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The rate of inflation and its associated escalation of the cost of living inevitably affects the housing market – for landlords and homeowners alike. This is reflected in recent property news headlines …

Buy to let mortgage curbs – more care demanded by Bank of England

Anticipating what it describes as a forthcoming “prolonged period of credit stress”, the Prudential Regulation Authority (PRA) of the Bank of England has urged lenders to exercise greater caution in advancing buy to let mortgage loans, according to a story in Landlord Today on the 12th of January.

The current collection of risk factors – such as higher interest rates, inflationary pressures, and cost of living increases – present new and previously untested stresses with the market for buy to let lending, says the Bank of England. Indeed, similar pressures are also affecting loans to small businesses, unsecured personal lending, and loans advanced for the purchase of commercial property.

Nationwide HPI – December 2022

The Nationwide Building Society has released details of the principal trends in its House Price Index (HPI) as the year drew to a close. In summary, these revealed:

  • a fourth consecutive month in which average house prices fell – with a recorded decline in the annual rate of growth of 2.8% in the final month of the year;
  • this decline has been echoed across all regions of the UK by the time the final quarter of the year came around;
  • East Anglia returned the strongest market performance and house price growth during the year while Scotland recorded the weakest;
  • the gap between the strongest and weakest performing regions was the smallest since the Nationwide started to compile an HPI; and

The figures reveal that average house prices in the UK have seen their biggest decline since the financial crisis of 2008, says the report. Prices at the end of the year were some 2.5% lower than the peak that had been achieved in August 2022.

Commentators ascribed at least some of this slump in prices to a temporary caution on the part of buyers in the initial phases of the current inflationary period. Renewed market activity might be expected as the New Year progresses.

The average UK household will lose over £2,000 in income this year

Citing research from the Resolution Foundation, Landlord Zone on the 10th of January revealed that the average family in the UK is likely to be worse off to the tune of at least £2,000 this year.

The UK is feeling the effects of some of the biggest impacts since the Second World War – the current war in Ukraine, the lingering effects of the Covid pandemic, high rates of government spending and borrowing, and the steadily increasing rate of inflation and the cost-of-living crisis that follows in its wake.

All these pressures are combining to strip an estimated £2,100 from the average family’s income in the year ahead, it says.

Government energy efficiency plans “dead in the water” warn landlords

In a press release on the 9th of January, the National Residential Landlords Association (NRLA) takes the government to task for its failure to provide landlords in the private rented sector with clear and transparent guidance with respect to its plans for energy efficiency.

Despite appeals by landlords for the government to delay the imposition of stricter energy efficiency standards until 2028 – instead of the 2025 target set by the government – there has been no clear response to the landlords’ demands.

Any hope that the government might achieve its aim of bringing all accommodation in the private rented sector to at least a ‘C’ Energy Performance Certificate rating is doomed to failure and likely to prove “dead in the water”, says the NRLA.

Running a buy to let business these days can be a challenge. Any landlord determined to negotiate the shifting sands of the private rental market will also need to keep a close eye on legislative reforms that are afoot.

With that in mind, let’s cast an eye across the horizon of some of the changes landlords can expect in the year ahead.

Renters Reform Bill: will the reforms become clear?

The single biggest development to shape the private rental market for many years to come is the much-vaunted and long-awaited Renters Reform Bill.

The reforms are aimed at making the private rented sector “fairer” for both landlords and tenants. As the Law Society has noted the basic thrust of the reforms was first aired by the government in April 2019. Eventually, a White Paper on the subject – entitled A Fairer Private Rented Sector – was published on the 16th of June 2022.

2023 may yet be the year when some or all of the proposed reforms are finally enacted.

Included in the raft of sweeping changes are the following highly significant moves:

  • repeal of Section 21 of the Housing Act 1988 and its so-called “no-fault” evictions – which will, of course, make it more difficult for many landlords to gain repossession of their let property;
  • removal of landlords’ ability to grant Assured Shorthold Tenancies (ASTs) – by far the most common type of tenancy – and replace them with Periodic Tenancies that grant tenants the right to abandon any tenancy (without paying further rent) after just giving just two months’ notice; and
  • landlords will be restricted to just two rent increases each year – and tenants will be able to appeal against the increases and any other issues with an independent private rented sector ombudsman.

