Landlords

Landlord Essentials

data-protection

<h2 class='intro_basic'>Do you, as a landlord, need to register with the Information Commissioner's Office to deal with your tenant's data? Well, it depends on who's actually managing the data. In the article below, Foxtons Director of Legal & Compliance, Manjit Kataora, will explain what you need to know about data protection. </h2>


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<div class="takeaways-container">
  <h5><big>Key Takeaways</big></h5>
  <p class="takeaways-subtitle">Click a number to jump to that topic in the article.</p>
  
  <ul class="takeaways-list">
    <li class="takeaway-item">
      <a href="#section1" class="jump-link"><span class="takeaway-item-number">1</span></a>
      <span class="takeaway-item-highlight">Handling personal data legally.</span>
      <span class="takeaway-item-content"> To process large amounts of personal information, agents must register with the Information Commissioner's Office (ICO).</span>
    </li>
    
    <li class="takeaway-item">
      <a href="#section2" class="jump-link"><span class="takeaway-item-number">2</span></a>
      <span class="takeaway-item-highlight">Unregistered agent? Could be a red flag.</span>
      <span class="takeaway-item-content">It's worthwhile to confirm your agent is ICO-registered and dealing with your personal information appropriately.</span>
    </li>
    
    <li class="takeaway-item">
      <a href="#section3" class="jump-link"><span class="takeaway-item-number">3</span></a>
      <span class="takeaway-item-highlight">If you use a managing agent...</span>
      <span class="takeaway-item-content"> If you simply receive rental statements from us without handling tenant data directly, you likely fall under the 'accounts and records exemption,' so might not need to register.</span>
    </li>

    
    <li class="takeaway-item">
      <a href="#section4" class="jump-link"><span class="takeaway-item-number">4</span></a>
      <span class="takeaway-item-highlight">Self-managing? You may need to register.</span>
      <span class="takeaway-item-content"> Landlords who manage properties themselves or maintain their own tenant filing systems will likely need to register as data controllers and comply with data protection regulations.</span>
    </li>

    <li class="takeaway-item">
      <a href="#section4" class="jump-link"><span class="takeaway-item-number">5</span></a>
      <span class="takeaway-item-highlight">It could be that simple.</span>
      <span class="takeaway-item-content"> Our systems are already set up for data protection compliance, saving you time, money, and potential legal complications.</span>
    </li>
  </ul>
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<a id="section1"></a>

<P>Data Protection legislation is nothing new. But it came into fresh focus when, on 25 May 2018, the General Data Protection Regulation came into force. 

<P>In terms of estate and letting agency work, agents will process large amounts of personal data (broadly speaking defined as information that allows you to identify a living individual) belonging to their customers and employees. This means they must be registered as data controllers with the UK regulator the Information Commissioner’s Office (ICO) and must also comply with all that is required under data protection law. Obligations include holding information securely and accurately, and being able to comply with customer data protection requests. Anyone can check whether any organisation that holds their personal data (known as a ‘data controller’) is registered by checking the relevant register on the <a href='https://ico.org.uk/esdwebpages/search' target='_blank'>ICO’s website</a>. 

<a id="section2"></a>
<P>No estate or letting agent should process personal data without first being registered.  Those who do will be in breach of data protection legislation and this should serve as a red flag to any potential customer. After all, if an agent cannot be bothered to understand even their basic data protection obligations, there is a fair risk they are probably non-compliant elsewhere as well. 

<a id="section3"></a>
<P>As for landlords themselves, it is not necessarily the case that they will need to register as data controllers with the ICO. Those who retain a managing agent and do not handle any tenant personal data but merely receive a monthly rental statement from their agent would according to the ICO’s guidance fall under the accounts and records exemption and so need not register. 

<a id="section4"></a>
<P>But landlords who either do not have a managing agent or do have one but choose to create their own ‘structured filing system’ (as the term is known in data protection circles) containing tenant records and background information will more than likely find themselves processing personal data about their tenants and will therefore need to  register with the ICO and comply with all the various (and numerous) obligations and responsibilities that flow from such status.

<P>Even those landlords who manage to avoid processing information about their tenants, may find there comes a point at which it becomes necessary to register because they simply cannot avoid collecting details about their tenant. This might happen after the end of the landlord / tenant relationship where, if for example, the tenant vacated but in arrears, and the landlord now needs certain information from their agent in order to trace them, take proceedings against them or enforce a judgment. Where such information is collected by the landlord they would be well-advised to ensure they are registered with the ICO before processing it. This requirement could still be avoided if all the information is passed directly from the agent to the landlord’s solicitor (who will already be registered as a data controller) and does not pass through the landlord’s control but it means the landlord has to consciously avoid processing any of the information at all, which might be easier said than done. 

<P>There is then, quite an incentive to avoid being caught up in the need to register. The work required to be a competent data controller is something that few landlords are actually aware of (or would want to take on if they were) but the cost of time and money in complying means that it can and does make a managing agent – whose systems are set up for compliance in this area - look like good value, particularly when you consider the various rights tenants have other their personal data, not least subject access rights. The My Foxtons portal affords landlords visibility of tenant information using the Foxtons platform without the need to process personal data themselves.  Even so, there might come a point in the relationship where it is just not possible to avoid processing tenant personal data and to that extent, landlords are well advised to consider, as a precaution, registering with the ICO and taking steps to comply with their obligations. 

<P>More <a href='https://ico.org.uk/rst' target='_blank'>information is available from the ICO</a>. 


<hr>
<a id="section3"></a>
<h3>Your data protection, sorted.</h3>
<p>You don't have to become a registered Data Controller - our ICO-registered and experienced Lettings team will ensure all data is handled correctly and complies with data protection laws. Get started with a rental valuation. Or, if you want help with an existing tenancy, look into Foxtons Property Management.
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   <p><p><b>Source:</b>  This piece was authored by Foxtons Director – Legal & Compliance, Manjit Kataora, who has been working with Foxtons on the intricacies of legislation affecting London landlords for more than 16 years. If you have a question on letting your property in London, <a href='mailto:experts@foxtons.co.uk?subject=Data%20Protection%20Article%20Landlord%20Essentials' target='_blank'>ask a Foxtons expert</a></div>


Foxtons news

Renting

Legislation

Property market updates

london-residential-skyline

<h2 class='intro_basic'>This is an open letter we sent to the Rt Hon Angela Rayner MP, written by Foxtons CEO Guy Gittins. In it, Guy addresses the last-minute addition of a ban on upfront payments in the Renters' Rights Bill. </h2>
<p>As the largest estate agent in the UK,<sup><a href="#source-one">1</a></sup> we handle an incredible amount of tenancies, which gives us a comprehensive, professional perspective on this issue. By sharing our perspective, we aim to explain what this ban could mean for tenants and landlords, and ask the critical question:  <b>how can those who narrowly miss affordability criteria overcome the barriers to housing these changes will create?</b> 



<p><small><a id="source-one"><sup>1</sup></a>Source: TwentyCI data, 2024 new lettings instructions at an estate agent brand level</small>



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   <p><br><br>28 January, 2025
<br><br><br>
<p>Rt Hon Angela Rayner MP
<br>Deputy Prime Minister &
<br>Secretary of State for Housing, Communities 
<br>and Local Government
<br><br>
<p>Cc: Baroness Taylor of Stevenage OBE

<br><br><br>
<p>Dear Deputy Prime Minister, 

<p>I am writing this letter to you in my capacity as Chief Executive Officer of Foxtons Group plc, London's largest lettings agent, to express concern over the late changes tabled during the Renters' Rights Bill's second reading, specifically regarding the <b>banning of upfront rental payments and the lack of a sufficient transition period.</b>

<p>We want to make it clear that we are wholly supportive of your government's efforts, and indeed previous government efforts, to improve living conditions across the entire sector and to ensure the rental market works for everyone. 

