SPRING BUDGET: Summary for Landlords in England

landlord
Mar 08 | 2021

SPRING BUDGET: Summary for Landlords in England

  The hotly anticipated Spring Budget has arrived and Landlords are able to breathe a sigh of relief - at least for the time being. The relevant provisions are summarised as follows: - Stamp Duty Land Tax holiday (for properties in England and Northern Ireland up to £500,000) is extended until 30th June 2021; - Business rates holiday until end of June 2021 (and discounted rates thereafter) - An increase on Corporation Tax on company profits is delayed until April 2023, when it will increase to 25% (relevant to both incorporated Landlords and letting agency businesses) - Capital Gains Tax exemptions are frozen at their 2020-21 levels until 2025-26; - For Landlords of commercial premises, a £5 billion Restart grant for shops and other businesses; - The £20.00 a week uplift in Universal Credit (worth an extra £1,000.00 a year) will be extended for a further six months, and the Furlough Scheme is extended until end of September 2021. Notwithstanding the glimmer of some good news above, industry opinion has criticised the lack of support for Tenants in the Budget - and the inevitable impact this will have on their Landlords. Whist the Universal Credit and Furlough Scheme will enable Tenants to plan ahead, the fact remains that there has been a lack of support for Tenants during the Covid-19 pandemic, many of whom risk losing their homes and / or damage to their credit scores due to rent arrears. This is likely to have a significant effect on the Government's plans to turn Generation Rent into Generation Buy. The extension of the Stamp Duty Land Tax is a real boost for homeowners but Tenants appear to have been forgotten in the process. We cannot foresee what will happen in six months time, particularly when such emergency measures such as the Universal Credit uplift and Furlough Scheme may end, and Tenants are likely to be feeling the effect of the Covid-19 pandemic for months ahead. There are calls for the Universal Credit uplift to become permanent, as well as noises being made regarding more social housing and investment in housing benefit. It is thought these types of measures will provide security and safety for Tenants and confidence to seek work which will help to prop up the economic recovery for the difficult times ahead of us. For more formation on the services we can offer Landlords, please visit our Landlord Services page or call us on 0330 123 1131.  Joanna McBride - Solicitor Further information relating to the Budget 2021 can be found here.

Renting Homes (Wales) Act 2016

housing, landlord
Feb 01 | 2021

Renting Homes (Wales) Act 2016

Significant change is almost upon us here in Wales with the hope that the provisions of the Renting Homes (Wales) Act 2016 will be coming into force before April 2021.  The main provisions of the Renting Homes (Wales) Act 2016 include:
  • Tenancies and licences will be replaced with two types of "occupation contract" and standard terms will be introduced;
  • Landlords will be grouped into two groups - Community Landlords and Private Landlords;
  • Tenants will be known as "Contract holders" and new provisions will exist for Joint Contract Holders;
  • Rented properties must be fit for human habitation. Landlords must keep the structure and exterior of the property in repair and keep installations for the supply of water, gas or electricity, for sanitation, for space heating, and hot water in repair and proper working order;
  • Landlords will not be able to evict a contract holder just because they have complained about the condition of the property (retaliatory evictions)
  • A new procedure for Landlords to obtain possession of a property that has been abandoned.
It is important to note that when the provisions of the Renting Homes (Wales) Act 2016 come into force, it will apply to all existing tenancy agreements as well as future "Occupation Contracts". Private landlords need to take heed of a wealth of changes to tenancy laws and take all relevant necessary action.   Despite the provisions of the Renting Homes (Wales) Act 2016 Act not yet having come into force, the Welsh Parliament is already considering amendment in the form of the Renting Homes (Amendment)(Wales) Bill and addressing Section 21 eviction proceedings (commonly referred to as the "no fault" possession claim). The Covid-19 pandemic has led to emergency legislation in this area, leading to the Welsh Parliament having to shift focus and identify emerging evidence and changing trends in the housing sector since the Renting Homes (Wales) Act 2016 Act received Royal Assent.   The Housing Minister has reported that eviction proceedings should only be used as an "absolute last resort" and landlord should be proactive and seek to work with the tenant to address issues rather than evict at the outset. Rent Smart Wales is a useful resource for landlords and tenants and can be contacted despite the limitations caused by the Covid-19 pandemic.   The Renting Homes (Wales) 2016 Act and Renting Homes (Amendment)(Wales) Bill are significant as they represent the country's first primary legislation in housing law. Housing law practitioners must take extra care to ensure that the correct legislation is being applied to a particular case, depending on the location of the Property.   We look forward to working with Landlords dealing with the new legislation and the inevitable challenges that they will face. We offer FREE no-obligation initial expert landlord advice where we can discuss your situation. Please contact us today on 0330 123 1131 or contact us via our Landlord page www.newboldsolicitors.com/services/landlord-services/landlord-solicitors/   Joanna McBride - Solicitor

