Graham Faulkner Branch Director, EweMove Dorking Lettings Update Graham Faulkner Branch Director, EweMove Dorking

Tenant Fees Bill Homes (Fitness for Habitation) Act Right to Rent MEES

Tenant Fees Bill

Tenant Fees Bill The Tenant Fees Bill received Royal Assent on 12 February 2019. It becomes the Tenant Fees Act 2019 and will apply to all tenancies signed after 1 June 2019.

Tenant Fees Bill The Tenant Fees Bill received Royal Assent on 12 February 2019. It becomes the Tenant Fees Act 2019 and will apply to all tenancies signed after 1 June 2019. The government recently confirmed that the fees ban is likely to cost landlords £82.9 million during its first 12 months and lettings agents £157.1 million.

Tenant Fees Bill Fees that will be affected going forward will include any fees for extending tenancy agreements, charges for property inspections and for bank transfers and reference and credit checking.

Tenant Fees Bill Fees that will be affected going forward will include any fees for extending tenancy agreements, charges for property inspections and for bank transfers and reference and credit checking. There is, however a ‘default fees clause’; this will cover additional fees that can be incurred by the tenant and these, for example, may well include late fees for late payment of rent and cleaning charges that may be applicable. These default fees must be clearly defined within the tenancy agreement.

Tenant Fees Bill Fees that will be affected going forward will include any fees for extending tenancy agreements, charges for property inspections and for bank transfers and reference and credit checking. There is, however a ‘default fees clause’; this will cover additional fees that can be incurred by the tenant and these, for example, may well include late fees for late payment of rent and cleaning charges that may be applicable. These default fees must be clearly defined within the tenancy agreement. The Tenants Fees Bill also sets out other fees that will be banned going forward including any payments over and above the capped security deposit of 5 weeks’ rent and a capped holding deposit of one week’s rent.

Tenant Fees Bill The Implications

Tenant Fees Bill The Implications The implications for landlords of these changes will be that they will no longer have the security of taking a bigger deposit than has been set down in the new legislation.

Tenant Fees Bill The Implications The implications for landlords of these changes will be that they will no longer have the security of taking a bigger deposit than has been set down in the new legislation. This will be problematic if landlords have tenants who leave properties in a state of ill repair leaving the financial burden for them to deal with. If a landlord has reason to believe that a tenant might struggle to pay rent, it might be worth considering having a guarantor agreement in place.

Tenant Fees Bill The Implications The implications for landlords of these changes will be that they will no longer have the security of taking a bigger deposit than has been set down in the new legislation. This will be problematic if landlords have tenants who leave properties in a state of ill repair leaving the financial burden for them to deal with. If a landlord has reason to believe that a tenant might struggle to pay rent, it might be worth considering having a guarantor agreement in place. A higher deposit for a pet can no longer be taken.

Homes (Fitness for Human Habitation) Act

Homes (Fitness for Human Habitation) Act This Bill received Royal Assent on 20 December 2018 and will come into force on 20 March 2019.

Homes (Fitness for Human Habitation) Act This Bill received Royal Assent on 20 December 2018 and will come into force on 20 March 2019. It is hoped that the Act will help to boost standards in rental properties as well as give tenants powers to hold landlords to account where those standards are not met.

Homes (Fitness for Human Habitation) Act This Bill received Royal Assent on 20 December 2018 and will come into force on 20 March 2019. It is hoped that the Act will help to boost standards in rental properties as well as give tenants powers to hold landlords to account where those standards are not met. Under the Act landlords will be under a legal obligation to ensure that their properties meet certain standards at the beginning and throughout a tenancy. Where landlords fail to meet these standards tenants will have the right to take legal action in the courts for breach of contract.

Homes (Fitness for Human Habitation) Act Why this has come in

Homes (Fitness for Human Habitation) Act Why this has come in At present there is no legal requirement for landlords to keep or maintain rental properties in a condition fit for habitation. Many will be familiar with a landlords s.11 repairing obligations and the local authorities’ powers under the Housing Health and Safety Rating System (HHSRS). However, there is nothing in law which specially addresses fire safety, inadequate heating or poor ventilation which leads to condensation or mould growth or which deals with defects that pre-dated the tenancy or are inherent in bad property design.

