The Importance of Tenant Referencing
As the landscape of the private rental sector changes with imminent changes to be introduced by the Renters’ Rights Bill, the way landlords and letting agents assess prospective tenants will be impacted . Ensuring a fair, efficient, and compliant tenant referencing process will be more important than ever.
How the Renters’ Rights Bill Will Change Tenant Referencing
The Renters’ Rights Bill introduces significant reforms aimed at improving tenant security and fairness in the rental market. These changes will directly impact how tenants are assessed, requiring referencing providers and letting agents to adapt their processes.
Overview of Landlord Repossessions
The UK’s private rented sector has faced significant challenges in recent years, with economic pressures driving many Landlords to the brink of financial crisis. A combination of rising interest rates, inflationary pressures, changes in tax regimes, and legislative requirements have lead to an increase in Landlords being repossessed by mortgage lenders.
For Landlords operating on minimal profit margins, additional costs have become unsustainable. Even those with fixed-rate mortgages are not immune, as they faced higher rates when deals come to an end. The inability to refinance at affordable rates has left some Landlords with no choice but to sell their properties or face repossession.
For some, the cost of compliance has outweighed the potential returns, leading to decisions to exit the market altogether or default on mortgages due to financial strain.
The numbers of landlord repossession actions for all court stages have increased compared to the same quarter of last year (July to September 2023).
The Responsible Pet Owner
With the onset of the Renters Rights Bill becoming law at some point this year, one of the prominent area relates to Pets, reported by the press as a total ban on landlords being able to refuse a tenant with pets.
In fact, the Bill places a great deal of ‘responsibility’ on the pet owner.
I am the proud owner of two kittens Zeus Maximus and Apollo Aurelius. Taking on these little ones demonstrates exactly what a ‘responsible pet’ owner needs to deal with.
A Pet Profile provides an overview of the type of pet that will be living at the property and will give the landlord an idea of whether or not consent will be granted.
1. Has the pet owner registered with a vet?
2. Does the pet owner have insurance cover for any unforeseen medical circumstances?
3. Have the pets in question - generally cats and dogs, kittens and pups been. Micro-chipped?
Something else to think about for 2025
At the moment the focus is well & truly on the Renters’ Rights Bill and for good reason given the impact that such a significant piece of legislation will have on the Private Rented Sector. However, there are other crucial pieces of information / updates that property professionals need to be aware of.
Land Registry Fees
The Land Registry is a cornerstone of land registration in England & Wales, relied upon by many different Stakeholders as a source of information. From Monday 9 December, 2023, fees for HM Land Registry information services increased for the first time in more than 10 years.
The fee will increase by £4, for example:
inspection of an individual register or plan (digital copy) increased from £3 to £7
official copy of an individual register or plan (digital copy) increased from £3 to £7
registration, cancellation or rectification of an entry per name (Agricultural Credits Service or application) increased from £1 to £5