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With effect from 28 May 2020, individuals who have been notified that they have had contact with an infected person and instructed to stay at home for 14 days under the new NHS test and trace system will also be deemed incapable of work and eligible for SSP (statutory sick pay).
For further information, see the full guidance; https://www.gov.uk/guidance/nhs-test-and-trace-how-it-works
The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 came into force on 1 June 2020.
The new regulations will apply to new tenancies from 1 July 2020 and to existing tenancies from 1 April 2021.
Landlords must have the electrical installations in their properties inspected and tested by a person who is “qualified and competent”, at least every five years. Landlords must provide a copy of the electrical safety report to their tenants (and to their local authority if requested). For further information, please see the government guidance link above.
Through June and July, the scheme will continue in it’s current form with no change, the Government will pay 80% of wages up to £2,500 per month – with no employer contribution.
Greater flexibility has been introduced. This will help agencies to bring back more employees while they establish business need.
From July 1, under a new ‘flexible furlough’ employers will have more freedom to bring back employees for a number of days per week. To make changes, the existing scheme will need to close, this will happen on June 30 and new registrations under the existing scheme, will need to be made prior to June 10.
In August, the taxpayer contribution will stay at 80% of wages. Employers will be asked to pay national insurance and employer pension contributions.
By September employers will have made preparations and will therefore be asked to start paying towards people’s wages whilst the Government ensure staff remaining on furlough continue to receive up to 80% of their salary. Taxpayers will pay 70% of furloughed wages, employers will pay 10%.
Then in October, taxpayers will pay 60% with employers contributing 20%.
The Self-Employment Income Scheme will be extended, with applications opening in August for a second and final grant covering three months’ worth of average monthly trading profits up to 70% or a maximum total of £6,570.
Through June and July, the scheme will continue in it’s current form with no change, the Government will pay 80% of wages up to £2,500 per month – with no employer contribution.
In line with the messaging that Propertymark has been pushing through to Government on behalf of members, greater flexibility has been introduced. This will help member agencies to bring back more employees while they establish business need.
From July 1, under a new ‘flexible furlough’ employers will have more freedom to bring back employees for a number of days per week. To make changes, the existing scheme will need to close, this will happen on June 30 and new registrations under the existing scheme, will need to be made prior to June 10.
In August, the taxpayer contribution will stay at 80% of wages. Employers will be asked to pay national insurance and employer pension contributions.
By September employers will have made preparations and will therefore be asked to start paying towards people’s wages whilst the Government ensure staff remaining on furlough continue to receive up to 80% of their salary. Taxpayers will pay 70% of furloughed wages, employers will pay 10%.
Then in October, taxpayers will pay 60% with employers contributing 20%.
The Self-Employment Income Scheme will be extended, with applications opening in August for a second and final grant
covering three months’ worth of average monthly trading profits
up to 70% or a maximum total of £6,570.
The Chancellor went on to advise there will be no further extensions or amendments to these schemes.
Information from ARLA-Propertymark
The Tenant Fees Act 2019 (which came into force on 01 June 2019) provided a transition period of 12 months for tenancies which started before June 2019, this ends 31 May 2020. This means that any tenancy clauses in existing contracts that charge fees will not be enforceable after this date.
Any breach of the ban will incur a penalty of up to £5,000.00. Further breaches can result in a criminal offence and unlimited fines.
Key points;
| Check-out fees – Letting agents should be aware that tenants on existing contracts which involved paying check-out fees up front, these become Prohibited Payments as of 1 June 2020. Agents will have 28 days in which to repay these fees to tenants or they will be in breach of the legislation. End of the transition period – During the transition period fees written into existing contracts could continue to be charged. However, with the 12-month transition period now ending from 1 June 2020, the ban applies to all tenancies (both Fixed Term and Periodic) regardless of when the tenancy started. Tenancy Deposits – The Act set a cap (five or six weeks rent dependent on the amount of rent paid annually) for how much could be charged as a security deposit on a tenancy. This will apply to all relevant tenancies (ASTs and Licenses to occupy) from 1 June 2020.Agents do not need to immediately refund any part of an existing Tenancy Deposit that exceeds the cap of five or six weeks’ rent 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. Agents should liaise with the Tenancy Deposit schemes when dealing with calculations. Section 21 – A Section 21 notice cannot be issued in relation to the tenancy if Prohibited Payments or Holding Deposits need to be repaid. For detailed information on the Tenant Fees Act and what it means for landlords; https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/819634/TFA_Landlord_and_Agent_Guidance_190722.pdf |
Chancellor Rishi Sunak has laid out how he expects to move businesses off the Coronavirus job Retention Scheme, meaning that some agencies must begin to start part-paying salaries for furloughed staff.
