The Government has today (17 May 2023) announced plans to abolish no-fault evictions in England as part of its wide-ranging plans to reform the private rental sector.

The Renters’ Reform Bill has been introduced to Parliament after a four-year wait and is part of the Government’s 2019 manifesto commitment to empower renters to challenge poor landlords without fear of losing their homes.

The new legislation will make it illegal for landlords to evict tenants without reason. Also known as a Section 21 notice, the practice has been heavily criticised for preventing tenants from complaining about unsatisfactory conditions of properties and contributing to poor standards in the private rented sector.

The Bill is intended to make the private rental system fairer and improve standards. Housing Secretary Michael Gove said the Bill would ensure renters are “protected from the very small minority of rogue landlords who use the threat of no-fault eviction to silence tenants who want to complain about poor conditions”.

“Too many renters are living in damp, unsafe, cold homes, powerless to put things right, and with the threat of sudden eviction hanging over them,” he said.

“This government is determined to tackle these injustices by offering a new deal to those living in the private rented sector; one with quality, affordability and fairness at its heart.”

The Renters’ Reform Bill also makes it illegal for a landlord to refuse to rent properties to benefits claimants or families with children. Tenants will also be given the legal right to request a pet in their home, which a landlord must consider and cannot “unreasonably refuse”.

The new legislation will also:

• Apply the Decent Homes Standard to the private rented sector for the first time.
• Strengthen councils’ enforcement powers and introduce a new requirement for councils to report on enforcement activity to help target criminal landlords.
• Introduce a new Ombudsman to provide quicker and cheaper resolutions to tenancy disputes.
• Establish a new online property portal where landlords must demonstrate compliance with legal requirements.

Dubbed by some as ‘anti-landlord’, the Government maintains that the reforms will deliver a fairer system for both the 11 million tenants and 2 million landlords that currently make up the private rented sector in England.

The Government says that the new legislation will make it easier for landlords to recover properties when needed, for example, if they want to sell their property or when tenants wilfully do not pay rent.

Notice periods will also be reduced where tenants have been irresponsible, such as breaching their tenancy agreement or causing damage to the property.

The reforms will also strengthen powers to evict anti-social tenants, broadening the disruptive and harmful activities that can lead to eviction and making it quicker to evict a tenant acting anti-socially.

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), said: “We welcome the Government’s pledge to ensure landlords can swiftly recover properties from anti-social tenants and those failing to pay their rent. Plans to digitise court hearings will also improve the speed at which legitimate possession cases are processed.

“The NRLA will continue to work with the Government to ensure the detail of the Bill is fair for responsible landlords and tenants alike.”

Landlord and Tenant Lawyers

If you are a landlord and want more information on the Renters’ Reform Bill, please get in touch with Eric Robinson Solicitors today. We have many years’ experience offering advice to commercial and residential landlords and we will be able to help with whatever issues you may face.

To find out more about how we can help you, please call us on 02380 218000 to speak to one of the team.

This blog post is not intended to be taken as advice. Information could have changed since the article was published. If you are seeking legal advice, please get in touch with our team of solicitors to discuss your matter.

Landlords of commercial properties must make sure they are aware of and compliant with the changes to the Minimum Energy Efficiency Standards (MEES) and Energy Performance Certificates (EPC) that came into force at the start of this month.

From 1 April 2023, a landlord can no longer let or rent out a non-domestic private rented (PR) property if it does not have an EPC rating of at least E. This is a change to previous requirements and part of the UK government’s push to meet net zero by 2050.

In this blog, Eric Robinson’s team of specialist commercial property solicitors consider the recent changes and advise landlords of commercial properties on what they need to do to avoid falling foul of the new rules.

What are MEES and EPC?

MEES are regulations that outline the overall minimum energy efficiency rating a property must have before it can be let or sold.

An EPC is a rating given to properties to show how energy efficient they are. Landlords are required to get an EPC when a property is sold or rented out to a tenant, although there are some exceptions.

What are the changes?

Previously, landlords of commercial properties in England and Wales were prohibited from granting a new lease to a tenant unless the property had an EPC rating of E or higher. However, existing leases were not covered by the rules.

The new legislation that came into force on 1 April 2023 now takes this further. This now means that all commercial properties must have a minimum EPC rating of E, whether landlords are renting a property to a tenant on a new lease, or the property is let under an existing lease.

Are there any exemptions?

There is a temporary exemption of 6 months for new landlords to give them time to comply.

