Extension of Homes (Fitness for Human Habitation) Act 2019
Currently under the Homes (Fitness for Human Habitation) Act 2019 Landlords are already required to carry out improvement works to their properties and can be sued for compensation for the entire length of the contract if they are found to be in breach.
March 2019 saw the introduction of rule to ensure that rented homes are safe and secure for Tenants and Tenants can issue claims against Landlords if this is not the case. Tenants who sign contracts on or before March 2019 were able to use the Act right away but as of March 2020 the rules will be extended to cover existing statutory periodic tenancies.
Minimum energy efficiency standards
The current rules since 2018 have required Landlords to let properties to new Tenants with a minimum energy efficiency rating of E on the EPC rating. This is now being extended to cover all tenancies from April 2020 and means that anyone who has rental properties with an EPC rating of F or G will not legally be able to rent them out.
Compulsory CMP for agents
New rules on money laundering have been extended to cover letting agents and agents are required to become members of an official client money protection scheme.
Extension to Tenant Fees Act
The Tenant Fees Act which came into force in 2019 is going to be extended to cover all existing tenancies. This will come in to place in June 2020. The effect of the rules means that Landlords and agents cannot charge fees other than rent, deposit, holding deposits and charges for defaulting on the contract and there will be additional restrictions on how much Tenants can pay. Deposits are already limited to a maximum amount which is currently 5 weeks rent in situations where the annual rent in below £50,000 for any new or replacement tenancies. Charges for extras such as cleaning, referencing, inventories and admin are no longer allowed. Where a band fee has been charged, then Tenants will be able to issue a claim using the County Court and Landlord can be fined up to £5,000 for a first offence and up to £30,000 for subsequent offences.
If you have any questions with regards to these new rules, or indeed with regards to any Landlord or Tenant issue then please do not hesitate to contact our litigation team on either litigation@barwells.com or 01273 582271.