Inspections and Repairs

NEW as of 13 May 2020, work which cannot be done from home is “encouraged”. The government has issued guidance on working in people’s homes and after a risk assessment, work is now allowed as long as the two meter distance rule alongside other public health guidance is followed. This includes conducting viewings. 

The latest Gas Safe Register guidance for landlords and gas safety records is available here.

We have now created a new page with templates which can be used in email communication with tenants. The templates range from gas safety inspections to replying in relation to rent and more will be added over time.

The government has issued guidance for renters and landlords which is a useful guide and shows legal duties (such as gas safety records) still continue.

In addition, in the announcement about all possession claims being suspended for 90 days, there is a reminder that:

Landlords remain legally obligated to ensure properties meet the required standard – urgent, essential health and safety repairs should be made. An agreement for non-urgent repairs to be done later should be made between tenants and landlords.

Gas Safety Records

Gas Safe Register has updated their guidance for landlords and gas safety records available here.

Landlords should not suspend all gas safety checks at this time as it will unnecessarily put tenants at increased risk, particularly as people are spending most, and in some cases all, of their time at home. Each property should be considered on a case-by-case basis, completing safety checks where tenants permit access and gas engineers are available. If you are unable to secure the services of your usual engineers, you must make reasonable attempts to obtain alternative services. Where you cannot and resource has to be prioritised you can do so, taking into account factors such as (this list is not exhaustive):

• the age and type of appliances;

• previous maintenance/work carried out;

• breakdown history;

• the presence of CO alarms; and

• whether the tenant is considered vulnerable for reasons other than risk from coronavirus (COVID-19).

Electrical Testing

The NICEIC only seem concerned with the disruption for new applications to their scheme and don’t appear to have any advice for those with a legal obligation to carry out an electrical safety test such as landlords with HMO property. Not very helpful!

The advice for a legally required electrical safety certificate in an HMO (basically any dwelling with more than two unrelated sharers and some converted blocks of flats) is the same as gas safety discussed above. Reasonable attempts should be made and log all communications.

If you generally carry out a routine electrical inspection even when not legally required to do so, these may be put on hold during the lockdown period.

PAT testing is not a legal requirement and so may be put on hold during the lockdown.

Fire Alarms

​In most cases the fire alarms which need testing by a landlord are in communal areas. Testing intervals are generally guidance and recommendations.

Attendance to a communal hallway and taking all precautions to avoid other individuals entirely is permitted under the guidance and legislation.

Checking the panel and pressing the test/evacuate button will likely suffice during the lockdown period in our view.

Smoke alarms in individual houses are usually tested monthly by tenants and there is no change to this. Some HMO licenses will require the landlord to test smoke alarms periodically and this work can be undertaken.

If a full alarm test is due on a panel type alarm (where entry into flats might be required), this work can be undertaken.

If a fire alarm panel produces a fault, that should be attended to and is allowed.

Periodic Condition Inspections

All periodic condition inspections should be avoided for the time-being.

Repairs

Repairs can now be carried out as normal although your risk assessment might determine you will only complete essential repairs for the time-being.

Examples of essential (not an exhaustive list):

• severe leak causing damage to property or electrics such as a burst water mains pipe
• broken down boiler (no heating or hot water)
• blocked toilet (in particular if there’s only one toilet)

If the repair is not essential, we suggest a list is created and arrangements are made after the lockdown to get to those repairs completed.

As a reminder, the government have issued guidance which says:

Landlords remain legally obligated to ensure properties meet the required standard – urgent, essential health and safety repairs should be made. An agreement for non-urgent repairs to be done later should be made between tenants and landlords.

Modernisation and Refurbishment

If you currently have an empty property requiring modernisation or refurbishment, any person may attend to carry out the works.

The two meter rule must be observed if more than one contractor attends along with all other public health guidance.

Minimum Energy Efficiency Standards (MEES)

MEES will still continue to apply to existing tenancies from 1 April 2020.

If energy improvement works have not yet been completed to bring the rating to at least “E”, these can be carried out as long as the guidance linked to earlier about working in peoples homes is followed.

Rental Payments and Income

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The government has issued a useful guide for renters and landlords which shows rent is still payable and the various options available.

There is also updated guidance in respect of Universal Credit available here.

