For our final news round of June, let’s take a look at the housing-related news that caught our eye at Landlord Law this week.
The tenant is now seeking changes to the EPC.
EPC reform has been in the news a lot recently, with leaseholders now demanding that steps be taken to make green practices more accessible.
A survey by Rightmove found that 87% of renters want green improvements made immediately to reduce heating bills and make their rental property more energy efficient.
More than half of homes in the UK have an EPC rating of D or below, and these low ratings can change your energy bill by thousands of pounds: a home with an EPC F will have an energy bill of £4,431 per year, while the same home with a ‘C’ rating will have an energy bill of £1,669 per year.
Rightmove's Nathan Emerson says
We expect the new administration to put together a broad-based assistance package to help with the upgrades at the first opportunity.
It is important that there are diverse approaches to funding, grants and targeted planning based on age, condition and size, and that a strong infrastructure is in place to realise such ambitions.
If S21 is repealed, will I still need a guarantor?
Leading residential property author Tom Entwistle explains that now may be the time to take out a guarantor or rent guarantee insurance if section 21 is repealed. A guarantor can protect your landlord against rent arrears and tenancy problems, giving landlords a degree of protection.
Having a guarantor reduces the risk of accepting a tenant who looks good on paper but has a low income or credit score. The guarantor will pay the rent to the landlord if the tenant cannot pay it, which is common in student rentals.
However, for the agreement to be valid in court, the landlord must ensure that the agreement is correctly and legally drawn up. There is no standard format.
Landlord Law provides a range of information about sureties, including when guarantees are void, all of which is free for members to access. Members can access our full and detailed section on sureties here.
Renters continue to struggle to pay rent
New research from the TDS Charitable Foundation has revealed that more than 2,000 private renters were struggling to pay their rent in March.
35% of renters fall into this category, rising to 56% for renters who are out of work due to long-term illness or disability. 45% of students are struggling to pay their rent, of which 43% are on some form of benefit. Unsurprisingly, 55% of renters have cut back on essential expenses such as food and heating, and shockingly this rises to 72% for single-parent renters.
The report also detailed that average rents increased by 7%, but showed wide disparities between regions.
The TDS Charitable Foundation is calling on all stakeholders to address the ever-widening demand and supply gap and is calling on the government to lift the freeze on housing benefit rates.
“We're thrilled to be working with such a group,” said Dr Jennifer Harris of the foundation.
Being able to afford to buy a home should be the foundation of prosperity for everyone, but our data paints a worrying picture of the pressures many renters are currently under, affecting landlords with tenants who are behind on their payments.
If you're a landlord who wants to help a tenant experiencing financial difficulties, check out our Delinquent Tenant Assistance Kit.
Another local government cracks down on unscrupulous landlords
Haringey Council continues its tough crackdown on unscrupulous landlords, imposing civil fines totalling £41,000. The council served an improvement notice on a large HMO property citing serious dangers throughout the building. The property was also found to have damp and mould in rooms which poses a serious health risk. Despite multiple warnings the landlord failed to act and was slapped with a civil penalty notice for £13,500.
The council also fined one landlord and three letting agent directors £27,500 for failing to hold the appropriate HMO licences for homes in Tottenham. The council also successfully prevented a letting company from declaring bankruptcy to avoid paying fines, by negotiating directly with Companies House.
Cllr Hubert Malcolm, from Haringey Council, said:
It is imperative that landlords and letting agents comply with legal requirements not only to avoid prosecution but also to protect and maintain Haringey's high housing standards.
With more and more local authorities introducing different licensing regimes, it is imperative to ensure your landlord has the appropriate licence. Ignorance is no excuse and fines could be excessive. At Landlord Law we have a comprehensive local authority directory.
Scraps
Landlord to repay tenant £21,500 after court investigation
Scottish housebuilding plummets amid rent controls
Landlord loses appeal against £35,000 licence fee penalty
Does the landlord have the right to claim for rent arrears or damages incurred during the tenancy?
General election: What are Labour's manifesto promises for the private rented sector?
Newsround returns next week.