Renters Reform Bill – Update

The government introduced the Renters’ Reform Bill on 17 May 2023 to deliver on the it’s commitment to “bring in a better deal for renters”, creating “safer, fairer, and higher quality homes”.

The aim of the bill is to tackle some of the problems in rented housing, namely lack of homes, lack of security for tenants and failure to meet basic decency standards.

The Second Reading of the Renters Reform Bill – expected some weeks ago – will now not take place until the autumn. The House of Commons went on it Summer recess on July 20th 2023, but this Bill was not included in the business timetable released by the government. Although there has been no progress on the Bill being debated, government has released some information related to the proposed Private Rental Sector Ombudsman.

This Scheme is proposed to operate as a non-profit body and may also be utilised as a combined letting agent, tenant and landlord redress scheme. Many of the details are still being discussed. A round table discussion between a member of the Levelling Up, Housing and Communities Committee, and senior representatives from lettings agencies is proposed this Summer. There is currently a survey being conducted with letting agencies to prepare for this opportunity to discuss the terms of the Bill.

The main items in the Renters Reform Bill include:

• Abolishing ‘no fault’ 2 months’ notice pursuant to section 21 Housing Act 1996 and assured shorthold tenancies, instead making all tenancies assured and periodic. Government states they hope this will provide more security for tenants and empower them to challenge poor practice and unfair rent increases without fear of eviction. Concerns envisaged from these substantial legal amendments are that it will become more difficult for non-commercial landlords, such as landlords with one or two properties as their pension, to evict tenants and manage their assets. Many Landlords are turning to short term lets such as Air B&B as the return is better and the management costs and compliance requirements much lower. There is a risk this change will have a “knock-on” effect, compounded by increased tax burdens for landlords will reduce the amount of private rental property, rather than make it more freely available.
• Government intends to introduce more comprehensive possession grounds to counter the effect of removing “no-fault” grounds for eviction, by including a ground enabling a landlord to sell their property or move in close family and to make it easier to repossess properties where tenants are at fault for rent arrears and anti-social behaviour. It must be noted these grounds are already partly included in current grounds, but these new grounds cannot be used if a tenant has been present for less than 6 months. By default this will create a fixed term even though the new tenancy will be periodic, if action cannot commence for six months for some grounds.
• The Government highlights the right for a tenant to appeal excessively above-market rents purely designed to force them out, however, it is questionable whether this is a serious problem for many tenants. Landlords retain the right to increase rents to market value. The First-tier Tribunal will continue to be able to determine the actual market rent of a property if an application is made by a tenant or a landlord. Rents are increasing due to the increased costs of living with most landlords not charging “excessive” rents, simply market rents. This provision will assist a minority of tenants struggling with excessive rent increases but may not change the position of most tenants but will increase costs for landlords if faced with a number of rent review challenges.
• Government plans to introduce a Private Rented Sector Ombudsman which they hope will be faster, cheaper, and less adversarial than the court system. It is unclear how this will be funded at this stage and what powers will be provided to the Ombudsman as Regulations for the Scheme are not yet being considered.

A proposal to create a Privately Rented Property Portal to assist landlords with understanding their legal obligations and compliance requirements; linked to local councils’ licensing schemes. This is to assist with targeting enforcement action, but that is already the aim of local licensing schemes. In reality the licensing schemes need proper funding so without that will this proposed scheme improve the position for tenants or landlords?

We now wait for Government to put this Bill before the House of Commons for the Second Reading and await feedback from ongoing discussions on the proposed changes.

If you are a landlord or tenant who would like a free initial consultation with a member of the Proerty Litigation team simple click on the “Speak to Our Experts” button on this page, call us on 01244 729 074 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Mould and maintenance in rented housing: Tragic case of must be wake-up call for landlords

A lesson must be learned from the recent tragic case of two-year-old Awaab Ishak, who died after his health was compromised by mould growing in the rented home where he lived.

Both private landlords and providers of social housing are being urged to go above and beyond when it comes to maintenance and repair responsibilities.

At the inquest into the toddler’s death, the coroner heard that Rochdale Boroughwide Housing had taken no action, despite Awaab’s father reporting the problem repeatedly over a period of years. Ruling that the child’s death was caused by exposure to mould in the one-bedroom housing association flat he shared with his parents in Greater Manchester, the coroner said the incident should be a “defining moment” for the UK’s housing sector.

Those sentiments have been echoed by Government housing minister Michael Gove who has said: “Every single person in this country, irrespective of where they’re from, what they do or how much they earn, deserves to live in a home that is decent, safe and secure.”

Landlords have a legal responsibility and duty of care to make sure a property is free of damp and mould, among other things, under section 11 Landlord and Tenant Act 1985 but interior condensation and damp in the property may arise through the actions of the tenant, such as lack of ventilation and may not arise from a direct breach of s11 or the express repairing obligations but nonetheless makes the property unfit for human habitation.

Rather than look to shift the blame, landlords are being encouraged to work with tenants to resolve problems. If no structural problem can be identified, such as rising damp or leaking roofs and gutters, damp and mould might arise from lack of heating or from condensation caused by drying clothes inside, showers with little ventilation, or by not opening windows on a regular basis. This lack of clear structural defect should not prevent Landlords from taking steps to help and educate their tenants and continue to monitor the property; as they are likely to be able to offer assistance to tenants to reduce mould build up and to identify a structural defect that exists, but is not yet apparent.

The problem is likely to be high on the agenda in the coming winter with tenants expected to turn down, or even turn off, their heating in the face of record fuel prices, which is likely to create or exacerbate problems with damp. Landlords could take action now to help tenants understand how best to manage this – the solution could be as simple as fitting an extractor, or making sure ventilation isn’t blocked.

