductions or tenancy overlaps will work. A working group formed of the various deposit protection schemes had been due to report back to the government in the autumn, but the election has forced the Conservatives’ hand.

The only other reference to the sector in the Tory manifesto is an allusion to a policy introduced in 2015, protecting tenants from ‘revenge evictions’. We can only assume that legislation and enforcement of this issue will be tightened to give tenants greater protection against unscrupulous and ill-informed landlords.

The Labour Party

Jeremy Corbyn’s manifesto says that the UK’s 11 million tenants are ‘at the sharp end of the housing crisis’, and promises urgent action to protect private renters. Plans for open-ended tenancies will mean an end to no-fault evictions, echoing the Conservatives’ intentions to scrap Section 21, whilst rent increases would be capped at inflation. Labour would also give local authorities powers to introduce rent caps, should rents locally be deemed excessive against the national average.

We will take urgent action to protect private renters through rent controls, open-ended tenancies, and new, binding minimum standards.

An annual property ‘MOT’ would replace current landlord safety requirements, with hefty fines, landlord licensing and renters’ unions in place to hold sub-standard homes and rogue landlords to account. One of the party’s more radical policies is the introduction of national licensing for landlords.

Labour would abolish the Conservatives’ contentious Right to Rent policy, which in March 2019 was found to be in contravention of human rights law. This would remove the burden on a landlord to check the immigration status of their tenant before and during their tenancy.

The Liberal Democrats

Jo Swinson’s most eye-catching policy for the private rental sector is the introduction of a Help to Rent scheme, which would provide government-backed deposit loans to first-time renters under the age of 30. This has drawn criticism from some who believe the government should be supporting the younger generation into home ownership; however, Swinson maintains that increasing numbers of young people require state support in order to break into the rental market.

To reform the private rental sector, we will help young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time renters under 30.

The Liberal Democrats complete the triumvirate of major parties who have pledged greater security to tenants in the form of longer-term tenancies. Whilst they have not explicitly pledged in their manifesto to remove Section 21, the party voted in favour of doing so at their Bournemouth conference last September. They would also introduce a cap on annual rent increases, linked to inflation.

The Lib Dems’ final flagship rental policy is the mandatory licensing of all private landlords, in order to improve enforcement of current regulations.

What does it all mean?

Regardless of your political inclinations, landlords should accept that changes will be made to the sector after the 12th of December, but behind the dramatic headlines are policies which will have little impact on most conscientious landlords.

Section 21 evictions are going to be abolished, regardless of who holds the keys to Number 10, but landlords should find succour in the fact that reforms to Section 8, if done correctly, may actually simplify the eviction process for landlords with a legitimate reason to seek possession of their property.

Proposed rent controls will restrict annual rent increases to inflation, however most standard tenancy agreements already cite RPI as the bellwether by which to gauge rent reviews.

All three parties are seeking to make life more difficult for ‘rogue landlords’, their message being that dutiful landlords with a keen awareness of their obligations should have nothing to fear. Proposed landlord licensing or tightening of legislation is intended to clamp down on those landlords with little care or knowledge of the law.

Whilst it is not included in any manifestos, it is still widely expected that all letting agents will be required to comply with the recommendations of the RoPA Report, which proposed mandatory qualifications and licensing for all professional agents; something which Reside already complies with by virtue of our ARLA Propertymark membership.

With changes to the sector undoubtedly coming soon, and strict enforcement of housing legislation being proposed, there has never been a better time for landlords to employ a qualified, knowledgeable and regulated letting agency.

If you are a landlord with property to rent in Bath, please don’t hesitate to contact us – we would love to help.

First time landlords invest as tenant demand increases

Posted on by prateek

Bath shutterstock_101583367

A recent study by major buy-to-let lender, Paragon Mortgages, found an increase in borrowing by first-time landlords as compared to the same time period last year.

Similarly, the percentage of business coming from landlords looking to grow their rental portfolios also increased.

John Heron, director of Paragon, said: “It would seem that an investment in property is increasingly attractive against a background of low returns on cash and volatility in global markets.”

“With perceptions shifting in terms of the improved availability of buy-to-let finance too, the lending industry is in a good place to support the ambitions of both new and experienced landlords.”

Also of interest to new landlords are the increases in average monthly rental costs in England and Wales – up by 3.5% in the 12 months to May 2013, according to LSL Property Services’ buy-to-let index.

David Newnes, director of LSL Property Services, said: “With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable – which will keep demand for rented accommodation high.”

He added that “private renting will become a more and more vital aspect of the economy.”

In line with these findings, we at Reside are seeing local demand for properties increasing significantly. July 2013 was our busiest month ever in terms of properties let, which were up 44% compared to July 2012 and 116% compared to July 2011. New properties added to our website also rose by 33% in July 2013 compared with last year.

Given also that rent arrears and voids are in decline, according to the National Landlords Association, this suggests that now is an excellent time for new landlords to consider investing in rental properties.

Reside introduces regular lettings newsletter

Posted on by prateek

The first Reside eNewsletter, packed with the latest lettings news locally and nationally, was yesterday sent out to Reside landlords, colleagues and contacts. The first edition included stories on Reside’s sponsorship of a local Prince’s Trust event, the estimated rise in home rentals over the coming years, and much more.

To view our first eNewsletter, please click here.

To subscribe to future eNewsletters, please click here.