Legislation Update: Renting Homes Bill - Retaliatory Eviction

Retaliatory Eviction

Retaliatory Eviction, or Revenge Eviction (sometimes shortened to RE) is the practice where a landlord would evict a tenant simply because they have made a legitimate repair complaint that the landlord does not want to oblige by. 

The practice is already illegal under consumer law, however the Welsh Government are planning to formally outlaw the practice in the Renting Homes Bill.

England & Wales

If you have properties in England, Retaliatory Eviction has already been made illegal under the Deregulation Act 2015, however this Act does NOT APPLY IN WALES.

What does this mean for Landlords?

This policy will apply to every landlord who seeks to evict a tenant, you cannot and should not evict a tenant simply because that have made a legitimate complaint against the property. This measure is designed to target the criminal landlord who keep tenants in squalor and evict those who ask for basic repairs.

So what should you do?

At present this hasn’t come into force yet, however the best way to protect yourself against future unscrupulous claims is to keep a constant log of every complaint that a tenant has made and what has been done in relation to that complaint. In the future you may have to prove to the court that you are not evicting just because a complaint has been made.

YOUR AGENT Comment.

Tenants could keep making complaints, month after month, to avoid eviction. We do not support the practice of retaliatory eviction, however we do not want to see this policy become used as a weapon against good landlords, by tenants doing everything they can to avoid eviction.


If you are a landlord who does not want to go through this onerous process then why not let YOUR AGENT be your agent? And let us take the hassle out of managing your property.

Legislation Update: Renting Homes Bill

OVERVIEW

In 2006 the Law Commission began to look into the way tenancy contracts are issued and the legal complications around them. They concluded that the law surrounding tenancy agreements was far too complicated for tenants, and perhaps some landlords, to fully understand.

The Welsh Government decided to act on the work by the Law Commission and began setting out to completely overhaul the way contracts are issued. The Renting Homes Bill (commonly referred to as RHB) doesn’t stop at the contracts, it includes a number of other changes to the way landlords operate, such as:-

• Retaliatory Eviction 
• Abandonment
• The 6 month Moratorium
• Fitness for Human Habitation  
• Model Contracts

The Renting Homes Bill is still making its way through the assembly and isn’t expected to be passed until 2016. 

We will bring you more informaion as and when it becomes available.

Important Legislation Update

Registration

The Welsh Government is set to enact this policy following the passage of the Housing (Wales) Act 2014 in the National Assembly for Wales.  The official branding is ‘Rent Smart Wales’.  

It resembles a policy introduced by the Scottish Government a decade ago. The Welsh Government believes that registration will help to improve standards in the private rented sector by being better able to target criminal landlords. 

What this means for Landlords?

This applies to every landlord who rents properties located in Wales, without exception.  It doesn’t matter whether the landlord lives in Wales or not.  It also applies to landlords who rent properties that are managed by an agent.

For the first time you will have to register your details with a central ‘Licensing Authority’ and details of all your rented properties in Wales.

If you don’t comply you will be unable to legally rent your property.  You could face a number of penalties including unlimited fines and rent stopping orders.

What do I have to do?

The Welsh Government is set to announce details the practical details in due course.  It is likely that you will be able to register from Autumn 2015 and that you will have up to one year to comply before full enforcement begins.  The preferred process for registering will be via a new online portal, although written registrations will also be possible.

It has been confirmed that you will have to register prescribed personal details, including full name, date of birth, previous names and details of any agent who manages your property. 

You will also have to register details for each of your properties.  The cost is TBA, but may be approximately £50 for your personal registration and £10 for each property.

Licensing

The Welsh Government is set to enact this policy following the passing of the Housing (Wales) Act 2014 in the National Assembly for Wales.  The official branding is ‘Rent Smart Wales’  

The Welsh Government believes that national licensing will help to improve standards in the private rented sector by compelling managing landlords and agents to follow a set of conditions and undertake approved training. 

What this means for Landlords?

This applies to every letting and managing agent, and landlord who manages or undertakes maintenance on their property(ies) located in Wales.  It doesn’t matter whether the landlord lives or the agent’s main office/ branch is in Wales or not.

For the first time agents or landlords who manage their properties will have to have a licence.  If you are a landlord and don’t wish to become licensed, or are unsuccessful in obtaining a licence, then an agent must manage the property on your behalf.  Agents that don’t obtain a licence will be unable to trade.  You could face a number of penalties including unlimited fines and rent stopping orders.

What do I have to do?

The Welsh Government is set to announce the practical details in due course, and much is still unconfirmed.  You will be able to apply for a licence from Autumn 2015 and will have up to one year to comply before full enforcement begins.  The preferred process for submitting an application will be via a new online portal, although written submissions will also be possible.

It has been confirmed that in applying for a licence you must include personal or business details, including full personal/company name, date of birth, contact details, previous convictions and details of ‘connected persons’ (for agents potentially every member of staff).  Licensees must be: a ‘fit and proper person’, complete a training course, follow a set of TBA conditions and code of practice.  

You will also have to meet some of this criteria before applying for a licence.  The cost is TBA, but may be approximately £100 to obtain licence in addition to separate fees for training.  For managing landlords, this will be in addition to registration fees.

Please do not confuse this with Mandatory HMO, Additional HMO or Selective licence.  If you require one of these types of licence you shall also require this new national licence as well. 

Your Agent Comment

There will be no need for any of our Landlord clients to undergo this licencing, training or accreditation process. YOUR AGENT will be licenced on their behalf. We will also guide you through the registration processs and ensure you fully comply with the new legislation.

If you are a landlord who does not want to go through this onerous process then why not let YOUR AGENT be your agent? And let us take the hassle out of managing your property.

Where can I find out more?

https://www.rentsmart.gov.wales/en/

Mortgage lending hits eight-year high

Mortgage lending hit an eight-year high in August as the housing market continued to recover, figures showed today.

A total of £20bn was advanced during the month, the highest total for August since 2007, and 12 per cent above the amount lent in the same month of 2014, according to the Council of Mortgage Lenders (CML).

But there was a slight dip in lending levels compared with the previous month, when £21.7bn was advanced, as the market experienced its traditional August lull.

Bob Pannell, CML chief economist, said: “Mortgage lending is currently enjoying its best spell since 2008, on the back of a pick-up in house purchase and remortgage activity over the summer months. 

“August’s lending of £20bn marks the third month in a row of strong year-on-year growth and is the highest August figure since 2007.

“We expect further modest growth for the rest of the year, although affordability pressures are likely to limit gains for first-time buyers and home movers.”

The mortgage market is currently enjoying a boost from the return of both buyers and existing homeowners who are remortgaging.

Many potential buyers, who sat on their hands due to the uncertainty caused in the run up to May’s General Election, have since returned to the market.

At the same time, there has been a surge in the number of people remortgaging following warnings by Bank of England Governor Mark Carney that interest rates could start rising at the turn of the year.

Figures released by the CML earlier in the week showed a 34 per cent year-on-year jump in the number of people switching loans as homeowners look to lock into the current competitive rates on offer.

The group pointed out that remortgage and buy-to-let lending was improving more strongly than advances to people buying their own home.

A recovery in sales levels is being constrained by a shortage of homes on the market, which is continuing to put upward pressure on prices.

The Royal Institution of Chartered Surveyors (RICS) recently warned that while new buyer enquiries increased for the fifth month in a row in August, the number of homes being put up for sale remained at record low levels.

Affordability pressures are also likely to be having an impact on transaction volumes.
The average UK home currently costs 5.34 times average earnings, according to mortgage lender Halifax.

This is the highest level since March 2008, shortly after the housing market correction began.