Another week and our last Newsround for June. Which starts with amendments to the Renters Rights Bill which is annoying both landlords AND tenants.
Government U-turn over pet insurance
Landlords are furious that the government has backed down on the question of pet insurance, which means that landlords will, by and large, be forced to accept pets without the tenants paying for insurance cover.
Mind you, the insurance industry has been saying for some time that the type of insurance anticipated by the bill was not something the industry were able to provide. So I am not entirely surprised by this.
This does not help landlords, though. NRLA chief executive Ben Beadle said:
Ministers keep talking about how the bill works for responsible landlords and yet they seem incapable of speaking to those representing them. Yet again the government simply expects responsible landlords to shoulder even greater risks without any consultation about the likely impact.
The only bright point is this report on the financial impact of pet ownership, which states that, for the most par,t pets do not cause much damage. Going so far as to say that tenants without pets often cause more.
Renters’ Rights Bill delay
Tenants on the other hand are furious that Royal Assent for the bill is likely to be delayed until the autumn. The FT quotes a government official as saying:
We never said we would definitely get either bill on to the statute books by the summer.
Which is a bit sneaky, as they certainly gave that impression.
But with a bill of this size and significance, it was always going to take a long time. The government’s fault was in giving the impression that the changes would come about quickly.
Let only letting agent not liable for unlicensed HMO
The agency had been fined in respect of two rooms where the tenants had paid the agents a holding deposit and a months rent in advance.
The case hinged on whether the agents were a ‘person managing’ a house in multiple occupation (HMO) within the meaning of section 263(3) of the Housing Act 2004.
The Council argued that there should be a literal approach to the interpretation of the section. However, Martin Rodger KC, Deputy Chamber President, when hearing the appeal, said he was not attracted to an “over-literal construction of section 263(3)”. Going on to say that
The importance of the definition of ‘person managing’ is not that it identifies an event or a transaction but that it describes a status to which certain responsibilities are attached, including responsibility for licensing, where it is required, and responsibility for compliance with the Management Regulations. …
The fact that the purpose of the definition of person managing is to identify those who will be subject to continuing obligations, backed by criminal and civil sanctions, calls into question the intended breadth of the definition. Did Parliament mean to attribute that status to an agent with no involvement in management? I would suggest not.
Secondly, simply as a matter of language, it would be surprising if the descriptor ‘person managing’ was intended to apply to an agent who was not engaged to manage the property and who had no power to do so.
So a good decision for all agents who act on a let-only basis.
Almost £1.5m in fines from Andy Burnham’s landlord charter
The ‘Good Landlord Scheme’ in Greater Manchester has issued some £1,47 million in fines in over two years, which will be good for Council coffers. A statement from Burnhams office said:
The Good Landlord Charter will help to set a new standard in renting, supporting landlords to go above and beyond the minimum national standards to provide the very best rental experience for tenants. It also aims to shine a light on those landlords who don’t look after the homes and tenants that they are responsible for.
It is the first voluntary scheme of its kind across the UK, bringing together leading social housing providers and a growing number of private landlords who have committed to raising standards beyond the legal requirements.
Since 2024, Greater Manchester has led a crackdown on negligent landlords, increasing the number of enforcement fines for housing offences by 43%, totalling £1.47 million. This is being reinvested into local housing enforcement teams, helping to protect tenants against negligent landlords and poor housing.
Snippets
Awaab’s Law ‘phase 1’, electrical certificates and an investigation into claims management companies (social housing).
More than 50,000 homes sit empty amid UK housing crisis
EPC rules will force scores of tenants to move out
Media portrayal of landlords “unfair and inaccurate” – poll
Wholesale law-breaking by many landlords – solicitors’ astounding claim
See also our Quick News Updates on Landlord Law
Newsround will be back again next week