<p>But while we support the overarching goals of the proposed legislation, we believe that these amendments will unintentionally harm lower-income tenants, the international student market, hinder upward mobility, and drive talented individuals away from London and the UK. 

<p><b>The problem and the unintended consequences</b>
<p>Landlords typically ask for rent in advance from tenants who struggle to pass traditional affordability checks, such as those with low or unpredictable income, the self-employed, pensioners and foreign tenants who cannot provide a guarantor. Our data highlights the scale of this issue: 10-15% of tenants narrowly fail affordability criteria. 

<p>The impact of removing upfront payments would therefore be most pronounced for lower-income tenants, many of whom currently rely on savings or guarantors to secure housing. These individuals would be left with no viable alternatives, effectively excluding them from the rental market and exacerbating the very issues the reforms seek to solve. 

<p><b>Hindering upward mobility</b>
<p>Restricting access to housing in this way also risks undermining social mobility and deterring people from relocating to cities like London - particularly students and entry-level professionals. This could result in a 'talent drain', leaving London and other major cities struggling to attract and retain the diverse, skilled workforce needed to drive innovation and growth. At a time when economic growth is critical, such a loss of talent could have long-term consequences on local economies. 

<p><b>The landlord impact</b>
<p>These regulations would also have an impact on landlords. Upfront payments help mitigate the risk of missed payments from those tenants who can sustain a tenancy but who are unable to pass referencing and affordability checks - without these upfront payments, landlords are understandably less likely to rent to such tenants. It is impractical and irresponsible to deny landlords any assurance when renting to individuals who cannot easily prove their financial capability. This could exacerbate challenges in an already constrained market and may reduce the supply of rental homes, drive up rent prices, and make affordable housing harder to find.

<p><b>Lack of a sufficient transition period</b>
<p>We are also seriously concerned about the proposed two to three-month transition period, which is entirely inadequate for implementing these changes effectively. Such a short timeframe fails to provide tenants and landlords with sufficient time to adapt, potentially leaving vulnerable tenants without stable accommodation in an already challenging market. The lettings sector is complex and fragmented. Software systems (typically administered by third parties) will need time to re-engineer. The retraining of lettings agents and property managers takes time. We strongly believe that no less than six months' notice should be given between Royal Assent and the commencement date. This will afford landlords and letting agents sufficient time to implement the necessary regulatory changes in an orderly manner, ensuring a consistent and fair approach for tenants seeking rented accommodation. 

<p><b>It doesn't fix the real issue</b>
<p>Foxtons supports the vision of a fair and sustainable rental market that works for everyone. However, these last-minute amendments fail to address the real issue: the chronic undersupply of housing and the resulting supply/demand imbalance. Instead, they risk creating unintended consequences that make the rental market even more challenging for lower-income tenants. 

<p>At a minimum, it is essential for the government to address this question: how can those who narrowly miss affordability criteria overcome the barriers to housing these changes will create? Without a clear answer, achieving a fair lettings market for tenants will remain out of reach. 

<p>We would welcome the opportunity to meet with you to discuss how we can support the government in creating a balanced and sustainable plan that benefits lower income tenants and reduces the risk of landlords withdrawing from the rental market. 

<p>I am copying this letter to the Lords Minister for Housing and Local Government.</p>

<br>
<p>Yours sincerely, </p>
<br>
<p>Guy Gittins
<p>Chief Executive Officer, Foxtons Group plc
</div> 
<br><br>
<p>It is the unintended consequences of banning upfront payments which really cannot be overstated. As Guy explained in the letter:  

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      <div class="title">London Rental Market Impact</div>
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    <div class="total-renters">
      <div class="icon">&#128101;</div>
      <div class="number-large">3,000,000</div>
      <div>people rent in London</div>

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       <p>We see 10-15% of tenants use some form of upfront payment to secure a property they'd otherwise not meet the criteria for.
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  <p>That means...     

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      <div class="stat-number"><center>450,000</center></div>
      <div><p>tenants would not be able to live in the properties <b>they are currently renting</b>.</div>
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<br><br>
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   <p><p><b>Source:</b> This letter is written by Foxtons CEO Guy Gittins, a leader of the property industry with over 20 years of experience in the inner workings of London lettings. This open letter, published here in full, provides transparency on the latest rental market legislation. As your trusted property partner, we are working to ensure your concerns are heard in these critical policy discussions.<p>If you have any questions, please send us an email to <a href='mailto:experts@foxtons.co.uk?subject=Foxtons%20Open%20Letter' target='_blank'>ask a Foxtons expert</a>.</div>




christmas-wreath

<h2 class='intro_basic'>At around this time of year, London sees an annual influx of tourists keen to secure short-term holiday rentals as they look to soak up the unique seasonal atmosphere associated with one of the greatest capital cities on the planet.</h2>

<p>That said, not only can these short-term lets prove a pre-New Year’s day hangover headache for unwitting landlords, so too can long term sub-lets where your tenant hasn’t bothered to seek your permission before giving the keys to someone else.
  
<p>So, what kind of practical measures can you take to help prevent yourself from falling victim to what’s commonly known as ‘unlawful subletting’? Our Director of Legal and Compliance, Manjit Kataora, shares some insight on the fine details of subletting: 


<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/12/front-doors/720.jpg' alt=''></a></p>




<h3>Tenancy agreement</h3>
<p>The starting point is to check the wording of your tenancy agreement. A decent tenancy agreement will restrict use of the property by the tenant to that of their private residence so that only they and their immediate family can reside in it during the tenancy. This might smack of being merely the proverbial ‘paper shield’ but it’s presence in the agreement is an important pre-condition for initiating legal action, should that later be required. 

<p>Likewise, there should be a contractual clause prohibiting registering a business at the property, and preventing unlawful or immoral use of the property.  

<p>On the back of the popularity of short-term lettings platforms, it’s also common nowadays to have a clause in the tenancy agreement prohibiting the tenant from advertising the property on any internet-based marketing / social media website.  

<p>An assignment clause will prevent the tenant as an individual from ‘sharing’ or’ parting with’ possession of the property with anyone else except those named in the agreement, - usually the tenant and their family members. 

<p>Assignment clauses are usually subject to landlord consent: commonly the wording contains words to the effect as ‘such consent not to be unreasonably withheld by the landlord’.  

<p>Examples of where it would be reasonable for a landlord to refuse permission would include where a proposed sublet would be to individuals who might then create a house in multiple occupation, for which not only would a local authority licence be required, but also potentially substantial and invasive works to the property so that the property then meets the safety conditions contained within the licence conditions.  Such costs can run into several thousands of pounds and, if not carried out by the date specified in the licence, leave the landlord at risk of a fine from the local authority, even where they didn’t know the property was being carved up in that way. It’s quite possible that a landlord in these circumstances might be able to avail a ‘reasonable excuse’ defence against action by the council, but where rent has been collected, the offence is strict liability, i.e. landlords are presumed guilty unless they can prove their innocence. 

<h3>Other permissions and consents</h3>

<p>Mortgage or insurance conditions could also be breached (although its unlikely these would be enforced if you can show no consent to sub-let was actually given and/or that measures are being taken to recover the situation. 

<p>Permission for short-term rentals also carries the risk of breaching the strict ninety-day rule in London. This rule prohibits the letting of property for more than this period in any one calendar year without first having secured planning permission (and may also breach mortgage, insurance and local authority conditions). 

