Lettings Reforms

Lightening of covid restrictions on bailiff evictions this month will be making many UK landlords happy. Bailiffs are now permitted to enforce evictions, following the ban on evicting tenants displaying Covid symptoms or self-isolating. 

Eviction notice periods previously extended to six months have also been reduced to four, with aims to reduce the notice period back to normal parameters from 1st October.

This lightening of restrictions on letting should help to protect landlords who rely on their monthly rental income to support their mortgage.

The new deposit passport is also sparking interest. Anticipated later this year, the government has pledged to reform the deposit process. The idea will be that tenancy moves will be smoother and easier, with the deposit made to the original landlord being directly transferred to the new one.

This would mean tenants struggling to find a new deposit, usually in excess of £1,000, would avoid having their previous deposit locked in with their current landlord, making the process much quicker for all concerned. 

Landlords would still be able to claim part of the deposit if needed, and the tenant would be able to top up their deposit fund, too. 

A new Cladding Fund of a substantial £3.5million is being introduced by the government will also lift the spirits of landlords and tenants alike.

The safety of tenants and rented property will be supported, with long-term, low-interest loans being made available to private apartment owners with blocks of under six storeys high, with funding assistance free to larger buildings. 

Mortgage companies should be assured by those taking the loan as an affirmation of the building’s value, helping relevant property owners looking to re-mortgage. The measures should also increase property owners’ chances of achieving a sale.

Further safety measures are being taken to benefit tenants of Assured Shorthold Tenancies. New mandatory electrical checks are to be made every five years. The Electrical Installation Condition Report (EICR) will raise any issues where work is required.

Private landlords will need to make sure that the electrical installations are safe by having them inspected and tested by a competent, qualified inspector.

The landlord must attain a dated report with the results from the inspector, which also sets the date for the next inspection and test. The report must be made available to tenants when they start their tenancy, or within 28 days of it being requested by the tenant, and if requested by a local authority, within 7 days.

Any repairs or investigations required must also be made within 28 days of the original test and confirmed in writing to the local authority and tenant within 28 days.

HMO licences will also include a mandatory condition that all of their electrical installations are in proper order, as well as safe.

If you require specific advice in regards to your investment property, you can contact our Lettings departments at lettings@mackenziesmith.co.uk.

Fleet, Hook, Hartley Wintney, Yateley: 01252 514000

Farnborough, Ash Vale, Aldershot: 01252 551045

Sources:

https://www.gov.uk/government/publications/understanding-the-possession-action-process-guidance-for-landlords-and-tenants/understanding-the-possession-action-process-a-guide-for-private-landlords-in-england-and-wales

Coronavirus: Support for Landlords and Tenants

https://www.lettingagenttoday.co.uk/breaking-news/2021/4/renters-reform-bill-timetable-for-new-measures-may-be-clearer-next-month?source=newsticker

https://www.gov.uk/government/news/queen-s-speech-delivering-fairer-more-affordable-homes-for-buyers-and-renters

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/814688/Tenancy_Deposit_Reform_Call_for_Evidence.pdf

https://www.gov.uk/government/news/government-to-bring-an-end-to-unsafe-cladding-with-multi-billion-pound-intervention

https://www.gov.uk/government/publications/electrical-safety-standards-in-the-private-rented-sector-guidance-for-landlords-tenants-and-local-authorities/guide-for-landlords-electrical-safety-standards-in-the-private-rented-sector