Certain other exemptions apply, and you can read a list of them on the UK Government website by clicking here.

However, exemptions are not automatic, and landlords must make sure they register them with the Private Rented Sector (PRS) Exemptions Register for them to apply.

What do landlords need to do?

It is a landlord’s responsibility to comply with MEES.

Landlords need to check the EPC rating of their commercial properties and ensure they are above E. Failure to comply with the new regulations means landlords will face financial penalties and risk being included on a public register of non-compliance.  

Commercial Property Legal Advice

If you are a commercial landlord and want some advice on the recent MEES changes and what they mean for you, please get in touch with Eric Robinson today. Our commercial property solicitors have extensive experience dealing with all aspects of commercial property and will be able to help with any issues you may face.

We pride ourselves on offering clear and practical advice and are here to support you with specialist advice and guidance to help you and your business.

Call us on 02380 218000 to speak to one of the team.

This blog post is not intended to be taken as advice; information could have changed since the article was published. If you are seeking legal advice, please get in touch with our team of solicitors to discuss your matter. 

When undergoing a financial transaction, such as entering a mortgage or loan agreement or acting as a personal guarantor, you will likely be told you require Independent Legal Advice (ILA).

This article looks at some frequently asked questions surrounding the ILA process and why it is needed. 

Why is Independent Legal Advice needed?

Independent Legal Advice may be required in any circumstance where there is a risk that the party involved in a transaction could enter into a guarantee or loan agreement without fully understanding the agreement they are signing or may be subjected to pressure or undue influence, potentially causing them to enter into agreements against their will.

The requirement for Independent Legal Advice follows the House of Lords’ guidance in the 2001 case of Royal Bank of Scotland v. Etridge.

In his judgement, Lord Nicholls set out certain specific issues on which an individual must receive independent legal advice.

This was to ensure that such agreements are enforceable and to provide reassurance that the parties involved have not been unduly influenced and have understood the nature of the proposed transaction, mortgage arrangement or guarantee.

When a guarantor or person providing security for a mortgage obtains ILA, a lender receives confirmation that the guarantor has freely entered into the guarantee or loan agreement knowing full-well of the financial implications, consequences and risks associated with it.

The party involved in the transaction will not then be able to claim that they did not understand what they were signing if there is a dispute in future.

When do I need independent legal Advice?

Typically, banks and other financial institutions will require you to obtain specific Independent Legal Advice concerning their transaction documents, including but not limited to these situations:

• Entering a Loan Agreement
• Personal Guarantees
• Occupier’s Consent Forms
• Directors Guarantees
• Joint borrower – sole proprietor mortgages

Do I need a Solicitor?

To meet a lender’s requirements and allow a transaction to proceed, it is important to remember that obtaining ILA is not just a formality but a crucial legal requirement to ensure you are fully aware of your future risks and obligations.

Independent Legal Advice must be carried out by a solicitor or regulated practitioner independent of the transaction.

The legal advisor delivering independent legal advice must make it abundantly clear to the guarantor that it is their decision whether to give the personal guarantee or enter into the loan agreement and ensure that they are happy to proceed.

The solicitor will only then give a written confirmation or ILA certificate to the lender, as per the individual lender’s requirements.

Independent Legal Advice Solicitors

We at Eric Robinson understand the complexities that may arise in these matters and the risks to each party.

Our specialist Independent Legal Advice solicitors provide fast, efficient, and accurate ILA services.

To ensure that you fully understand the advice given, you will receive a complete and comprehensive report analysing all the risks to the parties involved, even those not explicitly mentioned in the loan documents.

This advice also encompasses the practical implications you need to be aware of. If you require assistance in respect of ILA matters, get in touch with some details of your enquiry and we will provide you with a quote for the service you need.

Last week, the government made headlines with an announcement believed to bring much-wanted change into the property market. As part of his controversial ‘mini-budget,’ Chancellor Kwasi Kwarteng made amendments to the Stamp Duty Land Tax by raising the level at which it is paid.

Changes to SDLT as we know it

As of Friday 23rd September 20220, the Chancellor has raised the SDLT threshold from £300,000 to £425,000 for first-time buyers and from £125,000 to £250,000 for everyone else. This means that first-time buyers (FTB) with properties under £425,000 and property owners purchasing properties under £250,000 will NOT pay SDLT. 

