Section 21 Accelerated Repossession will be scrapped

The new government's Queen's Speech included the scrapping of Section 21 Notices which give Oxford landlords access to a mandatory and accelerated process for achieving vacant possession through the courts.

Instead Oxford landlords will be forced to rely on the longer-winded Section 8 Notice which includes greater discretion for the courts, albeit with some mandatory criteria defined.  This author worries that without reform of the courts and the creation of a dedicated Housing Court, the already congested courts will not be able to cope, causing landlords greater losses and much longer periods before they can regain possession of their property.

The Section 8 process is well-established and broadly fit for purpose provided that landlords can secure early court dates.  Costs of Section 8 are typically higher, and landlords have to represent themselves or hire a solicitor, which further increases their costs.

Unfortunately Section 21 Notices which have come to referred to as 'no fault evictions' has been abused by a few rogue landlords, and those few bad apples have ensured that the vast majority of landlords who have used the process correctly now have to pay the price.  The worst hot spots for abuse of Section 21 are Manchester, St Helens, Liverpool, Birkenhead, The London boroughs of Croydon and Central London, followed by Stratford, Bromley, Clerkenwell and Shoreditch make up the top 10.

Boris this is what Oxford Landlords would like for Christmas

Oxford landlords have been selling more of their properties than investing in new properties, despite Oxford being identified as THE top UK City for buy to rent investment returns.  With demand from Oxford tenants continuing to rise year on year, and supply of good quality private rented homes failing to keep up with demand, it seems certain that rental yields will outstrip inflation over the coming 3 years.  So why are landlords divesting?

It is the cumulative impact of legislative changes enacted by the government - a stamp duty surcharge, taxing new buy to let investments, the reduction of tax relief on mortgage interest and most recently, the tenant fee ban which has made agency more expensive.

However, whilst these changes have undermined investment returns, most landlords are still making strong returns overall.  But, Oxford's landlords are being made to feel the 'bad guys' by a political and media narrative that casts them as the bad guys and their tenants as an exploited minority.  The truth across Oxford is that the vast majority of landlords provide good quality and value reliable tenants.

The new government needs to stop interfering with the private rented market, and needs to take some specific actions to re-invigorate landlord investment if they are to avoid worsening an already serious local housing crisis.  So what do Oxford landlords want for Christmas from Boris?

Stamp duty reform
The government should repeal the stamp duty surcharge on buy to let purchases, to remove this barrier to new investment in private rented properties.

Reform not scrap Section 21 Notices
The proposed changes that will remove the Section 21 Notice forcing landlords to rely on Section 8 notices is short-sighted and punishes all landlords for the failings of a tiny minority of rogue landlords.  Instead the accelerated prepossession should be retained, but better enforced with clarification to offer tenants better protection from non-fault eviction.

House building blitz
Oxford has suffered over the last decade from a dearth of new affordable housing being built to offer a true alternative to renting for some tenants.  This is now THE biggest challenge facing local government and Parliament, without new affordable housing stock coming on stream, house ownership will remain a pipe-dream for many of the City's residents.  Until then, the city will remain reliant of a robust and vibrant private rented sector.

The jury is out on whether the election result will be positive for Oxford's landlords or merely the least-bad outcome.  But all are united in hoping that government will take time to properly consider the big picture and listen carefully to the industry experts so as to avoid negative consequences that have resulted from interference in 2019.

Oxford Landlord Rents to Rise

The Royal Institution of Chartered Surveyors (RICS) reports a fall in the stock of rental properties in the UK, and says this has now been a trend over the last three years. 

29 per cent of contributors report a fall in landlord instructions in November.  Over the same period, tenant demand remained steady at the national level. RICS expects rents to rise over the coming quarter. 

Letting agents consulted by the RICS have indicated a forecast of rent rises equivalent to two per cent over the coming 12 months. 