The Job Retention Scheme currently supports 7.5 million workers on furlough, guaranteeing 80 per cent of staff pay up to £2,500 per month, alongside national insurance and pension payments. The Chancellor announced an extension of the scheme until October on 12 May. No changes are expected until the end of July.
From August, employers will be required to pay a quarter of all staff wages – even if the business is still in lockdown. They will also be required to pay National Insurance contributions, but it is thought that the Government will still pay pension contributions.
Employers will be able to bring furloughed staff back part-time from August and will be obliged to declare the number of hours the currently furloughed staff work if they return. Firms caught abusing the system by not paying their share of staff wages face fraud charges.
Information for both employers and employees can be found on the gov.uk website.
Article from ARLA/Propertymark;
Government guidance for offices; https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19/offices-and-contact-centres
Webinar for offices; https://www.eventbrite.co.uk/e/working-safely-during-coronavirus-offices-contact-centres-tickets-105954490734?aff=BIRD
Government guidance for branches; https://www.gov.uk/guidance/working-safely-during-coronavirus-covid-19/shops-and-branches
Webinar for branches; https://www.eventbrite.co.uk/e/working-safely-during-coronavirus-shops-branches-tickets-105950589064
The Government Business Support Helpline number in England has changed to FREEPHONE 0800 998 1098. The helpline provides free, impartial business support and signposting services to businesses in England – which currently includes business advice on Covid-19.
You can also find free support, advice and sources of finance through your local growth hub or speak to an advisor on webchat about support for your business.
This is a new online service for landlords to request direct payments of rent or rent arrears. It replaces the existing UC47 process.
Use this service to request payment of rent directly from a tenant’s Universal Credit, if a tenant is having difficulty paying their rent.
Guidance on when to request a managed payment or rent arrears deduction, or both from a tenant’s Universal Credit can be found in the Alternative Payments guide.
This guidance applies to people moving between private residential homes; https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak#history
All businesses should follow the government’s latest guidance for employers and businesses on coronavirus and safer working guidance.
As well as government guidance, we encourage all professionals to speak to their representative bodies and familiarise themselves with the guidance that these bodies have prepared for their specific sectors.
It is important that all businesses work together to ensure we stay alert and safe to minimise the spread of infection and we expect all sectors to consider how they can operate in a way which minimises the need for face to face contact.
We can all help control the virus if we all stay alert. This means you must:
Do not leave home if you or anyone in your household has symptoms.
https://www.gov.uk/government/news/applications-for-self-employment-income-support-scheme-open-early
Announced Tuesday 12th May 2020.
For further information; https://www.gov.uk/government/news/chancellor-extends-furlough-scheme-until-october
We can all help control the virus if we all stay alert. This means you must:
Do not leave home if you or anyone in your household has symptoms.
Effective immediately, estate agents can open, viewings can be carried out, and removal firms and conveyancers can re-start operations whilst following social distancing guidelines. We must also bear in mind that the following social distancing guidelines must be followed;
We can all help control the virus if we all stay alert. This means you must:
Do not leave home if you or anyone in your household has symptoms.
All landlords and agents should read the updated gov.uk guidance; https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak
The government has set out plans to re-start England’s housing market, which has been in deep freeze since the coronavirus lockdown. The changes were contained in the updated lockdown regulations presented to Parliament on Tuesday 12th May.
Buyers and renters had previously been urged to delay moving while the “stay at home” advice was in place.