<h3>Increased risk of damage</h3>
<p>Properties used for short-term lets are also at risk not only of increased wear and tear but nuisance as occupants come and go, perhaps at anti-social hours.  

<h3>Company lets</h3>
<p>Corporate lettings should name specific individuals, e.g. a chosen employees as the ‘permitted occupiers’, helping protect the property against a churn of anonymous occupants

<p>It might seem that a tenancy application from a company looks like a safe bet, but there are companies that operate rent-to-rent business models. Such companies might present as student occupancy organisations, but take private rented sector accommodation through letting agents then sub-let the property to multiple occupants – though not before carving up the property internally allowing them to create more individual rooms in order to accommodate multiple occupants. The business model charges individual tenants a greater aggregate rent than is charged to the company by the landlord and profits from the margins, which can be significant where the operation is scaled. 

<h3>Some simple DIY preventative measures</h3>
<p>Unfortunately, even the most plausible tenancy application can sometimes mask hidden risks. But there are a few practical ways to keep an eye and remain alert to the risk of falling victim to unlawful sublets.

<p>A good managing agent will regularly inspect your property and provide you with an inspection report. Their experienced inventory clerks will have seen it all and will be able to look for and identify signs of use at the property inconsistent with single-occupancy use.  

<p>However, inspections take place often months apart, so it’s a good idea as well to periodically check your rental property address on Companies house. Has a company been registered at the address? If it has, alert your agent who can then contact the tenant immediately with the evidence and require that they remove registration from the premises. Not only would Companies House issue paperwork to the property but so to might other regulators, e.g. the ICO. The result can be regular correspondence that can build up over time and expose the address to risk being used for commercial purposes, credit lines, and even fraudulent or criminal activity. 

<p>Check as well to see if the property address comes up on short-let platforms. Tenants who short-let on well-known platforms can only do so much to change the appearance of a property and if you suspect this is going on, do an online check or instruct your managing agent to inspect the property and look for signs of misuse. 

<h3>If you are minded to consent</h3>
<p>Where you are considering granting consent, such consent should only be considered where appropriate references have been taken from the proposed sub-tenants and they can demonstrate they have the right to rent as required under Immigration Act 2014. 

<p>If you are unfortunate to have fallen victim to unlawful sub-let you can recover possession of the property by first serving a Section 8 notice (and, depending on how near you are to a break clause or the end of the tenancy, or if the tenancy is periodic, by serving a Section 21 Notice in parallel). Available grounds within Schedule 2 Housing Act 1988 include: 

<p style="margin-left: 25px"> • Ground 12 -  where any obligation of the tenancy other than one related to the payment of rent has been broken 

<p style="margin-left: 25px"> •	Ground 14 -  nuisance, annoyance, illegal or immoral use of the property – (factors which can be caused by, and are often associated with, unlawful subletting)
 
<p>Granted these are discretionary grounds therefore unless the section 8 notice does the trick, evidence of these factors will need to be placed before the court but it may be relatively easy to obtain, in the form of complaints, etc.

<p>Aside from these discretionary grounds, mandatory ones e.g. arrears can be added and if present will make obtaining possession much easier. 


<figure>
<a href='https://www.foxtons.co.uk' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/12/sublet/720.jpg' alt=''></a>
<figcaption>Photo by Foxtons Specialist Video & Photography</figcaption>
</figure>



<h3>Take the weight off</h3>
<p>Perhaps the wisest thing to do is ensure your property is in the hands of an experienced who can help you navigate these risks. Consider as well, rental and legal protection insurance that will save you time and money associated with a costly and potentially lengthy legal process by covering you for expenses if the worst does happen.

front-door

<h2 class='intro_basic'>Manjit Kataora, Foxtons Director - Legal and Compliance, shares insight on how landlords can protect themselves from fraudulent tenant applications.</h2>

<p>For years, the issue of mortgage fraud has been well-publicised: using fake credentials a borrower secures a greater mortgage advance than to which they would otherwise be entitled. More recently, in the rental market, the number of tenancy applications based on fraudulent documents has exploded. An analysis of over 600,000 tenancy applications found that fraudulent applications rose by 140% last year alone. (Source: <a href='https://blog.goodlord.co/referencing-tenancy-fraud-spikes-140-in-a-year-goodlord' target='_blank'>Goodlord</a>)

<p>The widespread use of technology means it’s easy for landlords and agents to find themselves staring at a doctored bank statement or proof of income in the course of an ordinary tenancy application. But how do you know if you’re looking at a fake? 

<h3>Technology</h3>

<p>Granted, some mistakes are easy to spot. But widely available online editing software means it’s easier than ever for documents to be manipulated to show higher balances and/or incomes than are actually the case. Document resolution continues to improve and in such cases we see increasingly higher quality forms of passport images, driving licenses, utility bills and bank statements ‘doctored’ to portray a more favourable background in the hope of slipping through reference checks. 

<h3>Fake companies</h3>
<p>Neither are corporate applications immune: signs to look out for here include only recently incorporated companies and those with websites whose deeper content pages bear no correlation to the main page or stated objects of the company. We have come across examples of the latter whose pages read as if they have been scraped from other websites and when we perform our own checks we have found that more than likely to be the case. Directors’ details should be checked to see they are actually listed on Companies House records. 

<h3>Trusted, independent referencing</h3>
<p>Foxtons uses an independent third-party reference company. We also have our own in-house compliance team who check other discrepancies day-in day-out. Through experience, we have built up a valuable knowledge base on what to check and look out for. We adopt a combined approach using technology and the human eye to check those cases where we have doubts. Technology will help to identify missing data normally embedded in genuine documents missing from those superficially tampered with and human checks will examine documents against their correct format. All this helps our customers ensure they do not fall victim to fraudsters. 


<h3>The money laundering threat</h3>
<p>Doctored or fake applications are used by criminals looking to dispose of or ‘launder’ their proceeds of crime; alternatively to commit some other crime once they have secured a property to rent. For these reasons, even where a fake application is weeded out and has been rejected, that is not necessarily the end of the matter; the details may still be reported to higher authority under the Proceeds of Crime Act.

<h3>Full service</h3>
<p>Unlike some online-only platforms, Foxtons is a full-service estate and letting agent that deals in high value lettings (those where rent levels exceed the sterling equivalent of €10,000 per calendar month) and is thereby subject to anti-money laundering regulations that are strictly enforced and audited by HMRC. 
<p>In high-value lettings tenancies not only is the tenant comprehensively referenced using an independent third-party referencing company, but the applicant also passes through another layer of checks that specifically comply with the anti-money laundering regulations. 
<p>Landlords can therefore be confident that in these cases their tenancy applicant has been thoroughly checked against a number of different databases. Any recommendations or information about the applicant can then be thoroughly reviewed before they decide whether to grant the tenancy. 

<h3>Summary</h3>
<p>The ease with which forgeries can be concocted online, and the tools that allow this to be done mean that landlords thinking about letting someone live in the biggest asset they own need to be especially careful today. Teaming up with a letting agent that complies with these tough standards avoids the risks that arise from ‘going it alone’ or online platforms whose service, on the face of it appears cheaper, but actually introduces more risk. 
<p>Even with all these checks in place, it’s always possible that something may go wrong. Performing these checks is a critical step towards ensuring total peace of mind but it’s always worth considering purchasing rent and legal protection guarantee cover so that if your tenant stops paying rent you know you have cover in place that will  protect your income stream (subject to terms and conditions). 