Over the longer five-year horizon, rental growth projections stand at more than three per cent per annum - this is outstripping sale prices which are seen rising by around 2.5 per cent annually.

This trend of sustained high demand from tenants and reducing supply resulting from landlords reacting to hostile government policy in the areas of tax relief, stamp duty and the ban on fee charged to tenants.  If, this anti-landlord focus continues, this author predicts a perfect-storm for people who rely on the private rented sector.

These pressures are particularly acute in Oxford, where high house prices mean that 28% of the population depends on good quality rented homes.  The tragedy is that as rents rise above inflation and above house prices, the investment returns should be attracting new landlords to invest, but to date this has not reversed the landlord exodus.

Our next government needs to think very hard before they intervene further in this fragile market, as they risk creating a rental housing crisis to sit alongside the housebuilding crisis, which is already an acute pressure in Oxford’s housing market.

Oxford best city for buy-to-let investment

Aldermore the bank has published a report looking at the best Cities in the UK for buy to let investors and Oxford is confirmed the best city for landlords in the UK.

The city emerged top of the 25 analysed in the bank’s Buy to Let City Tracker.  Manchester, Edinburgh, London and Norwich respectively joined Oxford to make up the top 5

Oxford’s advantage for private landlords was that it has one of the largest private sector rental markets in the UK, with 28 per cent of all residents renting privately.

Average property prices have grown at 4.8 per cent a year over the past decade, the city’s average monthly rent for a room was £596, and it has low levels of void when compared to other Cities.

Five measures of buy-to-let investment desirability were assessed: Average total rent;  Best short-term returns through rental yield; Long-term return through house price growth over the past decade: Lowest number of vacancies as a proportion of total housing stock; and, the percentage of the City’s population renting.

Derby, Sheffield, Bradford, Newcastle and Wolverhampton were the lowest ranked Cities in the report.

The Aldermore report confirms feedback that I have given to Oxford landlords over the last few years, that their long-term investment returns are strong particularly after 5 years of property ownership.  Whilst property values have rather stagnated over the last several years in Oxford, the long-term returns remain robust and compare favourably with alternative investments.

However, with planning approvals and new build supply failing to improve, it seems likely that the proportion of Oxford residents renting will only rise further.  This seems certain to put upward pressure on rents, improving landlord returns, but not helping first time buyers to move into their first home.  With Government policy dissuading landlords from buying new properties, I believe Oxford is heading for supply constraint for good quality private rented properties.  Landlords with available funds would be well-advised to invest further to benefit from this supply constraint.

Known new legislation in 2020 for Oxford's landlords

With 10 days to go until the General Election all eyes are on which party will form the next Government, it is easy to lose sight of the new legislation what is already due to become law in 2020.  The top 4 known changes that Oxford landlords need to focus on for 2020 are:

1) Minimum energy efficiency standards (MEES)

The minimum energy efficiency standards (MEES) came into effect in April 2018, stated that new tenancy agreements and renewals (other than some HMOs such as bedsits) must have an energy performance certificate (EPC) rating of E or above.

By April 1, 2020, however, the regulations will be extended to also cover existing tenancies. This means that, under the new legislation, properties with an energy performance certificate (EPC) rating of F or G will be classed as unrentable from that date on.

It is worth noting that there are already whispers that these standards could rise again in another couple of years, at which point ‘D’ will be the minimum EPC rating, so it’s worth getting your properties up to scratch now to prevent even more work later.

2) Electrical installation checks

Last January, the Ministry of Housing, Communities and Local Government (MHCLG) announced that mandatory five-year electrical installation checks on private rented housing in England would be introduced over a transitional period of two years. The implementation date has not yet been clarified so, it is still unconfirmed as to exactly when this will begin.  This author believes that it is likely that the legislation will be introduced  in 2020.

3) New tax relief rules

In 2015, the government made property rentals a much less viable option for many when they announced that Mortgage Interest Rate Relief was to be phased out.

