Redress Scheme - Private Rentals

housing, landlord, tenant
Jul 09 | 2021

Mandatory Redress Scheme - Private Rental Sector

The government’s housing minister last week warned landlords of an imminent, mandatory redress scheme.   A redress scheme is an independent body that seeks to resolve issues made by consumers about members of the scheme. In England, a property redress scheme is already in place which requires both Property Managers and Agents to be a member; provided either by The Property Redress Scheme or the Property Ombudsman. A similar scheme is in place in Wales through Rent Smart Wales, requiring either a license, registration or both for agents, property managers and private landlords. The basis of the scheme is to offer a cheaper, more accessible means for resolving disputes without the need for litigation. Members of the scheme face the threat of paying compensation to complainants, or even expulsion from the scheme if they fail to pay their fines.   Private landlords in England remain exempt from the Letting Agency Work and Property Management Work (Approval and Designation of Schemes) (England) Order 2013 which made membership mandatory and although the scheme is open to private landlords, few have joined. Further, it is only commercial landlords who require membership to the Property Redress Scheme in Wales.   The then Communities Secretary, James Brockenshire first announced a mandatory membership for private landlords in January 2019, but no detailed proposals have been published, nor any legislation into force since, but a clue to its introduction came in the Queen’s Speech in December 2019. The briefing notes highlighted that one of the benefits of the Renters Reform Bill would be ‘… all tenants having a right to redress if their rented properties are not safe and healthy’. Later in March 2020, Robert Jenrick, Housing Secretary, confirmed during a speech in the House of Commons that the government would set up a mechanism for ‘leaseholders to seek proper redress for their genuine grievances’. Again, in March this year, the topic was ignited once more when he stated in his speech at the National Housing Federation Summit that ‘tenants should be able to seek redress in reasonable time without an uphill struggle and know that they will be heard’. After a long conversation around the subject, the confirmation of a mandatory membership for private landlords came by way of Lord Greenhalgh, the governments’ housing minister in June of this year.   The introduction of a mandatory scheme would mean that the whole private rental sector would be accountable to a complaint process. Currently, approximately half of all landlords use a letting agent, but this legislation would mean that all DIY landlords would be subject to the same redress obligations. Greenhalgh believes that tenants with a legitimate complaint about their home will have access  to a more straight-forward, available resolution, while landlords will have a clearer understanding of their obligations. Sean Hooker, Head of Redress at the Property Redress Scheme believes that a mandatory scheme is long-overdue and that a single gateway for tenants to access complaint services would mean that ‘complainants would be able have their complaint signposted to the right service, that data could be shared allowing the complaint to be effectively dealt with as quickly and effectively as possible.’   But sceptics believe it will fall short of the ‘fix’ it aims to be. Social landlords already have a redress scheme, the Housing Ombudsman Scheme, and that does not eliminate poor practice. Further, there are many thorny crossovers that would need to be ironed out before any legislation came into force. If a property is managed by an agent, does the landlord need membership to a scheme too? If the landlord and agent are members of different schemes, which redress route would a tenant have to take? Would a redress scheme force unscrupulous landlords further under the radar? Would the absence of a registration prevent an eviction?   In the face of recent investigations, such as Daniel Hewitt’s report into moldy and poorly maintained homes, this reform deserves attention. An accessible scheme which holds all landlords to account and promises to be more effective then schemes currently in place will be more important than people may realise. The whole private rental sector could be facing an overdue, vigorous shake up. Please contact our Landlord and Tenant team to discuss any queries you may have on 0330 123 1131   Louise McGowan - Graduate Solicitor - Property Litigation

Tenancy Hardship Grants (Wales)

eviction, housing, landlord, tenant
Jul 01 | 2021

Tenancy Hardship Grants (Wales)

  The Welsh Government have announced a Tenancy Hardship Grant Scheme which aims to support tenants who are struggling with rent arrears due to the Coronavirus pandemic. The move comes as the eviction ban comes to an end in Wales on June 30th 2021.   The scheme is funded with an £10m cash injection from the Welsh Government; it will be administered by local authorities and will replace the Tenancy Saver Loan Scheme (which was introduced in December 2020).   Tenants can register their interest in the Grant from 1st July 2021, with funding to be made available towards the end of July.   If a tenant is successful in obtaining a grant, it will be paid directly into the landlords’ bank account; thus the scheme goes some way in addressing the unprecedented stress and hardship that many landlords’ have felt throughout the Coronavirus pandemic.   However, it is essential that the scheme is accessible for those that need the support. An Information Request revealed that only 41 loans had been awarded under the old Tenancy Saver Loan Scheme between October 2020 and April 2021. This reiterates the view that accessibility and availability of grants under the new Tenancy Hardship Grant Scheme will be crucial if it is to have a positive impact in helping tenants and private landlords.   The scheme puts increased pressure onto the English Government to introduce a similar rent arrears relief programme; however there has been no indication as to whether they intend to follow in introducing such scheme.   At NewBold Solicitors, we can offer advice to both Tenants and Landlords. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.   Jake Wesson - Graduate Solicitor - Property Litigation

Six-month notice periods extended in Wales

eviction, housing, landlord, tenant
Jun 21 | 2021

Six-month notice periods are extended until September in Wales.

