A change in the regulations governing relationships between landlords and tenants has now come into effect. This might affect the way in which you are able to give notice to your tenants, and as a result, it is something you can’t ignore. Here is what you need to know:
Amended Section 21
On 1 June 2019 an amended form 6A came into force.
On 7 May 2019 the Assured Tenancies and Agricultural Occupancies (Forms) (England)(Amendment) Regulations 2019 were made. These Regulations amend Form 6A (Section 21 notice) largely due to the changes coming into force under the Tenants Fees Act also on 1 June
At Page 1 of the form it now states that the form should not be used: (f) where the landlord is prevented under Section 17of the Tenant Fees Act 2019. (Note: No section 21 notice may be given in relation to a tenancy where a landlord has breached section 1(1) or Schedule 2 of that Act so long as all or part of the prohibited payment or holding deposit has not been repaid to the relevant person or applied to the rent or deposit with the consent of the relevant person.)
In plain English, this means that where landlords or their agents have charged tenants fees which are not permitted under Schedule 1 or 2 of the Tenants Fees Act, they will not be permitted in law to use Section 21.
A permitted payment under Schedule 1 includes:
Tenancy Deposit – 5 weeks deposit where the annual rent is £50,000 or less and 6 weeks where it is above that figure.
Holding Deposits – limited to 1 weeks rent
Payment in the event of a default – the tenancy agreement must contain a provision allowing this charge and it can only be applied for the loss of a key or other security device, or where rent is more than 14 days late. In order to recover the payment, the charge must be reasonably incurred and (for loss of keys) supported by some form of evidence.
If you are unsure as to the effect this will have on your business, please get in touch with us via the details on this website. We will be happy to set up a meeting where one of our expert solicitors can explore the impact of these changes on the way you manage your properties, ensuring you are not putting yourself at any undue risk.