<hr>
<p><b><a href='https://www.foxtons.co.uk/discover/news/landlord-essentials' target='_blank'>Landlord Essentials</a></b> is a series of articles where our experts delve into the big questions for London landlords. If you have a question on letting your property in London, <a href="mailto:experts@foxtons.co.uk">ask a Foxtons expert</a>. If you want help making your property a success, get in touch with Foxtons <a href='https://www.foxtons.co.uk/landlord' target='_blank'>lettings team</a>. 


futureproof

<p>The newly elected Labour government is poised to introduce fresh legislation and policy updates aimed at redefining property management and sustainability for the coming decades. For property owners, investors and developers, understanding and adapting to these legislative shifts is crucial for ensuring long-term success and resilience. Whether you are a seasoned investor or a new property owner, navigating these changes effectively will be key to thriving in the evolving real estate market. 
<p>According to Labour’s <a href='https://labour.org.uk/change/make-britain-a-clean-energy-superpower/' target='_blank'>manifesto</a>, homes in the private rented sector will be expected to meet minimum energy efficiency standards by 2030, in line with the ‘Clean power by 2030’ mission. Landlords can take proactive steps in futureproofing property to meet these standards, which will in the long-term enhance the appeal and value of property. 

<h3>What does ‘futureproofing’ property look like?</h3>
<p>Futureproofing property involves designing, building or modifying property to ensure it remains functional, valuable and desirable in the face of future changes and challenges. This approach aims to make properties resilient to evolving trends, technologies, environmental conditions and market demands.

<p>Futureproofing will require most homes to undergo works which are costly and under the previous conservative government, lacked sufficient financial support for landlords. Costs aside, there is evidently a cultural widespread resistance towards upgrading property. <a href='https://assets.ctfassets.net/mfz4nbgura3g/7pTkoUax0yQckKjr7rZS70/2d7b86596dbbbbe944518e810194a68c/Demand__20Net_20Zero.pdf' target='_blank'>Citizens Advice</a> commissioned research to understand homeowners' attitudes towards retrofit measures and willingness to finance these changes – its results revealed that financial constraints, while present, are not the primary obstacle to increased home retrofitting.

<p>Despite this, clear financial incentives have actually shown to increase interest, as nearly 40% of homeowners are more willing to invest in energy efficiency when they understand the potential cost savings. 

<p>While awaiting policy updates, Labour’s manifesto offers a promising preview of the initiatives they pledge to invest in, encouraging and facilitating the national shift towards futureproofing property. Here’s what we know so far: 


<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/09/wind/720.jpg' alt=''></a></p>



<h5>Great British Energy</h5>
<p>The government’s focus will be on investing in clean, ‘home-grown’ energy production. Labour pledges to create Great British Energy (“GBE”), a new publicly owned company dedicated to delivering power to Britain. GBE will partner with industry and trade unions to co-invest in leading technologies and support capital-intensive projects. Labour plans to fund GBE with £8.3 billion over the current parliamentary term to aid in the rollout of these projects. 

<p>GBE’s projects are expected to enable landlords to upgrade properties with renewable energy solutions as they will also partner with energy companies, local authorities and co-operatives to install clean power projects including wind, solar and hydropower. By participating in these initiatives, landlords can reduce their properties' energy costs and attract eco-conscious tenants and buyers.

<p>The upcoming Energy Independence Act will provide a clear framework for energy and climate policies, and likely will further support these efforts. 


<figure>
<a href='https://www.foxtons.co.uk' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/09/home/720.jpg' alt=''></a>
<figcaption>Photograph: Foxtons Specialist Video & Photography</figcaption>
</figure>



<h5>Warm Homes Plan</h5>
<p>Labour has pledged to allocate £6.6 billion to upgrade five million homes. This substantial funding is designed to make energy-efficient improvements more affordable for landlords and help cut operational costs for tenants, which is especially crucial given the recent spike in energy bills. In turn, making these improvements can help make properties more lettable as renters increasingly prioritise energy-efficiency: 

<p style="margin-left: 40px; margin-right: 40px;">“There are signs that the energy bills surge has made more people, especially renters, aware of energy efficiency. One in five (19%) tenants say it will be a major factor when choosing a home” (<a href='https://www.rightmove.co.uk/guides/content/uploads/2023/07/Rightmove_Greener_Homes_Report_2023.pdf' target='_blank'>Tim Bannister</a>, 2023)

<p>Through the Warm Homes Plan, grants and low-interest loans will also be made available to support upgrades such as solar panels, batteries and low-carbon heating systems. For landlords, this means affordable access to crucial enhancements that can significantly reduce energy bills and increase property value, making properties more attractive to buyers.

<p>Additionally, Labour plans to collaborate with the private sector, including banks and building societies, to offer even more financing options for home upgrades and low carbon heating. This ensures landlords have a range of funding sources for the energy-efficient investments, making it easier to adopt sustainable improvements.

<h5>Final thoughts</h5>
<p>Labour has assured that you won’t be required to replace your boiler immediately, but several issues still need addressing. Upfront costs will not be entirely eliminated, which could remain a barrier for some. Additionally, the financial benefits of futureproofing may take time to materialise, making it more of a long-term investment rather than a quick fix.

<p>So, yes, there are potential pitfalls in any upgrade strategy, but ultimately, enhancing your property can make it more competitive in the market. 

<p>Engaging with these initiatives may significantly boost the value and sustainability of properties. Labour’s plans are designed not only to encourage landlords to contribute to a more sustainable future but positions the UK property market to meet the growing demand for environmentally and socially responsible property investments. These efforts further represent a promising step towards shifting attitudes regarding home upgrades.
<br><br>



tenants-sharers-hmo

<h2 class='intro_basic'>As a landlord, what do you need to do when a sharer moves into a house of multiple occupancy (HMO)? It requires a bit more than simply handing over keys. If you're a landlord navigating changes in an HMO, you need expert guidance. Here's how to manage the process smoothly, from Foxtons Director of Legal and Compliance, Manjit Kataora: </h2>


<p>It’s a fact that houses let to multiple occupants - or ‘sharers’ –  are at risk of more than the average number of tenants coming and going. Jobs, relationships and other circumstances can easily change mid-tenancy, forcing people to re-assess and move on before they had planned. 

<blockquote class='pullquote_right'>
<a href='https://www.foxtons.co.uk/discover/2024/04/setting-up-an-hmo-the-pros-the-cons-and-the-hmo-licence' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/04/shared-kitchen-hmo/1600.jpg' alt=''></a><p>Read: <a href='https://www.foxtons.co.uk/discover/2024/04/setting-up-an-hmo-the-pros-the-cons-and-the-hmo-licence' target='_blank'>Setting up an HMO</a></p>
</blockquote>

<p>The way these changes are managed needs extra care. Simply agreeing informally that one tenant can go and be replaced by another is fraught with danger. Informal swaps like this – commonly referred to as ‘changes of occupancy’ – can easily result in an inadvertent surrender and regrant of the tenancy. Put simply, it means that swapping one of the occupants, even where the others remain, ends one tenancy and creates a brand new one. This can cause a real headache for landlords who do not understand the legal implications and who may be self-managing their properties.
<p>When a new assured shorthold tenancy commences, various laws require the landlord to comply with a host of compliance measures. Deposit protection requirements require that where a deposit is taken, it must be protected and certain detailed information – known as “prescribed information” – must be sent to the new tenants within strict periods set down by law. Right to rent documents must also be checked and, where appropriate, gas safety certificates must be given to new tenants. 
<p>Incorrectly handled changes of occupancy will trigger all these requirement afresh. Serious fines lay in wait for those landlord who don’t comply. Non-compliance can also jeopardize a landlord’s right to recover  possession on time: if a new tenancy is granted, a no-fault eviction order cannot be made until after six months of the date the new tenancy started. Any landlord who planned to live in the property themselves or who wanted to allow a relative to live in it at the end of the first tenancy would be prevented from doing so until the new tenancy ends. 
<p>Fortunately, there’s a way to avoid all this headache. Changes of occupancy need to be executed correctly and by deed. Where this happens, landlords can take comfort that the original timeline of their tenancy remains intact, and that the compliance measure that were met at the beginning of the original tenancy do not need repeating.  
<p>Foxtons can manage this process for you. Contact our property management team today to make sure you stay on the right path. 