Housing Secretary Robert Jenrick said the changes must be carried out under social distancing and safety rules. He said;
“Our clear plan will enable people to move home safely, covering each aspect of the sales and letting process, from viewings to removals. This critical industry can now safely move forward, and those waiting patiently to move can now do so.”
Mr Jenrick also said that guidance from Public Health England must continue to be followed. For example, anyone advised to self-isolate should continue to do so and not move home.
The new guidance includes the permission for trades people to operate in homes, provided they follow social distancing advice.
Article abridged from BBC News https://www.bbc.co.uk/news/business-52640696
See the regulations; http://www.legislation.gov.uk/uksi/2020/500/made?utm_campaign=11539560_Parliament%20releases%20the%20brakes&utm_medium=email&utm_source=dotmailer&dm_i=Z6K,6VBZC,962SLC,RKLLM,1
The Tenant Fees Act 2019 came in on 01 June 2019. The ban on tenant fees applies to new or renewed tenancy agreements signed on or after 1 June 2019.
From 1 June 2020, the ban on fees will apply to all applicable tenancies. You will not be able to charge any fees after this date unless they are a permitted payment.
The ban applies to assured shorthold tenancies (except social housing or long leases), tenancies of student accommodation and licences to occupy housing in the private rented sector in England.
It means you cannot require a tenant (or anyone acting on their behalf or guaranteeing their rent) to make certain payments in connection with a tenancy. You cannot require them to enter a contract with a third party or make a loan in connection with a tenancy.
From 1 June 2019, if you entered into a tenancy agreement, student let or licence to occupy housing in the private rented sector, you are prohibited from charging any fees or other payments that are not included in the list of permitted payments.
Where a tenancy agreement was entered into before 1 June 2019, you will still be able to charge fees until 31 May 2020, but only where these are required under an existing tenancy agreement. After 1 June 2020, the term requiring that payment will no longer be binding. Should you, in error, ask a tenant to make such a payment, you should return the payment immediately and must return this within 28 days. If you do not return the payment within 28 days, you will be treated for the purposes of the Act as having required the tenant to make a prohibited payment (a payment that is outlawed under the ban).
If a pre 01 June 2019 tenancy rolls into a statutory periodic tenancy, the deposit remains as is, until the tenancy is renewed or a new fixed term starts. If the tenancy is renewed or a new fixed term agreement starts after 01 June 2019, you must return the amount of the deposit that is over the cap. Your deposit protection scheme will have the facility to do this once you instruct them.
Here is a guide if you aren’t sure about deposit refunds; https://www.arla.co.uk/media/1047879/tds-deposit-cap-guide.pdf
From 1 June 2020, the ban on fees will apply to all applicable tenancies. You will not be able to charge any fees after this date unless they are a permitted payment.
If the fee you are charging is not on this list, it is a prohibited payment and you should not charge it. A prohibited payment is a payment outlawed under the ban.
The only payments you can charge in connection with a tenancy are:
a) the rent
b) a refundable tenancy deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above
c) a refundable holding deposit (to reserve a property) capped at no more than one week’s rent
d) payments to change the tenancy when requested by the tenant, capped at £50, or reasonable costs incurred if higher
e) payments associated with early termination of the tenancy, when requested by the tenant
f) payments in respect of utilities, communication services, TV licence and council tax; and
g) A default fee for late payment of rent and replacement of a lost key/security device, where required under a tenancy agreement
More information/guidance for landlords on the Tenant Fee Ban can be found on the gov.uk website;
NAPIT have launched ‘Guidance for Landlords’ on the new Electrical Safety Standards in the Private Rented Sector, England.
These Regulations apply in England to –
all new specified tenancies from 1st July 2020; and
all existing specified tenancies from 1st April 2021.
NOTE– Properties let on statutory periodic tenancies where the fixed term expires between 01 July 2020 and 01 April 2021 WILL require an inspection and test at this point under the Regulations. For statutory periodic tenancies – where on expiry of the fixed term the tenancy rolls over into a periodic tenancy automatically by statute (rather than by contract) – the periodic tenancy would be a new tenancy.