  In March 2020, the Welsh Government introduced emergency legislation which ensured tenancies were subject to a six-month notice period if a landlord sought to terminate the tenancy. These measures were due to expire at the end of June 2021 but have now been extended for a further three months until September 30th 2021.   Many had expected the extended notice periods to be relaxed to coincide with England reducing the length of their notice periods at the start of June. Indeed, it is clear from the explanatory notes, written in conjunction with the Coronavirus Legislation, that the Welsh Government had considered this approach; but this was outweighed by “the cost to public health, and the knock-on effects for the health service, local authorities and other organisations, of a sudden increase in evictions occurring.” It is also evident from the notes that there is a growing concern that local authorities will struggle with the influx of evictions once the notice periods are reduced.   Many landlords have expressed a sense of frustration and disappointment over a perceived lack of measures to protect their rights. The explanatory notes acknowledge that the extension of the six-month notice periods until September will “lead to financial difficulties for some landlords” yet nothing has been announced to mitigate their loss.   Extending the increased notice period until September does not reduce landlords’ desire to evict tenants, but instead delays their ability to do so; which in turn may result in a bigger influx of evictions once the notice periods are shortened in October. There has been no indication as to how the Welsh Government are preparing for this sudden increase in evictions.   Ben Beadle, Chief Executive of the National Residential Landlords Association, highlights “the urgent need for the Welsh Government to take rapid action to address the mounting rent arrears crisis unfolding across Wales.” He claims that without such support, the extension of the six-month notice period until September will prolong uncertainty for all involved. The Welsh Government have announced that consideration is being given to what further support can be provided to the private rented sector but has not announced any specific measures.   At NewBold Solicitors, we can offer clarity in advising landlords of their options. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.   Jake Wesson - Graduate Solicitor - Property Litigation

Guarantor Fees

housing, landlord, tenant
Jun 07 | 2021
 

Guarantor Fees

The introduction of the Tenant Fees Act in 2019 aimed to reduce the costs that tenants face at the outset of a tenancy agreement, by banning letting fees and introducing a cap on deposits. But it did little to stop a landlord requesting, in some cases, up to twelve months rent upfront. The requirement for a tenant to provide a guarantor can be an insurmountable barrier to securing a property if they do not know anyone who fits the guarantor criteria; a problem more common with international tenants. More recently through Covid-19, as many tenants’ incomes are becoming less-secure, some landlords are looking to reduce the perceived risk by requiring a larger up-front payment. Even for many with guarantors, this requirement is becoming more common. However, in many cases, securing many months rent upfront will not prevent a landlord from facing further rent arrears, property damage or eviction issues, nor will it protect a tenant from eviction or disrepair disputes. We understand that it can be daunting to enter the rental market as a landlord and to want to protect an investment and we understand as a tenant that there might be concerns about fees, hidden costs, or financial demands from a landlord. At Newbold, we can assist both Landlords and Tenants to guide them through these difficulties or concerns and provide insight and direction to reach a resolution. If you would like to discuss guarantor fees with us or any other matter, please call our dedicated team on 0330 123 1131 or visit our dedicated Landlord and Tenant pages for further information.   Louise McGowan - Graduate Solicitor - Property Litigation

The Bailiffs are Back!

eviction, housing, landlord, tenant
Jun 04 | 2021

The Bailiffs are Back!

  The temporary ban on bailiff-led evictions in England has now come to an end. The measure was introduced in March 2020 in recognition of the hardship that many families would be feeling during the Coronavirus pandemic.   Bailiffs will give 2 weeks notice of an eviction date and they will not evict if anybody at the property has:
  • Coronavirus symptoms,
  • tested positive for Coronavirus,
  • been told to self isolate by NHS.
  In such circumstances, the eviction will be rescheduled and you will get another 2 weeks notice.   In 2020, it is estimated that residential evictions fell by approximately 74% due to the protections offered to tenants during the Coronavirus pandemic. However, the ban has not removed the desire from Landlords to reclaim their property; instead it has delayed their ability to do so. Therefore, is it predicted that the courts will now face an ‘eviction avalanche’ and it is still unclear how the legal system will cope with such backlog. The Joseph Rowntree Foundation have warned that there are “clear warning signs” of a spike in evictions and homelessness as the ban lifts.   The bailiff ban on bailiff-led evictions was always intended to be temporary, and many landlords have been waiting a long time for it to end. It is important that protection for vulnerable tenants is balanced with the landlord's ability to access justice. We are aware that County Court Bailiffs are in shortage and there has still been no indication as to whether there will be further investment into bailiff recruitment.   At NewBold Solicitors, we can offer advice to both Tenants and Landlords. If you would like to discuss your case with us, please call our dedicated team on 0330 123 1131 or visit our Landlord or Tenant Services pages for further information.   Jake Wesson - Graduate Solicitor - Property Litigation Team  

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