BREAKING: Wales delays introduction of controversial Renting Homes Act

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The Welsh government has announced a five-and-a-half-month delay to the introduction of its controversial Renting Homes Act which had been due to go live on 15^th July this year.

Now postponed until 1^st December, housing minister Julie James says the delay has been announced after representations from both private and social landlords.

The act will bring in huge changes to the way landlords can evict tenants, issue tenancy contracts, and manage their properties.

This includes a  six-month notice requirement for a landlord to end a contract where the tenant is not at fault, a minimum ‘security of tenure’ of one year from the date of moving in and tighter rules on so-called retaliatory evictions and easier management of joint tenancies.

The act also ushers in a whole new terminology for landlords to grapple with including contract holder (not tenants or licencees) and occupation contracts or standard contracts (replacing ASTs).

Landlord properties must also pass the minimum fit for human habitation (FFHH) test including ensuring that electrical safety testing and ensuring working smoke alarms and carbon monoxide detectors are fitted.

Also, abandoned properties can be repossessed without needing a court order.

More time

But landlords have told James that they need more time to prepare for these changes after the long slog of Covid and the ongoing job of helping house Ukrainian refugees.

“Wholesale reform of the type that the Renting Homes (Wales) Act is bringing about happens only very rarely – perhaps once in a generation,” says James.

“I want to do all I can to ensure landlords have adequate time to make the necessary preparations to comply with the requirements of the Act.”

Frustration

The minister adds that she appreciates that this delay will be a source of ‘frustration’ to some of the government’s partners, “especially those who are anxious to see the enhanced protections for tenants the Act will deliver”, she says.

“I share those frustrations, but I recognise that preparing new occupation contracts and ensuring that properties meet the fitness standards set out in the legislation are major undertakings, particularly for those landlords responsible for a large number of properties and tenants. 

“I also accept that landlords from both private and public sectors, as well as letting agents and other stakeholders, would benefit from additional time to familiarise themselves with the various pieces of subordinate legislation – the final tranche of which are due to be made in July – before commencement.”

The Welsh government has launched a dedicated website for landlords about the new rules.

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End tax advantages for holiday-let landlords, says lobbying group

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Generation Rent has called on the government to ditch tax relief for holiday let landlords and also give councils the power to license holiday lets and impose council tax premiums.

The pressure group is urging Ministers to incentivise landlords to let to tenants rather than tourists in its report, Understanding the Impact of Holiday Homes on the Private Rented Sector, where it explains how the sector has been fuelled by a lack of regulation, tax advantages over residential lettings and a generally favourable tax system for the property sector.

It points to the nearly 300,000 holiday homes in Great Britain – about 6% of the private rented sector – two-thirds of which are classed for tax purposes as second homes and the remainder as commercial holiday lets.

Generation Rent wants the government to withdraw mortgage interest relief from furnished holiday lets, require all holiday lets to be registered for council tax and create powers for councils to levy council tax premiums on second homes and commercial holiday lets – something the Welsh government has already done for second homes.

More power

It hopes a registration scheme, similar to the one announced earlier this year in Scotland, could be set up by giving more power to local councils.

The report adds: “One way of reducing the number of properties becoming second homes is by making it harder to buy them, so increasing the stamp duty surcharge could make an impact in England.

One way of bringing second homes back into the residential market is to make it more costly to own one. A council tax premium is one of the few ways of raising these costs, and it would more efficiently target homes that are not being lived in than the stamp duty surcharge.”

Read more: The attractions of holiday lets for landlords.

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Help! Conservatory on Grade 2 listed building without consent – what are my options?

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What are your options if work was done on a grade 2 listed building without planning permission?

Is deemed consent assumed after 10 years?

Permitted development rights do not apply to Grade 2 Listed buildings. So what are your options if work was done without planning permission?

View Full Article: Help! Conservatory on Grade 2 listed building without consent – what are my options?

Irrelevant deposit question – Completing N5B form?

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Hi, I am trying to complete an N5B form and struggling to answer a question. At the beginning of the tenancy, I never took a deposit from the tenant so there is nothing to return and no scheme requirement.

View Full Article: Irrelevant deposit question – Completing N5B form?

There’s nothing that will stop Landlord Sales Agency from getting your property portfolios sold in just 19 days

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Last year, because interest rates were so low and many landlords were incorporating, landlords weren’t thinking of selling. This year however tells a completely different story. Mortgages have shot up following high interest rates, leaving an innumerable amount of landlords with impossibly large bills. The bottom line is: landlords need to sell. As a landlord myself, I’ve also been living and breathing this, having had to personally downsize by selling 75 properties and keeping 20 for now, but even I am considering downsizing further as I sit and watch the very likely possibility that house prices might drop by the end of the year. There’s no question: I want to sell fast and release equity fast so I can weather the storm.

It’s for precisely this reason that I set up Landlord Sales Agency – because I knew exactly what to do to relieve landlords of their problems having done it for myself, and I was confident that I had the best strategy, with a phenomenal team of experts who deliver. The results speak for themselves; Landlord Sales Agency has steadily emerged as the best company to help landlords sell, not only getting the highest possible prices for portfolios, but also in the fastest time scales. And because my own personal mantra is that there’s no problem I can’t solve, that’s trickled down to a formula 1 style team of experts who all follow the ethos of getting your properties sold for you, fast, for the highest price no matter what.

