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We’re seen a great deal of legislative change and new regulations over the last few years, and there is plenty more to come. In this blog, we’ll run down the changes and consultations over the last 12 months, ahead of our predictions for 2020 and beyond.

First off, we have Section 21. Last Summer, the government consulted on abolishing this and introducing assured tenancies as the default tenancy. Though we are still awaiting the response to the consultation, which closed in October, it is likely that the reform will be going ahead following commitments in the Conservative manifesto.

A YouGov poll gathered landlords’ experiences of the courts. Their survey of over 3,000 landlords in England and Wales, found that 47% had used Section 21 only, when they had legitimate grounds to use Section 8. Additionally, only 1 in 5 had used section 8 only.

Therefore, section 21 is being used when landlords have the grounds to use the section 8 process. It appears landlords don’t have the confidence in regaining possession through the section 8 process. So we’ll keep an eye on potential changes there to make the system less complex.

Earlier this year, the government announced an intention to introduce a compulsory redress scheme for landlords, to help drive up standards through independent complaint handling. Letting agents are already required to register with a redress scheme, but the intention is to include landlords as well, with a fine of up to £5,000 if they do not. This will need to be legislated for, if it is to be implemented in 2020. 

Also over the summer, the government also published an independent review of selective licensing, which gives local authorities the power to introduce licensing for all privately rented properties in a given area. In an area subject to a Selective Licensing Scheme (SLS), all private landlords must obtain a licence and if they fail to do so, or fail to achieve acceptable management standards, the authority can take enforcement action.

Following the review, there was a recommendation that it would be good practice for local authorities to report against their objectives, but interestingly this wasn’t made a requirement. The review did recommend that enforcement costs should be charged pro rota, and expanded the definition of a ‘fit and proper person’, but it seems selective licensing will continue as before. 

Moving onto deposits, the government set up a working group to look at the future of deposits. The working group has looked at insurance backed schemes and custodial schemes, and is now looking at passporting of deposits (i.e. tenants being able to move their deposits easily between tenancies). A consultation on this closed in October, with a response pending.

Moving onto energy-efficiency - this is a big issue following the government committing the country to reach a net-zero carbon by 2050. In sum, this means properties will need to meet an A rating on their EPC by 2050 at the latest. At present, the minimum energy efficiency standard in the PRS is an E rating, which becomes compulsory for all tenancies from April 2020 (unless you have a valid exemption).

Also high on the government agenda is health and safety. As we write, the Housing Health and Safety Rating System (HHSRS) is currently being overhauled following a review which took place earlier in the year; with a plan to update the guidance, training, and streamline the process while making it digital-friendly, so it’s easier for local authorities, landlords and tenants to understand the requirements and adhere to them.

If you’d like to discuss buying or letting within London, please contact us austin@austinhomes.co.uk or via our social channels for more information.


Press Contact:

Miss. Claire White
W. Why Media
E. claire@whymedia.com