Blogs and advice on Residential Property Management London
What is ground rent?
Ground rent is rent paid under the terms of a lease by the owner of a building to the owner of the land on which it is built. Ground rent is exactly what it sounds like – a sum of money leaseholders pay the freeholder to occupy the land a leasehold property is built upon. Ground rent must only be paid if it’s detailed in the lease. If it isn’t, the landlord won’t be able to recover any ground rent from the leaseholder.
The government has just provided a fairly detailed indication of what steps it is to take to approach to ban ground rents, what it sees,
as unfair practices relating to rents on leasehold property and the sale of leasehold houses.
Ground rents will be restricted to a peppercorn in future leases and new long leases of houses will be banned,
subject to limited exemptions.
As the home ownership population continues to age, young and middle-aged individuals are renting for longer and landlords are having to adjust to new regulations.
Combined with this, uncertainty around Brexit has curbed housing market growth. Since 2016, London is growing slower than other areas such as Manchester, Birmingham and Cardiff.
In recent years, we have seen many regulations over residential lettings, in particular Assured
Shorthold Tenancies (ASTs), many of which restrict a landlord’s ability to serve and rely on a Section
21 notice to seek possession of its property on non-fault grounds.The purpose of this week’s Legal Update is to serve as an aide-memoire of those restrictions, to ensure
that landlords and their agents can rely on a Section 21 notice, and avoid difficulties down the line. It
is, of course, still open to a landlord to serve a Section 21 notice where these restrictions have not
been complied with, in the knowledge that it would not be a valid notice that could be enforced later.
The restrictions which inhibit a landlord’s ability to serve a Section 21 notice are
Private rental sector in England has doubled in size to around 20 per cent of all households in the last 7 years. Proportion of rental households in the UK is set to grow by 22 per cent by 2023.
In the capital and the South East, the proportion of people renting has increased, especially among those aged 35–44, primarily because of affordability. Also, changing demographics, urbanisation and the digital revolution. That means that jobs and the workforce are evolving and more people enjoy the flexibility of renting.
Recognised Tenants Associations vs. Right to Manage Companies
RTAs and RTMs – A Comparison
The table below sets out the main differences between RTAs and RTMs, in terms of the rights and
powers that each have (this is not an exhaustive list):
In relation to tenancies starting or renewing on or after 01 October 2015, if a Landlord failing to serve a gas safety certificate on the Tenant prior to them moving into the property, the Landlord will be precluded from using section 21 of the Housing Act 1988 (“HA”) to obtain possession of the property on no fault grounds. Whilst Landlords can still end the tenancy by serving notice under section 8 of the HA, this usually requires some wrongdoing by the Tenant, and thus this course of action would not be available if the Tenant was not in breach.
This February 2019, a case was considered and involved an AST granted on 20 February 2017. Hot
water and heating were provided by a boiler outside the flat. No gas safety certificate had been
provided or displayed before the start of the tenancy, but one was served prior to the Landlord serving
a Section 21 Notice.
Dealing with tenants who fail to pay rent on time are time consuming. If you find yourself with rent arrears, you can follow the below step by step guide line. Tenant fees Act Step One Like everyone, tenants can experience difficulties in life that may cause them to...
Where do you stand with tenancy agreements signed before 1st June?There is a 12-month transition period on fees to allow landlords and agents to make appropriate arrangements for existing tenancies. How to exercise right to manageWhat can I charge for after the tenant fee ban comes in to effect?Only certain payments are permitted once the Tenant Fees Act comes into force. There are also restrictions on many of these:Holding deposit (capped at one week’s rent and subject to conditions)RentSecurity deposits (up to five weeks’ rent if the annual rent is less than £50,000, and six weeks’ otherwise)Payments to change the tenancy at the tenant’s requestPayments for early termination of the tenancy at the tenant’s requestPayments for utilities, broadband, TV, phone and council tax (must be no more than the cost of the service)‘Default fees’ for replacement of a lost key or security device, and interest charges when rent payments are at least 14 days late (these must be stated in the tenancy agreement). HMO Fire Safety and Health Regulations