The housing charity Shelter – which broadly supports the reforms – adds that it will also become illegal to reject applications for tenancies from those on welfare benefits, a formal register of landlords will be created, and local authorities will be given greater powers to enforce the rights of tenants.

Clearly, enactment of the current Renters Reform Bill would alter the entire landscape for landlords throughout the UK.

Focus on energy efficiency for commercial properties

Building management specialists the BGES Group on the 22nd of November 2022 reminded landlords that important energy efficiency measures will be extended to commercial properties during the course of 2023.

The current Minimum Energy Efficiency Standards (MEES) that apply to non-residential buildings mean that landlords cannot grant new leases to commercial tenants if the Energy Proficiency Certificate (EPC) is rated less than E – that is, if it is F or G.

With effect from the 1 of April this year, those standards will apply to every tenancy agreement and lease – including existing ones. Not only that but even more stringent standards are expected to be introduced by 2027 when the minimum rating will become C, and again by 2030 when all leased commercial buildings must achieve at least a B rating.

Scotland: New rules for landlords in 2023

Thanks to its independence across many aspects of government, legislation affecting landlords in Scotland differs from the rules binding those in the rest of the UK. As far as Scotland is concerned, therefore, there are two key dates of which landlords must be aware:

Rent freeze and ban on evictions

  • the termination date is subject to review every three months – so the provisions may yet be extended (by up to two further intervals of six months each) until 2024;

Licensing of all short-term lets

  • in October of 2022, the Scottish government introduced legislation requiring all new “hosts” or landlords of short-term lets to apply for a licence allowing them to accept paying guests or tenants;
  • once an existing landlord has applied for the relevant licence, they can continue to let the accommodation while the application remains under consideration – but new hosts or landlords must wait until their licence is in place before they can legally let the accommodation.

Summary

Wherever in the UK you are a landlord with a buy to let business, therefore, there are significant changes on the horizon, and you will do well to prepare for the impact and implications of these well in advance.

Disclaimer: Please note that this information is based on our current understanding of planned legislation. Until legislation is actually passed, further changes can be made. We recommend you always seek professional advice if you have any queries relating to your obligations as a landlord as well as legislation.

Some landlord insurance policies may have certain conditions attached to who you can and cannot rent your property. For example, some policies may specifically exclude cover if tenancies are granted to groups such as students, DSS recipients, asylum seekers, or others.

While this may be perfectly acceptable for some landlords, there may be others for whom it is not. You may be one of them, who may find this condition relating to tenants to be restrictive – impinging on your freedom of choice to rent your property to whomsoever you choose without the added overhead of seeking out new landlord insurance at the same time. It is your business, after all.

There is also the question of unlawful discrimination in the criteria you use for selecting your tenants. Guidance issued by the government in March 2022, for example, reminded landlords that you are breaking the law if you discriminate on any of the following grounds:

  • disability;
  • age;
  • marriage or civil partnership;
  • gender reassignment;
  • sexual orientation;
  • sex;
  • religion or belief; or
  • race

The more selective you are in the categories of tenants you allow, therefore, the more complicated the situation may become and the greater your risk in running foul of the Equality Act’s definition of discrimination.

So, you may be relieved to discover that there are some buy to let insurance providers – such as ourselves at Cover4LetProperty – who impose no such tenant restrictions and who make no such distinctions. We offer cover for DSS tenants as well as for the other categories of tenants where restrictions may also apply. This gives you the freedom to let your property to whom you want.

What does DSS tenant mean?

The acronym DSS stands for the “Department for Social Security” – a government department that was responsible for welfare benefits payments, but which hasn’t existed since the early 2000s.

A DSS tenant is someone who is in receipt of benefits like housing benefit or Universal Credit – for example, someone who is unemployed, disabled, and/or is a single parent.

Some landlords – and some insurance providers – are uncomfortable letting to tenants on low incomes, as they worry that those on benefits may fail to keep up on their rental payments or cause malicious damage. Beware, however, as the housing charity Shelter reminded landlords and tenants in a posting on the 1st of August 2022, it is unlawful to discriminate against a tenant or potential tenant on the grounds of their disability.

