The Queen’s Speech 2017 – Update for Landlords
by Patrick Garratt - 25th June 2017
Draft Tenants’ Fees Bill
The consultation period on this proposal ended on the 2nd June 2017, just before the General Election was held. The new minority Conservative Government has confirmed in the Queen’s speech 2017 that they intend to move forward with a proposed ban on landlords and letting agents charging fees to tenants for the setting up of tenancies.
It is still the government’s intention to enable landlords and agents to charge tenants a security deposit, holding deposit and default fees, such as late payment fees. The government also intends to cap holding deposits with a limit of one week’s rent and security deposits at no more than one month’s rent.
The government intends the measures to “make the private rental market more affordable and competitive”.
The NLA chief executive Richard Lambert advises:
“Whilst capping them may reduce the move-in costs for some, it will increase the temptation for others to view the deposit as the last month’s rent, leaving landlords out of pocket at the end of the tenancy if, for example, the property has been damaged.”
He also pointed out that larger deposits are sometimes required by landlords to give them confidence to let to ‘higher risk’ tenants, This could also have the unintended consequence of deterring them from offering their property to those likely to be struggling with affordability in the first place.
The proposed legislation is being introduced as a draft bill which means it will take longer than expected to pass through the House of Commons and Lords. This proposed legislation will only apply to England.
Immigration Bill
As part of the Brexit agenda, the European Communities Act will be repealed. This leaves a gap for new legislation to cover the terms under which people from Europe will be allowed to enter the UK. The government suggests that the proposals will allow for the ‘brightest and the best’ to enter the UK.
It is also possible that this legislation will update the Right to Rent scheme.
Smart Meter Bill
According to the Government, in order to help deliver more transparent energy bills and allow households to monitor their use effectively, the Bill will:
- Extend, by five years, powers to make changes to smart meter regulations, and make sure the roll-out is delivered effectively.
- Introduce a Special Administration Regime to ensure the continuing operation of the national smart meter service if the provider becomes insolvent.
- Deliver the manifesto commitment to ensure that “smart meters will be offered to every household and business by the end of 2020, giving people control over their energy bills that they have not had before”.
Other proposals
The following have been put forward by the government as aims but have not be included in details of any Bill as yet:
– “We will consult and look to take action to promote transparency and fairness for leaseholders. We will look at the sale of leasehold houses and onerous ground rents, working with property developers, the Competition and Markets Authority and others as outlined in the Housing White Paper.”
– “In the housing market we will look at ways we can streamline the home buying process so it is cheaper, faster and less stressful for people when they make the biggest purchase of their life.”