Welcome to our weekly Newsround, where we bring you all the latest housing news items that have happened this week.

In the spotlight this week is the rental reform in Wales.

Wales’ new tenant act comes into force on 1st December

One of the biggest overhauls in housing law has happened in Wales this week, which is set to change the private rented sector dramatically.

A statement from the Welsh Government said

The Renting Homes (Wales) Act 2016 improves how homes in Wales are rented, managed and lived in.

Julie James, Labours housing minister, says

This is a momentous moment as we completely transform the rented sector in Wales. A decent, safe and secure home is fundamental to people’s wellbeing. These changes will provide tenants with greater protection from eviction and ensure their home is safe to live in.

At the same time, Landlords will benefit from greater clarity in the law and the ability to repossess abandoned properties more quickly.

Tenants are now ‘contract-holders’ and have much greater security than any other part of the UK. Here are some of the changes

• Tenancies are now known as ‘occupation contracts’, and landlords have to provide a copy of one by law.
• Section 21 (now section 173 under the Welsh legislation) notice period is six months for new tenants and existing tenants from June 1 2023
• More duty on landlords to ensure each property is fit for human habitation
• The new legislation puts an end to ‘retaliation evictions’
• Consistency where anti-social evicitions are needed

Landlords are less enthusiastic, and there are reports of increasing numbers of landlords selling up and exiting the sector.  Which is not good for tenants as lack of supply pushes up rents.

Landlord Law has a lot of content for Welsh landlords, plus a new occupation contract which protects their position.

If you are an advice or similar organisation and need training – note that I recently carried out a days ‘in house’ training for a major advice organisation on the new Welsh legislation, so can set this up fairly quickly as I have material already prepared.

Contact me via the Landlord Law green button messenger service if you are interested in this.

Landlords caught out by new licensing schemes

A warning to all landlords to not get caught out by the continual raft of licensing scheme changes that are happening across the country. Fines can be in excess of £10,000.00 – £15,000.00.

Theresa Wallace, chair of the trade body the Letting Industry Council, says

We don’t have enough landlords and we have lost a lot of them from the sector. Scaring them out is not helping the industry. I don’t think the scheme is very well publicised. Why would anyone think to look on their local authority website? Anybody could be caught out by pure naivety.

Property Investor Post reports that landlords can also get caught out when a tenant has an additional person living in the property without the landlord’s knowledge.

This is why it is imperative that landlords carry out regular inspections.  Ideally, three or four times a year.

Spray foam insulation warning

Whilst the government are pushing ahead to launch a scheme in 2023 that is to give out grants to homeowners for insulation works, The HomeOwners Alliance are warning about the use of Spray Foam Insulation as mortgage companies do not like it. A Spokesperson has said

At the moment those who have spray foam insulation in their homes cannot sell or get equity release unless they spend thousands removing it. This is because the lenders won’t lend. And to make matters worse, the government is training installers under its Skills for Life programme. For years spray foam roof insulation has been on a government list of approved measures and homeowners have been able to access government grants to reduce the cost of installing it in their homes, so we are shocked and dismayed that homeowners doing the right thing are now being financially penalised, they either pay over the odds to remove the spray foam or remain stuck with homes they will find difficult to remortgage or sell.

You can read more here, and there are more activists asking for rent freezes.

Petition grows on rent freeze

Generation Rent are not letting up on their call for rent freezes.

Their crusade is growing, and they now have a petition calling on the Rishi Sunak to act and bring in rent freezes over this winter as part of an ’emergency support package’.

Presumably, they are not worried about the effect this will have on landlords and the prospect of more and more landlords selling up and exiting the sector.  Which ultimately results in higher rents …

Shelter calls on government to unfreeze housing allowance

Shelter has called out the government and is asking them to unfreeze local housing rates so that tenants can afford their rent and not fall into arrears or worse, eviction. They state that 482,000 private renters are now behind in their rent, and 504,000 renters have been threatened with eviction.

The figures are startling (although perhaps should be treated with caution).  Shelters chief exec Polly Neate says

Almost a million private renters are at risk of being of being kicked out of their home this winter, and more will follow. Every day our emergency helpline advisers are taking gut-wrenching calls – from the mum who’s skipping meals to pay the rent to the family terrified they will be spending Christmas in a grotty homeless hostel. The government’s refusal to unfreeze housing benefit, when private rents are rising at record rates, means the rental crisis is fast  becoming a homelessness emergency.

Chris Norris from the NRLA says that the majority of landlords are trying to help their tenants wherever possible, but he too agrees with Shelter that the government needs to step up and give more support to those who most need it.

You can read more here.

Next year will be a difficult year for both landlords and tenants.

Buyers and renters seek out Energy efficient homes

Legal & General Capitol has carried out a survey with YouGov, which demonstrates that buyers and renters are now increasingly looking at homes that are the most energy-efficient.

With the energy cap coming to an end in April next year, this is becoming ever more apparent and more of a priority when looking to either buy or rent a home. Houses that have a good energy efficient rating and are more sustainable are now starting to command a price premium.

Their survey showed that only 1 in 3 understood in detail the EPC form and information and are calling for a review of the current metrics that are used to rate a building. The survey showed that 65% of adults chose environmental factors such as reducing their carbon footprint or helping to prevent climate change, whilst 37% of adults prioritise the cost savings that they would see from cheaper energy bills.

John Alker, Head of Sustainability at Legal & General Capital, said

Climate change and energy efficiency have risen right up the agenda for many people when choosing a home. With buyers and renters prepared to pay a 10.5% and 13% premium respectively, energy efficiency and sustainability in homes make a material difference to the consumer. This research helps cement the business case for investors and developers to invest in low carbon homes. The research also shows that clarity is key when it comes to low carbon and energy efficiency.

Energy Performance Certificates are not well understood—they need reforming to better reflect real world energy consumption and to help incentivise adoption of low-carbon technology. We need to ensure that climate and energy considerations are central to the housing market.

You can read more here.

Snippets

• Make it easier for councils to introduce landlord licensing – call
• In-depth study shed light on what landlords think of agents and why they use them – or not
• South coast council seeks MP’s help to charge Airbnb landlords more tax
• Yet another landlord licensing regime looks set for 2023
• Energy Upgrade Scheme – Landlords urged to contact local councils
• John Lewis signs £500m build-to-rent deal with City investment giant
• EYE OPINION: Are Shelter’s headline-grabbing statistics for real?
• Soaring rents making life ‘unaffordable’ for private UK tenants, research shows

Newsround will be back next week.

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