<hr>
<p><b><a href='https://www.foxtons.co.uk/discover/news/landlord-essentials' target='_blank'>Landlord Essentials</a></b> is a series of articles where our experts delve into the big questions for London landlords. If you have a question on letting your property in London, <a href="mailto:experts@foxtons.co.uk">ask a Foxtons expert</a>. If you want help making your property a success, get in touch with Foxtons <a href='https://www.foxtons.co.uk/landlord' target='_blank'>lettings team</a>. 

 


london-skyline

<h2 class='intro_basic'>Heading into the election, many landlords are wondering what will happen with Renters Reform. Foxtons Director - Legal and Compliance, Manjit Kataora has studied the conservative and labour manifestos, and shares some key updates:</h2>

<h3>The Conservative Manifesto and Renters Reform</h3>

<p>Tucked away on page 53 of the <a href='https://public.conservatives.com/static/documents/GE2024/Conservative-Manifesto-GE2024.pdf' target='_blank'>Conservative Party Manifesto</a>, there reads the following passage: <i>“We will pass a Renters Reform Bill that will deliver fairness in the rental market for landlords and renters alike”.</i> 

<p>The irony of this will be lost on few followers of rental reforms. When on May 22 Prime Minister Rishi Sunak announced a snap general election would take place on July 4, the renters reform bill was already on its second reading in the House of Lords. But in the melee that ensued during the limited parliamentary window prior to dissolution and the beginning of election campaigning ( knowns as the ‘wash up’ period) the bill simply couldn’t overcome the competition from other draft laws to make it past the finishing line. Arguably, had an election been called for a date in October, the probability of a Renters Reform Act being passed in 2024 would have been a genuine prospect. 

<P>Essentially then, we are no further forward now than when in 2019 the Conservatives pledged to bring in <i>‘a better deal for renters, including abolishing ‘no fault’ evictions’</i>. However, the actual reasons go deeper than this. Part of the reason for the delay in the bill’s progress was down to the genuine practical difficulties in abolishing no-fault evictions without an adequately resourced court system, and then later the real concerns about outlawing the freedoms of landlords and tenants to agree fixed-term tenancies where they both want one.   


<h3>The Labour Manifesto and Renters Reform</h3>  

<P>For its part, the Labour party has so far not come out and said what it plans to do by way of rental reforms in any great detail. But under the ‘Family Security’ heading of its <a href='https://labour.org.uk/change/break-down-barriers-to-opportunity/' target='_blank'>Election Manifesto</a> there appears the following: <i>“Labour will legislate where the Conservatives have failed, overhauling the regulation of the private rented sector. We will immediately abolish Section 21 ‘no fault’ evictions, prevent private renters being exploited and discriminated against, empower them to challenge unreasonable rent increases, and take steps to decisively raise standards, including extending ‘Awaab’s Law’ to the private sector”.</i> Nothing drastically different from the Conservative pledge, then -  or the bill as we knew it - except that we don’t know what ‘immediately’ means and there is no detail on how the court systems would function without adequate support, given that abolishing no-fault evictions means every possession case would have to appear before a judge.

<p>As things currently stand, the election will be held on July 4. The winner will be announced on July 5 and the state opening of Parliament is scheduled for July 17. At opening, we will hear the King’s Speech, in which the new government will set out its  agenda for the new parliamentary session including the new laws it intends to implement. Following the King’s Speech, new bills will over time be introduced and the process of law-making – including rental reforms – begins, based of course on the winning party’s manifesto pledges. 

<p>Whoever wins will have the benefit of an advanced draft set of reforms with the added advantage of being able to see where the difficulties lay in trying to get it through. We can probably expect a familiar looking draft bill once it emerges but with the party conference season looming during the summer, it remains to seen how quickly this will happen and how the practical issues and difficulties identified in the bill will be addressed. 


<h3>How to keep track of developments</h3>


<p>If you've got property questions heading into the upcoming election, we're here, as always, to provide the best insight:


<blockquote class='pullquote_left'>
<a href='https://www.foxtons.co.uk' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/06/london-rental-market-update/1600.jpg' alt=''></a>
</blockquote><p style="margin-left: 25px">• <b>Rental Market pre-election update:</b> <a href='https://www.foxtons.co.uk/discover/2024/06/london-rental-market-update-summer-moves-and-manifesto-promises' target='_blank'>Summer moves and manifesto promises</a>
<p style="margin-left: 25px">• <b>Reform round up:</b> <a href='https://www.foxtons.co.uk/' target='_blank'>Leasehold vs Freehold and Renters Reform</a>
<p style="margin-left: 25px">• <b>Sales market pre-election sentiment:</b> <a href='https://www.foxtons.co.uk/discover/2024/05/95-of-homebuyers-are-undeterred-by-general-election-what-about-you' target='_blank'>95% of homebuyers undeterred by General Election, what about you?</a>
<div class='clearfix'></div>
<hr>

<p><b><a href='https://www.foxtons.co.uk/discover/news/landlord-essentials' target='_blank'>Landlord Essentials</a></b> is a series of articles where our experts delve into the big questions for London landlords. If you have a question on letting your property in London, <a href="mailto:experts@foxtons.co.uk">ask a Foxtons expert</a>. If you want help making your property a success, get in touch with Foxtons <a href='https://www.foxtons.co.uk/landlord' target='_blank'>lettings team</a>. 


 

repairs-responsibility

<h2 class='intro_basic'>We are frequently asked what <b>landlord obligations for repairs</b> are during a tenancy. This is an important topic for you to know the law on, so we asked an expert. In this article, Manjit Kataora Director - Legal and Compliance at Foxtons shares what you need to know about your responsibilities to repair your let property, as a London landlord.</h2>

<p>In any tenancy, <b>the number one priority is tenant safety</b>. Granting an assured shorthold tenancy triggers a number of obligations for landlords, each of which help to ensure that tenants not only enter a safe property but remain safe during their stay. 

<p><img src='https://page-assets.foxtons.co.uk/news-images/2024/05/health-and-safety-for-tenants/720.jpg' alt='Health and safety for tenants'></p>


<p>The most common type of tenancy is the assured shorthold (AST). With ASTs becoming increasingly lengthier due to market conditions, complying with and responding to safety issues is more important than ever. 
For properties that have gas, landlords must provide the  tenant with a <a href='https://www.gassaferegister.co.uk/gas-safety/gas-safety-certificates-records/gas-safety-record/' target='_blank'>gas safety certificate</a>, and to ensure a valid certificate remains in place for the duration of the tenancy. Failing to provide a copy of the certificate can prevent a landlord recovering possession if they later need to. 