From April 2020, Oxford's landlords will receive a 20% tax credit on their interest payments; not great news for those in the higher tax bracket – which could catch more landlords as they now have to declare the rental income that they previously used for interest payments.

Many landlords are now setting up limited companies when buying new rental properties in order to avoid the higher individual rates.

4) Changes to Private Residence Relief

From April 2020, changes to Private Residence Relief will result in Oxford landlords losing nine months’ worth of Capital Gains tax relief when they come to sell.

Currently landlords can claim Private Residence Relief for all the time they lived in their property before letting it to tenants, plus an extra 18 months after moving out, which will be reduced next April to the time they lived in their property plus just nine months post-moving out.

Landlords who rent out a property that was once their main home will lose the £40,000 worth of lettings relief they currently enjoy scrapped rom April onwards. Landlords who share an occupancy with their tenants will still be able to claim. And, the deadline for payment of  Capital Gains Tax  will be reduced to within 30 days of the completion of the sale.

It seems almost certain also that during 2020 Section 21 Notices that allow landlords to access an accelerated process to regain vacant possession of their properties will be abolished.  Whilst Section 8 Notices will still be available to landlords, there is widespread concern about the long-winded process to get a confirmed court date, and the fact that many Section 8 criteria allow for court discretion.

Whichever party wins the 2019 General Election, the private rental sector will continue to experience reform.  Cynics would claim that is merely a reflection of the parties trying to ingratiate themselves with the millions of tenants who rely on private rented accommodation.  However, I regard that as over-simplistic.  Some reform that seeks to professionalise the sector and improve the quality of accommodation is to be welcomed.  Where Government intervention is less welcome is in factors that seek to artificially impact the functioning of the market, and which appear to seek to punish residential landlords.  Such measures risk undermining the supply of good quality private rented homes at the very time when peak demand is being reached.

If Oxford's landlords are forced to sell their properties due to unviable financial returns, then rents will rise further as the supply of good quality rented homes reduces.

Oxford house affordability improving, but slowly

In Oxford, the average home now costs £405,600 according to Zoopla, which is 11.9 times the average single person income of £33,900.  With Oxford house prices static in Oxford according to Zoopla, average wages are now outstripping house prices.

This still places Oxford as the 3rd least affordable City in the UK behind London (13.1 times average income) and Cambridge (12.2 times average income).

So why is Oxford property so expensive?  Some factors are shared by Cambridge - it's a World famous centre of learning, with beautiful historic architecture and positioned well for commuting to/from London and for accessing Cotswold chocolate box villages and countryside at weekends.

But that's not what's driving the high cost of Oxford homes.  The real cause of high house prices is the lack of new starter homes and down-sizer homes being built.  Just 2% of housing is new build, and most new build relates to larger 3, 4 and 5 bed properties targeting affluent families.

Too many Oxford retirees are living in homes that are too large for them because there are no suitable properties for them to down-size into.  At the other end of the scale starter homes are virtually non-existent, forcing many affluent young professionals to rent homes for longer than is necessary.

I am asked daily by Oxford prospective home buyers 'will prices crash with Brexit?'.  My current response is there could be a short-term dip, but I can't see how prices will crash.  Demand for homes in Oxford is high, and sellers expectations of value are also high.  Most sellers will stay put rather than sell at a low price, and if demand surges there will be lower supply and higher demand.

And, the fundamentals will be the same - too few starter homes, too few down-sizer homes and new supply languishing at the low single digit percentage of supply.

Oxford homes owners and landlords may need to weather some 'headwinds' but their assets remain valuable over the medium to long-term.

Fewer Oford homes are finding buyers below asking price and after longer on the market

The Oxford housing market is struggling-on despite the daily gloom-laden newspaper headlines.  But, many sellers are failing to find a buyer.  Why is that?