Recently we sold a buy-to-let portfolio for a client who had 68 properties in Liverpool to one single buyer who bought the whole lot. However like with many landlords who come to us, the portfolio had its challenges. We did exactly what we promised, and rapidly solved every single issue including organizing 68 surveys on all those properties. In addition the landlord didn’t have gas certificates, nor did he have EPCs. Our builders on the ground delivered, getting these for him on every property at barely any cost. It’s these kind of issues that solicitors need resolving for landlords to complete on sales, and we take all of them off your hands.

Another landlord recently gave us 14 properties all over the East Midlands and Southern England. For this client we sold all of these individually to different buyers from our private database of over 30,000 investors, who are buying single units throughout the UK, to get him the best price for the portfolio. All of these were tenanted, with issues, and we overcome every single issue to ensure we got him the best price, as fast as possible. When I say fast, I mean exactly that:

Our average time to sell a whole property portfolio in the last 12 months is just 19 days.

It doesn’t matter what the issue, we’ve dealt with it all. Even coal mines, planning issues, and anything that might raise flags, we’re experts at overcoming all red herrings that could cause deals to fall out of bed.

Whatever you can think of, we know how to overcome. If like many landlords you haven’t put the rent up for 10 years and you’re worried that won’t help you sell – we deal with this too. We’ll help write letters and communicate with your tenants, letting them know that the rents might increase, or that you’re selling. If you’re concerned your tenants might worry, we also deal with that – even helping tenants relocate so that all tenants are looked after. We go that extra mile that no other company will go. With most tenanted properties with tenants in situ, we try to sell to investors who’ll keep the tenant on, and if they can’t, we’re more than happy to pay a fee to help them move where possible out of our own fees. We even offer the tenants a contribution to the rent for up to 6 months so that the new landlord can increase the rent slowly over a year allowing the tenant to gradually get used to the new rent prices. Nothing will stop us from selling your portfolio. We’ll get the job done.

Landlords with mixed portfolios also have no need to panic. Be it HMOs, leasehold flats, normal properties, or properties scattered across the country: we have buyers for all types of properties. As the CEO of Landlord Sales Agency, I have direct access to buyers with huge funds that I know personally, and to the biggest property buying companies out there.

What about rentbacks? If you have properties in your portfolio where you’ve bought a property for half price and you’re renting it back, this is not a problem either. There’s no need to worry about what to do with the tenants. In those circumstances again we send letters out and massage those relationships to stagger a rent increase slowly with the tenant so that they can manage the rent for the new owners. We also agree to assist with any repair issues.

We’re a company that does exactly what it says on the tin, and with myself at the helm, you’ll get the full force of my passion and drive to deliver in your corner.

I’m so confident I’ll be able to solve all your problems and get your property portfolios sold fast for the highest price, I’m also offering everyone who gets in touch a personal zoom call to discuss how we can best sell your portfolios and solve all your problems. It’s as easy as that. All you have to do is get in touch.

Contact Landlord Sales Agency:

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Using financial profiling to understand the impact of inflation on your property portfolio

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Barely a day goes by without some new statistic about inflation being plastered across the mainstream media.

The current rate of inflation – at the time of writing – is 9% – a 40 year high, but this is set to increase further due to the Russian/Ukraine war and other issues closer to home like supply chain disruptions and the aftermath of the Covid19 pandemic.

View Full Article: Using financial profiling to understand the impact of inflation on your property portfolio

Banning Section 21 evictions will hurt tenants too, warns Shamplina

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Banning Section 21 ‘no fault’ evictions will not reform how landlords take possession of properties but instead force them to use another mechanism to tenants’ detriment, TV star and Landlord Action founder Paul Shamplina has warned.

In a joint statement with rental payments platform PayProp, Shamplina says most tenancies end because the tenant chooses to leave, not because the landlord is evicting.

“Landlords want tenants to stay in their property long term, and only serve notice as a last resort,” he says.

 “We know from our experience at Landlord Action that most Section 21 notices are issued because a tenant is in rent arrears, or because a landlord wishes to sell or move back into their property.

“In many cases, landlords could have used Section 8 for rent arrears or anti-social behaviour, but their lack of faith in the associated court process, which is undoubtedly more protracted, is why many revert to Section 21.

Change not reform

“Therefore, abolishing Section 21 will not significantly change the number of evictions, it will simply change the process, which may have knock-on consequences for the number of open court cases and the associated costs for which the tenant will be liable.”^.

He argues that the Section 8 notice and associated grounds will become the norm.

 “There are various aspects of Section 8 that need considerable revision before Section 21 can be fully abolished.

“I believe it will need to be a phased ending to allow the courts time to clear the backlog from the last two years and for all grounds to be considered and revised appropriately.

Read: The ultimate guide to the evictions process.

“For example, the route for dealing with abandonment cases must be clarified, to prevent unnecessary court cases where the tenant has clearly already left the property.

