News & Legislative Update June 2019 - Basildon Landlord Forum ...

News &
Legislative
Update
June 2019

www.landlords.org.uk   1

Contents
  1. Section 21 Ending?
  2. Caridon Property Ltd vs Monty Schooltz
  3. Right to Rent – High Court Ruling
  4. Tenant Fees Act
  5. Landlords to be legally required to join
     redress scheme
  6. Five Year Electrical Safety Checks to be
     Compulsory
  7. HMO Licensing: Peter Gaskin vs London
     Borough of Richmond
www.landlords.org.uk                            2

Government Announces End Of Section 21
 • End of ASTs, Indefinite Tenancies
        – Use of Section 8 (145 days cost of £5730)
        – Need to reform court process
        – Add two grounds (sale and move in)
        – Not retrospective
 • Consultation (dates tbc)
        – May be rushed through before Autumn 2019
        – Highly political move
        – Will it happen….?
www.landlords.org.uk                                  3

Caridon Property LTD vs Monty Shooltz

• Any Section 21 notice is invalid if a
  gas safety certificate is not served
  before the start of the tenancy
  (England only)
• Cannot rectify this at a later date
• Your AST would effectively be
  treated as an Assured Tenancy
• Keep a detailed records of dates, times and
  correspondence with the tenant
• Will continue to press Government for change and
  clarification
www.landlords.org.uk                                 4

Right to Rent High Court Ruling
 • The High Court scheme contravenes the
   European Convention on Human Rights’
   prohibition of discrimination.
 • Judge rules it causes Landlords to
   discriminate
 • Case brought by the Joint Council for the
   Welfare of Immigrants (JCWI)
 • Right-to-Rent remains in force unless and
   until Parliament changes the law.
www.landlords.org.uk                           5

2019 Tenant Fees Act
 • All fees are prohibited except rent and…
         – Refundable tenancy deposit (capped at 5 weeks)
         – Refundable holding deposit (capped at 1 week)
                • one per property at any one time, written reasons if not
                  returned, must be returned once tenancy has begun
         – Statutory Guidance on default fees (late payment, lost
           keys, tenant changeover, early termination, utilities)
 • New tenancies from 1 June 2019 (Wales 1 Sept)
         – Existing ASTs 12 months exemption
         – New section 21 Form 6a (HMO, illegal fees, homeless)
 • Affects agents & landlords
         – 20% of some agents turnover
www.landlords.org.uk                                                         6

2019 Tenant Fees Act
 • Lead Enforcement Authority is Bristol City Council
 • Trading Stds £5,000 fine (£30,000 civil penalty)
         – Can serve notice for recovery of fees
         – Landlord can’t use s21 until fees are repaid
 • Other Letting Agent Reforms
         – Client Money Protection 1 April 2019
         – Working Group looking at
                • Trade Body membership
                • Recognised qualification
                • Could take until 2022
         – Podcast at insideproperty.org.uk

www.landlords.org.uk                                      7

Landlords to be Legally Required to
 Join Redress Scheme
 • New Housing Complaints
   Resolution Service will make it
   easier to claim compensation
 • Landlords fined up to £5,000 if
   they do not join.
 • We do NOT expect this to be implemented in 2019
 • A working group will now be formed to flesh out
   dates and conditions

www.landlords.org.uk                                 8

Five Year Electrical Safety Checks to
 be Compulsory
 • Banning orders for repeated or
   serious offences
 • Landlords fined up to £30,000 if
   found to be in breach

 • NO DATE has been announced for the
   implementation
 • Landlords need to ensure inspectors have
   necessary skills and competence
www.landlords.org.uk                          9

Gaskin vs              London           Borough         of
 Richmond
 • Has major implications for landlords
   and councils across the country
 • Councils are reconsidering the way
   they structure HMO licensing fees
 • The High Court found that Richmond’s
   licensing fee was levied unlawfully as it
   breached EU regulation.

 • The Court found that Mr Gaskin was a “service
   provider”, meaning the administration of an authorisation
   scheme was unlawful.
www.landlords.org.uk                                           10

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www.landlords.org.uk                                                                        11

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www.landlords.org.uk                                     12