The number of completed house sales is down 8% over the last 12 months and this is the second year in succession that the total number of houses sold has fallen.  1.909 properties sold in Oxford over the last 12 months.  Are there fewer buyers? Or are buyers waiting to see if Brexit results in a price crash enabling them to buy more with less?

Normally when supply outstrips demand prices fall.  But, over the last 12 months Oxford prices are reported as being 1% higher than 1 year ago.  Not the spectacular rises Oxford homeowners have come to expect, but not the falling values experienced in London.

So Oxford asking prices have held-up well, and Oxford has resisted negative house prices.  So where is the 'but'?  Well it is pretty hard to find, but I have done some digging and spent a little time researching Land Registry data.  When a house sells and the new buyers register their purchase the Land Registry data is updated confirming the agreed price at which the property sold.  It makes interesting reading.

On average Oxford homes are selling around 3.7% below their asking price.  But, there is a quite wide variation depending on postcode.  The best performing is OX4 with sold properties completing c 2.4% below average asking price, and the worst performing is OX5 with completed sales 4.8% below average asking price.  OX2 is discounted around 3.2%; OX3 3.7% and Ox1 3.8% respectively.

On average across Oxford achieved sales price is £15,600 below asking price with the spread from c£17,600 in OX5 to c£9,000 in OX4.

So the message is clear, whilst asking prices are holding firm, the Oxford home owners who are selling successfully are open to negotiation with the buyer.  With average time on market exceeding 17 weeks, it pays to be savvy!

The question I am asked most frequently is 'Bill, what will happen to Oxford house prices after Brexit?'  To which the only valid answer is 'I don't have a crystal ball!'  But, the fundamental drivers of Oxford's high house prices will not be altered by Brexit - there are virtually no new affordable homes being built in the City, and demand for private rented homes and owner-occupied homes continues to outstrip supply.  Whilst Brexit has reduced demand from outside the UK particularly from people visiting the City to study, domestic demand has largely filled this void, and there are signs that the Oxford has reasserted itself as one of the World's great learning centres with foreign students returning to the housing market when compared to 2017/18.

It seems certain that we are set for political and economic turbulence over the coming 6 months, but in the medium to long-term Oxford will remain a great place to live, work and invest.

Landlords having to wait 22.5 weeks for a Court hearing

According to the Residential Landlord Association, it now takes private landlords an average of 22.5 weeks from making a claim to the courts for a property to be repossessed to it actually happening, up from 21.6 weeks since the beginning of the year, new data shows.

One major problem causing the backlog is that the courts are unable to cope when landlords look to repossess properties for legitimate reasons using a Section 8 Notice.

The Government is currently in consultation on proposals to scrap Section 21 repossessions which give landlords access to an accelerated repossession.  If Section 21 is scrapped, there will be a significant increase in cases brought to the courts via Section 8 and the Government MUST publish plans for court reform to create more capacity and bring the current 22.5 weeks to 8 weeks or less.

The Government is being bullied by organisations such as Shelter who have adopted the banner ‘No-fault evictions’ and made that banner synonymous with Section 21 Notices.  This is just wrong.  If a few rogue landlords are finding ways to end tenancies for unlawful or unreasonable reasons, it is that which should be the focus of Government attention and not the accelerated repossession that 95% of landlords and their lettings agents use properly and as originally intended.

Without Court reform, this misguided new legislation will result in further Court congestion, a flood of Section 8 notices and landlords who have to wait 30 weeks or more to repossess their properties for legitimate reasons.

Coming hot on the heels of punitive tax reforms for landlords, and the tenant fee ban which has increased landlord costs, landlords who are already questioning whether to sell their properties, will be pushed out of the market for good.  This in turn will reduce the supply of private rented accommodation at a time when demand has never been higher.

Government has interfered enough in this market, and should not pile more pressure on landlords who already feel battered and bruised.

