Renters rights bill update
The Renters Rights bill will not be going to Royal Assent until they are back from summer recess in September.
One amendment to the bill that has been withdrawn is to allow landlords to be exempt from joining the new ombudsman if their agent is already with a redress scheme. Therefore, landlords will be required to be part of it.
A positive amendment that has been agreed is the Pet Deposit, landlords can request up to 3 weeks rent as an additional deposit, however, this must only be for pet damage.
Another positive amendment is the reletting of a home if possession was gained by using the Ground 1a of the Section 8 to sell the property. Originally it was looking at banning a landlord from reletting the property for 12 months, this has now been reduced to 6 months.
FIRST TIME BUYERS NEW INITIATIVE
The Chancellor announced a couple of headlines during July to help first time buyers get on the property market.
The first was to increase the income criteria, generally 4 times annual income to 4.5 times annual income.
The second was for tenants to be able to use their rental payments to show they pay their rent on time and they could afford the mortgage repayments.
The latter I have been advocate for many years, it seems absolutely daft to commit to a payment plan of a large rent and for this not be part of your credit check. A win-win for tenants and landlords.
BANK OF ENGLAND BASE RATE CUT?
It is being widely predicted that the Bank Of England will be looking to reduce the rate during August, if the job market shows signs of slowing down. The effect of the Employers National Insurance increase will be biting into many businesses outgoings and will be having an impact. Let’s hope they do bring the rate down.
IN THE COURTS
£75,000 Fine
A landlord found himself being fined for £75,000 for letting out two flats in North London on Airbnb and Booking.com sites. A neighbour had complained how the short term lets were having a ‘detrimental impact on his life, work and mental health’, due raucous parties, lack of sound proofing and antisocial hours with noisy parties. term lets being The landlord claimed they were long term tenants, however, the holiday sites had shown reviews of the flats. The flats were not allowed to be let as holiday lets, hence the hefty fine.
£10,000 fine
A landlord in Derbyshire found himself in court for the second time within a 12 month period due to not co-operating with the first order and having a Category 1 hazard and six Category 2 hazards. The first fine was for £2,000 but the second fine was for £10,000.
AN OFFER OF ADVICE
We are heading for the major reform in the lettings industry. A good agent will be reading and monitoring and ensuring their clients are safe. It is becoming harder and harder for landlords to self-manage, (unless they consider it their job and regularly attend courses). To be frank, one fine from the council, could easily cost a lot more than if you had engaged an agent to manage the property for multiple years!
At Move On, we can assure you that our knowledge and expertise in being up to date with legislation, means you can have total peace of mind, that you will not fall foul of the law . If you have considered looking for an agent, then give me a ring and I will personally happily chat through any concerns or questions you may have.
Sharon
CONTACT
T. 01202 711169
420 Poole Rd, Branksome, Poole BH12 1DF
www.moveonsalesandlettings.co.uk
