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14th January 2019 saw the 3rd and final reading of the Tenant Fees Bill in the House of Lords. Lord Bourne of Aberystwyth confirmed on the afternoon of 15th January 2019 that subject to the Bill getting Royal Assent, the Tenant Fees Bill will come into effect on 1st June 2019 for all tenancies signed on or after that date.
Throughout the report stage amendments have been made; the deposit cap lowered from 6 weeks rent max to 5 weeks rent max for properties with an annual rent of less than £50,000.00.
The Ministry of Housing, Communities and Local Government believe that the amendments ‘strike a fair balance between improving affordability for tenants whilst ensuring that landlords and agents have the financial security they need’.
The final content of the legislation is not yet confirmed, however key points of the Bill are as follows;
What is exempted form the banned list? Holding deposits, rent, deposits and charges for defaulting on the contract are all exempted however are subject to additional restrictions as part as part of the legislation.
A lead local authority will oversee and police the new measures.
For further information on the Tenant Fees Ban in England;
https://www.rla.org.uk/landlord/guides/tenant-fees-ban-guidance.shtml
Article Abridged from NLA & RLA
Listen to this episode from BBC Radio 4’s Money Box Live. The panel discusses the effectiveness of the system for getting you your money back.
https://www.bbc.co.uk/programmes/m0001ygh
It will be a requirement for all social and private landlords (including letting agents acting on their behalf) in England to ensure that a property is fit for human habitation both at the beginning of the tenancy and throughout. The Bill amends the Landlord and Tenant Act 1984.
If a home does not meet the standards of the HHSRS (Housing Health and Safety Rating System), tenants can take legal action in court for breach of contract.
Put forward by Labour MP Karen Buck, the Bill received Royal Accent on 20th December 2018 and comes into force 3 months after that date – 20th March 2019. Initially it will only apply to new and renewal tenancies in England from this date. It will then apply to periodic tenancies 12 months later to give landlords time to ensure properties are up to standard.
The government have a HHSRS guide for landlords and property professionals;
For more information on the Homes (Fitness for Human Habitation) Act 2018;
https://services.parliament.uk/bills/2017-19/homesfitnessforhumanhabitation.html
The Explanatory notes issued by the Ministry of Housing, Communities and Local Government;
https://publications.parliament.uk/pa/bills/lbill/2017-2019/0139/18139en.pdf
This is from a legal perspective, written by Cornerstone Barristers;
https://cornerstonebarristers.com/news/homes-fitness-human-habitation-act-2018/
The Tenant Fees Bill 2017-2019 is due it’s 3rd and final reading on 15th January 2019 in the House of Lords. Once the final reading takes place, it will then return to the House of Commons for a consideration of amendments, after that it can receive Royal Assent and become law.
The implementation date is not known but is to be expected in Spring 2019 at the earliest. The Bill seeks to ban most letting agent and landlord charges to tenants and will place caps on security and holding deposits.
For updates on the Bill and to read debates on all stages of the bill, please see the following link; https://services.parliament.uk/bills/2017-19/tenantfees.html
All organisations, companies and sole traders that process personal data must pay an annual fee to the ICO unless they are exempt. Fines for not paying can be up to a maximum of £4,350.
This follows regulations which came into force alongside the new Data Protection Act on 25 May 2018.
These first organisations have been fined for not renewing their fees following their expiry and more fines are set to follow. More than 900 notices of intent to fine have been issued by the ICO since September and more than 100 penalty notices are being issued in this first round.
Article from The Information Commissioners Office 28.11.2018
As of Monday 10th December 2018, SWLA members with a B&Q Trade Point Card receive 5% off B&Q purchases (to exclude local clearance items, vouchers and services – see T&Cs) without having to have a minimum spend the previous month.
This is on a 6 month trial basis. With the right amount of uptake, this trail period will hopefully be extended.
**please note if over £500.00 is spent in one month, an additional 5% discount will be applied within 7 days to run for the remainder of the current month and the following month**
See the original discount update here;
Landlord Training Course
End of Tenancy including Repossessions
Monday 4th February 2019 – 9:30am – 4:30pm
Venue – Charter Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
If you are accredited this will count towards your CPD hours, but the course is open to all.
Cost for SWLA members – £65. Cost for non-SWLA members – £75.
Course will cover:-
Places secured upon receipt of payment, book your place through the office 01752 510913.