Neil Cobbold (pictured), MD of rental platform PayProp UK: “The scrapping of Section 21 is likely still some way off, with a White Paper and the legislation itself needing to make their way through both Houses to reach Royal Assent.

“It’s important to note that reforming evictions is going to cause some upheaval and there will be a significant bedding-in period.”

Read: Tom Entwistle's take on banning Section 21 evictions.

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Can I include management and ground rent costs in a new AST?

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My tenant’s 12-month fixed term AST ends on the 1st of November 2022. However, instead of letting it roll onto a periodic tenancy can I start a completely new AST to increase the currently low rent to include:

1/ management service charge.

View Full Article: Can I include management and ground rent costs in a new AST?

Section 21 misconceptions

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In the recent Queen’s Speech, the government reiterated its commitment to scrapping Section 21 ‘no fault’ eviction notices during the next Parliamentary session.

Paul Shamplina, star of Channel 5’s Evicted! Nightmare Tenants, founder of Landlord Action and Chief Commercial Officer at Hamilton Fraser

View Full Article: Section 21 misconceptions

Latest changes to Part L of the Building Regulations

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Landlords are required to conform to the safety and environmental rules set-out in these regulations so it’s important you understand the law regarding the building regulations. The rules are in place to ensure that buildings meet a certain standard of safety to protect residents and members of the public and to comply with environmental controls.

Do you know about the latest changes to the Building Regulations 2010, Part L?

Landlords who fail to comply with the building regulations are not only putting tenants’ lives at risk, they face prosecution and significant fines. Before letting a property and completing renovations or new building works you should familiarise yourself with the building regulations and consult your local authority.

Failure to conform could result in your local authority prosecuting both you the landlord and the installer (builder, contractor etc.) in the Magistrates’ Court. The penalty is an unlimited fine under sections 35 and 35A of the Building Act 1984.

What are building Regulations?

Most building work being carried out in England must comply with the Building Regulations of 2010 made under powers in the Building Act 1984. These Building Regulations are designed to protect the health and safety of people in and around buildings, they also provide for energy and water conservation and access to and use of buildings.

The Manual to the Building Regulations gives an overview of the building regulatory system in England. You can access the most recent version of the manual at: www.gov.uk/guidance/building-regulations-and-approved-documents-index

Building regulation approvals – Full Plans

Your local authority will check and approve plans before the work starts. This will avoid costly errors and corrective work. An application deposited under the Full Plans procedure must contain detailed plans and other information showing all construction details and materials, preferably well in advance of when work is planned to start.

If the plans are approved a notice stating that they comply will be issued and work can proceed, followed by regular inspections at various stages either by the local authority building control inspectors, or an approved private firm. Once the work is completed a Completion Certificate must be obtained. This is a vital document needed when the property is sold.

Building regulation approvals – Building Notice

If the work is not over complicated and your building contractor is competent with a good knowledge of the regulations, then a Building Notice form can be adopted. The advantage of this method is speed and low cost as detailed drawings will not be required, though some basic details such as materials and structural calculations may be needed.

Retrospective regularisation applications

If work has already been carried out without proper consent, then a retrospective application can be made using a Building Regulations Regularisation form. This may be necessary even when the work was carried out by a previous owner.

Before starting any building work involving substantial alterations to a property it is always best to consult your local authority building control team to discuss your intentions before submitting an application.

What are the pending changes in Part L?

The latest changes follow on from the The Future Homes Standard 2019 Consultation on necessary changes and are part of the Government’s progress towards their target to deliver Zero Carbon Ready Homes by 2025.

From 15th June 2022, all new homes must produce 31% less CO2 emissions than what is currently acceptable in the present Part L regulations. Therefore, the construction of new dwellings must comply with the increased energy performance standards as set in the new regulations.

Building inspectors will require an on-site audit to confirm that the design details have been constructed, and photographs must be taken at stages of construction as evidence to form the BREL report. The Building Regulation England Part L (BREL) report is produced from approved SAP software to demonstrate compliance against the requirements. However, a significant change is the addition of photographic evidence provided to the energy assessor and building control.

Under the new rules, all newly constructed buildings and building work in existing buildings must be energy efficient. This includes a significantly higher standard for extensions work. The government wants to reduce carbon emissions in new homes by 31% in comparison with current standards and by a further 75-80% by 2025.

Low-carbon heating systems will need to be installed in new homes. Existing properties will be expected to upgrade to new technologies such as heat pumps and cooling schemes to tackle the problem of overheating without the use of air conditioning in order to drive down costly bills and meet its climate change goals.

A consultation on higher performance targets for non-domestic buildings, to ensure they are zero carbon-ready by 2025, has also been announced following the original consultation.

Transitional arrangements

If a building notice or full plans for building work are submitted to a local authority before 15 June 2022, then provided the building work commences by 15 June 2023, work on that building is permitted to continue under the previous standards.

The Approved Document L, Conservation of fuel and power, Volume 1: Dwellings is for use in England. Compliance may be different to the standards required in Scotland, Wales and Northern Ireland.

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