Working together in this way may help avoid bigger problems in future.

Some tips have been suggested by Citizens Advice Bureau and the housing charity Shelter to help tenants manage condensation and ventilation. These include:

• Avoid using portable gas or paraffin heaters which can generate a lot of moisture into the air
• Ensure tumble dryers have extractor outlets and are vented outside, unless they are self-condensing
• Dry wet clothes outside rather than on heaters or radiators, or use the bathroom where the door can be closed and extractor switched on.
• Do not block ventilation such as air vents, or disable extractor fans, as an attempt to warm up the property, as this will see moisture build up and make the place colder in the long run.
• Everyday activities like cooking, showering and drying clothes create moisture in your home which can lead to condensation.
• Cover pans when cooking and close internal doors when you cook or shower
• Make sure there is a gap between furniture and external walls for air to circulate and open bedroom windows for 5-10 minutes when you get up as moisture builds up overnight.
• Try to keep a low background temperature of at least 15 degrees in all rooms, rather than extremes of heat and cold which may happen when heating is turned off for most of the day and boosted for a short time in the evening.

There is also a regulatory impetus for housing associations and local authority landlords to act. Following the Rochdale case, the Regulator of Social Housing has written to registered providers of social housing, highlighting their responsibility to take action to protect tenants from hazardous damp and mould.

The regulator has said that all social landlords will need to provide evidence to show they have systems in place to deal with damp and mould issues and manage health risks to their tenants.

Further regulation is on the horizon, with the Social Housing Regulation Bill which is passing through Parliament. But whether you are a private landlord or managing social housing, this regrettable case should certainly be a wake-up call to ensure you do right by your tenants before it’s too late.

If you are a landlord or tenant facing mould or maintenance issues in rented housing, and would like a free initial consultation with a member of the Proerty Litigation team simple click on the “Speak to Our Experts” button on this page, call us on 01244 729 074 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Garden predators are taking root in the courts, as householders take action to fight off plant invaders that can be highly destructive and undermine property values.

One of the most common reasons for garden-related legal action is when Japanese knotweed has taken root. This highly invasive, aggressive and fast-growing plant can cause structural damage to building structures, with roots that can spread seven metres.

Even the smallest amount of root material is enough to allow new growth, meaning removal usually involves costly specialist waste disposal. Classified as hazardous waste, landowners can be fined up to £5,000 or sent to prison for two years if they allow contaminated soil or plant material from Japanese knotweed to spread in the wild.

Property values may be downgraded significantly where knotweed is present, and a landmark ruling in 2017 established that landowners are responsible if they do not prevent the plant from spreading from their land to adjoining properties. Here, a group of homeowners in South Wales took action against Network Rail after Japanese knotweed grew into their garden from adjoining railway sidings. In spite of there being no physical damage, the court ruled in their favour saying that the presence of Japanese knotweed was sufficient reason for compensation, as it had the potential to seriously affect the market value of a property. The judgement was later upheld by the Court of Appeal.

A further case in 2019 saw a £50,000 compensation pay-out being made after a surveyor failed to tell a buyer about knotweed at a £1.2 million flat.

And in one of the latest cases to reach the courts, the owners of a property in north west London are claiming £250,000 in compensation from their neighbours, saying that a failure to deal with knotweed has devalued their house, which would otherwise now be worth £1.67 million.

Typically, mortgage lenders have restricted their lending on properties that are affected and homeowners have found themselves having difficulty in selling, or finding the value of property significantly reduced.

But there may be a shift in attitude in future. For this year the Royal Institute of Chartered Surveyors (RICS) has issued new guidance for valuing property where knotweed is present. The RICS guidance for its surveyor members on how to assess the impact of any infestation suggests that previous parameters were overly strict and marks the end of the so-called “seven metre rule”. It also marks a shift in stance on managing any infestation, from permanent removal to achieve eradication towards management of the problem through herbicides.

While there may be a shift in future, until we see clear evidence of a greater acceptance of knotweed from surveyors and lenders, the message has to be to keep on top of any infestation, whether on your own property or in a neighbouring garden.

If it’s on your land, while there is no legal requirement to remove Japanese knotweed (unless it’s causing a nuisance to neighbours), inaction is likely to result in a bigger problem in future. Potential buyers will be concerned over the presence of knotweed so I you do not take active steps to remove/reduce the spread of the invasive plant then you are likely to struggle to sell your house in future.

Where you know it to be present on adjoining land, you should get a request on record for the neighbour or landowner to ensure it does not spread over the boundary. And once there is evidence of it crossing the boundary to your property, you may have grounds for a nuisance claim, and to ask for an eradication programme and guarantees from a specialist company, as well as seeking compensation.

Your home is usually your biggest asset, so it’s important to protect it – whether you’re planning on moving in the near future or not. Certainly, when a property is being sold, part of the conveyancing process includes a comprehensive questionnaire for the owner, which includes asking whether Japanese knotweed has ever been found on the property.

Why use us to support you with your Dispute?

Our team has more than 70 years’ experience of helping clients to resolve disputes and in as cost effective and stress-free manner as possible.

Our team are all experts in this area of law and specialise in helping, supporting and advising clients in finding solutions and resolving these kind of issues.

We understand the distress and disruption that disputes can create. We will work with you to resolve these issues and provide solutions which work for you.

What our clients have said…

“What a fantastic service provided by Cullimore Dutton. Sarah Mansfield who represented my difficult case delivered nothing but the very best. A strong no nonsense approach who got the job done. I highly recommend A++++++”
Cullimore Dutton Disputes client

If you have any concerns about Japanese knotweed and would like to arrange free half hour consultation with a member of our litigation team, please contact us on 01244 729 074 or email info@cullimoredutton.co.uk.

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.