Landlords' relief at new rent in advance rule

Landlords with existing tenancy agreements which have rent payable in advance can continue collecting it until the tenancy ends.

Under the Renters’ Rights Bill, they won’t be allowed to add clauses into tenancy agreements that require rent to be paid in advance, but a new government amendment has introduced transition arrangements for existing tenancies that were in force on the start date.

The Independent Landlord Suzanne Smith believes this avoids a lot of hassle for landlords and letting agents. “However, this is only for the transition,” she warns. “Tenants will still be able to pay rent voluntarily in advance, but landlords can’t make them do that by having a clause in the agreement once this all comes into force.”

Appointed

The government has also clarified exemptions for student accommodation; that any property which has someone appointed to act on the landlord’s behalf or who is managing the property for the landlord falls outside the Housing Act 1988 (and hence the bill) if it is let to students who are in a specified educational establishment and the person acting or managing is a member of a code of practice approved under s233, Housing Act 2004.

The code means developments of more than 15 rooms which, according to property lawyer at Spector Constant & Williams, David Smith, creates a potential bonanza. He adds: “There are plenty of operators who are in the student space who are not code members and may now scramble to join up to gain these exemptions.”

Consulted

Ahead of the bill’s report stage in the Lords, Sean Hooker, head of redress at the Property Redress Scheme, tells LandlordZONE: “A lot of the amendments very much look like the government have consulted with peers who were either going to propose their own amendments or have done so and will withdraw theirs. This could speed up the process, but the odds are shortening on it overrunning until after recess.”

Civil servants in the housing department have just launched an indefinite ‘work to rule’ campaign after being told they cannot work from home, which could affect the bill’s progress.

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