Cover4LetProperty and insurance for DSS tenants

The good news is that at Cover4LetProperty, there are no restrictions on whom you let to. We cover all tenant types, including people in receipt of housing benefits, students, or any other group.

You don’t even need to let us know that you have a tenant or tenants in receipt of housing benefits or any other benefits when you get your landlord’s home insurance quote.

With our easy-to-use quote and buy online system, we will compare the market landlords’ insurance to see which solution most suits your own unique requirements. Our service is free and there is no obligation to buy the cover after you have received your quote.

If you prefer to speak to someone to get your let property insurance quote, then please feel free to telephone us on 01702 606 301. One of our friendly, professional team will be delighted to help.

What does landlord insurance for DSS tenants cover?

Our DSS landlord insurance is the same as our standard landlord insurance policy. It offers exactly the same protection – such as cover for the building against the standard risks such as fire, theft, loss, or damage, as well as add-on elements providing:

  • cover for subsidence as standard – a severe problem that is not nearly as widely covered as it may once have been;
  • malicious damage caused by your tenants or their visitors (claim limits apply) – perhaps not something that you may have come across before, but it does happen;
  • contents insurance (if required);
  • compensation for loss of rent and rental income (up to pre-set amounts) if your tenants have to move out to alternative accommodation while repairs are carried out on damage caused to your property by an insured event (fire, flooding, storms, and all those risks covered under your policy);
  • trace and access cover which protects you financially in situations where you may otherwise be facing the repair costs relating to the damage that a tradesman may have caused locating and fixing another problem.

With our landlord property DSS insurance, you can feel confident that your buy to let business is protected.

DSS landlord insurance

As a busy landlord, you may wish to avoid what could be the nasty surprise of finding that your choice of tenant had invalidated your existing landlord insurance.

Opting for a policy where no such DSS tenant restrictions exist is a way of simply and easily removing something else that you need to remember.

Our DSS landlord insurance will give you peace of mind that your business is protected with what we consider to be comprehensive, cost-effective cover.

On a related matter, you might also want to put yourself fully in the picture about any need for unoccupied property cover. This is additional, standalone cover that you might need if your property is temporarily unoccupied no matter what your tenant type or whether they are in receipt of housing benefits.

You may find that typically policies will have a time limit on the number of days (typically 30-45 consecutive days depending on the policy) that your property can stand empty before your standard buy to let cover becomes invalid – and that’s when you may need to consider unoccupied property insurance.

Next steps

If you have any questions or queries relating to a new or existing policy, please do not hesitate to contact us.

A New Year, a fresh start – if only, you are probably saying to yourself!

Towards the end of 2022, we started staring inflation in the face. A recent article noted that inflation is already in double figures, and it is forecast to reach a high of 13% early in the New Year. Some analysts reckon it could rise even higher.

Meanwhile, domestic staples such as sugar, milk and teabags have soared in price – by 11.6% in October 2022 – and contribute to the steadily rising general cost of living.

As winter draws on, probably the most pressing worry for many households – whether homeowners or tenants – is the cost of keeping the place warm. Despite the government’s energy price guarantee, a story by the BBC on the 24th of November explained that a typical household would be facing bills of an average of £3,000 – and the level of available support would be considerably reduced come next April.

Can you make savings?

Against this bleak outlook, the question on so many lips is whether savings in the domestic budget can be made – whether you own your home, are a buy to let landlord, or are renting your accommodation.

It helps no one if you are paying over the odds for the energy you need to consume to keep your home warm. For homeowners and tenants, the savings are obvious and for landlords, any cost-efficiencies in the use of energy will be welcomed by grateful tenants more likely to treat your property with the respect it deserves.

The following are some of the ways you might check whether your energy bills are currently realistic:

Your supplier and the tariff

  • homeowners and landlords might want to check whether switching suppliers could achieve savings – or even whether you can switch to a different tariff from the existing supplier;
  • because the energy market is currently in such a state of flux, it might be difficult to find alternatives and you may need to sit it out for a while longer until the situation becomes clearer;

Benefits and grants

Citizens Advice stresses the importance of both homeowners and tenants checking whether you are eligible for the benefits or grants that may be available if you:

  • have no income or receive only a low income;
  • have a disability;
  • receive a State Pension or over the age for which you qualify for such a pension; or
  • if you are in arrears with payments to your current energy supplier.

