Landlord Law’s weekly Newsround is here again, let’s see what has caught our eye this week.
Date for second reading of Renters Rights Bill now set
October 9th 2024, has been announced as the date for the second reading of the Renters Rights Bill. Which is just after Labour party conference.
This reading allows all MPs, regardless of which party, to debate the bill. Matthew Pennycook, the Housing Minister, will explain the bill’s provisions then open the debate to all MP’s.
Once the debate ends, a vote will take place; if the vote is lost, then the bill will fail at this point (highly unlikely!), and if it passes, it goes onto the Committee Stage, where it is considered line by line. The Committee Stage decides each clause and if it should remain in the bill along with any amendments.
The Report stage follows, and then the Third Reading, after which it is taken through a similar process in the House of Lords. The Bill is expected to become law next summer 2025.
You can follow the progress of the bill on the Parliament website.
Good inventories are key to avoiding deposit disputes
Inventory Base has issued a new poll this week stating that 30% of tenants did not get their inventory done before they moved in, and 9% of those ended up organising it themselves.
70% of tenants who did have an inventory, 23% of those had it done the day they moved in and a further 13% had it done after they have been given the keys. 65% of inventories are carried out by letting agents and only 26% of landlords do the inventories themselves. But, 31% of tenants have never signed their inventory.
Sian Hemming-Metcalfe of Inventory Base Said
An inventory is more than just paperwork; it’s your first line of defence when things go wrong at the end of a tenancy. Without a detailed, signed document, disputes over damages or deposits can quickly spiral into a drawn-out, frustrating experience.
Often, having an inventory done by an independent third party will protect a landlord from deposit disputes at the end of the tenancy.
Ombudsman issues new guidance on damp & mould
The Property Ombudsman has issued new guidance for agents, landlords and tenants on the management of damp and mould in rented properties.
Their survey showed that most agents have had to deal with damp issues, with 9% of agents stating that they were not ‘confident’ that their landlords could recognise damp issues, but 72% were quick to resolve any damp and mould issues.
The Ombudsman’s casework in 2023 had 1000 damp and mould enquiries, 200 of which required further investigation. £36,000 has been awarded to tenants in the form of compensation.
The new guidance gives details of the signs to spot and says about the importance of ventilation and heating a property adequately along with the use of extractor fans. Where issues persist tenants should then report them to their landlord. There is separate guidance for landlords covering property construction and defects that cause damp and who contact where issues cannot be fixed by themselves.
Rebecca Marsh of the Ombudsman says
Our research shows what a complex issue this is. Condensation, damp and mould are interlinked and caused by a variety of factors: environmental, structural and behavioural but one thing is clear, we need to work with renters, landlords and agents to prevent it occurring.
The full guide can be seen here.
Note that Landlord Law has a detailed ‘Dealing with Damp Kit‘ to help landlords deal with this difficult problem.
Calls to repeal section 24 as landlords spooked by reform plans
Greg Tsuman, the immediate past president of ARLA Propertymark and director of lettings at the Martyn Gerrard agency has commented:
It remains crucial for the government to do more to keep landlords in the market, and the most impactful thing it could do is to reverse Section 24 of the Finance Act, which prevents landlords from claiming mortgage relief on their rental properties. This treatment of landlords is totally different to any other business, as it allows the government to tax landlords even on a loss-making tenancy.
The effects of this are most acutely felt in London, where the majority of landlords have financing secured against their property … all this does is force landlords to sell, creating higher competition for renters and ultimately driving rents up to the extent that the government has to intervene with legislation like the Renters Rights Bill. The imbalance between support for landlords and tenants is essentially forcing tenants to create bidding wars between themselves.
Agreed. It will not help renters if most landlords sell up and leave the sector. As an increasing number are doing.
We also think landlords would be encouraged if the horrendous right to rent checks could be abolished.
Snippets
Minister want landlords probed for failing to register tenancy deposits
Generous renters dip deep to help homeless youngsters
Landlords urged to offer more tenant-friendly technology
Landlord firm pleads guilty to 48 criminal charges
Renters’ Rights Bill could drive up student rents
See also our Quick News Updates on Landlord Law
Newsround will be back again next week