We are proud to be members of The Guild of Property Professionals. As Members we are selected to represent the UK’s largest network of independent estate agents in Gravesham. 

The Guild help to shape Government policy and have helped them release another guide in its 'how to' series. 

This complete guide on 'How to Buy a Home' covers everything from applying for a mortgage and instructing a legal representative, all the way through to completion and moving. 

Click here to download the complete guide to buying. 

Today has a busy day for legislation ….

From today, Monday 1^st June 2020, the tenant fee ban is extended to all tenancies.

Tenant fees were banned on tenancies made from June 1 2019 after the Tenant Fees Act became law last year and there was initially a transition period for any pre-existing tenancies.

That period ends today! Best practice would now be to inform your tenants that there may be payments mentioned in their agreements that can no longer be charged (prohibited payments that are no longer valid).

The tenant fee act also introduced capped security deposits at 5 weeks rent (or 6 weeks if the annual rent is over £50,000 - not a regular occurrence in Gravesham!). Landlords do not need to refund any part of an existing Tenancy Deposit that exceeds the cap and can hold this for the duration of the existing tenancy. However, where a tenant renews their tenancy by signing a new Fixed Term agreement on or after 1 June 2019, any amount of their existing deposit which exceeds the applicable five- or six-week limit must be refunded to ensure the new tenancy complies with the tenancy deposit cap.

The Electrical Safety Standards in the Private Rental Sector (England) Regulations 2020 came into force on 1^st April 2020 and today the government have issued formal guidance for Landlords, Tenants and Local Authorities Link (https://bit.ly/2BfN4SS)

The legislation is there to ensure electrical safety standards (as detailed in the 18^th edition of the wiring regulations) are met during any period when the premises are occupied under a tenancy and to ensure every electrical installation in the property is inspected and tested by a qualified person at intervals of no more than 5 years or where the report specifies testing to be at intervals of less than 5 years.

It is important to note that this legislation relates to England only and applies to all new tenancies from 1^st July 2020 and to all existing tenancies from 1^st April 2021.

There is a difference between when an electrical test is required should your tenancy be a contractual periodic or a statutory periodic. The two types of periodic are important and you need to understand what type of contract your tenants are in and the differences ahead of 1^st July 2020.

If a property is already in a periodic (either contractual or statutory) prior to 1^st July 2020 and no changes are made to the tenancy then these would require an electrical test report by 1^st April 2021.

An EICR (Electrical Installation Certificate Report) would be the standard report used and there are various actions required and testing outcomes that need to be adhered to.

Enforcement is by the local authority, who will also determine the financial penalty should the legislation not be adhered to (this must not exceed £30,000).

I hope you found this helpful however should you be unsure about your obligations please contact our team. As always we are here and ready to help!

Coronavirus: Landlord Right to Rent Checks

Right to rent checks have been temporarily adjusted due to coronavirus (COVID-19) to make it easier for landlords to carry them out.

As of 30 March 2020 the following temporary changes have been made:

* Checks can now be carried out over video calls

* Tenants can send scanned documents or a photo of documents for checks using email or a mobile app, rather than sending originals

* Landlords should use the Landlords Checking Service if a prospective or existing tenant cannot provide any of the existing documents

You can read the full Right to Rent guidance during Covid-19 by clicking here.

Minimum Energy Efficiency Standard (MEES) come into force tomorrow, 1 April 2020!

So, what does this mean to Landlords?

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 established the MEES which set a minimum energy efficiency level for all domestic private rented properties in England and Wales that are required to have an Energy Performance Certificate (EPC). Where this applies, and the property has an EPC rating of F or G, landlords must take appropriate steps to comply with the requirements of the MEES regulations.

Landlords – Step 1 – Check the EPC rating of your rented property. If it has a rating of A through to E then no action is required. It might be an idea to check the expiry of your certificate at this time too. If the rating is an F or G then read on….

From 1 April 2020 it is prohibated to let properties with an EPC rating of F and G, even where there has been no change of tenancy. Landlords with properties assessed at EPC F and G must now improve the property rating to E or register an exemption if they want to continue to let it.

It is worth noting that all existing exemptions registered on the basis that a landlord could not get any funding for energy efficiency improvements will end for individual properties on 31 March 2020, instead of after five years. Landlords who had registered such exemptions prior to 1 April 2019 will now be required to make improvements (up to £3,500) to ensure their properties achieve EPC E by 1^st April 2020 – unless a further exemption is successfully applied for.