Citizens Advice also offers a handy ready reckoner to check your eligibility.

Energy consumption

  • every household is likely to be different, of course, in the amount of energy it consumes in the normal course of events – but, in most cases, even minor changes to habits and use of energy can lead to significant savings;
  • restrict the energy you use on heavy consumers such as washing machines and dryers, for example, by reducing the temperature at which you wash your clothes and by hanging the finished articles outside to dry on those often rare, sunny days;
  • make sure the fridge remains set to the correct temperature – between 3º and 5º – and remember to defrost it regularly;
  • simple measures such as closing interior doors, using draught excluders, and closing curtains can also help to reduce your consumption of energy;

Energy efficiency

  • energy efficiency – especially within the private rented sector – has become a hot topic recently and although improvements require a degree of investment, the savings can be substantial.

Water and sewerage

According to the website Statista, the average British household will have paid £419 for the annual combined water and waste disposal or sewerage bill by the end of the financial year to the end of March 2023.

Being careful about the volume of water you consume will not only save you money but also help you and your family to live more sustainably.

It is estimated that an average household of just four people will use around 600 litres of water every day. Yet there are simple ways to reduce this volume, such as ensuring that you have no leaks through faulty pipes or fittings such as the toilet, hand basins, and sinks. Consider using a cistern displacement device (CDD) to reduce the amount of water you flush each time the toilet is used. And always keep handy the telephone number for your local plumber – so that any emergency is dealt with promptly.

Summary

Getting ready for 2023 almost inevitably involves getting ready for some tough household budgeting.

By paying careful attention to the utilities you use – electricity, gas, and water – you might make helpful inroads into your ever-escalating household bills.

Recent property news headlines have naturally taken their lead from the recent Chancellor’s Autumn statement and commentary on the prevailing economic climate.

The latter throws into starker relief some of the advantages of buying new-build homes, a look at the likely movement in average house prices in the coming two-year period, and a predicted surge in private sector rents soon into the New Year.

Let’s take a look behind some of those UK property news headlines.

Landlords hit by tax changes in Autumn Statement

While it might have gone relatively unnoticed on the day, changes to the Capital Gains Tax (CGT) regime will adversely impact those landlords wanting to move out of the buy to let market.

A story in the Mail Online recently revealed that the average landlord who sells a buy to let property once the full effect of the latest changes to CGT have come into effect stands to lose out some £2,600.

The newspaper noted that the current allowance before CGT needs to be paid upon the sale of a residential property is £12,300. But that this will be more than halved at the start of the new tax year in April 2023 to an allowance of just £6,000.

That allowance will again be halved to just the first £3,000 of profit on the sale of a property in April 2024.

Landlords who make a profit greater than these allowances will pay CGT at the current rate of 18% if they are basic-rate income taxpayers or 28% if they pay tax at the higher rate.

The changes are likely to result in the average landlord losing out on around £2,600 if and when a let property is sold says The Mail.

Green finance options to grow and incentivise new-build buyers

The government is backing plans to expand the availability of green finance options for homebuyers who purchase more energy-efficient new-build homes, reported the Buy Association on the 16th of November.

The initiative will see government funding of up to £20 million to mortgage lenders who offer green finance products that will encourage buyers to reduce their carbon footprint and emissions, thereby also cutting back on their energy costs.

Incentives for the purchase of energy-efficient new-build homes will be targeted towards both owner-occupiers and buy to let property investors.

UK house prices forecast to fall for the next two years

Citing official figures from the Office for Budget Responsibility (OBR), the BBC on the 18th of November, forecast a steady fall in average house prices during the coming two years – after which prices are expected to start rising again.

From now until sometime in late 2024, said the OBR, average house prices can be expected to fall by as much as 9%.

While the fall might be welcomed by first-time buyers who are struggling to get a first foot on the housing ladder, their earnings continue to be under severe pressure from the rising cost of living and the challenges of saving for a deposit.

