Book a Property Valuation
20Oct

Prime Minister Liz Truss has confirmed her government's commitment to abolishing section 21’s under the Renters' Reform Bill.

The paper proposes simplifying tenancy structures by transitioning all tenancies to periodic - meaning that the tenancy will end only if the tenant chooses to leave, or if the landlord has a valid reason, as defined by law.

 

What is section 21?

At the moment, in normal circumstances, when extended notice periods are not in place, landlords can evict their tenants under section 21 by providing them with two months’ notice once their fixed-term contract has come to an end.  Landlords aren’t required to provide their tenants with a reason for eviction, hence the term “no-fault” eviction.

What's changing for section 21?

One of the proposed changes set out in the Renters' Reform Bill and confirmed in the new white paper, is to remove section 21 eviction notices.

The abolition of section 21 would put an end to so-called “no-fault evictions”, and instead transition all tenancies to periodic, as part of the on-going project to create longer tenancies. 

What do these changes mean for landlords and tenants?

After the end of section 21, landlords will always need to provide their tenants with a reason for ending a tenancy, for example, breach of contract or wanting to sell the property.

Tenants will be able to choose to end the tenancy at any time, as long as they provide two months' notice to the landlord.

What will replace section 21?

Once section 21 is abolished the government has also proposed  strengthening the grounds for possession under section 8 of the Housing Act 1988.

The government state that the changes it makes will ensure that "responsible" landlords can gain possession of their properties efficiently from anti-social tenants and will be able to sell their properties when they need to.

How will these changes to section 21 affect tenancy lengths?

This new single system, with all agreements moving to periodic, will mean that there will be no set end date on a tenancy.

All Assured and Assured Shorthold Tenancies will convert to periodic tenancies, and the tenant will be able to give two months' notice at any time to leave the property, while landlords must provide a valid reason to ask their tenants to leave.

In some instances, such as the landlord wishing to move into the property or to sell it, landlords will not be able to evict a tenant within the first six months of the contract start date. 

When will section 21 be abolished?

When section 21 is scrapped, the government will transition to the new system in two stages, with at least six months' notice of the dates that they will take effect, and at least 12 months between the two dates. 

  • Stage one will transition all new tenancies to periodic, governed by the new rules
  • Stage two will move all existing tenancies to the new system

The government has outlined that the Renters' Reform Bill, including these measures to abolish section 21, will be "introduced in this parliamentary session".

Watch this space …. We will keep you updated when we know more on about the date this will be introduced.

If you are concerned or have any questions, please do not hesitate to contact me at the office.

 

Gemma Scott-Davies – Lettings Manager

01474 321957

17Jun

THE PRIVATE RENTED SECTOR IS CHANGING!

On 17th June 2022, the Government set out their plans to reform the Private Rented Sector, outlining their proposals for the Renters Reform Bill - detailed in parliament as the Fairer Private Rented Sector White Paper.

Proposals include:

 

Abolishing section 21

Section 21 will be abolished, so that landlords will only be able to evict a tenant in reasonable circumstances, which will be defined in law.

 

Reforming grounds of possession under Section 8

The government will reform the grounds of possession under Section 8.  A new mandatory ground for repeated serious arrears, making eviction mandatory where a tenant has been in at least two months’ rent arrears three times within the previous three years, regardless of the arrears balance at hearing. A new ground will be introduced for landlords who wish to sell their property and allow landlords and their family members to move into a rental property. 

 

The notice period for the existing rent arrears eviction ground will be increased to four weeks while the mandatory threshold of at two months’ arrears at time of serving notice and hearing will remain. In cases of criminal behaviour or serious antisocial behaviour, the notice period for the existing mandatory eviction ground will decrease.

 

Requiring properties to meet the Decent Homes Standard

Minimum housing standards for the private rented sector (PRS) will be introduced by widening the application of the Decent Homes Standard, which currently only applies to the social housing sector. Under the Decent Homes Standard, homes must be free from serious health and safety hazards and landlords must keep homes in a good state of repair so renters have clean, appropriate and useable facilities. The government will also expand Rent Repayment Orders to cover repayment for non-decent homes.

 

Establishing a new ombudsman covering private landlords

A single government-approved Ombudsman covering all private landlords who rent out property in England - regardless of whether they use a letting agent - will be introduced and membership will be mandatory.

The Ombudsman will have powers to "put things right for tenants", including compelling landlords to issue an apology, provide information, take remedial action, and/or pay compensation of up to £25,000. The government also intends for the Ombudsman to be able to require landlords to reimburse rent to tenants where the "service or standard of property they provide falls short of the mark". The Ombudsman’s decision will be binding on landlords, should the complainant accept the final determination and failure to comply with a decision may result in repeat or serious offenders being liable for a Banning Order.

 

Establishing a new property portal.

A new digital Property Portal will be introduced to "provide a single ‘front door’ to help landlords understand, and demonstrate compliance with their legal requirements".