Course will be instructed by Stephen Fowler from Training for Professionals.
Venue – Astor Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
Price – £65 for members of SWLA, £75 for non – members for one day course.
Course covers ASTs, Deposits, Section 21s, Section 8s, HMOs, Gas and Electrical Safety, Inventories and much more.
The course will provide you with all the skills to start, manage and finish a tenancy.
Places still available. Contact the office on 01752 510913 or via the website to book your place, places secured on receipt of payment.
Over 720 landlords have already completed this course since September 2011.
Course can lead to Accreditation, if required.
If your tenant is struggling with their finances or benefit claim, you can direct them to Shelter for help. Shelter are opening their Information Resource Centre in Ernest English House, Buckwell Street, Plymouth in December 2018. There will be 2 computers and a phone line, with a full-time member of staff dedicated to helping your tenants with guided self-help. Guidance will be for benefit claims, housing applications, job searches, Shelter ‘get help’ pages and other related assistance. The member of staff who will be running this service is called Rachel Hembury. The Information Resource Centre can be accessed Monday to Friday 9.30-12.30 and 13.30-15.30, no appointment is necessary.
SWLA Chair Steve Lees, Vice Chair Iain Maitland and Policy Officer Linda Johns met with Matt Garrett (Head of Community Connections PCC) and Councillor Chris Penberthy at the SWLA Office to discuss the following items;
Do you have a property in Devonport, Ham or St Budeaux electoral wards? (to include Devonport, Keyham, Morice Town, Ham, Weston Mill, Pennycross, North Prospect, Kings Tamerton, St Budeaux, Barne Barton and parts of Stoke and Beacon Park)
To check which ward a property falls into, the postcode can be entered at https://mapit.mysociety.org/ and it will tell you immediately.
Plymouth Energy Community are working with Plymouth City Council to provide free energy saving measures to homeowners and private renting tenants. Everything that they provide is free including;
No means testing. Completely free of charge.
To enquire, call 01752 477117 or email energyteam@plymouthenergycommunity.com
Click the following link for more info; Energy Team – Big Bills Save Money
New HMO licencing – 5 persons or more sharing – New legislation begins on 1st October 2018.
Only 5 days to go to get your applications in to the local authority where an early bird discount may be applicable.
Thursday 8th November 2018 – 9:30 – 4:30pm
Venue – Astor Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
Price – £65 for members of SWLA, £75 for non – members for one day course.
Course covers ASTs, Deposits, Section 21s, Section 8s, HMOs, Gas and Electrical Safety, Inventories and much more.
The course will provide you with all the skills to start, manage and finish a tenancy.
Places still available. Contact the office on 01752 510913 or via the website to book your place, places secured on receipt of payment.
Over 700 landlords have already completed this course since September 2011.
Course can lead to Accreditation, if required.
We are proud to announce Landlord Accreditation South West (LASW) are founder members of the West of England Rental Standard.
Landlord Training Course – Inventories
Tuesday 9th October 2018 – 9:30am – 4:30pm at Plymouth Guildhall
If you are accredited this will count towards your CPD hours, but the course is open to all.
Cost for SWLA members – £65. Cost for non-SWLA members – £75.
Inventory Course will cover:-
– How to create a robust Inventory and Schedule of condition
– Mid-term visits – what to look for and record
– Managing the safety paper trail
– Alternatives to taking a deposit
– IT solutions
– Move in
– Move out
– Move out reports
– When is wear and tear a damages claim
– Managing a move out dispute
– Adjudication workshop
Places secured upon receipt of payment, book your place through the office 01752 510913.
Since 1st October 2014 – all letting and managing agents in England must belong to a redress scheme.
There were 3 schemes to choose from;
‘Ombudsman Services’ are ceasing to be a redress scheme for the purpose of the Enterprise and Regulatory Reform Act 2013 which requires membership by agents.
Any letting or managing agent in England who belong to the ‘Ombudsman Services’ scheme must join one of the other 2 schemes before 6th August to ensure that they continue to comply with the requirement to belong to a redress scheme.
Agents must remember to prominently display who they are a member of in their office and on their website (if they have one).
For more information please see the ‘Ombudsman Services’ press release;
https://www.ombudsman-services.org/sectors/property
If so, regardless of how many floors the property has, you have until midnight 30th September 2018 to apply for a HMO Licence (if you haven’t done so already).
For further information, please contact your local authority.
