Blogs and advice on Residential Property Management London
The UK Government has announced plans to consult on new legislation to abolish Section 21 evictions, which are also called no fault evictions in England. This will effectively create open ended tenancies, and lead to what the Government believe will be more effective means of getting their property back when they genuinely need to do so.
Under the UK Government’s proposals, landlords will have to provide a concrete, evidenced reason already specified in law for bringing tenancies to an end.
To ensure landlords have confidence the Government will allow them to be able to end tenancies where they have legitimate reason to do so. To this end, Ministers at Westminster will amend the Section 8 eviction process, so property owners are able to regain their home should they wish to sell it or move into it.
Carrying out major works on a property or development is sometimes followed by a
disagreement from one or more property owners who have an obligation to contribute to minor/major works.
This can lead to a delay in the works starting due to the dispute itself, or because a property owner
refuses to pay their share of the works.
For the most part, Landlords and management companies are in a strong position when faced with
such disagreements and can rely on the provisions requiring the property owner to contribute to such
works in the relevant agreements (Leases or Transfers). However, what happens if the Landlord is
faced with a dispute by a Leaseholder claiming that the works are improvements and not repairs, and
are therefore not payable? This Legal Update will look at what a Landlord should consider before
imposing charges for major works if an element of improvement is included in the schedule of works.
Landlords, Management Companies and their Agents sometimes come across to complaints of nuisance being
caused by neighbours in a block or development. This most often involves noise but can also include
other forms, such as smells, dust and vibrations caused by works. Nuisance can also take a physical form,
such as damage to property. However, establishing whether a private nuisance has been caused is far
from simple and a Court will consider multiple factors when determining whether a nuisance has been
committed. Courts will look at elements that are required to establish a nuisance
claim, and what Landlords and managing agents should be aware of.
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):