ARLA confirms rent rises following tenant fee ban

In a market snapshot for June, the Association of Residential Lettings Agents (ARLA) says the number of tenants experiencing rent rises increased to the highest figure on record.  Whilst June was the first month following the new legislation entering into law, the finding seems to confirm that warnings given to Government that rents would rise as a result of the tenant fee ban were valid.

Some 55 per cent of agents surveyed by ARLA saw landlord clients increasing rents during the month, a full 22 per cent up on the previous four weeks which itself had been a previous record high. 

Year-on-year, the number of tenants facing rent increases is up from 31 per cent in June 2017, and 35 per cent in June 2018.

Meanwhile letting agents had an average of 199 properties under management per member branch in June, a decrease from 201 in May.

Demand from prospective tenants also increased marginally in June, with the number of house hunters registered per branch rising to 70 on average, compared to 69 in May.

Unprecedented fall in costs of fixed rate buy to let mortgages

Across the board, interest rates charged for buy to let fixed rate mortgages have reduced according to Property Master.

It reports that the biggest fall recorded over recent weeks is in 5-year fixed rate buy to let mortgages at 75% of property value.  The fall is resulting in savings of £36 per month for borrowers.

The UK market is still dominated by landlords who are reluctant to re-finance to lower their cost of borrowing, despite this becoming a more familiar process in the area of utilities thanks to comparison sites.

At a time when landlord costs are rising, there has never been a better time to reduce the costs of borrowing.  Given the continuing uncertainty in relation to Brexit, accessing a 5 year period at fixed low interest rates is also attractive to guard against interest rates rising as a result of Bank of England intervention to off-set inflation caused by price rises in consumer goods, food and fuel.

Rents rise to the highest on record following the tenant fees act

Propertymark has published its latest private rented sector report which found that 45% of lettings agents witnessed rent increases in the lead up to the Tenant Fee Act coming into force.  Year on year this is reported as being up 61% from 2018 and is the highest figure that Propertymark has ever recorded.

The report also finds that the supply of private rented properties has remained relatively consistent Nationally with some regional variation, whilst demand from tenants has increased, pointing to some supply constraint emerging.

The Propertymark report comes at the same time that it is reported in the Guardian, that first time buyers now need to earn on average £54,000 to purchase a typical UK property.  That is a rise of 9% since 2016, with Zoopla commenting that it largely reflects an increase property prices.

Outside of London, Oxford and Cambridge require the highest household income of £69,000 and £72,000 respectively with Zoopla stating average house prices of £407,000 in Oxford and £422,000 in Cambridge respectively.  Of 20 Cities reported Liverpool was the most affordable.

With the income threshold for first time buyers rising, and private rented properties failing to match the increase in demand, it would seem likely that rents will continue to rise over the coming months, creating a real squeeze for young couples and first time buyers.

Oxford house prices performing better year on year than 12 months ago - which is bad news for first time buyers!

In the year to January 2019 Oxford house prices were up 0.9%, that’s up from 0.5% in the year to January 2018, showing a stronger upward trend overall.  Whilst this places Oxford 17^th in Hometrack’s most recent index of prices in 20 UK cities, it indicates that Oxford has avoided the negative growth experienced in London, and is now recovering more strongly than London and Cambridge.  Only Aberdeen recorded negative growth in the latest Index which showed an average increase in prices of 2.8% in UK cities.

13 cities are identified as having weaker growth than a year ago, with Oxford bucking this trend, albeit at low overall levels of growth.  Other cities growing more strongly than 12 months ago include Newcastle, Liverpool, Glasgow, Cambridge and Belfast.

Average time to a sale being agreed in Oxford is just over 12 weeks, and the average discount to asking price achieved at sale is around 4.5%.  This shows that whilst Oxford property has ‘lifted its nose’ the overall recovery is weak with pressure on asking prices.

Recent research by Together Money reveals that Oxford is the least affordable city centre for first time buyers with the average cost of property exceeding £7,633 per square metre.  That’s six times more expensive than the most affordable city – Sheffield.