Venue – Charter Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
If you are accredited this will count towards your CPD hours, but the course is open to all.
Cost for SWLA members – £65. Cost for non-SWLA members – £75.
Inventory Course will cover:-
This course is key for those newer to lettings or for those who recognise their inventory paperwork could be better or for those looking for fresh solutions.
Places secured upon receipt of payment, book your place through the office 01752 510913.
Venue – Charter Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
Price – £65 for members of SWLA, £75 for non – members for one day course.
Course covers ASTs, Deposits, Section 21s, Section 8s, HMOs, Gas and Electrical Safety, Inventories and much more.
The course will provide you with all the skills to start, manage and finish a tenancy.
Places still available. Contact the office on 01752 510913 or via the website to book your place, places secured on receipt of payment.
Over 680 landlords have already completed this course since September 2011.
Course can lead to Accreditation, if required.
The Government have published another updated version of the guide ‘How to Rent: the checklist for renting in England’. The document was updated on 6th July 2018 and published on 9th July 2018. This was following the previous update on 26th June 2018.
When you provide the ‘How to Rent’ guide, print it straight from the gov.uk website to ensure that you give your new or renewing tenant the most up to date guide;
The government has published a ‘How to Let’ guide for landlords. It’s a great guide to read through to ensure that you have carried out all of your landlord responsibilities.
Please note. The booklet does not cover leasehold, holiday lets or resident landlords who let to lodgers.
The government has released a guidance document for local authorities regarding the extension of mandatory licencing of houses in multiple occupation (HMO). Included in the document is a new definition of an HMO that will require a licence. It also includes the regulations on room sizes and landlords needing to take responsibility for their tenant’s rubbish;
This guidance document will help landlords understand how health and safety rules for shared houses will impact their properties.
From 1st October 2018, private landlords renting out a property to 5 or more tenants from two or more separate households must have a licence from the local authority.
The aim is to protect tenants from poor and often over crowded living conditions owned by a small number of landlords.
Here we have some highlights taken from the document which will be relevant to our members;
We want to support good private landlords who provide decent well-maintained homes and not impose unnecessary regulation.
Mandatory licensing of HMOs came into force in 2006 and originally applied to properties of three storeys or more with five or more people making up two or more separate households living in them.
As demand for HMOs increased in the decade since mandatory licensing was first introduced there has been a significant increase in properties with fewer than three storeys being used as HMO accommodation, notably two storey houses originally designed for families and flats. Some have been used by opportunist rogue landlords who exploit their vulnerable tenants, and rent sub-standard, overcrowded and potentially dangerous accommodation. The growth of HMOs has also had an impact on the local community, including where inadequate rubbish storage leads to pest infestation and health and safety problems.
To this end we have also clarified the minimum size to be applied to rooms used for sleeping accommodation in HMOs and added requirements relating to the provision of refuse disposal in licensed properties.
The measures complement those in the Housing and Planning Act 2016 which tackle rogue landlords. They will also operate within the additions brought in by that Act to the enforcement regime, including the financial penalty procedures and banning orders.
What are the extended mandatory HMO licensing requirements?
In April 2018, Parliament approved secondary legislation which reforms the mandatory HMO licensing regime.
The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 20182 (‘the Prescribed Description Order 2018’) has the effect of extending the scope of section 55(2)(a) of the Housing Act 2004 (‘the Act’), so that mandatory HMO licensing also applies to HMO properties which are less than three storeys high. The Prescribed Description Order 2018 also deals with the passporting of licences granted under additional and selective licensing schemes into the mandatory licensing regime.
A second statutory instrument, the Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 20185 (‘the Mandatory Conditions Regulations 2018’) amends Schedule 4 of the Act, introducing new conditions that must be included in licences that have been granted under Part 2 of the Act. These are:
-Mandatory national minimum sleeping room sizes; and
-Waste disposal provision requirements.
Minimum sleeping room sizes
From 1 October 2018 local housing authorities must impose conditions as to the minimum room size which may be occupied as sleeping accommodation in the HMO. A room smaller than the specified size must not be used as sleeping accommodation, and communal space in other parts of the HMO cannot be used to compensate for rooms smaller than the prescribed minimum. The purpose of this condition is to reduce overcrowding in smaller HMOs. The standards adopted are similar, but not identical to, those relating to overcrowding in dwellings under section 326 of the Housing Act 1985.
What is the minimum sleeping room size?
