Renters (Reform) Bill – we take a first look at the radical new legislation

admin    Uncategorized     agents

The Renters (Reform) Bill has finally had its first reading in Parliament, promising a fair deal to renters, faster redress for landlords and giving more details on how ‘pets with lets’ will work.

Heralded as a “once-in-a-generation overhaul of housing laws”, the government vows that as well as setting out to protect tenants, it will also protect more than two million landlords, making it easier for them to recover properties, so they can sell up if they want to, move in a close family member, or when tenants wilfully do not pay rent.

The draft legislation details a beefed-up Section 8 to replace Section 21, a new property portal and how all private landlords will be required to join a landlord redress scheme.

It also explains that tenants will be given the legal right to request a pet in their home, which a landlord must consider and cannot unreasonably refuse. The Bill outlines how tenants must make this request in writing and include a description of their pet.

Refuse

However, a landlord could reasonably refuse if it would cause the landlord to be in breach of an agreement with a superior landlord.

It explains that the landlord would need to give or refuse consent in writing on or before the 42nd day after the date of the request.

A landlord could insist that their tenant gets insurance to cover the risk of pet damage or instead the tenant would have to pay their reasonable costs of maintaining insurance to cover the risk of pet damage.

Housing Secretary Michael Gove says: “Our new laws introduced to Parliament today will support the vast majority of responsible landlords who provide quality homes to their tenants, while delivering our manifesto commitment to abolish Section 21 ‘no-fault’ evictions.”

MPs will be able to debate the contents when the Bill gets its second reading tomorrow.

Read the Bill in full.

View Full Article: Renters (Reform) Bill – we take a first look at the radical new legislation

Gove to approve looser rules for HMO landlords housing asylum seekers

admin    Uncategorized     agents

Housing Secretary Michael Gove is set to push through new rules on HMO safety for housing asylum seekers with little fanfare on the same day that the Renters’ Reform Bill is published.

The changes outlined in the proposed Houses in Multiple Occupation (Asylum-Seeker Accommodation) Regulations would exempt landlords in England and Wales offering asylum accommodation from regulations governing everything from electrical safety to minimum room sizes.

They would no longer have to register with local authorities and could house asylum seekers for two years without getting an HMO licence.

Housing campaigners fear the vote legalises the use of accommodation in the PRS that would otherwise be deemed unfit for habitation.

Mary Atkinson, a campaigns and network manager at the Joint Council for the Welfare of Immigrants, told the Guardian: “HMO licences exist to make sure that accommodation meets basic levels of safety and sanitation. However, much asylum accommodation already falls below these standards, with people seeking sanctuary housed in cramped, windowless rooms smaller than prison cells.

“Without HMO licences, already traumatised people will be at risk of living in places that are unfit for human habitation.”

The move is not without its critics within the PRS, who predict that some accommodation providers are likely to provide lower standard accommodation to the Home Office rather than improving it and making it suitable for renting through the more usual HMO licensing route

The Home Office denies claims that the proposed change in the law would lower housing standards for asylum seekers. A government spokesperson says: “By temporarily removing this licensing requirement, we will be able to acquire more suitable long-term accommodation while continuing to meet our legal duty of care.”

Massive backlogs in the asylum processing system have led to more than 50,000 asylum seekers being housed in hotels across the country, at a cost of £6m a day. There are about 6,000 HMOs accommodating 28,000 asylum seekers but the government is concerned that HMO licensing regulation makes it difficult to acquire them.

View Full Article: Gove to approve looser rules for HMO landlords housing asylum seekers

Michael Gove discusses his ‘once in a generation’ Renters’ Reform legislation

admin    Uncategorized     agents

The housing secretary Michael Gove has spoken for the first time about the Renters’ Reform Bill and what the potential impact of it will be on landlords and tenants.

Speaking on Radio 2’s Jeremy Vine show

View Full Article: Michael Gove discusses his ‘once in a generation’ Renters’ Reform legislation

The Idiot’s guide to Renters Reform Bill

admin    Uncategorized     agents

Not sure what’s in the Renters’ Reform Bill? We’ve rounded up everything you need to know about the long-awaited bill below.

The government claim the reforms will help 11 million tenants across England benefit from “safer, fairer and higher quality homes thanks to a once-in-a-generation overhaul of housing laws.”

The new bill also claims it will ‘protect’ more than two million landlords by making it easier for them to recover properties when they need to – so they can sell their property if they want to

View Full Article: The Idiot’s guide to Renters Reform Bill

Renters’ Reform Bill publication – the property sector reacts

admin    Uncategorized     agents

The unveiling of the long-awaited Renters’ Reform Bill has led to a strong reaction from the property sector.

The legislation, which was first promised in 2019, will see the end of section 21 ‘no-fault’ evictions.

View Full Article: Renters’ Reform Bill publication – the property sector reacts

Purplebricks sold to rival for £1 after senior team throw in the towel

admin    Uncategorized     agents

Purplebricks, which at one stage was used by thousands of landlords to manage their properties, has announced that its assets and business are to be sold to rival Strike for £1, pending approval by its shareholders.

Any funds remaining in the firm – some £5.5 million – are to be kept back to pay off any liabilities excluded from the deal and to reimburse its shareholders. Purplebricks will continue as an estate agency but under the ownership of Strike.

This announcement marks the end of a process started in February during which Purplebricks senior team have sought to either raise more funding or find a buyer for the estate agency.

It also marks one of the UK’s biggest corporate failsures. Purplebricks at one point claimed to offer both home sellers and landlords a new model of estate agency that offered the same service as a high street firm but for considerably less money.

