Five key law changes for landlords
THERE’S ALWAYS plenty to write about in the lettings market. Rather than review the increase in rental yields over the past two years (9.5 per cent rise between rental income in 2019, compared with 2021 year to date across our Imagine branches), I’ve focused in this article on five of the most significant legislation changes since May 2021 which could impact on you as a landlord, whether you own a single property or an ever-expanding portfolio.
WHAT IS ‘BREATHING SPACE’ (THE DEBT
RESPITE SCHEME)?
This legislation is intended to provide consumers in escalating debt with increased protection from creditors. It can block letting agents and landlords from chasing rent arrears and charging late fees. If a tenant meets the criteria, they can apply for the scheme. If they are subsequently registered on the Breathing Space scheme, the Insolvency Service will be in touch with their creditors.
If as a landlord, you’re one of the creditors, there are rules that you (and, if relevant, your lettings agency) have to stick to, as well as rules your tenant must abide by. With rent collection, no enforcement action can be taken for up to 60 days, or if they’re receiving mental health treatment, no action during that period of treatment plus an additional 30 days. Your tenant must keep up with regular payments towards their existing commitments where they can, or their Breathing Space could be cancelled.
PETS NOW WELCOME IN RENTAL PROPERTIES
The government wants consent for pets to be included as the default position on a tenancy agreement. As a landlord, you will have to object in writing within 28 days of a written pet request from a tenant.
Rejections should be made only where there is good reason, such as in smaller properties or flats where owning a pet could be impractical. To ensure you and your rental property are protected, tenants will continue to have a legal duty to repair or cover the cost of any damage.
NOTICE PERIODS HAVE CHANGED
From June 1, notice periods in England that were currently six months will reduce to at least four months. Notice periods for the most serious cases will remain lower:
anti-social behaviour (immediate to four weeks’ notice)
domestic abuse in the social sector (two to four weeks’ notice)
false statement (two to four weeks’ notice)
more than four months’ accumulated rent arrears (four weeks’ notice)
breach of immigration rules ‘right to rent’ (two weeks’ notice) death of a tenant (two months’ notice)
From August 1, where there were four or more months’ of unpaid rent, the notice period was changed to two months. This was to support both landlords and tenants, and respond to the greater difference between Covid and pre-Covid notice periods for rent arrears.
INFORMATION ON AIR POLLUTION
Air pollution is ‘material information’ of which the Property Ombudsman believes tenants should be aware before they make a decision on a specific property. Air-quality reports (revealing the levels of three toxic pollutants — PM2.5, PM10 and NO2) are available for every address in the UK. This is something to consider when your properties are due for renewal.
BAN ON HALOGEN BULBS
This ban came into effect on September 1, 2021. You won’t necessarily have needed to change the fittings in your rental properties due to the fact that most LED bulbs come in either Edison or bayonet style and, in most cases, are compatible with the current fixtures. However, this is not always the case for bulbs fitted directly into the ceiling.
In the long run, LED bulbs are much more cost-effective. For a landlord whose properties need to meet a minimum standard for energy performance, this was good news.