Another week and another Newsround, let’s see what has caught our eye this week, the first full week of the new Renters’ Right Act.
Information sheet compliance download figures are low
New Freedom of Information data requested by Landlord Studio details that the new information sheet, that has to be served to all tenants by 31st May, has only been downloaded 153,000 times since first publication.
Landlord Studio does admit that the form can be used many times across multiple tenancies and it could also be the fact that some landlords are obtaining the document via their letting agent. There is concern that the low figures are due to landlords not engaging with official guidance as the download number is small in relation to the ‘size of the private rental sector’.
Failure to serve the document could place landlords with a fine of up to £7000 per tenancy.
We have guidance for landlords here.
Tenancy management must be watertight
Now that periodic tenancies are the norm under the Renters Rights Act, there will be more tenant ‘swaps’ during existing tenancies and without water-tight documentation, agents and landlords are at high risk of disputes, says Tim Frome, Head of Government Schemes at Mydeposits.
He says
The removal of fixed terms changes the rhythm of tenancy management. Agents are used to working with a clear endpoint where responsibility is agreed and documented.
Agents will need to decide whether to issue a new inventory or use the existing one. Failure to manage this process correctly could lead to disputes being raised further down the line. This can happen between agent and tenant, but also between tenants themselves when living in shared HMO accommodation.
Renting is becoming more popular – claim
An interesting survey out this week claims that 41% of tenants have a more positive outlook on renting than ever before, with 18-29 year olds reporting the most willingness to rent according to RentGuarantor.
Out of those surveyed, 30% choose to rent due to their lifestyle, with 88% saying renting is better than it used to be, fitting better into the modern lifestyle.
Location and affordability are obviously key factors, with 56% saying that renting allows them to live in places that they would otherwise not be able to. 54% like the fact that they do not have to worry about repairs or maintenance. 29% of those over 60 say they also prefer renting.
CEO of RentGuarantor said with the ‘housing ladder becoming more challenging, renting has become the reality for many for the long term’.
Can the courts cope post Renters Right Act?
Concern is growing that now all evictions require legal court routes, that this is already putting pressure on a system that was hardly coping prior to the new Act coming into force. Possession cases are now taking over eight months on average from start to finish.
It is expected that even a straightforward rent arrears case will take longer to reach an outcome. A tenant can pay some of their arrears off before a hearing, bringing down the arrears ti less than three months worth, and that could mean that an eviction case is no longer certain (as the only grounds available will be discretionary). If the claim is not withdrawn, it will be up to the judge to decide the best way forward. And now that tenants have more rights, their cases can be better defended.
With this in mind and amid new reforms, landlords will now have to have water-tight documentation and every evidence of communication with their tenant documented; otherwise, a case could be adjourned or even dismissed.
Snippets
Landlord’s plea for reduced housing fine backfires
‘Dismissive’ landlord who locked tenant out must pay back £12K
Fears spike in rents ahead of Renters’ Right Act ‘did not happen’
EPC upgrades stack up in north but fall short in south
See also our Quick News Updates on Landlord Law
Newsround will be back again next week
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