We plan to add here updates about the COVID-19 and how agents can mange and survive it. Check back daily to see the latest. We will put the latest news at the top of this thread to make it easy to find.
9/4/20
1121
Guidance has been produced for different business sectors and how they can work complaint with the social distancing requirements in the work place. It can be found here: https://www.gov.uk/guidance/social-distancing-in-the-workplace-during-coronavirus-covid-19-sector-guidance It includes retail, construction and maintenance in peoples homes.
8/4/20
1117
With a large dose of irony, MHLC have just put out an updated model tenancy agreement, just we we should not be setting up new tenancies unless "reasonably necessary"! They say it is updated for COVID-19 but it still refers to two months notice for section 21 (and rightly so or the landlord would have to give three months' notice even after the temporary rules are relaxed).
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This confirms that the rent announcement by the Government is not a holiday but a deferred payments scheme. IE the tenant does have to pay the rent but can pay it later by agreement with the landlord (and possessions require three months notice and are delayed for three months so even if there is no actual agreement, there is little the landlord can do). https://www.theyworkforyou.com/wrans/?id=2020-03-18.HL2766.h&s=rent holiday#gHL2766.r0 However, importantly, the full rent is legally due.
Whilst on the subject, let us add a comment about rent deferment. It is important to understand three things about this. Firstly any rent deferred is not legally due so will not count towards a ground 8 rent arrears claim. This could delay the point at which the ground 8 trigger happens and therefore delay the possession action. Our advice is that you do not agree to defer but equally you assure the tenant that due to the current circumstances you will not be actively seeking possession for any rent arrears. you might add that "as long as you are convinced they are paying what they can" or other caveats. This better preserves you position. Secondly do not agree deferment without the agreement of landlord and any rent guarantee insurance company. Not getting agreement could invalidate rent guarantee insurance. Thirdly, it would be wise to get the agreement of the guarantor. This is because anything that increases the guarantor's liability could see them off the hook so make sure they agree as a precaution. (The increased risk might be argued to be from allowing thousands of pounds of rent arrears to accrue).
7/4/20
1500
In no way related to Covid 19 but there has been a new N5B court application form issues. Something of an irony when the courts are closed for part 55 claims so you can't use it for three months! Massive warning, it has ballooned to 18 pages and wants copies of all the gas safety records and tenancy agreements the tenant has had. You might need 3 months furloughed to work out the new form. It is likely to increase the cost of possessions as there is a lot more preparation work to be done.
6/4/20
1515
Guidance has been issued for landlords and managing agents of properties in Wales here https://gov.wales/coronavirus-covid-19-guidance-landlords-and-managing-agents-private-rented-sector
Guidance has been issued for tenants of properties in Wales here https://gov.wales/coronavirus-covid-19-guidance-tenants-private-rented-sector
Guidance has been issued for local authorities enforcing housing standards https://gov.wales/coronavirus-covid-19-guidance-local-authorities-enforcing-standards-rented-properties
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Late Friday we spotted MHCLG has changed then notes document they produce to accompany the Form 6A section 21 notice. We don't usually track this document but notices the "last updated" date had changed for the page and this was what changed. The guidance can be found here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878101/Form_6a_Notes_revised_01_04_2020.pdf
3/4/20
1150
New guidance was issued yesterday clarifying that estate agents and letting agents do qualify for business rate relief schemes. Previously they had been on a list of exemptions. Unlike the rates grants, which have a rateable value cap, this benefit is available regardless of rateable value. You will find letting agents listed on page 6 of https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/877758/Expanded_Retail_Discount_Guidance_02.04.20.pdf
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New guidance on EPCs and Coronavirus. As the Government don't think people should be moving then there should be no reason to commission an EPC. If the move is necessary the the EPC can be conducted following social distancing rules. They do say EPCs can be conducted where a property is vacant (only if the move is unavoidable) but should not take place where anyone is self-isolating, sick or shielding. The full guidance is here https://www.gov.uk/guidance/coronavirus-covid-19-energy-performance-certificates?utm_source=28b60fef-9398-4f38-9b6a-519b343effa2&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
1/4/20
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House of Commons Briefing paper on support available during the COVID-19 outbreak. https://commonslibrary.parliament.uk/research-briefings/cbp-8867/
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Guidance for small business grant guidance https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/877286/small-business-grant-fund-and-retail-guidance-v3.pdf
31/3/20
1007
Right to rent checks are modified during the Coronavirus outbreak. You have always been able to use a live video instead of face to face but they are allowing that you see copies of the documents, not the originals (not normally allowed). The full guidance can be read here https://www.gov.uk/guidance/coronavirus-covid-19-landlord-right-to-rent-checks
Note, these checks are temporary and full checks will have to be undertaken when this temporary measure is reversed. As the guidance is that moves should only take place if they are absolutely necessary, there should not be many checks to do. They also reference the fact that some tenants may need a "follow up check" (end of 12 months of their right to rent) and these should be done retrospectively after the temporary changes brought in for COVID-19 have been lifted.
