New legislation: October 2015 28/09/2015


Timing of Notice

It will no longer be possible to serve a section 21 eviction notice at the start of the tenancy and landlords will have to wait a minimum of four months before they can serve an eviction notice.


This means the earliest notice can be served is day 1 of month 5, meaning the notice will expire day 1 of month 7. We are therefore going to change the length of our standard tenancy agreement 6 months and 1 day.



Deemed service rules


It is not always realised that a notice is sometimes treated as if it was served on a different day from the day that you delivered or posted it.  These are the deemed rules of service.

Personal service - If the document is served personally before 4.30p.m. on a business day, on that day; or in any other case, on the next business day after that day.


First class post - The second day after it was posted, left with, delivered to or collected by the relevant service provider provided that day is a business day; or if not, the next business day after that day.


Delivering the document to the property (eg putting it through the letter-box, attaching it to the door, etc) after 4.30pm - the next business day.


Fax - if it is transmitted on a business day before 4.30pm it is deemed served on the same day, otherwise on the next business day


Other electronic method - If the e-mail or other electronic transmission is sent on a business day before 4.30p.m., on that day; or in any other case, on the next business day after the day on which it was sent. Request a read receipt.


Deliveries after 4.30 pm are treated as being served on the next business day. 'Business day' means any day except Saturday, Sunday or a bank holiday (and bank  holidays include Christmas Day and Good Friday).

NB Some people consider that these rules may not apply to notices, which are served before the court proceedings have started.  My view is that if you comply with the deemed service rules you will be safe and it is better to be safe than sorry.


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Legislation Update Oct 2015

New rules governing both tenants safety and regaining possession of rental property are coming into force on 1st of October. Here’s a quick summary on what they are and how they might affect you.


Ultimately if you ever want to give a tenant notice there’s a few more hoops to jump through first!


If you need any further advice or have any questions then please do not hesitate to contact me.




Smoke & CO2 Alarms

From October 2015 landlords will be required by law to install working smoke and carbon monoxide alarms in their properties.


This will bring private rented properties in line with existing building regulations.

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The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 are expected to come into force on 1 October 2015.  They impose a duty on landlords of residential premises in England to:-


  • Install a smoke alarm on each storey of premises that are wholly or partly used as living accommodation.

  • Install a carbon monoxide alarm in any room that is used wholly or partly as living accommodation and contains a solid fuel burning combustion appliance.

  • Ensure that smoke and carbon monoxide alarms are in proper working order at the start of a new tenancy.


A new tenancy means a tenancy granted on or after 1 October 2015.  A relevant landlord is the immediate landlord of the premises although a registered provider of social housing is not caught by these regulations.


New Section 21 procedure


The new procedure will mean that Landlords who are disorganised and ill prepared will find it very difficult to evict tenants at the end of the Tenancy.

The new rules will apply to Assured Shorthold Tenancies granted on or after the 1 October 2015.  They will not apply to a Fixed Term Assured Shorthold Tenancy granted prior to the 1 October 2015 even if, after the relevant date, the Fixed Term Assured Shorthold Tenancy becomes a Statutory Periodic Tenancy.

However from the 1 October 2018 the rules will apply to any Assured Shorthold Tenancy.

A new form of Section 21 Notice comes into use.  The new rules also state that a Section 21 Notice cannot be served where:-


  • The tenant has resided in a property for less than four months.  This means that a Landlord cannot serve a Section 21 Notice at the start of the Assured Shorthold Tenancy and ensures that the tenants are actually given two months notice before the tenancy comes to an end.


  • The Landlord cannot serve a Section 21 Notice as a retaliatory action where a tenant is alleging that a Landlord is in breach of his obligations under a Lease, such as Landlords repairing obligations.   



  • Where the property requires a licence but is un-licenced.   


  • Where the Landlord had not complied with the new legal requirements (set out below). Unless fully organised, the new requirements will catch out many landlords and Letting Agents.


The New Legal Requirements

The new legal requirements state that a Landlord cannot serve a Section 21 Notice where it has not done either of the following:-


  1. Provided a tenant with an Energy Performance Certificate free of charge.


  1. Provided a tenant with a Gas Safety Certificate.


  1. Provided the tenant with a copy of the Department for Communities and Local Government Booklet “How to Rent – The Checklist for Renting in England”. Landlords need to be aware that this booklet advises tenants of the law and procedure relating to residential lettings and unless a landlord fully complies with the regulations, this will provide tenants with ready written defence to an ill prepared possession claim under the s21 procedure.




Finally, there has been a lot in the industry press about the approved code of practice for the control of legionella (L8).


This does put an obligation on landlords to carry out annual risk assessments but this is not as onerous as you might think. We are developing a new service offering to cover and advise our clients on this if you’re interested, or need some guidance please get in touch.


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Nathan Gadenne

BSc (Hons), PGDip Surv.

Director
Get those jobs done! 22/09/2015
Part of the new changes coming in on 1st October includes an obligation for landlords to act within an 'adequate response time'.

This useful infographic from ARLA and Fixflo sums it up well* but essentially landlords need only make sure they act quickly in undertaking repair.

'Adequate Response Time' is yet to be established I am sure the first case will have something to say about it.

My advice is don't mess about getting upteen quotes before taking action. Then again this is only really relevant if you want to get your tenant out of the property.

This is probably the least concerning of all the new rules governing sections 21 notices. More on those to come...

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Nathan Gadenne

BSc (Hons), PGDip Surv.

Director


* If your having trouble seeing all the information open the infographic a new tab for a larger view.
     
