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Showing posts with label tenancy agreements. Show all posts
Showing posts with label tenancy agreements. Show all posts

Friday, March 29, 2019

Call for longer tenancies

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Monday, January 28, 2019

Wednesday, January 09, 2019

Tuesday, January 08, 2019

Government will not help landlords with assured / assured shorthold tenancy 'mix-ups

Government confirms it will not address the Monty Shooltz ruling

The Ministry of Housing, Communities and Local Government (MHCLG) will not act to help the thousands of landlords who may have inadvertently granted assured tenancies instead of the assured shorthold tenancies they meant to.

The Ministry has confirmed to the National Landlords Association (NLA) that it does not intend to legislate to address the ruling inCaridon Property Ltd v Monty Shooltz.

The judge in this case ruled that the requirements of the Deregulation Act 2015 mean failure to issue a gas safety certificate before a tenancy begins invalidates any subsequent Section 21 notice for repossession. According to the ruling, which applies a strict interpretation to the wording of the original Gas Safety Regulations, issuing a gas safety certificate after the tenancy has begun would not be sufficient for the landlord to meet the requirements of the Act, which applies in England only.

Instead, MHCLG say they will update the guidance available to landlords on the Gov.uk website, to ensure landlords are certain of their legal responsibilities.

NLA Chief Executive Officer Richard Lambert said:

“Having pressed the Government to respond to this judgement for nearly a year, their answer seems to be, ’We’re not that bothered’.

The Ministry clearly doesn’t understand the impact it is having. The NLA Advice Line is taking more and more calls from landlords who thought they had complied with the law and now find themselves facing a disproportionate penalty for an administrative error. We cannot believe this is what Parliament actually intended.

The NLA recognises the vital importance of ensuring landlords arrange an annual gas safety check with a Gas Safe engineer. But we do not support the de facto introduction of assured tenancies because landlords cannot rectify an unwitting error made before a tenancy begins.

We have no intention of letting this rest and will continue to lobby for change.”

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Monday, November 26, 2018

Thursday, October 04, 2018

3 yr compulsory tenancies could deter a third of landlords

One third of landlords less likely to buy property if three-year tenancies are made compulsory
Landlords more likely to consider older couples and retired people for a three-year deal
Landlords suggest compulsory system impractical for students and some migrant workers

Almost one third of landlords (32%) say they would be less likely to buy new rental property if the government were to introduce compulsory or default three-year tenancies, according to Paragon’s latest PRS Trends research based on interviews with 200 landlords during the third quarter of 2018.

Paragon surveyed landlords on the issue to gain a deeper understanding of their views following the government’s recent consultation, ‘Overcoming the barriers to longer tenancies in the PRS’.

Asked if the introduction of a compulsory three-year tenancy would make them more or less likely to consider certain tenant types, the highest proportion of landlords said they would be more likely to consider older couples (36%), retired people (29%), families (25%) and older singles (25%).

Interestingly, landlords felt a compulsory three-year agreement could potentially make them less likely to consider mobile and itinerant groups, including students (45%), migrant workers (40%) and young singles (24%).

Paragon has consistently supported greater security for tenants who desire it and was one of the first lenders to update its mortgage conditions to facilitate longer term tenancies back in 2014.

Working in concert through the then Council of Mortgage Lenders to co-ordinate action across the lender community, significant change was achieved and today many of the biggest lenders in the buy-to-let sector support landlords offering tenancies up to three years in duration.

John Heron, Director of Mortgages at Paragon said: “Landlords are highlighting that the diversity of the tenant population calls for a diversity of tenancy arrangements. While some groups value greater security, many other tenants favour flexibility. Young professionals, for example, value the flexibility that the PRS brings to move to different areas and to different types or property.

“In light of these findings, rather than impose longer-term tenancies as the primary or default arrangement in law, it may be preferable to bolster tenants’ rights to choose from a range of different tenancy lengths and boost incentives to landlords to enter long term arrangements where requested.”


View the full PRS Trends Q3 2018 report.
Email:info@propertyhawkbtlmortgages.co.uk
Tel: 029 2069 5446

Wednesday, September 05, 2018