We are landlords personally as well as running the Guild and when the COVID-19 government announcements started to really take effect, we were genuinely worried that we could suffer serious losses. We were thinking it could be as bad as 70% income drop for 3 months and were thinking if we achieve 50%, we will have done well.

However, more recent announcements (such as the changes to Universal Credit and support for up to 80% of wages) have calmed us a little. Make no mistake though, there are tough times ahead.

Furthermore, although we had a small number of initial emails about rent, the numbers have been very low so far. Obviously it’s early days but we don’t believe the percentage loss of income will be as bad as we first thought.

Should Landlords and Agents Write to Tenants?

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Possession Notices and Court Action

From 27 March 2020 (and extended from 25 June), all court action relating to possession proceedings are suspended. Although a claim can be made to the court, all possession actions are suspended until 23 August 2020.

In addition, all bailiff enforcement action is suspended.

Read our article about suspension of all court possession claims here. And, for the extension, please see here.

From 26 March 2020, any section 8 notice, section 21 notice and a notice to quit for a Rent Act 1977 tenancy served must now contain an increased length of notice to at least three months.

A section 8 notice is most commonly used for two months or more arrears (ground 8) and often includes ground 10 (any arrears) and ground 11 (persistently late paying the rent). From 26 March, the length of notice must be at least three months (plus four days for service).

A section 21 notice is normally two months and has also increased to three months for any section 21 served from and including 26 March 2020 until 30 September 2020 (or later date if extended).

Read full details in our article here.

Assistance for Self Employed

Many landlords will be self-employed and complete a tax return.

The government has announcement further measure for self-employed.

The pledge comes with some restrictions –

• Claiming the grant is limited to the self-employed earning no more than £50,000 a year to exclude celebrities and the wealthy earning much more
• The payment is capped at £2,500 a month
• Tax filings must be up-to-date, including self-assessments due on January 31. A 28-day window is open for late-filers to catch up

You can also see the government COVID-19: support for business page for more details.

Payments on Account Deferred

Most landlords will be self employed and pay income tax under the self assessment scheme. Payments on account due on 31st July 2020 will be deferred until 31st January 2021. No penalties or interest will be charged for this period. 

This will be applied automatically and no application will be required. 

Minimum Income Floor 

Benefits for self employed individuals are currently capped at a level linked to minimum wage. This will be suspended from 6th April 2020 which means that those on none or low income can claim Universal Credit in the same way as someone who’s unemployed. 

Standard Allowance Increased

The Government will increase the standard allowance in Universal Credit and the basic element in Working Tax Credit by £20 per week on top of any planned annual increases from 6 April 2020. This will apply for a year and all new and existing claimants will be entitled. 

Business Rates Holiday

The government is to introduce a business rates holiday for retail, hospitality and leisure businesses in England for the 2020 to 2021 tax year and affected business should expect a revised bill as soon as local authorities can get them out.

A business is eligible for the business rates holiday if:

• the business is based in England
• the business is in the retail, hospitality and/or leisure sector
• this includes letting agents and estate agents

Properties that will benefit from the relief will be occupied hereditaments that are wholly or mainly being used:

• as shops, restaurants, cafes, drinking establishments, cinemas and live music venues
• for assembly and leisure
• as hotels, guest & boarding premises and self-catering accommodation

No action is necessary to claim the business rates holiday as it will apply to the next bill automatically in April 2020. However, local authorities may have to reissue your bill automatically to exclude the business rate charge. They will do this as soon as possible.

Please see our article on letting agents business rates holiday here.

General Property Management and Other Matters

Tenants Due to Move In

**NEW** under new rules from 13 May 2020, viewings and moving home is specifically permitted in England. Please see here for full details about viewings and moving home.

Council Tax Empty Property

During this coronavirus pandemic, it’s clear there are going to be a number of properties empty which cannot be re-let. Especially during the lockdown period.

Unfortunately, at the time of writing, there has been no recognition of this and council tax will be payable on empty homes depending on the local authority rules.

Please see this article for full details on discounts for second homes and long-term empty properties.

Mortgage Holiday

Government announced there would be a mortgage holiday which would include buy-to-let mortgages.

If you want to take advantage of this, you need to contact your mortgage company directly.

A couple of points worthy of note:

• check with them that if you don’t pay for three months will that go agains credit score?
• also check how they will recoup the missed payments – will it be an increase in premiums going forward or, will be an extension to the term?