Well here we are, back again after an extended break. Facing a new year. What will it bring for us and for landlords in particular?
One thing that looks certain is that it will bring more change.
Last year brought major legal changes with the Deregulation Act, the Consumer Rights Act and the Smoke and Carbon Monoxide Alarm Regulations – to name some of the main culprits.
It also ushered in, late in November, the first stage in the widening gap between England and Welsh landlord & tenant law, with the opening of the Rent Smart Wales website and the requirement for all landlords and agents to register.
The new rules also brought in the need for landlords to undergo training and become licensed if they wish to manage property. If you are a Welsh landlord, you have until 23 November 2016 to decide what you want to do. Manage your property yourself (and get licensed) or use an accredited agent?
2016 looks set to bring in equally important changes
Wales
Staying with Wales for the moment, the Renting Homes (Wales) Bill has now been passed by the Welsh Assembly and is waiting to receive the Royal Assent. This act will bring in major changes in the law – including mandatory tenancy agreements.
We will be looking at the new legislation in another post. However, I suspect that much of the act will not come into force immediately and will require further enabling regulations setting out how the new rules are to apply.
England
The first big change in England will be the expansion of the Right to Rent checks, currently only required in the West Midlands, but soon to apply nationwide. This is due to take place on 1 February and my training company is running a
This is due to take place on 1 February and my training company is running a practical workshop with expert Sue Lukes on this in Cambridge on 18 January.
Then there is the Housing and Planning Bill. The main changes in the private sector will be the increased powers against rogue landlords, including banning orders, a rogue landlord database (for Local Authority use only) and the increased use of rent repayment orders.
The act will also bring major changes to the social housing sector in particular with the expansion of the right to buy.
HMO legislation is also likely to change with the government stating that they intend to widen the licensing requirements to include two storey and maybe also one storey premises.
We should know more about this by June, when our next HMO Law & Practice Workshop with David Smith is due to take place in London.
New Case law
2016 will no doubt also bring a few interesting cases. Perhaps one of the most eagerly awaited by landlords will be the appeal to the Supreme Court of the case of Edwards v. Kumasaramy on landlords repairing rights which is due to be heard, probably in the late spring.
There is also going to be a challenge launched, via Judicial Review, to the Chancellor’s tax changes (tax changes which will adversely affect many landlords). A crowdsourcing campaign has been set up at CrowdJustice and has already met its initial target. You can read more about this on Property Tribes.
I am sure though that, as in most years, other cases will come out of the woodwork and take landlord & tenant law in unexpected directions.
The Critical Importance of Keeping up to date
It is absolutely vital now that landlords and letting agents make sure that they are up to speed with the law and legal changes.
In fact, taking into account the forthcoming tax changes and probable interest rate rise later in 2016 or 2017, I would go so far as to say that landlords chances of making any profit at all from their properties could depend on complying with the law and avoiding penalties for non-compliance.
Recent and forthcoming changes are aimed fairly and squarely at penalising bad practice, and with increased enforcement from Local Authorities and unlimited Magistrates Court fines, it is clear that the day of the amateur landlord is at an end.
There are a number of things you can do to keep up to date:
- Sign up to receive Landlord Law Blog posts via email
- Sign up to my weekly tips emails
- Join my Landlord Law service
- Join a Landlords Association (the NLA and the RLA are the largest and the best known)
- Attend our Landlord Law Conference in Manchester on 12 May
- Read and subscribe to respected information sites such as
- Nearly Legal blog
- Property Tribes and
- Property 118
In order to avoid ‘overwhelm’ it is probably best just to sign up to one or two of these, but keep a note of the others, in case you need to do research on a particular problem. Or, if it is a legal one, join Landlord Law and ask me about it on the members forum!
I wish you all the best for your 2016 journey.