Evolution of the private rented sector

The Department for Business, Energy and Industrial Strategy publishes a consultation: Improving the Energy Performance of Privately Rented Homes in England and Wales which explores the possibility of raising the minimum energy performance rating from E to C.  The proposals are made for new tenancies of private rented property from 2025 and for existing tenancies from 2028.

Closure of consultation on the draft code of practice.

The Coronavirus Act 2020 is amended and the notice periods for certain residential tenancies in England are extended to 6 months.  Section 21 Notices require 6 months’ notice to be given.  Section 8 Notices require 6 months’ notice for the majority of grounds with 4 week’s notice if the landlord seeks to rely on arrears and the amount outstanding is over 6 months’ rent for the termination of assured or assured shorthold tenancies until 31 March 2021 (with power for this date to be further extended).

Practice Direction 55C under the Civil Procedure Rules 1998 comes into effect. Originally the stay of possession proceedings was due to be lifted on 23 August 2020 but this was extended until 20 September 2020.

The Court of Appeal handed down its long awaited decision in the case of Trecarrell House Limited v. Rouncefield [2020] EWCA Civ 760.  By a majority of 2 to 1, the Court of Appeal allowed the landlord’s appeal and determined that a landlord may serve a valid Section 21 Notice even if it has served a gas safety certificate on the tenant late (i.e. after the tenant moves into a property rather than before), provided that the gas safety certificate is given before the Section 21 Notice.

The Tenant Fees Act 2019 will apply to all existing assured shorthold tenancies from 1 June 2020.

The Home Office issues guidance announcing that right to rent checks are temporarily adjusted due to the Coronavirus outbreak with permission being granted for checks to be carried out over video calls and the acceptance of scanned or photographs of documents rather than originals from tenants.

Following the Coronavirus outbreak, a new Practice Direction is introduced into the Civil Procedure Rules 1998 which stays all new and existing possession proceedings against residential tenants for three months from 27 March 2020.

From 20 March 2020, The Homes (Fitness for Human Habitation) Act 2018 applies to all existing periodic assured, secure and introductory tenancies including those which commenced before the Act came into force on 20 March 2019.

It introduces an implied covenant into short leases of less than seven years, to which the Act applies, that the property is fit for human habitation at the date the lease is granted and throughout the term of the lease.

The MHCLG announces that 100 councils in England have been awarded a share of £4 million to tackle rogue landlords and agents.  The funding is to be used for purposes such as training over 100 enforcement offices and to trial new technology.

The London Borough of Camden obtained the first banning order against a rogue landlord in London. Judgment was issued by the First-Tier Tribunal (Property Chamber) in the case of London Borough of Camden v. Mr Cesar De Sousa Melo. The First-Tier Tribunal (Property Chamber) granted a banning order for four years from 8 March 2020 preventing Mr Cesar De Sousa from letting housing in England and/or engaging in the letting or management of property in England as a result of offences he had been convicted of in respect of several properties.

Closure of MHCLG consultation: Rogue Landlord Database Reform: Widening Access and Considering the Scope of the Database of Rogue Landlords and Property Agents.

Closure of MHCLG consultation: A new deal for renting: resetting the balance of rights and responsibilities between landlords and tenants.

The Home Office publishes an update to its guidance on right to rent checks for EU, EEA and Swiss citizens after Brexit and confirms that there will be no changes to the right to rent for EU, EEA and Swiss citizens and their families living in the UK until 31 December 2020 if the UK leaves the EU without a deal.

MHCLG updates A short guide on right to rent to include right to rent checks for nationals from Australia, Canada, Hong Kong, Japan, Singapore, South Korea and the United States who are visiting the UK for up to six months.

The MHCLG publishes consultation: A new deal for renting: resetting the balance of rights and responsibilities between landlords and tenants.

The Government proposes to abolish assured shorthold tenancies and Section 21 Notices.  It seeks to increase the number of statutory grounds upon which a landlord can seek possession of a tenancy let on an assured tenancy. 

The MHCLG publishes a call for evidence on any barriers that tenants' face when providing a second deposit and seeking views on alternative approaches to help tenants move.

A new prescribed form Section 21 Notice is introduced under The Assured Tenancies and Agricultural Occupancies (Forms) (England) (Amendment) Regulations 2019.

The Government announces plans to abolish Section 21 of the Housing Act 1988 so that landlords are no longer able to serve a Section 21 Notice to terminate an assured shorthold tenancy ("AST") in England. Under the current rules, a landlord can serve a Section 21 Notice giving at least two months' notice to terminate an AST without needing to give a reason for terminating the tenancy.

It also confirms it has scrapped its idea of introducing a three-year tenancy model with a one off break clause which may be exercised by the landlord at six months and supports flexible and open ended tenancies.

The MHCLG publishes guidance: Landlord and tenant rights and responsibilities in the private rented sector.

MHCLG publishes the Government's response to Electrical safety in the private rented sector.

The Government proposes to introduce new rules for electrical inspections in private rented accommodation to be carried out by competent and qualified inspectors every five years. Financial penalties are proposed for those who fail to comply with the legislation.

MHCLG publishes Considering the case for a Housing Court: call for evidence to consider the experiences of private landlords in possession actions in the County Court, the experience of Court and Tribunal users and views on the transfer of property cases from the Courts to the First-Tier Tribunal (Property Chamber) and vice-versa.

Closure of consultation: Strengthening consumer redress in the housing market: A Consultation.

The Rogue Landlords and Property Agents Database is introduced and the MHCLG publishes guidance for local authorities on using the database including the criteria for determining whether an entry is to be made on the database.

The MHCLG publishes the Government's response to the call for evidence on protecting consumers in the letting and managing agents market.

The key proposals are:

• to establish a code of practice for letting and managing agents governed by an independent regulator;
• to require letting and managing agents to undertake mandatory qualifications in order to practice; and
• to set up a working group to develop a regulatory regime.

The MHCLG publishes a consultation paper entitled: Electrical safety in the private rented sector, which seeks views on the recommendations of the Private Rented Sector Electrical Safety Working Group.

Those recommendations include a requirement for residential properties in England to be subject to mandatory electrical installation checks every five years and for landlords to provide an Electrical Installation Condition Report to a tenant at the beginning of a tenancy.

The then DCLG publishes a Housing White Paper: Fixing our broken housing market commencing a consultation on changes to planning policy and legislation in relation to planning for housing, sustainable development and the environment.

The paper details the Government’s intention to review the planning system to ensure that homes are built quickly once planning permissions are granted, and the private rented market to “make renting fairer” for tenants and the leasehold sector to “promote transparency and fairness” by reviewing ground rent structures and the sale of leasehold properties.