The Regulations coming into force are for new specified tenancies which require private landlords to ensure their properties are subject to electrical inspection and testing, resulting in a satisfactory report, carried out by a qualified, competent person at intervals not exceeding 5 years. This will apply to all existing specified tenancies from the 1st April 2021.
Mike Andrews, Chief Executive Officer of NAPIT comments: “As the National Association of Professional Inspectors and Testers, we see it as our duty to provide accurate, consistent and easy to understand Guidance for landlords on these new Regulations. Electrical Safety is at the forefront of everything we do, and we have worked hard on this guidance to make it easy for Landlords to understand their requirements. We have also launched a dedicated online search facility on our website helping landlords search for competent and qualified tradespeople that they can trust to carry out their electrical inspections. As well as this we have created a new Landlord Electrical Installation Safety Record for our members to use which provides a summary of the often lengthy Electrical Installation Condition Report. We will continue to support both our members and Landlords during this period of adjustment.”
The guide is very clear for landlords. Most queries are covered;
The PRS Mediation Service is designed for landlords (or their agent) and a tenant to resolve tenancy related issues without the need to go to court.
A mediation is where an impartial person assists the disputing parties to resolve their conflict. The method of delivery for the service will be by telephone.
With the current COVID-19 situation and the announcement that court proceedings for evictions are suspended and that notice periods have been extended to three months, with the option of being extended to six months, it is more important than ever for landlords and tenants to try to discuss and come to an arrangement on tenancy matters.
There are 3 stages to the mediation process;
For further information, see the PRS website; https://tenancymediation.theprs.co.uk/?utm_source=referral&utm_medium=banner&utm_campaign=prs%20website%20banner
Wednesday 6th May 2020 3:15PM – 4:15PM
Free webinar for landlords and agents.
New electrical safety regulations are coming into force in England from 01 July 2020 – requiring electrical installations to be safety checked for new tenancies, and for all existing tenancies from April 2021. Charlotte Lee, Head of External Affairs at NAPIT, one of the leading Government Approved Competent Person Schemes for qualified and competent electricians, will be joining NRLA to explain what the new regulations mean for landlords, and how to comply in the context of COVID-19 measures. Charlotte will then be joined by Chris Norris, Director of Policy and Campaigns at the NRLA, for questions from attendees.
To register; https://register.gotowebinar.com/register/1629354593100449549
The Department for Work and Pensions (DWP) has temporarily paused third-party deductions from Universal Credit until 10 May.
DWP is currently in the process of explaining the changes to claimants via their online journal and to third parties, including housing providers who collect arrears by this method.
The third-party payments that have been suspended include:
A DWP spokesperson confirmed to Propertymark that direct payments for rent will continue and are not affected by this temporary pause.
https://www.arla.co.uk/news/may-2020/dwp-suspends-third-party-uc-payments/
Following some great feedback we received from a member about TDH Asbestos Ltd ( https://www.landlordssouthwest.co.uk/tradelisting/tdh-asbestos-ltd/ ) we would like to remind our members that you can access our Trade Directory anytime, no need to log in. You will find everything from Gas Safety engineers to decorators to lawyers to electricians.
If you have had a brilliant service from a company at your rented property, we welcome new listings, companies can contact the SWLA office for further information.
Here’s the brilliant review we received about TDS Asbestos;
”Thank you for the link to TDH Asbestos Surveying. An excellent service. Prompt and efficient and polite. I can’t find a way of leaving an actual review, but I thought I’d pass on my thoughts.”
To access our Trade Directory; https://www.landlordssouthwest.co.uk/tradelisting/
Free Webinar for Landlords and Agents; WEDNESDAY 29 APRIL 2020 | 9.30AM – listen by clicking the link below anytime.
ARLA Propertymark CEO David Cox discusses the latest legislative and legal changes affecting the lettings industry, and shares his advice on how to keep on top of them. He will be covering:
Listen in full here;
URGENT ACTION REQUIRED, SUBMISSIONS ACCEPTED UNTIL FRIDAY 1ST MAY 2020. WE URGE ALL LANDLORDS AND AGENTS TO RESPOND.
