Lettings News! | 06 November 2023

Abolition of Section 21 to take place

With the Renters (Reform) Bill receiving its Second Reading in the House of Commons on 23 October 2023, the UK Government has responded to recommendations made by the Levelling Up, Housing and Communities Committee (LUHCC)…

…promising to align the removal of Section 21 with court improvements, protect the right of landlords to set rents in line with the market, and ensure the student market is protected with a new ground to guarantee landlords can gain possession each year.

The UK Government recognises a strong, well-functioning private rented sector is necessary to provide quality homes for all renters, and that actively supporting the many good landlords and agents who provide these homes is a vital part of achieving this.

Positive steps

There are several amendments to the Bill, such as speeding up the court process so landlords can quickly regain possession of their property if a tenant refuses to move out, has been confirmed. The abolition of Section 21 and new possession grounds will be aligned with court improvements, which include:

  • Digitising more of the court process to make it simpler and easier for landlords to use
  • Exploring the prioritisation of certain cases including antisocial behaviour
  • Improving bailiff recruitment and retention and reducing administrative tasks so bailiffs can prioritise possession enforcement
  • Providing early legal advice and better signposting for tenants including helping them find a housing solution that meets their needs

Mediation and dispute resolution services will also be strengthened to enable more problems to be settled without resorting to courts, and this service will be embedded within the functions of the new Ombudsman.

Protecting the student market – The student market is cyclical, and landlords must be able to guarantee possession each year for a new set of tenants. The UK Government will introduce a new ground for possession to facilitate this.

Rent increases and rent review clauses – The UK Government is clear that rent should be agreed between the landlord and tenant, stating that they do not support the introduction of rent controls because the evidence suggests that these would discourage investment in the sector and lead to declining property standards.

Scrapping proposals to require landlords to meet EPC C from 2025 in their private rented properties, as announced by the Prime Minister in September. Landlords can still take advantage of the many government-backed schemes available to improve energy efficiency at a time that suits them.

Tax incentives – Regrettably the UK Government did not accept the recommendation to review the impact of recent changes to taxation rules in the buy-to-let sector, with a view to making changes so it is more financially attractive to smaller landlords. They stated that the government keeps the tax treatment of property income under review and any decisions on future changes will be taken by the Chancellor in the context of wider public finances

Source: Propertymark.co.uk



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Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department.

Permitted Charges in accordance with the Tenant Fee Act 2019

The following payments may apply when entering an Assured Shorthold Tenancy:

First month’s rent In advance
Tenancy Deposit 5 weeks, or 6 weeks if annual rent is over £50,000
Holding Deposit One week’s rent, put towards your first rent due
Early termination when requested by the tenant A charge not exceeding the financial loss experienced by the landlord
Default charge for late payment of rent A maximum of 3% above Bank of England base rate, charged when rent is more than 14 days late
Default charge for replacement of lost key or security device Equivalent to cost incurred
Changing the tenancy documents after the commencement of the tenancy, including change of sharer £50 incl. VAT

The following payments may apply when entering a Non-Housing Act Tenancy:

A Non-Housing Act Tenancy is formed when the annual rent exceeds £100,000 or the property is occupied by a Company rather that an individual.

  Inclusive of VAT
Tenancy Setup Fee drafting and execution of tenancy agreement if supplied by us, collecting and holding the Security Deposit as Stakeholder, issuing protection certificates, if applicable, Open Banking type referencing of tenant and initial Right to Rent Checks £360
Check-in Fee checking into the property and reviewing inventory minimum of £130
Tenancy Continuation negotiating and drafting an extension £150
Change of Sharer – Deed of Assignment £120
Early Termination – Deed of Surrender £120
Guarantor Referencing Fee (each): £30
Deed of Guarantee Fee: £50
Late payment of rent 3% above the Bank of England base rate


How to Rent Guides:

This guide is for tenants and landlords in the private rented sector to help them understand their rights and responsibilities. This guide includes a checklist and further detail on each stage of the rental process.

How to rent – GOV.UK (www.gov.uk)


Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department for a full breakdown of costs. Here’s a list of what you can typically expect to pay:

Lettings Service Only: 10%+VAT (12% inc. VAT) – Including rent collection
Letting and Management Service: 16%+VAT (19.2% inc. VAT)
Short Let (less than 6 months): 24%+VAT (28.8% inc. VAT)
Lettings Renewals Service: 8%+VAT (9.6% inc. VAT)
Lettings and Management Renewal: 14%+VAT (16.8% inc. VAT)
Short Let Renewal (less than 6 months): 24%+VAT (28.8% inc. VAT)


Additional non-optional fees and charges

We will not be charging clients fees for referencing, tenancy agreements or deposit registration.

The costs of a clean, EPC, gas safety, EICR, PAT and inventory are set by third party suppliers and prices may vary. The below schedule is to give you an idea of what you would typically pay.

All fees stated are inclusive of VAT (calculated at 20%):

During the tenancy (if required

INHOUS is a member of and covered by the ARLA/Propertymark Client Money Protection (CMP) Scheme.

We are also a member of a redress scheme provided by The Property Ombudsman www.tpos.co.uk.

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