1 Month until the Deregulation Act comes into force. 02/09/2015


Less than a month to go until the deregulation act comes into force. Tenancies entered into on or after 1st October are all effected. 

Landlords and Tenants should be aware of the main changes which are summarised by Michelle Cox, a lawyer at Greenwoods Solicitors below:

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    • It will no longer be possible to serve a Section 21 Notice until the tenant has lived in the property for a minimum of four months. This is designed to stop landlords serving a Section 21 Notice as soon as a tenant moves in. As before, the notice can’t expire in any event before the end of any fixed term.
  • A Section 21 Notice will only be valid for six months from the date it was given. This means that if the tenant doesn’t leave, possession proceedings must be commenced within six months of the service of the Section 21 Notice. Different rules apply where the notice period set out in the tenancy agreement is more than two months.
  • A Section 21 Notice will no longer be invalid if the date of possession given on it is not the last day of a tenancy period. This has traditionally been one of the main reasons that a Section 21 Notice fails. As long as a full two months’ notice is given, then unless another unconnected error is made, the Section 21 Notice will be valid.
  • Landlords will be unable to serve a Section 21 Notice in circumstances where it is in breach of its legal obligations to a tenant. This includes obligations as to the condition of the property, the health and safety of the occupants and failure to provide an Energy Performance Certificate or a valid gas certificate for the property
  • In addition, where a tenant has raised a complaint to the landlord or agent in writing about the condition of the property there are also restrictions against the service and reliance upon a Section21 notice:
    • If such a complaint is raised and no adequate response is received or such response is received but no action is taken to remedy the complaint, then the tenant will need to complain to the local authority. Until the local authority has decided whether to issue a Relevant Notice (e.g. improvement notice) on the landlord for works to be carried out then a Section 21 Notice cannot be relied upon. If a Relevant Notice is served by the local authority, a section 21 notice cannot be served for six months from the date of that notice.
    • If the landlord/agent adequately responds within 14 days and the work is carried out this will have no impact on a Section 21 notice.
    • The landlord will have a defence in these circumstances where the tenant has failed to use the property in a tenant like manner or the disrepair is due to a breach of the tenants obligations under the lease; where a mortgagee is seeking possession; or where the property is genuinely on the market for sale at the time the Section 21 notice is served.
  • When a Section 21 Notice is served, all rent that has been paid for any period where the tenant ceases to lives in the property must be repaid to the tenant. This has implications where a tenant who has paid their rent decides to leave when they receive the Section 21 Notice rather than when the notice expires. Where a tenant pays a full month’s rent but then is required by the Section 21 Notice to vacate or voluntarily vacates mid-way through the month, the tenant is entitled to be reimbursed the overpayment of rent for that period.
  • One change that is already in force relates to the protection of deposits. All deposits ever taken which are still being held must now be protected. Once complete the deposit protection certificate and all prescribed information must be served on the tenant. If any deposit has not been protected or returned to the tenant a Section 21 Notice cannot be served.

View the original article at Property Industry Eye here.



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Nathan Gadenne

BSc (Hons), PGDip Surv.

Director
Selling Your Home Successfully 14/08/2015
When considering selling your home, the first and foremost consideration will be in the selection of your advisors, and probably most important amongst these will be the choice of your estate agent.

Why? They will be responsible for the correct valuation of your property, taking good care of the presentation, promotion and marketing in both online and traditional media. They will also look after prospective buyers, assist in the negotiation of the final purchase price, and then to carefully follow through every part of the associated chain of transactions, and to coordinate and synchronise the sale and purchase. The correct selection and choice of estate agent is crucial.

I would always advise an independent estate agent, although the bigger chains may look impressive they are normally just managed outlets without the dedicated care and concern of the owner, whose whole business is dependent upon successfully selling property in your area. This rule of thumb is not always true, there are some excellent franchised groups offering the best of both worlds; big brand and independent owners.

Even then, care in the selection of the right independent is almost of equal concern. It is too easy to be taken in by the appeal of the highest price stated by an agent; " he says he can achieve so much, and even if we accept offers.... "

Over pricing property is the worst thing to do when trying to sell a property; it will simply compare so badly against other, correctly priced, properties.

Nowadays it is so easy to compare the market, go onto a property portal and search for similar property around your price bracket and position your property as though you were a buyer. Still, you will need the expert guidance of an experienced estate agent to guide you through local market conditions, prices actually being offered and achieved today and so many other influences.

The second pitfall many make is the mistake of choosing the Agent who charges the least. This will generally lead to corner cutting when it comes to the all important presentation, promotion, and marketing of your home. As with most things in life you end up getting what you pay for, my advise would be to reward and incentivise your estate agent to ensure he is doing his level best for your property,

Even then who can you trust? All estate agents are not the same!

Look out for Ombudsman Scheme Membership, check the levels of Professional Indemnity Insurance, ask to see the code of conduct, visit the owners with boards for sale and ask about their experiences.... It is worthwhile taking the time and trouble because the selection of your estate agent is vital.

On the other hand, and I must admit to having a vested interest here, you could always choose a member of The Guild of Professional Estate Agents. We are carefully selected individual estate agents, normally one per town, formed into a national network of independent estate agents who work together to serve you better. The Guild ensure we all operate to a code of conduct, are members of the ombudsman scheme, and have good Professional Indemnity insurance.

You could achieve a far better result by choosing a member of The Guild of Professional Estate Agents.
BOOTH GADENNE GUIDE - Moving With Kids 18/08/2015