With these recent changes, Chancellor Kwarteng believes that 200,000 people will be relieved from paying stamp duty on their home purchases, benefiting the housing market and the broader economy. Additionally, the value of properties at which first-time buyers will be able to claim stamp duty relief has also increased from £500,000 to £625,000, meaning that buyers purchasing a property valued at £500,000 will now be paying £12,500 instead of the previous £15,000

With the new changes in place, the stamp duty on residential properties in England is as follows:

• 0%: £0 – £250,000 (£425,000 for FTBs)
• 5%: £250,000 – £925,000
• 10%: £925,000 – £1,500,000
• 12%: £1,500,000+

Interested in seeing the exact figure you will be charged for your property purchase?

Head over to the Stamp Duty Land Tax (SDLT) Calculator

For more information about the updates to SDLT, including how the changes are set to grow the economy, read the government’s Stamp Duty Land Tax Factsheet.

Eric Robinson Conveyancing Solicitors

Here at Eric Robinson, we pride ourselves on our team of expert conveyancing solicitors who can assist you with any property-related matter at hand. Whether you are a seller, a buyer, or you want to know more about schemes that can help you get your first home, we are here to help!

Read our Top 10 Tips Guide on Buying a property or contact us to speak to a solicitor today!

On 8 February 2022, The Leasehold Reform Act 2022 received its Royal Assent. The legislation’s main aim is to restrict ground rents for most new long residential leasehold properties to a peppercorn meaning, no financial value. The Act applies to England and Wales, and the Act was brought into force on 30 June 2022.

The Leasehold Reform Act 2022 means that landlords of new leases must not require a leaseholder to make a payment of prohibited rent. Historically, a ‘peppercorn’ ground rent often meant a rent that was of nominal or low value. This Act restricts ground rents on new leases to a peppercorn rent only, effectively restricting these ground rents to no financial value.

The purpose of this limit is to prevent leaseholders from getting trapped by rising rents, creating fairer relationships between freeholders and tenants, and providing greater transparency regarding ownership for leaseholders. This Act also stops administration charges surrounding rents and acts as an anti-avoidance measure

How will this affect leaseholders and developers?

The question raised by the commencement of this Act is, how will this affect leaseholders and buyers?

If you bought a new (regulated) lease after 30 June 2022 you will not be faced with financial demands for ground rent. There are some exceptions to this, which are community-led housing, applicable business leases and a grant of a lease before 30 June 2022.

As a freeholder granting a new lease or as a property developer who wants to sell a residential home as an individual leasehold, you should ensure you remain up to date on any new legislation to ensure you are not breaching the rules of any new policy. 

You should understand your obligations and review any ground rent clauses in your leases before entering into it with a new buyer. 

The solicitors at Eric Robinson will provide you with the necessary advice when it does come to reviewing, renewing or creating new residential long leases, helping you to ensure you are in compliance with the Act.

The Leasehold Reform Act’s purpose is to ensure the leasehold system achieves the following for leaseholders:

• operate fairly for leaseholders
• not to cause delays in the home buying and selling process

They wanted to make it easier and cheaper for leaseholders to:

• extend their lease
• buy their freehold
• take over management of their block

If a landlord charges ground rent contravening the Act (and the monies have not been returned by them within 28 days of receipt), they could be liable to receive a penalty between £500 and £30,000.

This Act sets out the Government’s efforts to modernise the leasehold system and make it fairer and more transparent for all.

How are lease extensions affected by the Leasehold Reform Act 2022?

Voluntary or statutory lease extensions for housing and flats are not included in this area. 

With regard to voluntary lease extensions, the ground rent that can continue to be charged should not exceed the amount specified in the lease for the remaining term before reverting to a peppercorn rent for the extended term.

Finally, with retirement homes, the legislation will only apply to new leases of these properties granted after 1 April 2023.

Lease extensions are a complex area of law and it is essential that you get in touch with a specialist property lawyer who understands the various processes involved in the lease extension experience.

How can Eric Robinson Solicitors Help? 

The area covering the Leasehold Reform Act 2022 is a complex area of law. 

Eric Robinson Solicitors have expert Conveyancing Solicitors, who can help you through this process and navigate the Act, whether you are a landlord or leaseholder, for either residential and commercial properties. 

We have offices located in Southampton (Hedge End & Bitterne), Winchester, Lymington, London (Richmond) and Chandlers Ford. 

Contact Eric Robinson Solicitors today for expert family law advice on 02380 218 000, or simply fill out our contact us form.