A housing lawyer has called for a “serious simplification” of the law relating to the new Section 21 regime, now just days away and with traps awaiting agents and landlords.
Tessa Shepperson, of Landlord Law, has looked at the new Section 21 rules which kick in next Thursday, October 1, in England.
She says that the requirement to provide tenants with prescribed information is going to cause endless confusion, because to most landlords and agents, the term relates to tenancy deposit protections.
However, the new prescribed information includes not just that which goes with tenancy deposits but – among other documents – a government booklet, How to Rent.
The requirement to give tenants copies of this looks simple enough. But just this single, apparently straightforward requirement has led Shepperson to write advice running into several hundred words in which she warns of “major problems in the practical implementation”.
One problem is that the booklet will be updated, and it will be difficult to know whether the booklet served at the start of the tenancy was the current version at that time.
She warns: “This will no doubt become a popular defence for tenants being evicted under Section 21.”
She suggests that very detailed records will have to be kept, implying a major administrative burden for agents.
The booklet can be served in hard format – the agent will have to print it out – or, Shepperson believes, by email.
However, it is not clear whether it would be sufficient for the agent to send the tenant a link to the online version of the booklet, or attach the booklet in pdf format.
She does suggest that the tenant must either sign to say they have received a hard copy of the book, or to acknowledge receipt by email.
Another complication is that the booklet will have to be re-served for “replacement tenancies”.
Shepperson says that under the Housing Act, a replacement tenancy is a tenancy:
* which comes into being on the coming to an end of an assured shorthold tenancy, and
* under which, on its coming into being –
* the landlord and tenant are the same as under the earlier tenancy as at its coming to an end, and
* the premises let are the same or substantially the same as those let under the earlier tenancy as at that time.
This will include situations where a new tenancy agreement is signed between the same landlord and the same tenants for the same property.
What is not clear is whether the booklet must be re-served when fixed terms end and the tenancy continues under a new periodic tenancy.
Shepperson says that to be on the safe side, all agents and landlords should re-serve it anyway.
However, she argues that a number will fall foul of this, either through ignorance or because they simply forget.
Shepperson’s full post is essential reading, with only one week to go to the changes.
Frighteningly, Shepperson’s current blog on next week’s changes is on just this one seemingly simple subject. She is now looking at other implications involved and is preparing further advice.
Sorry to use rough language but sometimes that’s all that’s appropriate.
The problem is that the people running this country are, and have been for some time, a complete bunch of immature idiots.
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EPC’s also form part of the prescribed information. Does an EPC need to be re-issues upon tenancy renewal? what about tenancies that originally started pre October 2008 (pre EPC requirement)? All getting unnecessarily complicated.
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It’s per new tenancy – if the tenancy runs into periodic, you don’t need to re-issue it. Any tenancies that started before 1st October 2015, even if they run into periodic after 1st October 2015, will not need to have an EPC – it’s only for new tenancies granted on or after 1st October 2015.
Basically, all this paperwork starts on the 1st October 2015 for all new tenancies, not currently running ones.
Hope this makes sense! Below is the guidance link for you and also the link to Form 6A that needs to be given as the Section 21. You have to use this version from the 1st October 2015. I’ve added the link to the ‘How To Rent’ guide too.
– http://www.legislation.gov.uk/uksi/2015/1646/pdfs/uksiem_20151646_en.pdf
– http://www.legislation.gov.uk/uksi/2015/1646/pdfs/uksi_20151646_en.pdf
– https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/429420/HowToRent210515-digitalprint_May_2015.pdf
Alasdair Melville also did a video on this, which is here: https://www.youtube.com/watch?v=U61KhIJHAuc
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A renewal is a new tenancy, the legislation certainly states that in the case of the “How to Rent” booklet as this must be given on each renewal; hence my query about EPC’s.
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Immature idiots? How dare you say that #PigGate
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having just read the document when is this to be given to the tenants? when they register or when they move in?? as the majority of the information contained within is pre tenancy so are we duty bound to give this to everyone that views a property? if so the expense in extra paperwork is going to be considerable , and of course this expense will have to be passed on.
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One way to avoid the ‘nightmare’ is to ensure your property software complies with the new legislation and with automated processes the agent will minimise the risk of slip-ups implementing change.
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I advise you read the booklet full of inaccuracies as you would expect from a rushed legislation from HMG.
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Why are we expected to do our job properly, when government won’t do theirs properly?
There are so many experienced industry professionals government could learn from but clearly they either don’t discuss or don’t listen.
This utter shambles should NOT be happening.
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I know this stuff is a little daunting but it’s quite easy to understand once you’ve read the legislation. Just a few links for you below if anyone is confused:
Section 21 Guidance: http://www.legislation.gov.uk/uksi/2015/1646/pdfs/uksiem_20151646_en.pdf
Section 21 Legislation and Form 6A: http://www.legislation.gov.uk/uksi/2015/1646/pdfs/uksi_20151646_en.pdf
How To Rent Guide: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/429420/HowToRent210515-digitalprint_May_2015.pdf
Smoke & Carbon Monoxide Regulations 2015: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/462026/Explan_book_Landlords.pdf
I know Alasdair Melville has done a video that explains things quite well. Take a look if you haven’t got time to read the government guff: https://www.youtube.com/watch?v=U61KhIJHAuc
Hopefully all this will help 🙂
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This and other recent changes have made things so complicated I am sure only a very ‘small’ percentage of landlords and agents will be complying with the letter of the law – some through ignorance – some through avoidance so I think this really puts landlords and agents on the back foot and has opened the floodgates for tenants to easily and legitimately challenge decisions. Great day for solicitors and tenants not such a good day for landlords or agents.
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I do not see this as being a tenant v landlord issue; the overwhelming majority of tenants are not interested in causing problems for landlords and will simply look to move on when required. For me, it is so much more wasted paperwork and time.
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Presumably there is nothing stopping you sending the latest version of the ‘How to Rent’ booklet with the Section 21 Notice!
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