Are you a landlord who is finding it difficult to keep track of all the latest changes in industry legislation? Don’t panic, we are here to keep on top of it for you. Let’s take a look at some recent updates.
- Regulation of Property Agents
The continued proposals of further regulating the industry is a significant movement and a considerable step towards removing both bad practices and irresponsible management within the industry.
The introduction of RoPA – which was first announced in 2019 – outlined the recommendations for not only industry qualifications but licensing for individuals and companies who are practicing.
We firmly believe this is not a case of ‘if’ licensing is brought in but when. With this in mind, we would urge all landlords working with different management agencies to ensure their agents are industry qualified ahead of the changes being brought in.
- Energy Efficiency Changes
Since April 2020, landlords could no longer rent out a property with an energy efficiency below E. In a consultation document from late 2020, it was suggested that the minimum EPC rating was to be raised to a band C for all new tenancies by 2025.
At this time, the date in which changes come into force remains speculation and we were expecting an announcement from the government at the end of December 2021.
From the latest update which has been shared with us, we believe that the date is now being pushed back to 2026 and landlords will have a spending cap placed on them of £10,000 to make remediations which will help their property to achieve a band C.
It is estimated that the change will impact 3.2 million landlords and there are ongoing discussions that would see restrictions in place for mortgage lenders with EPC ratings forming a solid part of mortgage advice.
If your property has an EPC rating of below C, we would encourage you to get in touch to discuss an energy efficiency strategy to ensure you remain ahead of the changes coming into place and put financial measures in place now.
- Section 21 / Renters Reform Bill
We are expecting the white paper on the above to be announced in Spring 2022 and the Renters Reform Bill will abolish the serving of Section 21 notices.
The Section 21 hasn’t been in use since lockdown (around 22 months) and we will ensure to communicate all announcements which could impact landlords as we receive them.
Coupled with the above, the discussion regarding ‘lifetime deposits’ for tenants remains ongoing and we may expect to see a deposit reform act in the future.
Your Senior Account Manager will remain in touch to discuss any legislative changes which may impact you and your property.
As always, if you have any queries or would like further clarification or information on any industry legislation, we are more than happy to help.