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.

Half of landlords affected by removal of wear and tear allowance

Almost half (47 per cent) of landlords will be affected by the removal of the annual wear and tear allowance, according to new findings from the National Landlords Association (NLA).

The research findings show that a quarter of landlords (24 per cent) let their properties fully furnished, with 22 per cent letting a mixture of furnished and unfurnished properties. Just over half of landlords (53 per cent) let their properties on an unfurnished basis.

The news comes shortly after the government announced its intention to scrap the annual wear and tear allowance – which is only available for furnished properties – and replace it with a tax relief system that enables all landlords to deduct the costs they actually incur on replacing furnishings in the property.

The new system, currently under consultation until the 9th of October 2015, will apply from 6 April 2016 for Income Tax purposes and 1 April 2016 for Corporation Tax, and will cover the cost of replacement furniture, furnishings, appliances and kitchenware provided for tenants including:

Movable furniture and furnishings
Televisions
Fridges/freezers
Carpets and flooring
CurtainsLinen
Crockery or cutlery

Chris Norris, Head of Policy at the National Landlords Association said:“We fully understand the frustration of those landlords who let exclusively on a furnished basis as the removal of this allowance will very likely represent a reduction in the relief they can claim.

“However, it will come as a welcome revision for those letting a mixed portfolio, unfurnished, or part-furnished property as the replacement system will allow them to deduct legitimate revenue expenses in the future.

“The NLA has broadly welcomed these proposals as it should lead to a fairer system for more landlords. However, as we transition from one system to another, we will push to make sure that any landlords who’ve made recent investments with the expectation of offsetting the cost over a number of years using the current allowance, will not be disadvantaged”.

New law means Wales is first part of UK to introduce training for landlords and agents

Rent Smart Wales. A new law that is being introduced this autumn which will affect all private sector landlords and housing agents in Wales.
 
Everyone who owns and rents out private property in Wales will have to register with a central licensing authority and obtain a new type of licence under a new law from this autumn.

It means that Wales will become the first part of the UK where managing landlords and agents will need to undertake training to ensure they are aware of their rights and responsibilities.

The new Rent Smart Wales scheme aims to raise standards in the private rented sector and will replace the existing voluntary Landlord Accreditation Wales scheme, which has been operated by Cardiff Council on behalf of all local authorities in Wales.

It is intended that the new legislation will also result in raised awareness by landlords and agents of their respective rights and responsibilities and in turn, raised awareness by tenants of their respective rights and responsibilities.

All private landlords who have a rental property in Wales must register themselves and the addresses of their rental properties in Wales and those who undertake defined letting or property management activities at a rental property in Wales must apply for a licence. 

If a landlord instructs an agent to do such work on their behalf, it is that agent who must become licensed and in order to get a licence a person must be adequately trained, and also declare themselves ‘fit and proper’.

Licensing training will be offered through Rent Smart Wales or people can choose to attend Rent Smart Wales approved training courses delivered by other bodies.

The Welsh minister with responsibility for housing, Lesley Griffiths, is encouraging landlords and agents to subscribe for important news and information ahead of the changes.

‘We know approximately 184,000 homes in Wales, around one in seven, are now privately rented. With so many people renting, a strong sector with good working practices is absolutely essential,’ she said.

‘The new legislation we are introducing will not only improve the situation for tenants, informing them of their rights and responsibilities, it will also help good landlords by improving the sector’s reputation,’ she explained.

‘When Rent Smart Wales is introduced this autumn, it will provide a simple way for landlords to register and for them and their agents to become licensed. Ahead of the changes, I encourage landlords and agents to subscribe to register their interest and to receive useful news and updates,’ she added.

Cardiff Council, which currently operates the existing voluntary Landlord Accreditation Wales scheme, will be the licensing authority for the new statutory scheme, Rent Smart Wales, on behalf of all local authorities.

‘The scheme demonstrates the value of training and the development of positive relationships with landlords based on a better understanding of responsibilities and the potential risks of getting things wrong,’ said Bob Derbyshire, Cardiff Council cabinet member for the environment.
 
‘Rent Smart Wales is the next step, building on this early success, and provides an exciting opportunity for Wales to lead the way in professionalising the private rented sector through focusing on supporting landlords to get things right first time,’ he pointed out.

‘Centralised administration at Cardiff Council will deliver a consistent service across Wales and also provide the opportunity to establish a simple application process and reduce costs for customers,’ he added.

 At YOUR AGENT we've got you covered. Ciontact us today to find out how we can help you comply with the new legislation and take the stress out of managing your property.

Mortgage lending soars to seven-year high

Mortgage lending soared to a seven-year high in July as the housing market continued to gain momentum, figures showed today. 

A total of £22bn was advanced during the month, the highest level since July 2008, according to the Council of Mortgage Lenders (CML).

The group said the figure, which was also 9 per cent above lending in June, was in line with its expectations that mortgage advances would strengthen during the second half of 2015, following a subdued start to the year.

Activity in the housing market was muted in the run up to May’s General Election as many potential buyers adopted a ‘wait and see approach’, but it has bounced back following the Conservative victory.

A CML economist, said: “We expect lending activity in the rest of the year to be underpinned by improving economic fundamentals, but kept in check as any upward pressure on house prices further stretches affordability for some buyers. 

“Today’s data is in line with our forecast that gross lending will rise to £209bn this year, 3 per cent higher than in 2014.”

Meanwhile, Government figures also released today showed a fall in the number of new build homes being built.

Only 33,280 new properties were started in England during the three months to the end of June, 14 per cent fewer than in the first quarter of the year and 6 per cent down on the same period of 2014.

Within the total, the number of private homes being built dropped by 12 per cent quarter-on-quarter, while housing association starts dived by 23 per cent.