This proved harder to achieve and despite early success in 2015 to 2018 and a City valuation of some £1.5 billion, the company has faltered including a high-profile scandal in 2021 for failing to lodge deposits on behalf of tenants properly.

Resignation

Today’s announcement reveals that CEO Helena Marston is to resign from the company as will the rest of the board except the CFO Dominique Highfield and it will exit the stock market and cancel all its shares.

“The Directors, taking into account the comprehensive exploration of sale options via the Formal Sale Process, the current trading performance of the Company, the liquidity position of the Company, the near term expiry of a key funding partner relationship and the potential challenges in securing, in the short term, the future ownership of the Group, have unanimously concluded that it is in the best interests of the Company to proceed with Proposed Sale,” the announcement says.

“Accordingly, the Directors intend to unanimously recommend Shareholders to vote in favour of the Resolutions to be proposed at the General Meeting as they have irrevocably undertaken to do in respect of their own beneficial holdings and the shareholdings in which they are interested amounting, in aggregate, to 19,402,865 Ordinary Shares, representing approximately 6.3% of the Company’s issued share capital.”

View Full Article: Purplebricks sold to rival for £1 after senior team throw in the towel

Renters’ Reform Bill publication sends the PRS ‘back to the Dark Ages’

admin    Uncategorized     agents

The long-awaited government plan to overhaul the private rented sector (PRS) with the publication of the Renters’ Reform Bill has been condemned as ‘going back to the dark Ages’.

The government says that more than 11 million tenants in England will now enjoy safer

View Full Article: Renters’ Reform Bill publication sends the PRS ‘back to the Dark Ages’

Britain’s commercial rents bounce back

admin    Uncategorized     agents

Commercial rents have bounced back across Britain, with an impressive 9.7% growth in the last year alone, data reveals.

According to Sirius Property Finance, the boom has overturned a previous downward trend which saw prices fall by -2.9% between 2021 and 2022.

View Full Article: Britain’s commercial rents bounce back

BREAKING: Renters (Reform) Bill to get first airing after PMQs today

admin    Uncategorized     agents

The Government is to finally introduce its long-delayed renting reforms into parliament later today following Prime Minister’s Questions (PMQs) in the Commons.

The Bill, which is to be called the Renters (Reform) Bill, will get its first reading just after lunchtime and, it is understood, a draft version of the full Bill will be released soon afterwards.

Looking at the official announcement this morning ahead of the parliamentary action, it’s clear that almost all of the measures outlined within the Fairer Renting white paper will be included.

Described as a ‘once-in-a-generation’ opportunity to reform the private rented sector, Ministers are keen to present the Bill as giving both renters and landlords more certainty particularly given Section 21 ‘no fault’ evictions are to be abolished.

Recover properties

They believe the beefed-up Section 8 notice process will make it easier for landlords to recover properties when they need to – so they can sell their property if they want to, move in a close family member, or when tenants wilfully do not pay rent.

Notice periods will also be reduced where tenants have been irresponsible – for example breaching their tenancy agreement or causing damage to the property.

As announced previously, the reforms will “strengthen powers to evict anti-social tenants, broadening the disruptive and harmful activities that can lead to eviction and making it quicker to evict a tenant acting anti-socially”.

Other key measures already announced in the consultation and white paper include a:

• reformed courts process;
• new Ombudsman;
• requirement for landlords to consider pets in their property plus a new ‘pet insurance’ provision;
• digital Property Portal;
• new Decent Homes Standard;
• promise to prevent agents and landlords applying ‘blanket bans’ on DSS tenants;
• commitment to greater enforcement powers for councils.

Housing Secretary Michael Gove (pictured) says: “Our new laws introduced to Parliament today will support most responsible landlords who provide quality homes to their tenants, while delivering our manifesto commitment to abolish Section 21 ‘no-fault’ evictions.  

“This will ensure that everyone can live somewhere which is decent, safe and secure – a place they’re truly proud to call home.” 

Reaction

Ben Beadle, Chief Executive of the National Residential Landlords Association

“Responsible landlords need to be confident that when Section 21 ends, where they have a legitimate reason, they will be able to repossess their properties as quickly as possible,” he says.

“Without this assurance, the Bill will only exacerbate the rental housing supply crisis many tenants now face.

“Whilst we welcome the Government’s pledge to ensure landlords can effectively recover properties from anti-social tenants and those failing to pay rent, more detail is needed if the Bill is going to work as intended.

“Ministers must develop a plan to improve the speed and efficiency with which the courts process possession claims.

“Although the Government has accepted NRLA calls to digitise cases, staff numbers need to increase in the court system as well to meet the needs of these reforms.

“Likewise, the Government must recognise the serious concerns of landlords letting to students about open ended tenancies.

“Without the ability to plan around the academic year, students will have no certainty that properties will be available to rent when they need them.

“We will continue to work with the Government, MPs and Peers to ensure the Bill workable and fair to both responsible landlords and tenants.”

Timothy Douglas, Head of Policy and Campaigns, Propertymark 

“Reforms to the private rented sector in England have been long awaited and the Bill will bring much needed clarity to letting agents, their landlords and tenants.

“Propertymark will support the UK Government to ensure the specific details work in practice for those on the ground, whilst providing both security and fairness for both parties of the rental agreement.

“It is also important implementation is well planned and managed as these reforms are significant for the sector.” 

Dan Wilson Craw, Acting Director, Generation Rent

“Arbitrary Section 21 evictions make it impossible for tenants to put down roots and report problems about their home with confidence.

“Abolishing them will take away much of the stress of renting and improve communication and trust between tenants and landlords.

“The new Property Portal and Ombudsman have the potential to make it much harder for criminal landlords to operate.”

View Full Article: BREAKING: Renters (Reform) Bill to get first airing after PMQs today