<p>The Electrical Safety Standards impose duties on landlords to carry out detailed checks on the electrical installations fitted to their properties in the form of <a href='https://www.gov.uk/government/publications/electrical-safety-standards-in-the-private-rented-sector-guidance-for-landlords-tenants-and-local-authorities/guide-for-landlords-electrical-safety-standards-in-the-private-rented-sector' target='_blank'>EICR reports</a>. A copy of the report must be given to the tenant within 28 days of it being carried out. Significant fines of up to £30,000 lay in wait for landlords who fail to comply, and local authorities can serve remedial notices requiring work to be done to bring non-compliant properties up to scratch.</p>


<p><img src='https://page-assets.foxtons.co.uk/news-images/2024/05/eicr-for-rental-flat/720.jpg' alt='EICR for rental flat'></p>


  
<p>Smoke and carbon monoxide alarms need fitting, and must be checked to prove they’re in working order (<a href='https://www.gov.uk/government/publications/smoke-and-carbon-monoxide-alarms-explanatory-booklet-for-landlords/the-smoke-and-carbon-monoxide-alarm-england-regulations-2015-qa-booklet-for-the-private-rented-sector-landlords-and-tenants' target='_blank'>See government regulations here</a>).</p> 

<p>Where the tenant raises an issue concerning repairs during a tenancy, landlords must comply with their repairing obligations. The duty here is to carry out repairs within a reasonable timeframe. The duty extends to the structure and exterior of the property, as well as heating installations. Where the property is a leasehold then, practically speaking, these issue may come within the block management arrangements, but even so should be followed up by the landlord to ensure that repairs are made. 

<p>Managing repairs can be a challenge. A good managing agent can take the weight off, and <a href='https://www.foxtons.co.uk/landlord/property-management' target='_blank'>Foxtons Property Management</a>, with its Maintenace Tracker technology, allows tenants to report issues and landlords to give the go-ahead to repairs online, enabling both sides to remain up to date and informed.  

<br><hr><br>


<p><a href='https://www.foxtons.co.uk/discover/news/landlord-essentials' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/05/managing-a-rental-flat/720.jpg' alt='Managing a rental flat'></a></p>



<p>Read more about maintaining your let property:</p>
<p style="margin-left: 25px">• <a href='https://www.foxtons.co.uk/discover/2023/05/how-much-can-landlords-charge-for-professional-endoftenancy-cleaning' target='_blank'>How much can landlords charge for professional end-of-tenancy cleaning</a>
<p style="margin-left: 25px">• <a href='https://www.foxtons.co.uk/discover/2023/10/landlords-are-calling-in-professionals-to-get-it-done' target='_blank'>Landlords are calling in professionals to get it done</a>
<p style="margin-left: 25px">• <a href='https://www.foxtons.co.uk/discover/2022/10/itas-that-time-of-year-for-london-landlords' target='_blank'>Boiler maintenance for London landlords</a>
<p style="margin-left: 25px">• <a href='https://www.foxtons.co.uk/discover/2023/07/storm-watch-how-to-prepare-for-summer-flash-floods' target='_blank'>Storm watch: how to prepare for summer flash floods</a>
<p style="margin-left: 25px">• <a href='https://www.foxtons.co.uk/discover/2023/03/top-tax-tips-for-landlords' target='_blank'>Top tax tips for landlords</a>
<p style="margin-left: 25px">• <a href='https://www.foxtons.co.uk/discover/2023/01/why-selfservice-tools-are-essential-for-todayas-landlord' target='_blank'>Why self-service tools are essential for today's landlord</a>
<br>
<hr><br>
<p><b><a href='https://www.foxtons.co.uk/discover/news/landlord-essentials' target='_blank'>Landlord Essentials</a></b> is a series of articles where our experts delve into the big questions for London landlords. If you have a question on letting your property in London, <a href="mailto:experts@foxtons.co.uk">ask a Foxtons expert</a>. If you want help making your property a success, get in touch with Foxtons <a href='https://www.foxtons.co.uk/landlord' target='_blank'>lettings team</a>. 

parliament-in-london

<h2 class='intro_basic'>Last week, the Renters Reform began its passage through the House of Lords. The bill, which, once it becomes law, will be known as the Renters (Reform) Act 2024, underwent its second reading on 15 May. Manjit Kataora, Director of Legal and Compliance at Foxtons, shares an update for our landlords and tenants.</h2>
<hr>
<p><big><b>Update:</b> Sunak's surprising announcement of a general election had a big impact on the outcome of this bill. See what you can expect to happen with future Renters Reform legislation in our article: <a href='https://www.foxtons.co.uk/discover/2024/06/awash-upa-round-up-leasehold-reform-and-renters-reform' target='_blank'>'Wash up' round up: Leasehold Reform and Renters Reform</a></big></p>
<hr>

<p>No amendments were formally tabled at this stage (this is quite normal) but the parliamentary debate that took place was notable because of the criticisms centred on the absence of provisions enabling lengthier fixed term tenancies where landlords and tenants both want one.  Such pragmatism is welcome and will come as no real surprise to those who know how the industry works and the security that landlords and tenants each need from one another. 


<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/05/parliament-statue/720.jpg' alt=''></a></p>



<p>The bill had a difficult conception, and its early adolescence has proven equally troublesome. One of the key criticisms following first publication was the notion that consenting landlords and tenants would be unable to agree to a fixed term tenancy if that is what they both want. On the current draft it is positively illegal for them to do this.  Their Lordships’ criticism about this was all the more notable because it came from across the political divide, - i.e. from Conservative, Labour and Crossbench peers (the latter so-called because they are not affiliated to any particular political party). 
<p>Media outlets that reported on the bill (especially in its earlier stages) almost invariably focussed on the abolition of so-called no-fault evictions under Section 21 of the Housing Act 1988. Government is on record as committing to outlawing these notices by the general election, but the bill as passed to the Lords last week reflects no such commitment. Instead, no-fault evictions are set to be outlawed only following further regulations which themselves cannot be passed before the Secretary of State has published a report into the court system’s ability to cope with possession cases in a post reform world. That is sensible because it reflects the need to have a judicial system that can cope with the workload being forced upon it. Leaving aside for a moment the point that not many landlords with a good tenant actually do serve no-fault eviction notices, one can at least say that the abolition of no-fault evictions reflects a party manifesto commitment, therefore this aspect more naturally has a place in the reforms. By contrast however, the abolition of fixed term tenancies was never a manifesto commitment. It is entirely understandable for the House of Lords to call out a feature of the bill that neither reflects a party pledge, and ignores what landlords and tenants need from each other in the real world.</p>

<p>Nor were their Lordships’ views on this based on some misty-eyed view of the past. Rather, they were based on actual tenants’ concerns.  Probably the clearest example of this came from Lord Cromwell, who quoted a tenant as having said: “<i>There is absolutely no way I would be willing to sign up for less than a one-year fixed initial term. I do not want the prospect of having at last found a place I can afford and having to move on a shorter period than that</i>”.  Yet on the bill as it is currently drawn, this tenant along with thousands of others will effectively have no option but to do so.</p> 

<p>Advocates of the abolition of longer fixed terms will counter-argue that the Commons has already inserted into the bill a concession under which a tenant’s notice cannot be served before month four of a tenancy and cannot end before month six. Whilst this creates a de-facto fixed term (there are provisions that allow tenancies to be ended more quickly if the property is not maintained) it does not explain why, if a six-month term is allowed, a twelve-month term (for example) should not also be available where the parties both want one. </p>

<p>The law does not exist in a vacuum; it must sit within reality. One of the key intentions of the bill is to ensure security of tenure for tenants. But is it really the case that, in a competitive market, tenants are no more likely to leave a well-managed letting in a post rental reform world than they are now, merely because the law allows them to? Moving home is disruptive to employment, young children’s schooling and communities. Why not then, allow both sides to have the assurance of a longer fixed term if they both want to? </p>

<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/05/let-your-property/720.jpg' alt=''></a></p>


