LANDLORDS: What you should know from the last few months
Eviction Plans, Rent Increases, EPCs, New Fines and more ...!
Changes to Eviction Powers
The Renters (Reform) Bill plans to abolish the section 21 notice – The no fault notice to achieve possession. This is not necessarily a bad thing. Although that trigger for eviction will change, the grounds for eviction under section 8 will increase to include a ground for repeated arrears ( the Renters (Reform) Bill sets out that eviction will be mandatory if a tenant has been in at least two months’ rent arrears three times within the previous three years, regardless of the arrears balance at hearing) anti-social behaviour and moving in to the property (the new ground will allow for landlords and their close family members to move into a rental property).
For more information about the renters reform bill read our blog: Renter Reform Bill.
The plan for Rent Increases
How rent increases are dealt with moving forward will depend on the Renters (reform) bill. We expect there to be a mechanism very similar to the existing section 13 notice, which can be used to increase rents on a periodic tenancy.
As is the case now, landlords wouldn't be able to increase rents in the first year of the tenancy. They'd also need to give tenants two months' notice of an increase.
You can read our blogs in relation to rent increases here: Increasing Rent.
Fines will increase for right to rent non compliance
Landlords are required by law to conduct Right to rent checks in England to ensure their tenants have the right to rent their property according to their immigration status.
Fine for non-compliance will increase to £5,000 per lodger and £10,000 per occupier, with fines for repeat offences reaching up to £10,000 per lodger and £20,000 per occupier.
These new fines will come into play at the start of 2024.
Checks can be undertaken in a number of ways both digitally & manually. To find out more read our blog: Does your tenant have the right to live in the UK?
EPC upgrade deadline expected to be pushed back
The government is expected to delay its plans to increase Minimum Energy Efficiency Standards. Housing Secretary Michael Gove originally shared this in an interview with the Sunday Telegraph, saying that "we're asking too much too quickly" of landlords. Landlords will be banned from renting out their homes unless they pay for green measures such as insulation and heat pumps to meet a new minimum energy efficiency threshold by 2028. Citing existing financial pressures on landlords [Gove] added: ‘I think we should relax the pace.’"
With over half of privately rented homes estimated to not yet meet the required EPC C rating, this will take some pressure off landlords and give more time to plan - and budget - for any necessary upgrades.
You can read more about what's proposed in our blog: EPCs and MEES.
New Planning system proposals
The government has announced its long-term plan for housing, including proposals to relax planning permission rules to allow more conversions on retail premises, warehouses, lofts, and more.
Consultation for relaxing council tax rules for Landlords.
The government plans to give councils the power to charge a higher rate of council tax on properties that are left empty for longer than a year, rather than two years as is the case now.
However, the government is currently consulting on proposals to give landlords an extra six months before becoming eligible for the higher rate.
You can find the consultation on the government's site.
No rent controls under a Labour Government
Shadow Housing Secretary Lisa Nandy has shared that she no longer advocates for rent controls, saying that "rent controls that cut rents for some will almost certainly leave others homeless."
Another Base Rate increase
The 3rd August saw the base rate once again increase by 0.25%, making it 5.25%. This will affect the mortgage interest rates for those coming to the end of their fixed terms as well as those on variable or tracker mortgages.
You can read more about the base rate and its effects in our blog: Impact of rising interest rates in Gravesham.
Property Portal could help HRMC with tax
HMRC may be able to use the new property portal, proposed by the Renter Reform Bill, to investigate taxes unpaid by landlords. Whilst the bill doesn't state this explicitly HMRC will have access to the same public data as tenants, which when combined with Land Registry for analysis will make it easy for HMRC to find and identify Landlords.
Should you have any queries please