LOCK DOWN AND RENTING

eviction, housing, landlord, conveyancing, tenant
Apr 13 | 2020
CORONA VIRUS AND TENANTS     Many of us are seeing images of a perfect lock down scenario; celebrities playing with their children in perfect gardens, or baking in their contemporary expensive kitchens, but this is sadly not the norm. Most tenants are living in cramp, overcrowded and unsuitable accommodation; they do not have gardens, they do not have the space to enjoy cooking.  3.6 million tenants are living in overcrowding situations and 1.4 million in disrepair.  a quarter of houses in the West Midlands were found unfit for human habitation, yet the Midlands and the North are in the new UK Corona Virus epicentre. Many Local Authorities are continuing to ignore their responsibilities as Landlords and allowing this to continue.  It does not stop due to a lock down. If you are a tenant, you must continue to pay rent, but there is financial and legal help and support available to you; Landlords should offer you solutions during this pandemic.  They should be working with you to resolve your rental problems.  They cannot apply for an eviction order until this pandemic is over, or at least, under control. If you live in cramped, unsuitable, Local Authority Properties, then you do not have to continue to put up with it, you deserve a safe and healthy place to live. If you do not have a housing lawyer who can help tenants with advice and support, then please email housing@newboldsolicitors.com and we may be able to take on your matter under a NO WIN NO FEE policy, offering free telephone advice to give you some guidance and support during this most challenging time. Take the decision to stop living like this and take action.  

COVID-19 - the new regulations on renting

eviction, housing, landlord, tenant
Apr 07 | 2020
The Government has brought in emergency legislation for all Landlords and Tenants in England and Wales. The changes include an extension to the notice period that Landlords must provide to Tenants, an extension to the pre-action protocol rules that a Landlord must adhere to before he/she serves a notice for rent arrears, and additional financial support for both Landlords (with mortgage holidays) and Tenants (with additional benefit allowances). Tenants must continue to pay their rent during the corona pandemic, but Landlords are asked to be flexible during this time.  If a Tenant can evidence that they are waiting for a reply from the benefits agency on an application for financial support, then it is unlikely that the Court will grant the Landlord a possession order. There is currently a moratorium for possession hearings, and once this challenging time has passed, it is likely there will  be a delay with eviction claims being placed before a Court. Due to the change in legislation and this fast moving and fluid situation, it is suggested that you contact an experienced housing, landlord and Tenant

How can a landlord deal with nightmare tenants?

eviction, landlord
Jan 22 | 2020
Some of you may have read the article in the Mirror regarding a landlord from Bridgend in Wales who was left almost in tears because a tenant had trashed his immaculate home. If you haven't had read it yet, you can here. This is a very sad, but not unusual story.  We have heard of many landlords suffering similar issues. For example, one tenant in Cardiff took off all the internal doors for firewood, and took up the wooden floor for the same reason. Another landlord in London had their immaculate home trashed because the tenants used it to grow cannabis.

How can landlords prevent tentants ruining their homes?

Most tenancy issues are preventable if a landlord takes initial steps to avoid a nightmare tenant before the tenant moves in. The first thing a landlord should do, is obtain references from previous landlords, and if possible employers. Obtain bank statements to check that the tenant has the means of paying the rent.  If a tenant asks to pay 6 months upfront, it can be tempting, but sometimes it is because they want to be 'left alone'.

You should always ask "why"?

On one occasion a landlord rented out a central London property to tenants who claimed they could afford it, despite the fact that their employment status just simply did not add up.  If your instinct tells you something is wrong, it probably is. After confirming the tenants' means to pay, make sure your agent is chosen well. Ask yourself; are they agents who will take the commission, but fail to keep you up to date on rental payments, or fail to attend and complete inspections. If you are holding a license and you may not have an agent representing you, then ensure that you attend the property for inspections, that you keep an eye on the rental income and when the tenant falls into arrears, you take immediate steps (this could be an initial telephone call, or a letter, establishing the reason for the arrears). Just please do not let the situation deteriorate. If you find there are any issues, then attend a housing Solicitor (Landlord and Tenant Lawyer) and they will explain what steps you should take to ensure you are not dealing with nightmare tenants for more than one day more than you need too. We always believe that most 'nightmare tenants' can be avoided.  It is all to do with preparing the tenancy, managing the property and then getting the right advice at the outset.  The longer you allow the problem to go on for, the bigger the issue will be.  If you require advice, then please ring our team, they will  be happy to direct you with initial FREE advice.      

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