The Renters Reform Bill and what it means
Dear All,
Having just gone past the first day of Spring I am pleased to be able to say we actually had one day of dry weather in Brighton and Hove! It has seemed like a very long wet winter – not overly cold but seemingly with never-ending rain. I, for one, am pleased with the clocks changing here in the UK with some longer days and hopefully try and shake off the webbed feet.
In this newsletter I will be discussing; general market conditions, potential licensing of landlords in Brighton and Hove, The Renters Reform Bill and maintenance spending limits.
GENERAL MARKET CONDITIONS
We had quite a few notices from tenants just before Christmas meaning that tenants have more choice of available properties across the City, compared with the past two years.
This has led to a ‘cooling’ in asking price for available properties and, after discussions with clients, some rent levels have been slightly reduced to entice applicants.
There is no exact science in pricing properties and we very much liaise with you to ensure we are receiving the best possible rent and as short a void period as possible. Brighton and Hove remains a very popular destination for those wanting to move from London and surrounding areas.
BRIGHTON & HOVE LANDLORD LICENSING SCHEME
On Monday, 18th March, Brighton and Hove City councillors sitting on the Housing and New Homes Committee voted to implement a landlord licensing scheme. This will apply in limited areas of Brighton and Hove initially with hopes that they can roll it out on a much larger scale if they secure permission from the Secretary of State.
Unfortunately, there will be a fee involved (we are looking at around £700 every 5 years) and more administration required as documents will now have to be provided to the Council. The scheme will be mandatory meaning that if you own a property in the initial limited areas you will have to have a licence to be able to rent your property to a tenant.
There is little further information at this stage and as ever I will provide more detail when known. My own initial feelings are that with the Renters Reform Bill coming up, Brighton and Hove City Council are simply doubling what is already going to be a requirement of the new legislation. I genuinely hope that the Secretary of State does not give consent as they did back in 2018 when the Council mooted the idea.
Please see below some information from the Citizens Advice Bureau that was drafted prior to the meeting and decision and gives some broad information only. Please note that the consultation has now ended.
Selective licensing explainer Citizens Advice Brighton and Hove (docx)
THE RENTERS REFORM BILL
There is absolutely nothing further to report on this Bill. We have had almost radio silence on the Bill and any information I could give would simply be rumour and speculation. For example, it is thought that the Government is going to have to rely on Labour to get the legislation passed as many Conservative MPs are quite against it.
Based on how the Government is doing in the Polls, with an election looming at some point in the next 12 months, I think it is a certainty that Labour will be passing the legislation in any event!
As ever I will update with firm information as and when I have any.
MAINTENANCE SPENDING LIMITS
In discussion with our partners at RDA Estates, and the pool of contractors we use on your behalf, I need to advise that our intention is to raise the maintenance spend limit of £150 to £250 without authorisation.
With inflationary pressures, contractors are finding that £150 is simply not realistic to be able to attend a job and potentially do the works on site. This could then mean a higher cost for a return visit if we have to wait for authorisation – thereby costing you, our client, more. Material costs alone mean that we feel £250 is a more reasonable sum to be able to get works completed in the most cost-effective way for you.
If you do have any questions or queries re this, or would prefer to remain at £150, then please do contact me. I hope that with our working relationship you trust that we try to ensure the best price for you and, excepting for overseeing major schedules of works, never charge fees on the works that contractors carry out.
Wishing you all a very pleasant Spring and into the Summer wherever you are in the World!
If you want to talk to us about any of the topics please drop me a line at steve@tandcpropertygroup.co.uk or call us on 01273 771977.
Kind regards
Steven Chipp
steve@tandcpropertygroup.co.uk