0900
We have updated our COVID-19 documents. If you are a Tenancy Agreement, Management Forms, Support Pack subscriber or you have purchased the live or recorded COVID-19 webinar you will be able to download the updated documents from your account on this web site. The documents and recording can be purchased in the web site shop, follow the link at the top of this page. If you are not sure how to access your online account please ring the office on 01258 85 85 85.
30/3/20
1050
I thought it might be useful to bring all the COVID-19
links together. So here the relevant ones are:
Guidance for landlords and tenants
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/876500/Consolidated_Landlord_and_Tenant_Guidance_COVID_and_the_PRS_v4.2.pdf
Main Coronavirus page
https://www.gov.uk/coronavirus
Support for businesses
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19
Guidance on claiming Universal Credit
https://www.gov.uk/how-to-claim-universal-credit
Guidance to the courts on prioritising applications to adjourn
https://www.judiciary.uk/announcements/coronavirus-covid-19-message-from-the-lord-chief-justice-to-judges-in-the-civil-and-family-courts/
Technical guidance on possessions for landlord (this
contains a few errors so be careful)
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/876502/Technical_Guidance_COVID_19_PRS_v3.pdf
General guidance for landlords and tenants
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/876500/Consolidated_Landlord_and_Tenant_Guidance_COVID_and_the_PRS_v4.2.pdf
Enforcement guidance for local authorities
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/876501/Local_authority_rented_property_COVID_enforcement_guidance_v2.2.pdf
Further guidance on repairs and property visits
https://www.gov.uk/government/publications/further-businesses-and-premises-to-close/further-businesses-and-premises-to-close-guidance#work-carried-out-in-peoples-homes
Stay at home guidance
https://www.gov.uk/government/publications/covid-19-guidance-on-social-distancing-and-for-vulnerable-people/guidance-on-social-distancing-for-everyone-in-the-uk-and-protecting-older-people-and-vulnerable-adults
Guidance on cleaning the home to avoid contamination
useful for contractor visits for cleaning before and after
https://www.gov.uk/government/publications/covid-19-decontamination-in-non-healthcare-settings
Guidance on shared accommodation and possible infection
https://www.gov.uk/government/publications/covid-19-stay-at-home-guidance/stay-at-home-guidance-for-households-with-possible-coronavirus-covid-19-infection
Gas Safe Register advice
https://www.gassaferegister.co.uk/help-and-advice/covid-19-advice-and-guidance/
Guidance on moving home
https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak
Guidance on self isolation
https://www.gov.uk/government/publications/covid-19-stay-at-home-guidance/stay-at-home-guidance-for-households-with-possible-coronavirus-covid-19-infection
Right to rent guidance
https://www.gov.uk/guidance/coronavirus-covid-19-landlord-right-to-rent-checks
Guidance for small business grant guidance https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/877286/small-business-grant-fund-and-retail-guidance-v3.pdf
House of Commons Briefing paper on support available during the COVID-19 outbreak. https://commonslibrary.parliament.uk/research-briefings/cbp-8867/
Guidance on EPCs and Coronavirus. As the Government don't think people should be moving then there should be no reason to commission an EPC. If the move is necessary the the EPC can be conducted following social distancing rules. They do say EPCs can be conducted where a property is vacant (only if the move is unavoidable) but should not take place where anyone is self-isolating, sick or shielding. The full guidance is here https://www.gov.uk/guidance/coronavirus-covid-19-energy-performance-certificates?utm_source=28b60fef-9398-4f38-9b6a-519b343effa2&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
Guidance clarifying that estate agents and letting agents do qualify for business rate relief schemes. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/877758/Expanded_Retail_Discount_Guidance_02.04.20.pdf
Guidance has been issued for landlords and managing agents of properties in Wales here https://gov.wales/coronavirus-covid-19-guidance-landlords-and-managing-agents-private-rented-sector
Guidance has been issued for tenants of properties in Wales here https://gov.wales/coronavirus-covid-19-guidance-tenants-private-rented-sector
Guidance has been issued for local authorities enforcing housing standards https://gov.wales/coronavirus-covid-19-guidance-local-authorities-enforcing-standards-rented-properties
MHCLG notes document to accompany the Form 6A section 21 notice. The guidance can be found here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/878101/Form_6a_Notes_revised_01_04_2020.pdf
Guidance has been produced for different business sectors and how they can work complaint with the social distancing requirements in the work place. https://www.gov.uk/guidance/social-distancing-in-the-workplace-during-coronavirus-covid-19-sector-guidance
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Welcome to week two of COVID-19 lockdown. Over the
weekend MHCLG put out another guide for landlords and
tenants. It can be found here https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/876500/Consolidated_Landlord_and_Tenant_Guidance_COVID_and_the_PRS_v4.2.pdf
Usefully it makes it clear that tenants should expect to
pay their rent and to utilise support available to do that.
