Legal and Compliance Update, 28.10.15

Good afternoon everyone, I usually prefer to put interesting facts about the Stoke-on-Trent property market or buy to let opportunities that catch the eye on here but due to the plethora of recent changes affecting the private rented sector, I thought it would be useful to add a brief roundup of some recent legislative changes and those due to come in soon.

Introduced 1st October 2015

 

Smoke and Carbon Monoxide Alarm (England) Regulations 2015 As from 1st October 2015 for every existing tenancy there must be a smoke alarm on each floor of the property and a carbon monoxide detector in rooms containing an appliance that burns solid fuel.  All alarms must be checked they are in working order at the start of a new tenancy (these check must also be carried out when there is a change of sharer but is not required upon renewal of tenancy).   It is the tenant’s responsibility to check that the alarms are in working order during the course of their tenancy and change the battery if required, however, should an alarm become faulty during the tenancy the landlord is responsible for replacing them. As mentioned in previous communications most of the properties we manage through the Stoke-on-Trent and Newcastle under Lyme offices already have the requisite number of smoke alarms and we are checking again as we do our property inspections. Additionally we have written to tenants asking then to also check and to remind them about their responsibilities and to encourage them to check smoke alarms on a regular basis.  Where we identify smoke detectors are required we have a stock of free ones supplied by the local fire brigade and have negotiated a price with local contractors to fit them where needed. If you have any questions, please refer to this explanatory booklet: https://www.gov.uk/government/publications/smoke-and-carbon-monoxide-alarms-explanatory-booklet-for-landlords

The Deregulation Act 2015

As from 1^st October 2015, there were important changes introduced as to when a Section 21 notice can be served.

Section 21 Notices cannot be served unless it can be proven that tenants have been provided with the following information:

• A valid Gas Safety Certificate
• The property’s Energy Performance Certificates (EPC), except where a property is not required to have an EPC – such as where the landlord is letting a room on a single AST in a House in Multiple Occupation (HMO)
• The DCLG document “How to Rent – The Checklist for renting in England”.

We serve these at the start of each tenancy and again at renewal time if we have been asked to prepare a new fixed term agreement and we would serve them again should we need to serve a section 21 notice

Landlords will no longer be able to seek possession using section 21:

• During the first four months of a tenancy;
• Where the landlord has not provided the documentation detailed above;
• Where the landlord has not complied with the tenancy deposit legislation, or;
• Where the landlord is prevented from retaliatory eviction under Section 33 or the Deregulation Act 2015
• Where a property requires a license but is unlicensed. 

Landlords cannot validly serve a Section 21 Notice in the first four months of a tenancy. However, where a tenancy has been renewed the landlord will be able to serve a Section 21 Notice at any point during a renewed tenancy.

The notice does not need to expire on the last day of a rental period, unless the tenancy started on a periodic basis.

Section 21 Notices will only be valid for six months from the date of issue.

Right to Rent (Immigration Act 2014)

As of 1^st February 2016 ID checks will have to be made on all adult tenants across England by landlords or their agents (the legislation also applies to sub-letters and lodgers).

Evidence will need to be obtained that each tenant has a right to remain in the UK via appropriate documentation such as a passport or biometric residence permit.

There is a 28 day rule regarding how far in advance the checks can be carried out i.e. checks must be carried out within 28 days of the eve of the start of the tenancy.

There is also a legal requirement for ongoing checks.

Please see the following links for further information:

https://www.gov.uk/government/news/right-to-rent-checks-what-they-mean-for-you

The penalties for non-compliance are severe and could include fines of up to £3,000 per illegal migrant.

Upcoming Legislation affecting Lettings and Sales The Bill will apply to England Only with some exceptions – Clause 88 (Estate Agents) extends to England, Wales, Scotland and Northern Ireland

 

Housing and Planning Bill 2015-2016 This new Bill has just been introduced to Parliament and aims to: Create a legal duty on councils to guarantee 200,000 starter homes offered to First Time Buyers at a 20% discount; Give the Government powers to ensure councils get Local Plans in place by 2017; Ensure social housing tenants on higher incomes pay rent in accordance with their ability to pay; Introduce automatic planning permission on brownfield sites; Introduce reforms supporting small builders; Introduce measures to tackle rogue landlords and letting agents; Ensure the effective management of high value council-owned assets. For further information, please see the following link: https://www.gov.uk/government/news/historic-housing-and-planning-bill-will-transform-generation-rent-into-generation-buy