 

Making all tenancies periodic

All tenants who would previously have had an Assured Tenancy or Assured Shorthold Tenancy will be moved onto a single system of periodic tenancies. Tenants will need to provide two months’ notice when leaving a tenancy, to "ensure landlords can recoup the costs of finding a tenant and avoid lengthy void periods". Landlords will only be able to evict a tenant in reasonable circumstances, which will be defined in law.

 

Changes will be introduced in two stages, providing at least six months’ notice of the first implementation date, "after which all new tenancies will be periodic and governed by the new rules". To avoid a "two-tier rental sector", all existing tenancies will transition to the new system on a second implementation date.

 

Doubling the notice periods for rent reviews

The minimum notice landlords must provide of any change in rent will be increased to two months.

 

Making it illegal for landlords to have blanket bans on renting to families with children or those in receipt of benefits

It will become illegal for landlords or letting agents to have blanket bans on renting to families with children or those in receipt of benefits ("No DSS").

 

Improving the rights of tenants to have pets in properties.

The government will legislate to ensure landlords do not unreasonably withhold consent when a tenant requests to have a pet. The government will amend the Tenant Fees Act to Act 2019 to include pet insurance as a permitted payment. This means landlords will be able to require pet insurance, so that any damage to their property is covered.

 

EPC

The White Paper also reaffirmed the government's intention to upgrade "as many homes as possible" to EPC Band C by 2030.

 

There’s still no dates for these proposals.

Please don't hesitate to contact me at M&M should you have any questions or concerns concerning this information.

Gemma Scott-Davies - Lettings Manager

gemmascott@mandmprop.co.uk  01474 321957

20May

Gravesend Landlords – Are you aware of the changes coming?

 

As part of the government’s objective to increase energy efficiency and achieve net-zero carbon targets, it’s driving for greater energy efficiency in homes, which means new legislation is coming!

 

Currently Minimum Energy Efficiency Standards (MEES)  only require a rating of E or above to rent out a property. In December 2025 we expect this to change to a rating of C or above (existing tenancies will have until 31st December 2028 to achieve this).

 

Fines for not having a valid EPC will increase from £5000 to £30,000.

 

If you are concerned or have any questions, please do not hesitate to contact me at the office.

Gemma Scott-Davies – Lettings Manager

01474 321957

17May

M&M Estate and Letting Agents has been recognised for delivering outstanding customer service to its clients, making the shortlist of The ESTAS - the biggest award scheme in the UK residential property industry.

 

The ESTAS sponsored by Coadjute honours the best, agents, conveyancers and mortgage advisors in the UK. The awards are powered by the ESTAS online customer review platform, which enables property professionals to demonstrate the customer service standards they deliver for their clients. ESTAS reviews can only be completed at the end of the property transaction and a strict verification process ensures reviews are genuine.  This year’s shortlist has been calculated following the evaluation of 660,000 customer review ratings.

 

This year for the first time ESTAS have introduced a ‘Standard of Excellence’ which all shortlisted firms must attain to make the shortlist.

 

Six hundred agents, conveyancers and mortgage brokers have been shortlisted around the UK making them one of the top property firms in the UK.  The regional and national winners will be announced at the 19th annual ESTAS ceremony held in London on 14th October.  The awards will be presented by the UK’s favourite property expert Phil Spencer in front of 1,200 of the UK’s top property professionals. 

 

Spencer said “The ESTAS Awards are based on real feedback, from real clients experiencing real service so they provide genuine proof of the service levels that a firm is delivering to clients. Now more than ever high quality customer service is crucial if home movers are going to realise their dream of getting the property they set their hearts on.” 

Simon Brown, founder of ESTAS says “At ESTAS we’re creating a community for best practice property professionals who all share a passion for delivering great service and a belief that service really does matter.”

Dan Salmons, CEO at Coadjute said “We are proud to work with ESTAS to bring together the very best conveyancers , agents, and brokers under one roof. This year’s theme of ‘Working Together Better’ could not be more apt for Coadjute – it is something we believe in passionately.   Our network seamlessly and securely connects the systems that agents, conveyancers and brokers use, enabling professionals to see progress and share documents, cut transaction times, and give even better customer service. We are therefore delighted to be supporting ESTAS and the whole property industry to celebrate the best service, and the benefits of working together”.

 

Richard Reeves – Sales Manager for M&M Estate and Letting Agents “We are very proud to be shortlisted. We take our levels of customer service very seriously because we know clients have a choice.  Hopefully we can go one step further and win at The ESTAS Awards in October.

12May

GRAVESEND LANDLORDS - Are you compliant with the electrical certificates?
 
The first landlord in the country has been fined £1600 for non compliance with electrical legislation for failing to provide proof that mandatory electrical safety checks had been completed.
 
Since July 1st 2021 all residential landlords in England must ensure that the electrical installations in a property are safe and are inspected and tested at least every five years, regardless of when the tenancy started.
 
Please don't hesitate to contact me at M&M should you have any questions or concerns concerning this piece of legislation or any other. We can arrange for an electrical certificate to be carried out to ensure you remain compliant. .
 
Gemma Scott-Davies - Lettings Manager