<p>Much in the bill is to be welcomed. Higher standards in the rental sector are in everyone’s interests. Lengthier fixed terms would give tenants peace of mind because they can be certain about where they can live for a defined length of time. Landlords too, would have the security of knowing that they have an income stream for a known period. Both elements are necessary for a healthy, functioning rental sector. Surely that is in everyone’s interests as well.</p>
<br>
<hr>
<br>
<p>This article is part of our <b>Landlord Essentials</b> series, where our experts delve into the big questions for London landlords. If you have a question on letting your property in London, <a href='mailto:experts@foxtons.co.uk' target='_blank'>ask a Foxtons expert</a>. If you want help making your property a success, <a href='https://www.foxtons.co.uk/landlord' target='_blank'>get in touch</a> with Foxtons lettings team.

wood-green-london

<h2 class='intro_basic'>The Renters Reform bill has passed (24 April 2024) its Third Reading in the House of Commons. The Third Reading is the last stage in the Commons before being sent to the House of Lords. Here we take a look at how the bill is shaping up and what happens next.</h2>
<hr>
<p><big><b>Update:</b> With the unexpected announcement of a general election, this iteration of the Renters Reform bill has failed. But is that the end? See what future Renters Reform legislation could bring in our article: <a href='https://www.foxtons.co.uk/discover/2024/06/awash-upa-round-up-leasehold-reform-and-renters-reform' target='_blank'>'Wash up' round up: Leasehold Reform and Renters Reform</a></big></p>
<hr>


<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/03/parliament/720.jpg' alt='Rental reform bill is still in parliament'></a></p>



<h3>What are the notable amendments?</h3>
<p>One of the key amendments is a new provision governing when tenants can serve notice after they have entered into an assured tenancy. The amendment would prevent tenants from serving a two-month notice to quit earlier than four months into the tenancy. The practical effect of this is to create a six-month period during which tenants cannot serve notice unless something goes wrong, - e.g. there is a serious case of disrepair the landlord fails to remedy.<p>This may at first seem a radical departure from the original draft bill under which tenants would have been able to serve notice at any point during the tenancy. In reality, it is a significantly smaller amendment when you consider today's market, in which increasing numbers of tenants are in fact requesting lengthier fixed-term tenancies to insulate themselves against market rent rises that are typically negotiated at renewal or on a new tenancy. By contrast under today’s law, the longer a fixed term tenancy the longer a tenant will pay the same level of rent. <p>Will tenants will actually be any better off in terms of their cost of living under the new law? We will have to wait and see. Under the bill as proposed, landlords will be able to propose increases in rent once yearly but that is no different to the law as it today in the case of statutory periodic tenancies, although under the new law there will be some slight tightening of the rules for this procedure. 


<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/03/rental-reform-analysis/720.jpg' alt='Digging into the amendments to the Renter Reform Bill'></a></p>




<h3>The abolition of no fault (Section 21) notices</h3>
<p>Long-since promised by this Government, and a major focus of housing campaign groups, the abolition of no fault (Section 21) notices is now expected to take place only after a review has been conducted into the ability of the court system to cope with the level of possession cases once the bill becomes law. <p>This is a sensible measure because it will prevent an already overburdened and creaky court system from having to absorb potentially far greater numbers of possession claims. However, it also means there is no precise date for a ban. Added to which, the Department for Levelling Up, Housing and Communities (DLUHC) has re-affirmed its commitment to giving six months’ notice before Section 21 notices are formally outlawed.  

<h3>So, what now?</h3>
<p>We’ve got an amended bill that has completed its stages in the House of Commons. The bill now moves to the House of Lords for a repeat of the stages in the Commons (first, second and third reading, etc) and during which phase the Lords will consider any amendments made in the Commons. Once completed, The Commons and the Lords will then debate the bill between themselves (a back-and-forth process aptly referred to as ‘ping-pong’) until agreement is reached about the amendments and the wording, after which the bill will receive Royal Assent and become law. <p>The bill will not come into effect straight away but as with all new legislation will do so on a commencement date and some aspects of the bill will be delivered in phases (not all tenancies will be subject to it immediately), and reviews of the court system’s ability to cope will be undertaken and reported on before section 21 is banned altogether. 


<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/03/rental-property/720.jpg' alt='London flats'></a></p>



<p>The big question is when all this will be done and we can expect the new law? That’s still a difficult one. The government is committed to getting this bill passed and will need to do so before parliament is dissolved prior to a general election, the date for which is still unknown. You can track progress of the bill <a href='https://bills.parliament.uk/bills/3462/stages' target='_blank'>here</a> and we will continue to provide updates on major milestones as when they occur.  
<br>

<hr>

<br>





<p><b>Landlord Essentials</b> is a series of articles where our experts delve into the big questions for London landlords. If you have a question on letting your property in London, <a href="mailto:experts@foxtons.co.uk">ask a Foxtons expert</a>. If you want help making your property a success, get in touch with Foxtons <a href='https://www.foxtons.co.uk/landlord' target='_blank'>lettings team</a>. 

shared-kitchen-hmo

<h2 class='intro_basic'>
Along with all the benefits of HMOs, come complexities around licensing and regulations. It's very important to get these right, so in the following article, Foxtons Director of Legal & Compliance sheds light on what you, as a landlord, need to consider.

<hr>
Carry out a quick google search on <b>how to increase your rental yield</b> and you’ll be hit with a sea of tips about reviewing outgoings, makeovers, maintenance and how to create space for your tenants to work from home. But in recent years one trend on how to maximise yields has gained increasing prominence... the <b>HMO</b>. </h2>


<p>An HMO, meaning house of multiple occupation, can produce <b>far higher yields when compared to single household lettings</b>. Essentially, HMOs are properties divided into different living quarters shared between unrelated individuals. Typical classes of occupant include students or young workers. The HMO model works for tenants because it’s a more affordable way to find a place to rent. It works for landlords too because it allows increased occupancy levels. 


<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/04/flatmates-in-hmo-rental/720.jpg' alt='Students in HMO rental'></a></p>


<h3>Higher yields, greater responsibilities</h3>
<p>There is a catch, however. Although HMOs are known to generate higher yields, <b>they attract more rules and may not suit every landlord’s appetite</b>. First, HMOs need to be licensed by the local authority. In London, the typical cost of a licence is £700.00.  
<p>Where a license is granted, it will contain a list of conditions. These generally set out works the license holder (invariably the landlord) must carry out to their property. <p>These works are not merely superficial. They will generally focus on compliance with safety laws and can be costly (e.g. installing hard-wired fire alarm systems, as opposed to the simple battery-operated devices you would find in a normal let). <b>Complying can be a sizeable up-front investment that needs to be understood and carefully weighed up</b>.  

<p>Read the <a href='https://www.legislation.gov.uk/ukpga/2004/34/part/7/crossheading/meaning-of-house-in-multiple-occupation' target='_blank'>Housing Act 2004</a> legislation yourself, or the simplified <a href='https://www.gov.uk/private-renting/houses-in-multiple-occupation' target='_blank'>guidance from the government</a>. 

<h3>Types of HMO</h3>



<p>There are two main types of HMO licensing. The first, <b>‘mandatory’ licensing</b> applies to properties occupied by five or more persons forming two or more households, regardless of the number of storeys. 
<blockquote class='pullquote_right'>
<a href='https://www.foxtons.co.uk/landlord/hmo-licence' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/04/start-hmo-london/480.jpg' alt='Guide to HMO London'></a><p>Check out our guide to <a href='https://www.foxtons.co.uk/' target='_blank'>HMO licensing</a>
</blockquote><p><b>‘Additional’ licensing</b> applies to properties in an area in respect of which the local authority has in its discretion imposed a licensing requirement because it finds that significant numbers of HMOs not classified as mandatory HMOs need regulating.  
<p>The licensing regime doesn’t just apply to HMOs. If a local authority deems it as such, any area within its jurisdiction can be designated as what is known as a <b>‘selective’ licensing zone. Under these even single-household lettings must be licensed</b>. 