The minimum sleeping room sizes to be imposed as conditions of Part 2 licences are:
-6.51 m2 for one person over 10 years of age
-10.22 m2 for two persons over 10 years of age
-4.64 m2 for one child under the age of 10 years
The minimum size for sleeping accommodation does not apply to charities providing night shelters or temporary accommodation for people suffering or recovering from drug or alcohol abuse or mental disorders.
It will also be a mandatory condition that any room of less than 4.64 m2 may not be used as sleeping accommodation and the landlord will need to notify the local housing authority of any room in the HMO with a floor area of less than 4.64 m2.
Any area of the room in which the ceiling height is less than 1.5m cannot be counted towards the minimum room size.
In addition, local housing authorities are required to impose conditions specifying the maximum number of persons over 10 years of age and/or persons under 10 years of age who may occupy specified rooms provided in HMOs for sleeping accommodation.
The mandatory room size conditions will however be the statutory minimum and are not intended to be the optimal room size. Local housing authorities will continue to have discretion to set their own higher standards within licence conditions, but must not set lower standards.
Waste disposal
All licences issued after 1 of October 2018 will need to include a condition requiring the compliance with the council’s storage and waste disposal scheme (if one exists). A licence holder’s failure to comply with the scheme is a breach of the licence and a criminal offence.
From 1 October 2018, local authorities will be required to impose a mandatory condition concerning the provision of suitable refuse storage facilities for HMOs. Local authorities will be aware that HMOs, occupied by separate and multiple households, generate more waste and rubbish than single family homes. Some local authorities have made specific provision under their function as the local waste authority for landlords of HMOs to ensure there are appropriate facilities for storing rubbish their properties generate.
All licensed HMOs will need to comply with the scheme issued by the local authority (if one exists) for the storage and disposal of domestic refuse pending collection. A licence holder’s failure to comply with the scheme is a breach of the licence and a criminal offence.
This condition must be included in all HMO licences (mandatory or additional) granted or renewed after commencement of the Mandatory Conditions Regulations 2018 on 1 October 2018.
For more information and detail, please see the publication via the link above.
On Wednesday 27th June, Gillian Kerr (SWLA Office Manager) and Iain Maitland (SWLA Vice-Chairman) attended a Steering Group Meeting hosted by Plymouth City Council. Attendees included representatives from Plymouth City Council, PATH, Shelter, University of Plymouth, local letting agencies and social housing providers.
Items discussed included Energy Efficiency in the Private Rented Sector (PRS), legislation changes effecting the PRS including the appointment of a new portfolio holder for housing, Trading Standards and their role in the PRS, Homelessness Reduction Act and the Plan for Preventing Homelessness.
SWLA attend and support these meetings on a regular basis and are keen to continue developing relationships between the Local Authority, landlords/agents and other key organisations.
The Ministry of Housing, Communities & Local Government has published new ‘how to’ guides including the ‘How to Rent’ Guide which must be provided to all new or renewing tenants in England.
https://www.gov.uk/government/publications/how-to-rent
On Tuesday 26th June 2018, the government published an updated version of the ‘How to Rent’ guide. This is the second update this year, the previous one being 17th January 2018.
All new or renewing tenants in England must receive the most current version of the ‘How to Rent’ guide from their landlord at the start of their tenancy. Therefore, if you have a new or renewing tenant who signed their tenancy agreement on or after 26th June 2018, this new version must be given.
You should ensure that your tenants sign to acknowledge receipt of all documents that you give (please see page 6 of the ‘How to Rent’ guide). There is space for your tenant to sign for receipt of these documents at the back of the SWLA Assured Shorthold Tenancy agreement.
If you do not prescribe the correct documents to your tenant, a Section 21 Possession Notice would be invalid and any application for possession would be thrown out if it goes to court.
If you have a tenancy that started 25th June 2018 or before, there is no need to give your tenant this new version but there is nothing stopping you doing so. It’s a great way to remind tenants of their responsibilities.
SWLA office manager Gillian Kerr attended the West of England Landlord Panel meeting in Bristol on 20th June 2018.
Items discussed included Legal Updates, Licencing Updates and general market conditions for the Private Rented Sector.
SWLA represent members in many South West local authority areas, we will promulgate relevant information through our quarterly bulletins. If you prefer to read the bulletins online you can do so; https://www.landlordssouthwest.co.uk/news-articles/latest-bulletins/