Letting Agent's Date for the Diary - 2021
A few days into 2021 and we are already navigating the beginning of a third Lockdown. The difference this time is that lettings agents, landlords and tenants have been here before. Covid-19 Protocols are in place, there is a much better understanding of what can and cannot be done, WFH processes systems are up and running.
Being organised and prepared is very important. Certain things will be happening in 2021 than can be managed and planned for now. Landlords will need their letting agents support and guidance more than ever, so plan your diary well.
The third Consultation on Domestic Smoke and Carbon Monoxide Alarms ends on 11th January 2021.
The proposals are that social landlords ensure at least one smoke alarm is installed on each storey of a building where any rooms are used as living accommodation; carbon monoxide alarms to be fitted alongside the installation of fixed combustion appliances of any fuel type; and private and social landlords to install carbon monoxide alarms in any room used as living accommodation where a fixed combustion appliance is used.
Second reading of the Dogs and Domestic Animals (Accommodation and Protection) Bill takes place on 29 January 2021
Please note that a Bill is NOT yet Law. In 2020 the Government announced its plans to update their model tenancy contracts and remove any restrictions on “well-behaved” pets. The intention here is for responsible pet owners to have a much smoother experience if they want to become tenants.
31st March 2021 is the date when six-month notice periods for Section 21 (Form 6A) and amended Section 8 Notice periods are due to come to an end
The Coronavirus Act 2020 amended the notice periods for both Section 21 and Section 8 notice in March 2020 and August 2020. MHCLG will advise on whether these temporary changes are to stay in place or if they will revert back to what they were pre-23rd March 2020.
The stamp duty holiday is also due to end on the 31st March 2021; however, the Furlough Scheme has been extended for a further month.
Final deadline for Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 – 1st April 2021
The Electrical Safety Standards introduced on the 1st June 2020 will apply to all tenancies as from the 1st April 2021. From 1st June 2020, all new tenancies, renewals and statutory periodic tenancies required an EICR. From 1 April 2021, contractual periodic tenancies will also require an EICR which means that any tenancy created retrospectively will be required to have an EICR in place.
Client Money Protection (CMP) deadline for compliance to end on 1st April 2021
The 1st April 2021 is also the deadline for agents to comply with CMP regs. The requirement for letting agents in England to have CMP sits under the Housing and Planning Act 2016 and the 1st April 2021 will be the deadline for all letting agents to ensure that they are compliant.
The 1st April also sees further changes to Stamp Duty for all non-UK residents purchasing property in this country. An additional two per cent stamp duty surcharge will be payable although they will be eligible for a refund if they become a UK resident within 12 months of the purchase.
And a little more to think about…….
The Renters' Reform Bill and the Abolition of the Section 21 Notice
In October 2020, Housing Minister Christopher Pincher announced that the introduction of the Renters' Reform Bill will be delayed for an indefinite period due to the impact of the COVID-19 pandemic.
Pincher told MPs in the House of Commons that the government will wait until 'there is a sensible and stable economic and social terrain' before progressing the Bill, which was originally launched as part of the Queen's Speech last December.
When finally introduced, the Renters' Reform Bill will enact significant changes to the lettings process – among others removing Section 21 from the Housing Act 1988 and replacing individual security deposits with a lifetime deposit that follows the tenant from property to property.
The Bill also proposes to make the government's database of rogue landlords and property agents accessible to tenants, agents, landlords, employers and professional bodies.
Possible changes to Capital Gains Tax
According to the Guardian newspaper in November 2020, a tax raid on buy-to-let properties and other forms of wealth could raise up to £14bn to help repair the government’s finances after the impact of the Pandemic on the economy, A report commissioned by the chancellor recommended a major overhaul of capital gains tax. This has yet to be confirmed.
Regulation of Property Agents (ROPA)
The date to introduce legislation which regulates all property professionals has not yet been finalised. The working group for ROPA had already started work on a draft Code of Practice which will be enforced and overseen by an Industry Regulator. Qualifications sit at the forefront of possible regulation; however, no syllabus has been drafted for Property Managers, Letting Agents, Estate Agents, those working in Build to Rent and Rent to Rent to follow.