<h3>HMO licence enforcement</h3>
<p>Because of the profile of the occupants and their transience, HMOs are considered a higher safety risk than single household lettings. Occupants of HMOs are also deemed more vulnerable than single household tenancies. 

<p><b>Enforcement is strict and includes civil and criminal sanctions</b>. Local authorities routinely inspect HMOs and where they find incidents of non-compliance, - e.g. the HMO does not have a licence when required, or where licensing conditions have not been met,  breaches are actively enforced. Through a system of fixed-penalty notices the fines can be as high as £30,000.00 – with the added risk of being named as a ‘rogue landlord’ on the local authority database. Further, banning orders, where made, prevent the most serious offenders from letting a property at all. 

<P>The penalties do not end there. Where the property should have been licensed but was not, tenants can seek rent repayment orders. These are ordered that – as the name denotes – require the landlord to reimburse the tenant with rent paid for the unlicensed period. 

<p>Other sanctions also apply, including the inability to serve no-fault (section 21) eviction notices until a property is licensed.   


<h3>Step-by-step guide for setting up an HMO</h3> 
<p><b>Step one:</b> If you’re considering going down the HMO route, speak to your local authority. Find out about the rules and what the costs of complying with any licence conditions are. Make sure they sit within your risk and compliance appetite. 

<p><a href='https://www.gov.uk/find-local-council' target='_blank'>Find your local council</a>
 
<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/04/maintenance-professional-london/720.jpg' alt=''></a></p>
<p><b>Step two:</b> Budget for the necessary works and adaptions to your property. Find suitable contractors who can carry out the works to the required standard and issue the correct paperwork to prove compliance. 

<p><b>Step three:</b> If you’ve already applied for a licence, make sure that any works and conditions are carried out and met by the deadlines. Licenses are usually granted for five years but local authorities do grant shorter one-year licences to allow landlords time to complete works. 

<p><b>Step four:</b> They may then inspect the property – unannounced – and check if the work has been done. Only after they are satisfied will then they be inclined to issue the full five-year licence.  If the works haven’t been carried out, you could face enforcement action.
<br> <br> 
<h5>Summary</h5> 
<p>HMOs can produce higher yields. But the set-up costs are generally higher and once established they require a more hands-on management approach than ‘ordinary’ lettings. You should anticipate regular and ongoing inspections to ensure that licensing conditions are met and maintained. <b>Any penalties are severe, but know the rules, get it right and you could have a rewarding HMO.</b>

<p>Alternatively...
<p>Get the experts at Foxtons Property Management to oversee the licensing, paperwork, project management, maintenance, changes of occupancy and everything in between, so you can be confident and successful with your HMO.</p>
<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/04/foxtons-property-management-london/720.jpg' alt='Property Management London'></a></p>




<hr>

<p><b><a href='https://www.foxtons.co.uk/discover/news/landlord-essentials' target='_blank'>Landlord Essentials</a></b> is a series of articles where our experts delve into the big questions for London landlords. If you have a question on letting your property in London, <a href="mailto:experts@foxtons.co.uk">ask a Foxtons expert</a>. If you want help making your property a success, get in touch with Foxtons <a href='https://www.foxtons.co.uk/landlord' target='_blank'>lettings team</a>. 

tenant-fees-act-2019

<h2 class='intro_basic'>Especially since the Tenant Fees Act 2019, landlords frequently ask which charges are legal and which are prohibited. In the following article, our Director of Legal and Compliance breaks down the law so you can keep your tenancy on the right side of it.</h2>

<p>In June 2019 legal changes were enacted regulating the amounts landlords and letting agents can charge tenants at the start, during, and at the end of an assured shorthold tenancy. 

<p>The <b>Tenant Fees Act 2019</b> works by defining a list of ‘permitted payments’ and quite simply anything that it not within this list is classed as a ‘prohibited payment’ and is unlawful to charge. 
So what are the charges that can be levied and what happens if you charge a prohibited payment? 

<p>Schedule 1 of the Tenant Fees Act contains the list of permitted payments. <b>Anything outside this list is prohibited, even if the tenant agrees to the payment</b>:


<p><a href='https://www.foxtons.co.uk/' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2024/05/tenant-fees-act-2019/720.jpg' alt='Permitted and Prohibited in Tenant Fees Act 2019'></a></p>




<blockquote class='pullquote_right'>
<a href='https://www.foxtons.co.uk/discover/2023/05/how-much-can-landlords-charge-for-professional-endoftenancy-cleaning' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2023/06/eot-2/1600.jpg' alt='End of tenancy cleaning'></a><p><small>Q: Can I claim from the deposit for end-of-tenancy cleaning? <br>A: This depends on the standard of cleanliness outlined in the check-in and check-out reports. <br>Get the full explanation in: <a href='https://www.foxtons.co.uk/discover/2023/05/how-much-can-landlords-charge-for-professional-endoftenancy-cleaning' target='_blank'>How much can landlords charge for professional end-of-tenancy cleaning?</small></a>
</blockquote>

<p>Straight away then, we see that landlords and agents need to tread very carefully when imposing charges. Imposing a prohibited payment on a tenant will not be binding on them. Enforcement  is strict and will take the form of a <b>Trading Standards fine</b> - the first step towards which is the local authority serving a ‘notice of intent’ on the wrongdoer. 

<p>It is possible to appeal against a proposed fine, but this is only really going to be possible where the basis for the fine is wrong in law (i.e. the landlord or the agent have not actually breached the Act) or the local authority have not complied with proper procedure. Landlords or agents who want to dispute a proposed fine must do so by appealing against the proposed fine to the <a href='https://www.gov.uk/courts-tribunals/first-tier-tribunal-property-chamber' target='_blank'>First Tier Tribunal</a>, whose panel will decide after having heard each side's arguments. 

<p>Underpinning the Act is a set of <a href='https://assets.publishing.service.gov.uk/media/5f745d308fa8f5189a93d141/Tenant_Fees_Act_2019_-_Guidance_for_landlords_and_agents.pdf' target='_blank'>government guidance documents</a>, that help interpret the Act. Collectively they illustrate what can and cannot be charged under the Act (though not in much detail) in a more practical fashion that the statute itself. 



<figure>
<a href='https://www.foxtons.co.uk/discover/2023/01/why-selfservice-tools-are-essential-for-todayas-landlord' target='_blank'><img src='https://page-assets.foxtons.co.uk/news-images/2023/01/business-technology/1600.jpg' alt='Insight for landlords'></a>
<figcaption>Read our article about <u><a href='https://www.foxtons.co.uk/discover/2023/01/why-selfservice-tools-are-essential-for-todayas-landlord' target='_blank'>helpful tools for self-managing landlords</u></a></figcaption>
</figure>




<p>The Act is getting on a bit now, and there isn’t that much caselaw to guide anyone, but what remains surprising is the number of self-managing landlords whose tenancy agreements still impose charges on tenants that  are unlawful under the Act, and which expose them to the risk of being fined if they impose those payments on their tenants. At the very least, such landlords should revise their approach by using an agent-approved agreement or get their documents health-checked by an independent legal advisor. 

<hr>

<p><b><a href='https://www.foxtons.co.uk/discover/news/landlord-essentials' target='_blank'>Landlord Essentials</a></b> is a series of articles where our experts delve into the big questions for London landlords. If you have a question on letting your property in London, <a href="mailto:experts@foxtons.co.uk">ask a Foxtons expert</a>. If you want help making your property a success, get in touch with Foxtons <a href='https://www.foxtons.co.uk/landlord' target='_blank'>lettings team</a>. 



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