Legislation and compliance news and guides for letting agents and estate agents

"Antisocial behaviour" is exempt from the government's current ban on evictions as a result of the Covid-19 pandemic, in place until at least 31 May 2021, with the government stating that the courts will "continue to prioritise cases, such as those involving anti-social behaviour, illegal occupation and perpetrators of domestic abuse in the social sector".  Molly-Ellen Turecek, Legal Adviser at DAS Law, answers questions about what this means for letting agents and landlords.

The Regulation of Property Agents (RoPA) has been a long time coming, with the working group report published back in July 2019. Many agents are already starting to prepare by gaining level 3 qualifications and above, as is the expected requirement once the law is enacted - but there are still some questions left unanswered. Sean Hooker, Head of Redress at the Property Redress Scheme, answered some of those questions in our webinar, "Preparing for the Regulation of Property Agents (RoPA)".

It has been mandatory for letting agents in England who hold client money to belong to a client money protection scheme since 1st April 2019, in order to make sure that the funds of both their tenants and landlords are protected. A two-year grace period has been in place for agencies that have had difficulty opening a client money account, however this ends on 1st April 2021. Letting agencies can be fined up to £30,000, if they do not belong to an approved client money protection scheme, and up to £5,000, if they don’t display their certificate of membership or provide it when asked.

The Debt Respite Scheme, or "Breathing Space" law, will come into effect on 4 May 2021 in England and Wales, to "give someone in problem debt the right to legal protections from their creditors". Landlord Action's Legal Director, Tim Frome, answers questions from Goodlord's Oli Sherlock about what the new scheme could mean for letting agents, landlords, and their tenants.

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Regulation is on its way and letting agents need to be prepared. That’s why Darshan Sunger of Three Oaks is prioritising getting his staff qualified now - and why he believes other agencies should be prioritising this too. He talks about how agencies can get ahead of the Regulation of Property Agents with Goodlord’s Costas Frangeskou, with exclusive insights from his experience at Three Oaks.

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The end of coronavirus legislation - and the as-yet-unknown impact this will have on lettings, with extended notice periods and furlough set to end - is just one of the dates letting agents and landlords should be marking in their calendars this year. The deadlines for Electrical Safety Regulations and client money protection are fast approaching while the mid-year changes to right to rent as a result of Brexit are yet to be confirmed. Plus, the Renters' Reform Bill and Regulation of Property Agents (RoPA) are likely to come back onto the agenda as the pandemic is brought under control. In short, it's going to be another busy year and landlords are going to need letting agents' guidance more than ever when it comes to compliance.

At the end of 2019, Prime Minister Boris Johnson said “The costs of deposits make it harder [for tenants] to move. We are going to fix that.” A solution was outlined in the Renter’s Reform Bill during the Queen’s Speech in December 2019 - lifetime deposits.

Consultation is now open on the government’s proposals to extend regulations on domestic smoke and carbon monoxide alarms in both social and private rented accommodation. The proposals include requiring social landlords to ensure at least one smoke alarm is installed on each storey of a building where any rooms are used as living accommodation; requiring carbon monoxide alarms to be fitted alongside the installation of fixed combustion appliances of any fuel type; and requiring private and social landlords to install carbon monoxide alarms in any room used as living accommodation where a fixed combustion appliance is used. The consultation will be open until 11 January 2021.

The English right to rent checks on the immigration status of potential tenants, first introduced in 2016, are mandatory for letting agents and their landlords. Any agents or landlords accepting a tenant who doesn’t have the right to reside in the UK will leave themselves open to prosecution and potential unlimited fines.

Since 1 July 2020, landlords and agents in the private rented sector in England have been required to carry out electrical installation inspections and testing on all new tenancies in England under the new Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020. This legislation will extend to include all existing tenancies on 1 April 2021.