Property market moving in a positive direction
Deregulation Act 2015 came into force on 26 March and means impor tant TDP (government-backed tenancy deposit protection scheme) changes for landlords, agents and tenants.
Briefly, the law is relevant to any deposit currently held on an assured shor thold tenancy. It assists landlords who did not re-protect deposits or re-ser ve ‘Prescribed Information’ when a tenancy was renewed or when a Statutor y Periodic Tenancy arose. If, as a result of the Deregulation Act, a tenant loses a claim relating to deposit protection or loses their challenge to a Section 21 Notice, the cour t will not order the tenant to pay the landlord’s costs, as long as the tenant star ted their cour t case before 26 March 2015.This is a summar y of the changes.
A deposit taken before April 2007, where the tenancy has become periodic after that date, must be protected and have Prescribed Information ser ved within 90 days, i.e. by 23 June 2015, at which point they will be protected and treated as always having been so.
A deposit taken after April 2007, protected with the Prescribed Information ser ved during the initial tenancy, will be treated as having had the Prescribed Information ser ved on ever y renewal or on becoming a Statutor y Periodic Tenancy.
A deposit taken before April 2007, which became periodic before that date, must be protected or returned before a Section 21 Notice can be ser ved.
For the Prescribed Information, the rules are amended to allow for an agent’s details to be given in place of a landlord’s details where the agent is handling the deposit.
Section 33 Retaliator y Evictions, where a Section 21 Notice is ser ved by the landlord following a complaint of disrepair from a tenant, may be invalid. These provisions will come into force in October 2015.
prescribed form for a Section 21 Notice will come into use in July 2015.The issue of ‘incorrect dates’ for when the tenant has to leave in the notice has now been removed. Where there has always been a periodic tenancy then a Notice under Section 21(4) does not have to end on the last day of a rental period of the tenancy, it only has to give two months notice.
Paul Gillespie; 020 8426 1972; pgillespie@gibbs-gillespie. co.uk; www.facebook.com/ gibbsgillespie;Twitter: @ gibbsgillespie
Darren Murphy and Chris Harper, partners at Christopher Nevill, are confident that property sales will gain momentum now the election is over, and house prices will continue to move gently upwards
OW we know where we stand, with the general election behind us and a majority Conservative government in place, we can breathe a sigh of relief that there will be far less uncertainty about the future direction of the country than might have been the case with a ‘hung parliament’.
Now the country can move on in a positive direction, without the upheaval that a change in government often brings or difficult, long drawnout negotiations between political parties trying to work together.
Those who may have delayed a decision to move in the run-up to the election can now take action in the knowledge that the market is now likely to remain stable.
Fundamentally, the market is positive and the outlook is good. Interest rates are low and falling. Five-year fixed rate mortgages are now available at interest rates below 2% and, with inflation low and economic growth continuing, the outlook for the sales market is strong.
Supply has fallen short of demand for many years and there is undoubtedly a need for greater volumes of housebuilding but no government can simply flick a switch and turn this around quickly.
In fact, the major house builders have recently indicated that they cannot see a way to build the numbers of new homes being promised by some of the political parties in the time frames they have stated.
It is likely, therefore, that house prices continue to rise gently upwards, held back by affordability issues rather than levels of raw demand.
The private rental sector could have seen a big shake-up if some or all of the plans of the left-wing parties had become reality.
Fortunately, in our opinion, these plans will now not become reality. Had they been introduced on a broad brush basis, due to their potentially negative impact on landlords, they would have resulted in reduced levels of supply and therefore an artificially
induced increase in rental values.
Whatever changes the new government may now make should be introduced alongside a programme of house building in both the private and social sectors.
We actually saw very little let-up in activity leading into the election and with interest rates likely to remain low and some very good mortgage deals available, anyone thinking of committing to a sale or purchase, letting or renting, can do so with a degree of confidence.
Our team of experienced property professionals will, of course, be analysing the outcome of the general election closely and shall be pleased to provide our prognosis for the months ahead. If you are thinking of selling, buying, letting or renting, please do not hesitate to contact us to discuss the best way forward. Contact the sales team on 01895 232000 or lettings: on 01895 239977.
HIGH STREET OFFICES:
at 278 High Street.
Darren Murphy (left) and Chris Harper (right) envisage a strong sales market as economic growth continues as inflation and interest rates remain low.
Christopher Nevill’s sales team is based at 274 High Street, Uxbridge, the lettings team