What next for the Renters Reform Bill?
A lot of chatter has appeared in the trade press over the last 24 hours regarding the Renters Reform Bill and the intentions of the Labour Party if they win a general election. A lot of the discussion circulates around the abolition of Section 21 (Form 6A), so much so that landlords are constantly having a ‘knee jerk’ reaction every time the trade press, national press, TV reports, a blog make reference to the notice disappearing. This has lead to many landlords selling up and exiting the letting sector.
With the greatest of respect to all those who report on the Renters Reform Bill, it’s irresponsible to mislead landlords in this way; landlords who in 2019 reacted to the initial proposal of abolishing the Section 21 notice were unfortunately mislead into thinking that firstly the notice would be abolished imminently. But let’s also think about tenants and the impact this ‘misinformation’ has affected them. Many tenants could have avoided having notice served on them and worse still, facing accelerated possession through the courts and possibly eviction. It has not and will not be abolished for a while.
The Importance of Creating a Strong Audit Trail
Over the last 2 years, we have conducted a significant number of audits. The audits are not finance related, the focus is on compliance on 2 levels - Compliance of the letting agency and compliance related to process and systems. Our desktop audits are conducted to ensure that GLM members are complying with membership criteria and relevant statutory requirements.
We have been asked by clients to audit their property portfolio to ensure compliance, to prepare for the sale of their business or to invest in other agencies; most recently we have been involved in auditing agencies being acquired.
Into the Detail of the Renters Reform Bill
Since the White Paper was published last Thursday, our Advice Line has been bombarded with questions about the Bill And rightly so given this is the most significant change in the Private Rented Sector since the Housing Act 1988 was introduced. We will be dealing with the detail of the Bill on June 29th in London during the training session we will be running, however, there are some important questions that need to be answered quite urgently. (Questions asked through our Advice Line).
1. Will the Section 21 Notice disappear next month?
No definitely not
2. What will replace the Section 21 Notice?
A re-vamped version of the Section 8 Notice with additional Grounds
3. How quickly will the legislation be implemented?
Before the Bill becomes an Act. There is no set time limit - the Bill it will be scrutinised by peers and MPs as it makes its way through parliament. This process is known as 'Parliamentary Ping-pong' and refers to the to and fro of amendments to Bills between the House of Commons and the House of Lords. It is during these multiple stages that amendments are made before the Bill finally becomes law.Given the complexity of the content of the Bill, this process may last 12 months or more.
Improving the Disclosure of Material Information for Property Listings
Project summary and list of material information for Part A
Overview
For many years the regulation of property advertisements was controlled by the Property Misdescriptions Act 1991 (PMA). The PMA was repealed in 2013 on the basis that the Consumer Protection from Unfair Trading Regulations 20081 (CPRs) provided similar protection for consumers in their dealings with property agents. Further information on how the CPRs apply to property sales and lettings can be found in the National Trading Standards ‘Guidance on Property Sales and Lettings’ .
To support businesses in the advertising and marketing of property, the National Trading Standards Estate & Letting Agency Team established a steering group made up of various industry stakeholders – redress schemes, property portals, government, and professional bodies representing agents. The group aims to improve the provision of material information in property listings, and part of this process involves creating a framework of information disclosure to help agents, software providers and property portals to comply with the legal requirements of the CPRs.