Homes (Fitness for Human Habitation) Act Any claim by a tenant against their landlord will be on the basis that their landlord has failed to meet their obligation to keep the property fit for human habitation from the outset of the tenancy. This obligation is met by the large majority of landlords however, for the small minority that fail to ensure their properties are fit for human habitation court action and other sanctions such as the Rogue Landlords database and banning orders will follow.

Homes (Fitness for Human Habitation) Act Any claim by a tenant against their landlord will be on the basis that their landlord has failed to meet their obligation to keep the property fit for human habitation from the outset of the tenancy. This obligation is met by the large majority of landlords however, for the small minority that fail to ensure their properties are fit for human habitation court action and other sanctions such as the Rogue Landlords database and banning orders will follow. Given the severity of the sanctions the Ministry of Housing, Communities & Local Government has provided guidance for landlords and tenants ahead of the Act coming into force:

Homes (Fitness for Human Habitation) Act Any claim by a tenant against their landlord will be on the basis that their landlord has failed to meet their obligation to keep the property fit for human habitation from the outset of the tenancy. This obligation is met by the large majority of landlords however, for the small minority that fail to ensure their properties are fit for human habitation court action and other sanctions such as the Rogue Landlords database and banning orders will follow. Given the severity of the sanctions the Ministry of Housing, Communities & Local Government has provided guidance for landlords and tenants ahead of the Act coming into force: https://www.gov.uk/government/publications/homes-fitness-for-human-habitation-act-2018/guide-for-landlords-homes-fitness-for-human-habitation-act-2018

Homes (Fitness for Human Habitation) Act Any claim by a tenant against their landlord will be on the basis that their landlord has failed to meet their obligation to keep the property fit for human habitation from the outset of the tenancy. This obligation is met by the large majority of landlords however, for the small minority that fail to ensure their properties are fit for human habitation court action and other sanctions such as the Rogue Landlords database and banning orders will follow. Given the severity of the sanctions the Ministry of Housing, Communities & Local Government has provided guidance for landlords and tenants ahead of the Act coming into force: https://www.gov.uk/government/publications/homes-fitness-for-human-habitation-act-2018/guide-for-landlords-homes-fitness-for-human-habitation-act-2018 https://www.gov.uk/government/publications/homes-fitness-for-human-habitation-act-2018/guide-for-tenants-homes-fitness-for-human-habitation-act-2018

Homes (Fitness for Human Habitation) Act The legislation applies to England only and will only be in force initially on 20 March 2019 for tenancies which are new or actively renewed after that date. It will apply to all existing tenancies as from 20 March 2020.

Right to Rent

Right to Rent On 1 March the High Court released its decision in the case of Joint Council for the Welfare of Immigrants (JCWI) against the Secretary of State for the Home Department. The High Court has held that the Right to Rent policy is unlawful. Mr Justice Martin Spencer ruled that the scheme breaks the European Convention on Human Rights because it leads to discrimination against certain groups of tenants, e.g. non-UK nationals living in the UK and British ethnic minorities.

Right to Rent On 1 March the High Court released its decision in the case of Joint Council for the Welfare of Immigrants (JCWI) against the Secretary of State for the Home Department. The High Court has held that the Right to Rent policy is unlawful. Mr Justice Martin Spencer ruled that the scheme breaks the European Convention on Human Rights because it leads to discrimination against certain groups of tenants, e.g. non-UK nationals living in the UK and British ethnic minorities. However, this decision does not see the end of the Right to Rent policy but only requires the legislation to be referred back to Parliament for them to look at it afresh. For now, landlords and agents will need to continue with their Right to Rent checks.

MEES - The new energy efficiency requirements

MEES - The new energy efficiency requirements The new Minimum Energy Efficient Standards (MEES) came into effect in April 2018 and affect you if you are a buy to let landlord.

MEES - The new energy efficiency requirements The new Minimum Energy Efficient Standards (MEES) came into effect in April 2018 and affect you if you are a buy to let landlord. The 2015 Energy Efficiency Regulations set out minimum energy efficiency standards for properties in England and Wales.