Furthermore, increases in the mortgage lending rate have also made borrowing that much more expensive. Instead of the relatively manageable rates that have prevailed in the past ten years or so, two- and five-year fixed-rate mortgages currently carry an interest rate of a little over 6%.

Rents to rocket further in early 2023 warns industry figure

As landlords faced with the challenges of running a buy to let business sell up and leave the market and those that stay are faced with ever more expensive mortgage borrowing costs, there is a critical shortage of dwellings in the private rented sector.

A story in Landlord Today on the 21st of November drew attention to the inevitable consequence of such a shortage of supply – escalating levels of rent.

With the supply of private rented property at a five-year low, rents are predicted to surge by as much as an extra 4% in January 2023 alone.

As the seasons change to winter, certain common problems faced by many landlords of buy to let property begin to raise their heads once again.

Citizens Advice claims that damp is a common problem. According to the housing charity Shelter on the 3rd of May 2022, condensation is the most common form of damp in rented properties.

Housing Health & Safety Rating (HHSR)

The risk to landlords is not only the possibility of complaints by tenants but the action that might be taken by local authorities in response to those complaints. If your let property is a House in Multiple Occupation (HMO) or subject to the local council’s selective licensing regime, it is almost certainly going to be subject to an assessment under the Housing Health & Safety Rating (HHSR) system, which may also be used in respect of any property for which the tenant has asked the council to perform or one which the council itself considers necessary.

If you fail to take remedial action on problems raised by an HHSR, the council issue an enforcement notice to ensure that the repairs or alterations are made, warns Landlord Advice UK.

The cost of such remedial action and repairs and modifications made is not an item covered by your landlord insurance – even when provided by buy to let insurance specialists such as ourselves here at Cover4LetProperty.

Condensation and damp

Condensation occurs naturally and happens when warm, moist air, produced by the thoroughly normal business of cooking and bathing or showering, meets with cold surfaces such as exterior doors and windows.

Unless the space inside a building is properly and efficiently ventilated, that damp air finds its way to the nearest cold surface and condenses. When the temperature of the air cools because it has reached the cold surface of an outside window, wall, or door, it condenses in droplets of water. This is the point at which the moist air reaches what is called its dew point.

As the British weather reaches that time of the year once again and temperatures begin to fall, problems with condensation become more pronounced.

The reason for many complaints from tenants and the inclusion of condensation in any HHSR inspection is because of its potential health hazard. Condensation, and the frequently damp conditions it produces, encourages the growth of mould on the walls of infected buildings.

Mould is made up of minute spores which contain allergens (which can give you an allergic reaction), potentially toxic substances and irritants. So, when you breathe in or touch those spores, they can prompt an allergic reaction, leading to a runny nose, skin rashes and red eyes. The spores may also bring on asthma attacks in those suffering from the condition.

The National Health Service (NHS) is unequivocal in its view that mould and damp represent significant health risks, such as respiratory problems, respiratory infections and other breathing problems, asthma, and allergies – to which the young, elderly, those with existing respiratory conditions or asthma, and those with low immune defences may be especially vulnerable.

Dealing with condensation

So, how can you fight these allied enemies of condensation, damp, and mould?

Here are a few tips and suggestions:

  • while condensation, damp, and mould may be responsible for fungal growth, mould and dust motes, the risks might quite easily be mitigated by making sure that the heating system is working efficiently, the installation of extractors fans and by ensuring that windows open properly for greater ventilation;
  • a story in the Guardian newspaper on the 19th of November 2022, suggested that recent amendments to the HHSR rules would place greater responsibility on tenants helping to curb condensation and the growth of mould in rented accommodation;
  • tenants can be encouraged to recognise that bathing, washing, and cooking are some of the principal sources of water vapour in the air – which then condenses – so landlords might ask tenants to devise ways of reducing the volume of water vapour produced;
  • encourage tenants to turn off the shower and taps once they’ve finished using them, for example, and to consider opening a window when they are taking their bath – and, of course, using any extractor fan you might have installed;
  • the same goes for their use of the kitchen, when an open window or use of the extractor fan is going to help reduce the amount of steam inevitably generated in the process of cooking;
  • after doing their washing, of course, your tenants are going to want to dry their clothes, but tell them not to do this by draping them over the radiator, since this produces a considerable volume of water vapour – if you install a vented tumble drier, therefore, you might not only be doing your tenants a favour but also helping to keep your let accommodation free of condensation;
  • more serious problems with condensation – particularly in tracing its causes – may be something on which you need professional advice;
  • depending on the principal causes of the problem, remedial measures might include an upgrade of your let property’s heating system, the replacement of windows and doors, or general improvements in the effectiveness of ventilation in the home;
  • maintaining an even, ambient heat in the property might be especially important in cold weather since it reduces the sharp difference in temperature as air hits cold walls, doors, and windows – and maintaining this ambient temperature might be more important still when the occupants are out at work for most of the day;
  • persuading your tenants to spend money on prohibitively expensive fuel costs may of course be difficult for you to do as their landlord, but the more efficient the heating system you install and the more sophisticated the control systems available to tenants, the more likely are they to play their part in helping to mitigate risks of condensation.