It say local authorities should adjust their enforcement
due to the limited ability of landlords to do works. It says
where safe and reasonable the tenant should allow
contractors access to inspect or remedy urgent health and
safety issues. They include a non exhaustive list including
roof leaking, boiler broken, no washing or toilet, fridge or
washing machine broken, security issues and equipment
relied on by a disabled person. This is really helpful and
the link could be emailed to tenants.
Reassuringly the guidance makes it clear that if the landlord
has taken all reasonable steps to comply they will not be
considered in breach (bottom of page 19). Keep a log of
all activities to prove reasonability.
29/3/20
1115
The Welsh Government have issues their own COVID-19
lockdown advice. Ti can be found here https://gov.wales/coronavirus-covid-19-guidance-for-landlords-and-managing-agents-in-the-private-rented-sector-html
28/3/20
1717
Yesterday a new Practice Direction 51Z for the Civil
Procedure Rules (CPR) was issued. It suspends all Part
55 possession claims and enforcement. Part 55 is the
part landlords use for possession under section 8 and
section 21. This applies to enforcement (bailiffs) as
well as current and new court cases. There is a 90 day
suspension from the 27 March. Strangely Practice
Direction says it lasts till 30 October, one month after
the change to the section 21 notices, but presumably as
the suspension is 90 days from the 27 March the October
date is only relevant if they decide to extend the 90 days.
27/3/20
1613
The world moves fast, if not backward! New movement
restriction legislation has been passed. It can be found
here. http://www.legislation.gov.uk/uksi/2020/350/introduction/made
Of note is regulation 6 (2)(L) which explains the reasons people
are allowed out of the house including the "moving house
where reasonably necessary". This is not defined but is the
law (note this is law not advice).
Earlier in (2)(a) leaving the house for essential maintenance
and upkeep is allowed. and (f) allows trades people to travel
to jobs "where it is not possible" for that person to work
from home.
Schedule 2 lists business that must, by law, close. However
Letting agents are not listed but any responsible agent will
minimise any such office activity, especially if it involve staff
and public transport
Interesting these regulation were made at 1300, were laid
before Parliament at 1430 and became law at 1300 (before
Parliament!)
On a lighter note, if you have not seen this it is genius
and worth sharing https://www.youtube.com/watch?v=8KPbJ0-DxTc
Enjoy and have a safe weekend
0810
The court service have suspended all housing possession
cases. This will include all cases where notice has already
been served, expired and a claim has already been lodged
with the court. Full details are here https://www.gov.uk/guidance/government-support-available-for-landlords-and-renters-reflecting-the-current-coronavirus-covid-19-outbreak
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The government have issued clarified guidance about
maintenance workers effecting repairs.It can be found
here https://www.gov.uk/government/publications/further-businesses-and-premises-to-close/further-businesses-and-premises-to-close-guidance Essentially it says the work is allowed if it is
a direct risk to the safety of the household. This will
obviously include doing the gas safety checks. They
should not do works if the household are self-isolating,
shielding or sick unless it is of an emergency nature
(gas leak for example). Shielding is where someone
with a vulnerability lives and is avoid all contact, for
example they are elderly with a chronic lung condition.
The engineer should not do any work if they are showing
any symptoms, however mild. Even if work is done, the
social distancing should be maintained with the residents
staying well away from the contractor and both parties
ensuring cleanliness of the site where the work is being
undertaken before and after the works.
