Changes to the property market and what it means to Landlords
2020 might start to feel like the beginning of an apocalypse and as a landlord you might be feeling uncertain about the current real estate market. We’re here to put your mind at ease and explain the recent changes to the industry and how they will affect you. Being aware of the changes and how they affect landlords and agents is the perfect way to put your property in the best possible position for the future.
Updated Rental Laws 2020
There’s been an extension to the Homes (Fitness for Human Habitation) Act. The purpose of this act is to make sure that all rental properties are safe and suitable for tenants to reside in. As of 20th March 2020, the act became applicable to existing rental properties. It’s the landlords responsibility to ensure their property is fully compliant, and failing to meet these requirements could result in legal action.
Mandatory Electrical Inspections are now in place for all new tenancies under the ‘The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020’. This is expected to apply to all existing tenancies from April 2021. If you fail to comply with the regulations you could end up with a fine of £30,000. Our team can guide you through the process, keep you up-to-date with new changes and provide a reputable electrician to carry out the checks as and when they are needed.
Our compliance team at homes4u is up-to-date and on hand to ensure your property complies with current legislation. The minimum energy efficiency standards (MEES) have been in place for new tenants since 2018, however as of April 2020 this is now applicable for existing tenancies. Meaning that your properties will now have to have a minimum rating of an E.
In June 2020 there was a provision in the Tenant Fees Act which now means that agents and landlords can’t charge for anything other than deposits, rent and charges for defaulting on the tenancy agreement. This comes with additional restrictions and limits on how it must be paid and how much the maximums can be.
How Coronavirus impacts landlords
It’s important to understand how coronavirus has affected the industry and more importantly your situation. 90% of tenants have paid their rent as usual since lockdown came into place as reported by the NRLA. Where tenants circumstances are more likely to change, we encourage open communication with both parties to ensure a positive solution. If you’re having any issues, get in touch with a member of the homes4u team and we will be happy to provide you with assistance.
We’re keeping up-to-date with the current legislation and government guidance and will be able to help you with any questions or concerns you may have.
Private Rental Industry and Brexit
Recently brexit has slipped off everyone’s radar. The transition period currently ends on 31 December 2020 and the deadline for extending it has passed. The deal hasn’t been finalised and nothing is confirmed for certain. This has left the industry to speculate and forecast what might happen in the future. Despite the ongoing situation, the market is stable at the moment and expected to grow.
As the deal isn’t finalised, we’re digesting the information provided by the government to make sure you can understand how it impacts you.
Talk to us today.
It’s an interesting time for the property industry and with so many changes it’s important to keep up-to-date. Rather than having to worry about how it affects you, speak to the team today and we can talk you through everything you need to know to ensure you’re compliant and prepared for the future. Register your details to be contacted.