FUNDING - Since 1 April 2019, landlords of domestic properties with an EPC rating below E must carry out up to £3,500 worth of works improving their energy efficiency even if they cannot obtain third-party funding to meet the costs. If the upgrade to EPC E cannot be achieved for £3,500 or less, then landlords must make all the improvements that can be made up to the cost limit, and then register for an ‘all improvements made’ exemption.

RELEVANT IMPROVEMENTS - The MEES Regulations refer to the concept of ‘relevant energy efficiency improvements’. This is a measure, or package of measures, recommended in the EPC report, which can be purchased and installed for £3,500 or less (including VAT) - the cost cap. Landlords can install any energy efficiency measures, but if their chosen measures are not on the government’s list of ‘recommended energy efficiency improvements’ and they fail to improve the property to EPC E, then landlords cannot let the property or register an ‘all improvements made’ exemption.

Landlords Step 2 – Read the EPC. What are the relevant improvements? Have you already carried out the recommended improvements? If not, you will need to unless you can apply for an exemption.

EXEMPTIONS - There are various exemptions that can be applied for if your property has an energy efficiency rating below an E. If your property meets the criteria for any of the exemptions, you will be able to let it once you have registered the exemption on the Private Rented Sector (PRS) Exemptions Register. Details on the exemptions available and how to apply can be found on the Government's website by clicking here.

Should you need any further information or require assistance in applying for an exemption or instructing a new EPC please contact the office in the usual way. We will be happy to help!

Sarah

We want to make sure there is as much relevant information as possible to assist both Landlords and Tenants at this very diffcult time. Therefore, please see below the Governments press release in relation to exisitng tenancies in England. You can read more guidance by clicking here. 

The government has brought forward a package of measures to protect renters affected by coronavirus (COVID-19). With these in force, no renter in either social or private accommodation will be forced out of their home.

To ensure all renters are clear on the full package of support that is currently available to them, we are bringing this together into one place.

From today (26 March 2020) landlords will have to give all renters 3 months’ notice if they intend to seek possession (i.e. serve notice that they want to end the tenancy) – this means the landlord can’t apply to start the court process until after this period.

This extended buffer period will apply in law until 30 September 2020 and both the end point, and the 3 month notice period can be extended if needed.

This protection covers most tenants in the private and social rented sectors in England and Wales, and all grounds of evictions. This includes possession of tenancies in the Rent Act 1977, the Housing Act 1985, the Housing Act 1996 and the Housing Act 1988. After 3 months if the tenant has not moved a landlord needs to apply to court in order to proceed.

From tomorrow (27 March 2020) following a decision by the Master of the Rolls with the Lord Chancellor’s agreement the court service will suspend all ongoing housing possession action – this means that neither cases currently in the system or any about to go in to it can progress to the stage where someone could be evicted.

This suspension of housing possessions action will initially last for 90 days, but this can be extended if needed. This measure will protect all private and social renters, as well as those with mortgages and those with licenses covered by the Protection from Eviction Act 1977. This will apply to both England and Wales.

Tenants are still liable for their rent and should pay this as usual. If they face financial hardship and struggle to pay this, support is available. In the first instance they should speak to their landlord if they think they will have difficulty meeting a rental payment, and in this unique context we would encourage tenants and landlords to work together to put in place a rent payment scheme. However we have also put specific measures in place:

• We are working with the Master of Rolls to strengthen the pre-action protocol requirement and also extend this to the private rented sector. This will help landlords and tenants to agree reasonable repayment plans where rent arrears may have arisen.

• We have already made £500 million available to fund households experiencing financial hardship.

• As part of the workers’ support package, the Chancellor announced the government will pay up to 80% of a worker’s wages, up to a total of £2,500 per month, where workers are placed on the Coronavirus Job Retention Scheme.

• Both Universal Credit and Housing Benefit will increase and from April, Local Housing Allowance rates will pay for at least 30% of market rents in each area.

The government is also committed to supporting landlords, and maintaining the positive partnership between tenants and their landlords. That is why, in addition to the measures outlined above, we have also agreed with lenders that they will ensure support is available where it is needed for landlords. Landlords will also be protected by a 3 month mortgage payment holiday where they have a Buy to Let mortgages.

Landlords remain legally obligated to ensure properties meet the required standard – urgent, essential health and safety repairs should be made.

An agreement for non-urgent repairs to be done later should be made between tenants and landlords. Local authorities are also encouraged to take a pragmatic, risk-based approach to enforcement.