UK Landlord Forum / Life

I don't understand a couple of the tenant fee changes:
1) it says that we can't take money from the tenant for referencing. However Openrent still seem to be charging the tenant the 20 euros for the referencing. is this ok?
Also, have the section 21 changes even come into effect? When are they due?
2) Once the section 21 changes come into effect, I know you can't ask a tenant to leave for no reason - but is this only during the fixed term contract? after the end of the fixed term contract are the landlords obliged to allow it the tenancy to continue?

Quote from: badhairday on June 01, 2019, 03:25:53 PM
I don't understand a couple of the tenant fee changes:
1) it says that we can't take money from the tenant for referencing. However Openrent still seem to be charging the tenant the 20 euros for the referencing. is this ok?

No.

Quote from: badhairday on June 01, 2019, 03:25:53 PM
Also, have the section 21 changes even come into effect? When are they due?

What section 21 changes?

Quote from: badhairday on June 01, 2019, 03:25:53 PM
after the end of the fixed term contract are the landlords obliged to allow it the tenancy to continue?

That's already been law since oh 1989?

Hi KTC,

What? Can you point me to the clause to which you refer from 1980s?

As far as i understand it, in the 1990s, new laws were drafted making it much easier for a landlord to END a tenancy, which part explains the explosion in BTL. Landlords have been able to terminate the tenancy at any time, even before the end of the fixed term tenancy using a section 21 notice. There are plans to abolish section 21 notices so that tenants cannot be evicted without grounds (non-payment of rent etc). My question related to the timeframe for this new law.

As for the referencing fee question, I specifically mentioned Openrent because the way they do it a bit odd. The tenant has to pay directly to the referencing agency and so the landlord/openrent do not charge the tenant for the referencing.

Quote from: badhairday on June 01, 2019, 07:22:07 PM
As far as i understand it, in the 1990s, new laws were drafted making it much easier for a landlord to END a tenancy, which part explains the explosion in BTL.

Well, the Housing Act 1988 and the amendments from the Housing Act 1996.

Quote from: badhairday on June 01, 2019, 07:22:07 PM
Landlords have been able to terminate the tenancy at any time, even before the end of the fixed term tenancy using a section 21 notice.

That's absolute rubbish I'm afraid. The clue is in the name. The only way a landlord can unilaterally end a fixed term tenancy early is if there's a break clause, and the landlord give notice in accordance with that break clause.

However! If a fixed term assured (shorthold) tenancy ends otherwise than by an "order of the court", or "a surrender or other action on the part of the tenant (i.e. a tenant's break notice)", then per section 5 of the Housing Act 1988, a periodic tenancy will arise deemed granted by the landlord to the tenant. A landlord cannot legally prevent such a statutory periodic tenancy from arising on the end of a fixed term, it's occurrence or otherwise depends entirely on the action of the tenant. Basically, if they stayed living in the property when the fixed term end, the statutory periodic tenancy will arise.

While we're here, a section 21 notice does not end an assured shorthold tenancy. Its only legal effect is that on its expiry, a valid s21 notice give the landlord the ability to go to court for an order for possession. The tenancy will only end with the grant of such a possession order, and then with the execution of said order by a County Court bailiff or High Court Enforcement Officer.

Quote from: badhairday on June 01, 2019, 07:22:07 PM
There are plans to abolish section 21 notices so that tenants cannot be evicted without grounds (non-payment of rent etc). My question related to the timeframe for this new law.

I don't think the consultation have even started yet. Don't expect it to pass never mind come into effect before the end of the current parliament.

Quote from: badhairday on June 01, 2019, 07:22:07 PM
As for the referencing fee question, I specifically mentioned Openrent because the way they do it a bit odd. The tenant has to pay directly to the referencing agency and so the landlord/openrent do not charge the tenant for the referencing.

It's illegal for the landlord to require the (perspective) tenant to contract with a 3rd party, so requiring them to pay for a reference is prohibited.