Private Rented Housing: Tenancy Agreements – Parliamentary Written Answer

Alex Cunningham: To ask the Secretary of State for Housing, Communities and Local Government, when he plans to (a) review the national model tenancy agreement and (b) publish the reviewed national model tenancy agreement.

Esther McVey: We will shortly publish a revised and updated Model Tenancy Agreement on the Gov.uk website to assist tenants and landlords of assured shorthold tenancies in the private rented sector. While we will continue to update this document as required, we do not intend to conduct a fuller review, as the Government is planning a fuller overhaul of the assured shorthold tenancy framework through the Renters’ Reform Bill.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-01-14/3195

Over A Quarter Of UK Tenants Felt Rushed Into An Agreement

Over a quarter of tenants in the UK feel that they were rushed into entering their tenancy agreement, particularly in London, a new survey has found. Overall 27% felt rushed and more than half regretted renting their current property, according to the research commissioned by Ocean Finance. Such is the competition in the rentals market that 1.5 million tenants, some 8% of renters, signed their tenancy agreement on the day they viewed the property. One in 10 said the turnaround between viewing and entering the tenancy was two to three days, and a similar number said they signed the agreement between four and seven days after the viewing. Read more on the Property Wire website.

Homelessness In UK Soaring As Rents Rise And Tenancies End

People are increasingly being made homeless because they cannot afford their rent or their landlord kicks them out at the end of a tenancy agreement, according to government figures. Since 2010, homelessness has gone up by just under a third amid a nationwide crisis in the number of affordable homes. The figures, produced by the Department for Communities and Local Government, showed the number of households who became homeless because of the end of an assured, shorthold tenancy had gone up by 154 per cent between the third quarters of 2010 and 2015. The number citing rent arrears as the reason went up by 36 per cent. Labour said the figures demonstrated the “particularly stark problems” that people in the private rented sector faced. Read more on the Independent website.

Half Of Landlords Unprepared For ‘Right To Rent’

A new survey of 5,000 landlords by online agent Urban.co.uk has found that half of UK landlords are not prepared for new 'right to rent' legislation, which comes into force on 1 February 2016. 20% of those questioned believed that they had until April 2017 to get ready for the changes and 3% believed they had until 2018. The legislation will be in place nationally next month and require all landlords and agents in England to check a tenant’s immigration status (‘right to rent’) in the UK. Landlords failing to do so could find themselves with a potential fine of £3,000. Among the other findings in the report are that only 10% of landlords provide the correct information to their tenants at the start of a lease; most landlords (90% of those surveyed) were unable to identify the characteristics of a House in Multiple Occupancy (HMO); and 16% were failing to provide a valid contact address on tenancy agreements, risking a substantial fine. Read more on the What House? website.

Landlords In England Get Ready For Right To Rent

The new law means that from 1 February 2016, landlords with property in England will have to carry out quick and simple checks to ensure potential tenants have the right to rent property in the UK. From the week commencing 4 January, landlords can start to carry out right to rent checks as these can be done from 28 days before the start of a tenancy agreement. The government has been working with an expert consultative panel, which includes trade bodies, local authorities and charities, to listen to feedback from the first phase of the scheme. The panel has advised on an updated landlords’ code of practice which includes changes to the acceptable document list to make it even simpler to conduct a check. Read more on the GovUK website.

Eight Out Of Ten Renters Want Tenancies Of A Year Or Less

Eight out of ten of those renting accommodation want tenancy agreements of one year or less, a large Deposit Protection Service (The DPS) survey has suggested. 39,855 tenants whose deposits are protected by The DPS’ responded to the survey, with 80.1% saying that they preferred agreements that lasted no longer than 12 months. 89.83% said that they preferred agreements that lasted up to two years, with 34.60% of the total saying they wanted contracts for six months or less. Read more on 24dash.

Landlords Could Be Fined £3,000 For Failing To Check Tenants' Immigration Status

Landlords will need to check the immigration status of any new tenants moving into properties from next February or face a £3,000 fine, the government has announced. These 'right to rent' rules are set to be introduced for all new tenancy agreements from 1 February 2016 in England. As well as traditional landlords, individuals who sub-let, and homeowners who take in lodgers, must also check the right of prospective tenants to reside in the country.  Landlords will need to check and retain copies of certain documents that show a potential tenant has the right to live in the UK. These include:

·         UK passport

·         EEA passport or identity card

·         Permanent residence card or travel document showing indefinite leave to remain

·         Home Office immigration status document

·         Certificate of registration or naturalisation as a British citizen.

Read more on the Daily Mail website.

More People Than Ever Made Homeless By Insecure Private Tenancies

More and more people are being left homeless by Britain's insecure private rented housing sector, new official figures show. Nearly a third of all people made homeless in England now lose their homes because of a landlord ending a tenancy agreement, according to the latest figures from the communities department.  The growing problem is driving an overall increase in homelessness, with figures up by five per cent in the second quarter of 2015, according to the same set of figures. Private tenants in Britain have fewer rights in law compared to those in other European countries, with no real security of tenure, short tenancy agreements, and no right to stable rents. Read more on the Independent website.

Tory Election Majority Means Housing Market ‘Dodged a Bullet’

A Mortgage Strategy poll of more than 900 readers at the end of April highlighted the mortgage industry’s overwhelming support for the Tories. There were concerns about Labour’s plans to introduce three-year tenancy agreements as standard and cap rent rises at inflation. They also pledged to scrap stamp duty for first-time buyers on homes worth less than £300,000, which critics suggested would boost demand but not increase supply.  Labour also pledged to build 200,000 homes a year by the end of the next parliament.  The Tories promised to expand Right to Buy to 1.3 million housing association tenants and introduce a Help to Buy Isa to help borrowers save for a deposit. It also pledged to build 200,000 homes for first-time buyers aged under 40 at 20 per cent discount and create a £1bn brownfield regeneration fund to unlock sites for 400,000 homes. Read more on the Mortgage Strategy website.

Private Rented Sector Should Meet Tenants’ Needs Better

The foundation stone of a mature market is all parties being aware of their rights and also their responsibilities. This is currently far from the case in the private rented sector. The legislation governing the sector has evolved over many years and the result is a bewildering regulatory framework under which tenants, landlords and agents do not know where they stand.  A new report recommends that the government review the legislation covering the sector, to produce a much simpler set of regulations that all parties understand. As part of this review, the government should work with groups representing tenants, landlords and agents to produce a standard, plain language tenancy agreement, which all agreements should be based on and which includes an easy-to-read key factsheet, setting out the rights and responsibilities of tenants and landlords.  Download a copy of the report (in three volumes) from the Parliament website.