The first quarter of 2022 has seen a lot of activity in the private rented sector. In this article we bring together the key changes for the lettings industry, Landlords and Tenants.
Market Comment: – PropertyMark’s Private Renters Sector Report issued 28/4/2022 indicates that there is an ongoing disparity in supply and demand with tenants remaining in their properties for longer periods of time, and rents increasing. On average agents have 8 properties listed due to the speed properties are being put under offer. This is a trend that our Lettings department is currently seeing.
Levelling Up and the Renters’ Reform Bill White Papers: – The Queens Speech delivered May 10th 2022 outlined the main benefits of the Bill would be to “deliver a better deal for renters through reforms that will provide 4.4 million households with more secure and higher quality homes; providing a more effective legal framework and a more stable rental market for landlords to remain and invest in; giving local councils effective tools to crack down on the minority of non-compliant landlords and poor practice.” The measures support the Government’s levelling up mission on housing for the number of non-decent rented homes to have fallen by 50 per cent by 2030. The main elements of the Bill are: –
- abolishing so-called ‘no fault’ or retaliatory evictions by removing Section 21 of the Housing Act 1988
- reforming possession grounds for landlords, introducing new and stronger grounds for repeated incidences of rent arrears and reducing notice periods for anti-social behaviour, ensuring that they can regain their property efficiently when needed
- applying the legally binding Decent Homes Standard in the Private Rented Sector
- introduce a new Ombudsman for private landlords so that disputes can easily be resolved without the need to go to court, which is often costly and lengthy, and ensure that when residents make a complaint, landlords take action to put things right (it is already mandatory for agents to be members of an ombudsman redress scheme)
- introducing a new property portal to help landlords understand their obligations, give tenants performance information to hold their landlord to account as well as aiding local authorities
The Government will shortly publish a White Paper and bill will extend to England and Wales and apply to England only. *Source Government briefing notes on the announcements made in the 2022 Queen’s Speech.
Smoke and carbon monoxide alarm regulations changes: – On 23/11/2021 the Government responded to its own consultation on proposals to extend the rules for domestic smoke and carbon monoxide alarms within all rented accommodation in England. The Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 will make it mandatory for carbon monoxide alarms to be fitted in all rented properties from 1/10/2022, in each room containing a fixed combustion device extending this to gas boilers or fires but not gas hobs (at present it is only for solid fuel burning appliances including log burners). At present Landlord must ensure that each device is working at the start of the tenancy but the changes will require all private landlords to repair or replace alarms once informed that they are faulty.
Electric vehicle charging point grants for landlords: – Landlords across the UK will be able to apply for 75 per cent of the cost of charging points up to £350 where they own parking areas but must be VAT registered or registered at Companies House to be eligible and where Landlords are not eligible there is a similar scheme for Tenants – Government website EV chargepoint grant for flat owner-occupiers and people living in rented properties: installer guidance – GOV.UK (www.gov.uk)
Material Information for Property Listings: – A property’s council tax band or rate and the property price and tenure information (for sales) must be included on all property listings by May 31st 2022. These changes are Part 1 of a project by the National Trading Standards Estate and Letting Agency Team. Part A information means, regardless of outcome, it is always considered significant for all properties regardless of location i.e. unavoidable costs that will be incurred by the occupier e.g. monthly rent, deposit. You can read the project summary and list of material information for Part A
Energy Saving Materials VAT relief: – In the Chancellors Spring Statement it was announced that from April 1st 2022 there would be a reduction in VAT on energy saving materials installed in residential properties from 5% to 0%. Landlords can take advantage of this for the next 5 years. Read our blog Energy Saving Materials VAT relief – Alexandre Boyes (alexandre-boyes.co.uk)
Making Tax Digital: – The October 2021 budget announced that “Making Tax Digital” for income tax self-assessments for landlords with income over £10,000 would be delayed from April 1st 2022 until 6 April 2024. Get ahead and read our blog
EPC Ratings: – The Government, as part of their Net Zero Strategy and continued efforts to improve the overall energy performance of the private rented sector, proposes to increase this minimum rating to a Band C by 2025 for new tenancies, and all tenancies by 2028 in England and Wales.
Boiler upgrade scheme: – This opens for grant applications and payments from 23 May 2022. Check if you may be eligible for the Boiler Upgrade Scheme – GOV.UK (www.gov.uk)
Rent Controls: – Whilst there is no confirmed plan for a consultation on rent controls in England it remains a talking point. The consultation period for Scotland closed on April 15th. Local Scottish councils can currently apply to Scottish Ministers to have an area designated as a ‘rent pressure zone’ (RPZ) if it meets certain criteria, however the “New Deal for Tenants” would go further and implement rent controls by the end of 2025 according to the consultation papers. Some councils in England are looking to trial rent controls (e.g. Bristol), and it is one of the current Major of London key objectives in the run up to his 7 May re-election campaign. The Welsh Senedd rent control motion was rejected on February 9th 2022. However, its likely consultations and debates will continue.
This article is intended as a guide only and does not constitute legal advice. It may vary in Scotland and Wales.