The HCLG Committee has launched an inquiry into the Impact of Covid-19 (Coronavirus) on homelessness and the private rented sector. It will consider both the immediate and long-term impact that the COVID-19 pandemic is having on the homeless, rough sleepers and those in the private rented sector.
The Committee expects to hold an evidence session in early May onwards to hear directly from stakeholders and Government about what is being done and what further support is needed.
This Universal Credit newsletter aims to provide information to social and private landlords on Coronavirus (COVID-19) and Universal Credit; https://www.gov.uk/government/publications/universal-credit-landlord-engagement-newsletters/coronavirus-covid-19-universal-credit-landlord-engagement-newsletter
Summary;
Changes announced will help businesses avoid being struck off the Companies House register as they deal with the impact of the Coronavirus outbreak. Businesses will be given additional support to help them meet their legal responsibilities.
Companies House will temporarily pause the strike off process to prevent companies being dissolved. This will give businesses affected by the Coronavirus outbreak the time they need to update their records and help them avoid being struck off the register.
In addition, companies issued with a late filing penalty due to COVID-19 will have appeals treated sympathetically.
The announcement builds on measures already implemented by the Secretary of State for Business, Energy and Industrial Strategy, which give businesses the ability to apply for a 3-month extension to file accounts with Companies House.
For further information; https://www.gov.uk/government/news/companies-house-support-for-businesses-hit-by-covid-19?utm_source=d18776e2-62d2-4d0a-b11d-d75ca62e6f8e&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
**NOTE – MEES REGULATIONS HAVE NOT BEEN EFFECTED BY CORONAVIRUS**
The Domestic Minimum Energy Efficiency Standard (MEES) Regulations set a minimum energy efficiency level for domestic private rented properties. Landlords with properties rated F or G must make improvements to gain a minimum E rating, or register an exemption.
The Regulations apply to all domestic private rented properties that are:
1. Is your property let on one of the following types of domestic tenancies:
2. Is your property legally required to have an EPC?
If the property you let has been marketed for sale or let, or modified, in the past 10 years then it will probably be legally required to have an EPC.
If you answered Yes to both these questions, and your property has an EPC rating of F or G, you must take appropriate steps to comply with the requirements of the MEES Regulations.
If a local authority believes a landlord has failed to fulfil their obligations under the MEES Regulations, they can serve the landlord with a compliance notice. If a breach is confirmed, the landlord may receive a financial penalty.
For further information see the gov.uk website; https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance
The guidance provides advice to landlords and tenants on the provisions in the Coronavirus Act 2020, and further advice for landlords, tenants and local authorities more broadly about their rights and responsibilities during the COVID-19 outbreak.
It provides non-statutory guidance for landlords and tenants in the private and social rented sectors on:
The Government has brought forward a package of measures to protect renters affected by Coronavirus. No renter will be forced out of their home.
INCREASED NOTICE PERIOD – From 26th March 2020, if a landlord intends to seek possession, a minimum notice period of 3 months must be given to to a tenant. This increased notice period will apply in law until 30th September 2020, however 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 eviction.
As a result of the change in law, the new Form 6a was published on 26th March 2020 and is to be used until 30 September 2020.
A new Form 3 was also published to be used when serving a Section 8 notice.
The Government makes it clear that tenants are still liable for their rent and should pay this as usual. Government support is available for tenants who are facing financial hardship.
ONGOING POSSESSION CASES SUSPENDED – From 27th March 2020, court services have suspended all ongoing housing possession action. This means that neither cases that are currently in or about to go into the system can progress to the stage where someone can be evicted. This suspension will initially last for 90 days but can be extended if needed.
If you already had a possession claim in the court system, it will stay at the position it was in until the suspension is lifted, after which it will start again from the point it was at.
If you had already served notice prior to 26th March 2020 but have not yet completed the court paperwork, you can proceed the paperwork to court as normal but no further action by the court will be taken until the after the court suspension is lifted (minimum 90 days from 27th March, may be extended).
The government is committed to supporting landlords, and maintaining the positive partnership between tenants and landlords.
LANDLORD OBLIGATIONS – Landlords remain legally obligated to 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.