Condensation, damp, and the growth of unsightly and health-threatening mould pose a triple-pronged headache for landlords of buy to let property. But it is the health hazard of condensation and growth of mould that it encourages that is most likely to prompt complaints by your tenants to the local council. The latter, in turn, may then investigate the problem and impose measures you must take to remedy the problem.

Both the government and Citizens Advice stress a landlord’s responsibility for maintaining let property in a good state of repair. Not only is that your legal obligation as a landlord but a regular schedule of regular maintenance and repair is the key to avoiding the disruption and expense of tenancy voids.

Much better to avoid the risk of the let property having to be vacated because it has been allowed to fall into disrepair and a major restoration project is needed to fix it up again.

Since the cost of that maintenance schedule is typically one of the biggest overhead expenses which you are likely to face as a landlord, what might be done to manage and control essential repairs and maintenance?

Weather

Probably the number one enemy for the owner of any buy to let property comes from something as simple and inescapable as the great British weather. Blistering sunshine in summer, pouring rain, winter storms and the risk of flooding, ice, and snow, all take their toll on the condition of the building itself and even its contents.

If you want to manage and control your expenditure on repairs and maintenance, therefore, a major objective will be mitigating the punishing effects of the elements by weatherproofing your let accommodation.

This means maintaining your let property in a good state of repair the full year around.

Areas for particular consideration are:

  • the roof, where any slipped or missing tiles or slates must be promptly replaced;
  • all the rainwater goods – such as gutters and downpipes – which must be kept free of blockages and provide free-flowing drainage; and
  • the external walls – where the brickwork must be checked to have been adequately pointed and remains free of cracks.

Maintaining your property in a good state of repair is also likely to be a condition of the landlords’ insurance you might have arranged through us here at Cover4LetProperty.

Seasons

Your maintenance schedule for weatherproofing the let property also needs to take into account the changing seasons – and the fact that winter conditions may be especially punishing.

This is the time of year when the focus is on the importance of striking the most appropriate balance between the cold and wet conditions outside to the moist and warm conditions that are likely to be present inside. Communication with your tenants on maintaining that balance may be critical.

So, weatherproofing your let property might involve just as much attention to the facilities you are providing your tenants inside the building as to anything you need to maintain and repair outside. This means ensuring that open chimney flues have been competently swept (preferably by a member of the National Association of Chimney Sweeps or the Guild of Master Chimney Sweeps) and that any hot water or central heating boiler has been professionally serviced.

Empty property

A properly weatherproofed property is all the more important when and if your let accommodation is left unoccupied – for example, during the period when former tenants have left, but whilst you are still waiting for new tenants to move in.

This is a time when your usual landlord’s insurance policy may impose severe restrictions that reflect the increased risks of an unoccupied property. Some insurers may even consider your insurance cover to have lapsed altogether after your property has been left empty for longer than 30-45 consecutive days (depending on the insurer in question).

The solution in those circumstances is likely to be purpose-designed, specialist unoccupied property insurance which we can help you arrange.

How often have you overlooked a fire door or grown used to it always being propped open? If you’re like a third of the British public, you’re unlikely to report it as a problem – and the National Fire Door Safety Week that ran from the 31st of October until the 4th of November 2022 aimed to set you straight.