MEES - The new energy efficiency requirements The new Minimum Energy Efficient Standards (MEES) came into effect in April 2018 and affect you if you are a buy to let landlord. The 2015 Energy Efficiency Regulations set out minimum energy efficiency standards for properties in England and Wales. These regulations have made it unlawful for landlords to lease or grant a new lease for properties that have an energy performance certificate (EPC) rating below E unless the property is registered as an exemption, and came in on 1 April 2018.

MEES - The new energy efficiency requirements The new Minimum Energy Efficient Standards (MEES) came into effect in April 2018 and affect you if you are a buy to let landlord. The 2015 Energy Efficiency Regulations set out minimum energy efficiency standards for properties in England and Wales. These regulations have made it unlawful for landlords to lease or grant a new lease for properties that have an energy performance certificate (EPC) rating below E unless the property is registered as an exemption, and came in on 1 April 2018. After 1 April 2023, landlords must register an exemption for any building with an EPC rating of less than E if they wish to let the building.

Key Dates

Key Dates April 2018 - made unlawful to let out a property with an F or G Energy Performance Certificate rating, as a new let. There are a few limited exemptions April 2020 - by this date the requirement for a minimum E rating will apply, not just to new lets but also to existing tenancies - the target is for a minimum D rating 2030 - the minimum target will be a C rating

5 top tips on how to improve your EPC rating

5 top tips on how to improve your EPC rating Insulate your house A quarter of household heat is lost through the roof. Loft insulation is easy to install and a relatively inexpensive place to start when improving the energy efficiency of your home. The recommendation of rock wool is 270mm minimum depth. If your house is suitable (seek professional advice) for cavity wall insulation you can expect a considerable retention of the third of heat lost through uninsulated walls.

5 top tips on how to improve your EPC rating Insulate your house A quarter of household heat is lost through the roof. Loft insulation is easy to install and a relatively inexpensive place to start when improving the energy efficiency of your home. The recommendation of rock wool is 270mm minimum depth. If your house is suitable (seek professional advice) for cavity wall insulation you can expect a considerable retention of the third of heat lost through uninsulated walls. 2. Replace your windows for double glazing Older windows can be responsible for 40% of the heat loss in your house. Installing high performance glazing will make a significant difference to the energy efficiency of a home. To understand what the independent ratings for different windows and glazing mean, this page explains what to look for in an energy-efficient window.

5 top tips on how to improve your EPC rating 3. Replace your halogen spotlights with LED bulbs Since 2018, halogen bulbs are being phased out and removed from sale across Europe. An LED spotlight can last for 20-30 years in comparison to a halogen bulb that has a working life of only two years. By swapping ten halogen bulbs for LED bulbs, savings of £112 a year can be made over a long-term period. Installing LED bulbs in all lamps and lighting fixtures is a cheap and easy way to improve your EPC rating (although marginally).

5 top tips on how to improve your EPC rating 3. Replace your halogen spotlights with LED bulbs Since 2018, halogen bulbs are being phased out and removed from sale across Europe. An LED spotlight can last for 20-30 years in comparison to a halogen bulb that has a working life of only two years. By swapping ten halogen bulbs for LED bulbs, savings of £112 a year can be made over a long-term period. Installing LED bulbs in all lamps and lighting fixtures is a cheap and easy way to improve your EPC rating (although marginally). 4. Replace an old boiler for an energy efficient version An EPC rating is calculated on the cost of energy that supplies your heating system. As heating is a considerable chunk of your energy costs at 55% this is where significant saving and improvements to your bills and your EPC ratings can be made. By replacing an old boiler that has an appliance rating of ‘G’ with a new A-rated boiler that includes a programmer and thermostat, an annual saving of £305 can be made (based on a detached house).

5 top tips on how to improve your EPC rating 5. Installing renewable energy sources If your home has implemented all other energy efficiency measures then installing solar panels, biomass boilers and ground-source heat pumps will dramatically increase an EPC rating. To achieve the highest EPC ratings a property would require some form of renewable energy. By installing solar panels a G-rated, semi-detached house could make a saving of £311 per year.

Graham Faulkner Branch Director, EweMove Dorking graham.faulkner@ewemove.com 07921 255815