Renters Reform Bill moves to House of Lords
After months of waiting the Renters Reform Bill finally passed its third reading in the House of Commons yesterday, Coverage for the Bill has been widespread in the national press and trade press, some of which has been inaccurately reported.
Abolishing Section 21
This WILL happen. It is a manifesto commitment and the Housing Minister stressed that six months’ notice (a transitionary period) before ending section 21 tenancies to give the sector some time to implement these changes. There is a continued commitment to improving the county court system to adjust to the new possession processes.
Know Your Client - All about the Landlord
The private rented sector has evolved dramatically and as the industry has embraced technological innovations, systems and processes to ensure that all the necessary compliance is adhered to on behalf of landlords, yet there is one glaring problem that is not always properly addressed - identifying and verifying the legal owner the rental property.
Over the last 12 months we have conducted lettings audits which consist of a 40 point check list, some of which relate specifically to the property owner. Identifying the legal owner is of paramount importance, not just at the point of an audit, but more so when a landlord instructs an agent to act on their behalf.
Knowing the legal owner of a property is essential not only because letting out a property holds significant responsibilities and obligations, but also because the Due Diligence of ensuring who the legal owner is will avoid many serious disputes, in particular, fraud.
Renters’ Reform Bill - Committee Stage
Finally, the Government has provided some much needed information on the Renters Reform Bill. The Second Reading of the Bill took place late on a Monday evening, lasting 4 hours and was passed in the Commons on 23rd October 2023.
The Bill focuses on a range of reforms to achieve this, including abolishing the landlord’s ability to rely on Section 21; ending the use of assured shorthold tenancie (ASTs); creating a new register of PRS landlords'; introducing a property portal and establishing a Landlord Ombudsman for the Private Rented Sector to help tenants and landlords to resolve disputes.
The Importance of Property Visits
Property inspections have become a topic of discussion for many lettings who manage properties. Since the pandemic, letting agents faced challenges with ensuring that the backlog created by the various lockdowns has been reduced. With the property inspection forming part of a managed service, landlords benefit from the interim property visits that take place and as such provide landlords with information about the condition of their properties.
It is important to note that the property visit is not purely a contractual agreement between the landlord and the letting agent. Section 11 (6) of the Landlord & Tenant Act 1985 states that a landlord :- ” may at reasonable times of the day and on giving 24 hours’ notice in writing to the occupier, enter the premises comprised in the lease for the purpose of viewing their condition and state of repair.”.