Fire doors are an essential fire safety feature – they are often quite literally life-saving features, so let’s see why.

The importance of fire doors

So, what is a fire door designed to do? It’s meant to keep any blaze within the room where it started. They are potentially life-saving because they protect the occupants of those rooms and leave them an escape route so that others can exit the burning or unsafe building.

Various fire safety laws stress the requirement for well-maintained and properly functioning fire doors in all public buildings, factories, and offices.

As far as landlords and those responsible for fire safety in “multi-occupied” buildings, however, the most important news is the introduction of the Fire Safety Act 2021 and the Fire Safety (England) Regulations 2022 which came into force on the 16th of May 2022.

Fire Safety (England) Regulations 2022

Guidance published by the National Fire Chiefs’ Council (NFCC) encapsulates the key aspects of the new regulations, how they clarify existing fire safety rules for buildings in multi-occupancy – from small to large and high-rise blocks of flats, for instance – and the responsibilities of those who own or manage them.

With effect from the 23rd of January 2023, additional obligations are placed on those designated as Responsible Persons – including landlords, their letting agents, and the managers of blocks of flats.

The NFCC identifies the three main types of multi-occupancy residential building and the fire safety measures demanded by the revised regulations:

Buildings with just 2 or more flats with doors opening onto common areas

  • formulation of a Fire Risk Assessment Prioritisation;
  • the issue of fire safety instructions and information to all occupants of the building; and
  • information for residents specifically about the importance of fire doors;

Blocks between 11 metres and 17.9 metres tall

  • all of the above plus regular checks and maintenance of all fire doors (the standard of fire doors in buildings higher than 11 metres is stricter than the standard for lower-rise buildings);
  • the Responsible Person (landlord, agent, or manager) must carry out checks on all communal fire doors every quarter and further checks on the doors to individual flats at least once a year;

Blocks taller than 18 metres (that is, more than 7 storeys)

  • all of the above, plus a secure “information box” accessible to rescue services;
  • specific standards for the design of and materials used on external walls;
  • maintenance of accurate floor plans and a building plan;
  • maintenance of lifts and fire-fighting equipment; and
  • comprehensive signage of escape routes.

Clearly, the importance of the national Fire Door Safety Week and the enactment of legislation such as the Fire Safety Act 2021 and the subsequent Fire Safety (England) Regulations 2022 have all been thrown into much sharper relief following the Grenfell Tower tragedy that claimed 72 lives in June 2017.

Further reading: Landlord guidance: Fire door safety in HMO’s and flats.

UK property news headlines are inevitably underscored by the adverse headwinds of the underlying British economy – currently challenged by inflation, a rising cost of living, and declining currency exchange rates.

A reduction in Stamp Duty may yet help to promote growth. And house prices continue to rise despite the economic turbulence. The latest news stories note that the soaring cost of living has led to the reappearance of more extended family, multi-generational homes. Interest also focuses on improved energy efficiency savings.

Here is a round-up of some of the latest property news stories.

Stamp Duty Land Tax cut to remain

A headlong bid for economic growth by the then incoming Prime Minister Liz Truss was not at all well received by the markets. Several major political U-turns were made after the fall of her short-lived government.

One of the policies to escape such a reversal, however, was the retention of a welcome cut to Stamp Duty Land Tax – or Stamp Duty as it is more commonly known – explained a posting by Propertymark on the 17th of October.

Thanks to the changes, there is no longer any Stamp Duty applicable on the first £250,000 of any residential house purchase. On the next £675,000 – that is the proportion of the price between £250,000 and £925,000 – Stamp Duty is levied at a rate of 5%. On the next £575,000 – the price between £925,000 and £1.5 million – the tax is 10% and on the balance of any price above £1.5 million, the rate is 12%.

As before concessionary rates are available for first-time buyers who now have no Stamp Duty to pay on the first £425,000 of their house purchase. For any sum between £425,000 and £625,000, they will pay Stamp Duty at a rate of 5%. No concessions are available if the home costs more than £625,000.

UK house prices rise in October despite economic turmoil

Despite the economic woes of inflation, higher costs of living and an unfavourable exchange rate, prices in the UK housing market remain firm, revealed a story in the Guardian newspaper on the 17th of October.