Guidance was also issued about moving house. Essentially
the message is avoid moving if possible and only move
where it is essential. The full guidance can be found here
https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak
If you do have to have a move then social distancing
rules should be maintained as far as possible.
In both of these cases this is very much the advice we have
been giving all week. Avoid where possible, Be careful and
keep your distance, Complete only if necessary, ABC!
26/3/20
1717
Without going into the technicalities of why, the Coronavirus Act means that even though have to serve 3 months' notice under section 21, but the normal notice (now three months) still only remains valid for 6 months giving you one month less to take court action after expiry of the notice. A small trap for the unwary.
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We have just uploaded the latest version COVID-19 documents to the account of subscribers to the Tenancy Agreement, Management Forms, the Support Pack or who attended Wednesday's paid for COVID-19 webinar. The changes are in the documents now call R2-1. There is a new "Agreement to Lease" Document for England that reflects the fact we may not be able to d the move in due to COVID-19 lockdown. We are working on a version for Wales as the Welsh version includes the specified information. We will upload it as soon as possible for clients in Wales. We have also edited the information to Landlords, specifically to ask them not to agree rent deferment without talking to us as it could jeopardise things like rent guarantee insurance. We have also updated the information for agents to explain the section 21 "non changes" explained below.
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We have decided that we will use this space to tell you about updated documents too. Therefore, while we are in a state of rapid change (documents changing daily) we will not email out telling you documents have been updated but we will log them here.
We are getting a lot of calls about "new section 21 notices". As below there is no new notice and secondly the courts are not going to give you possession anyway! Please read the post below to explain why it is not a new notice.
0900 amended 1540
The Coronavirus Act 2020 received Royal Assent last night. You can find the act here (Beware it is 358 pages so a long read!). Section 81 provides protection for residential tenancies though the implementation of Schedule 29.
Please read carefully paragraph 6 and 7 of Schedule 29. IT DOES NOT say that the prescribed forms have been changed. It says the forms are "to be read" as if the references are to three months. We stress this as MHCLG have produce revised versions of their forms 3 and 6A (more later) on the MHCLG web site that no longer match the versions in the legislation. Our advice is stick to the forms we provide as this is what the legislation says the form should say. To show what a mess has been made, they uploaded the revised form 6A into the Form 6. This was amended about 10 o'clock this morning. The new form also makes reference to commencement 27 March 2020 (tomorrow as I write this) when it is already in force! (should that be "farce"?) (This has also now been corrected).
The actual wording of the relevant paragraph for the section 21 notice (para 12(2), 11 is the section 8 notice for Wales as there is no prescribed form for section 21 in Wales) says:
(2)The Schedule to the Assured Tenancies and Agricultural Occupancies (Forms) (England)
Regulations 2015 is to be read, in relation to notices given under section 21(1) or (4) of the Housing Act
1988 during the relevant period, as if in Form 6A (notice seeking possession of a property let on an
assured shorthold tenancy)—
(a)in the section headed “What to do if this notice is served on you”, in the second paragraph—
(i)for “two months’” there were substituted “three months’”, and
(ii)the words “if you pay rent quarterly, you must be given at least three months’ notice, or,” were omitted, and
(b)in paragraph 3, for “two months’” there were substituted “three months’”.
(Apologies for the formatting, copied and pasted). Note the 3 phrases in red text. 1)"is to be read" It does not say the regulations are changed, it says you read it in a certain way. 2) "As if in Form 6A" again is does not say it is change and indeed if it was changed you would not need to read it "as if" as it would be actually changed. 3) Remember we are "read this ", "as if" the 2 months were substituted for three months. Again not changing it but telling you how to read it. The reason is obvious and simple. this change is for 6 months till 30 September 2020. If they changed the prescribed form they would have to change it back again. This way they don't have to make any changes (now or later) and it is just read in a special way.
25/3/20
Today the Government have made two relevant announcements.
Firstly, they have confirmed that the business rate relief announced for restaurants etc will apply to estate and letting agents for 2021. This is very welcome news.
The full article can be found at
https://www.gov.uk/government/news/covid-19-estate-agents-lettings-agencies-and-bingo-halls-to-pay-no-business-rates-this-coming-financial-year.
Secondly, the Government have effectively confirmed the advice we have been giving on moving house. It should be avoided if possible and if it does need to take place it should be undertaken with the "social distancing" rules. This will require a little creativity but it is not beyond the wit of man to come up with ideas.