During October, average house prices edged up by a further 0.9% to a new record of £371,158.

Nevertheless, the higher cost of living, increasing mortgage rates, and the withdrawal of many mortgage products from the market have discouraged first-time buyers – amongst whom demand has already begun to dip significantly.

Multi-generational homes are becoming popular as costs soar

A further result of increases in the cost of living and more expensive mortgages seems to be a return to multi-generational households in which an extended family lives under the same roof, according to a story in the Daily Mail on the 14th of October.

The newspaper points out that an estimated two-thirds of homeowners between the ages of 50 and 65 own their homes mortgage-free. By selling that property and pooling resources with younger members of the family to buy a bigger house, several generations can all share the same home.

So appealing has this lifestyle become that at least one developer is now building homes specifically to meet the demands of such multi-generational families.

EPCs – Which areas have the worst rental energy efficiency?

As winter approaches and energy prices rocket, the energy efficiency of rented accommodation becomes a critical factor, explained Landlord Today on the 19th of October, when it identified those parts of the country currently lagging behind in energy efficiency measures.

The very worst areas – measured by the proportion of poorly-rated Energy Performance Certificates (EPCs) – were:

  • Cleethorpes in Lincolnshire, where 80% of the rental stock has an EPC rating between D and G;
  • Barrow-in-Furness in Cumbria, where 79% of rented homes are rated D to G;
  • Westcliff-on-Sea in Essex and Grimsby in Lincolnshire, where 72% are rated D to G; and
  • Accrington in Lancashire, where 71% of the rented housing stock is rated no higher than D to G.

The government has already warned landlords that by 2025 it expects all rented property has an EPC rating of at least a C or above.

Buyers of new builds will welcome a raft of assurances and protective measures that came into effect at the beginning of October.

The good news is delivered by the formation of a government-backed New Homes Quality Board (NHQB). This independent body puts in place a code of practice for the resolution of disputes between buyers and housebuilders on quality issues with newly built homes.

Since the NHQB will be looking at all new build homes it may be expected to help reverse the exodus of landlords from the private rented sector and encourage them to invest with greater confidence in homes that have just been built.

The New Homes Quality Board

The NHQB of course recognises that the majority of homes in the UK will be completed to a satisfactory standard that achieves the quality expected by a demanding market.

Despite that, the industry is keen to demonstrate that it is on the side of the buyer if things should go wrong. That is reflected by the fact that more than 100 housebuilders and developers have now formally registered to work in concert with the NHQB.

Working with the newly formed NHQB, builders and developers will now have that added incentive to respond quickly whenever things are on the brink of going wrong so that homebuyers’ concerns and issues are greeted with a rapid and helpful response – if necessary, with the redress of an independent NHQB hearing at the end of the day.

In this way, it is argued, the standards and quality of construction, not to mention the timeliness of customer service within the building industry, will be steadily improved.

A New Homes Quality Code will ensure that every buyer has a two-year warranty on a new build property and that customer service remains first and foremost every step along the way – from an initial viewing of a new home through to the last visit to the sales office.

New Homes Ombudsman Service (NHOS)

In parallel with the NHQB a further independent organisation – the New Homes Ombudsman Service (NHOS) – has also been set up to provide an ombudsman service capable of resolving and enforcing breaches of the New Homes Quality Code.

The new ombudsman service has set out the six simple steps by which it will tackle housing quality issues:

  1. the homebuyer lodges a complaint or raises an issue;
  • the homebuyer is invited to provide evidence in support of the complaint or issue;
  • the complaint or issue is referred in the first instance to the appropriate housebuilder or developer;
  • the New Home Ombudsman studies and takes a preliminary view on the complaint or issue – calling for further evidence as and when that becomes necessary;
  • a draft decision is issued by the Ombudsman; and
  • in the light of any comments or counterarguments it receives, the Ombudsman publishes a final decision.

Working in tandem, therefore, the NHQB and the NHOS are committed to raising buyers’ confidence and trust in the standards of quality achieved by the builders and developers of new homes in the UK.

Those buyers are likely to include a fair share of buy to let landlords who choose to invest in new build property – and, so, contribute to the provision of private rented accommodation.