A first-time buyer in Oxford typically requires a mortgage of 133% of the average local income.

Oxford, Brighton, Cambridge and London are all grouped at the bottom of the table of least affordable city centres for first-time buyers.

As regular readers will know, this blog has been critical over a number of years that Oxford City Council has not got a grip on new build for first time buyers, and this research finding is the net result. 

Many first time buyers who wish to live and work in Oxford are now looking to Bicester, Abingdon and Didcot where better value can be found.  These people then commute to work in Oxford exacerbating traffic congestion and pollution.

Oxford house prices rising ahead of earnings

House prices in Britain's cities have increased ahead of earnings growth causing homes to be the least affordable since 2007 according to Lloyds Bank.

The average house price within UK cities according to Lloyds has risen from £180,548 in 2013 to its highest ever level of £248,233 in 2018.

In comparison, average city annual earnings over the same period have risen by just 11% to £34,366.

Lloyds identify seven cities where average house prices are now more than 10 times typical earnings - Oxford, Chichester, Winchester, Truro, London, Bath and Cambridge.

In Oxford, average house prices now stand at more than 12-and-a-half times earnings in the city - equivalent to £460,184 per property.

In addition to Oxford, Chichester stands at 11.5 times wages, Winchester at 11.3, Truro 11.1, and Greater London, Bath and Cambridge all at 10.3 times wages.

Despite this the market has seen the number of first-time buyers at a high and homeowners are still attracted to cities across the UK.

Winchester recorded the biggest price rise of any UK city over the past decade with a gain of 93% from £281,224 in 2008 to £541,891 in 2018, compared to the UK cities average of 35%.

Whilst over the last year Oxford property prices have stagnated, its historically strong house price growth combined with high demand for private rental properties means that buy to let investors continue to make strong returns of investment.  Investor who have owned their properties 5 years or more have typically seen annual returns on their investment of c14% when capital growth and rental yields are combined.  And, despite Brexit uncertainty, Oxford has not followed London property into negative price growth, once again proving to be a dependable stable asset.

Tenant Fee Ban Confirmed for 1 June 2019

The latest in a series of legislative changes that bash Oxford’s landlords will come into force on 1 June 2019.  From 1 June neither landlords nor their agents will be permitted to charge fees to tenants for anything.  Historically, the cost of credit reference checking and tenancy agreement drafting has been shared by the tenant and the landlord.  In future these costs will be solely the responsibility of the landlord.

MP’s of all parties have supported this new legislation in the mistaken belief that it will reduce the cost associated with renting for the more than 5 million voters who rent their homes from private landlords.

This new law comes hot off the heels of the 3% stamp duty surcharge levied on landlords when they invest in a new buy to let property, and the tightening of tax laws that no longer allow landlords to off-set mortgage interest payments.  These changes have already undermined landlord profits prompting many to sell properties, reducing the number of private rented properties available for tenants at the very time that demand for such homes is at its highest-ever level. 

The ban on tenant fees will further increase the costs borne by landlords, further eroding their returns, and will prompt even more to sell their properties, further reducing supply.  There is already evidence emerging from London that indicates that house prices are falling, but rents are rising at a higher rate than inflation.  Why?  Because the reduced availability of private rented properties at a time of peak demand is driving up rents.  Simple supply and demand economics!

With the government bashing Oxford landlords, they have just 3 choices if they are to protect their returns: 1. sell their property and target investment return from other assets; 2. Increase rents to cover their increased costs; or 3. Change their portfolio to achieve the enhanced returns that HMO properties offer.  The first will exacerbate supply constraints causing excess demand to push rents higher.  The second will further increase rents.  The third, will distort the supply of 3 and 4 bed family homes to rent, causing additional supply constraint in parts of the housing market.

As normal, Government intervention in the market is having unforeseen consequences – although this blog and many others warned of them as the legislation was drafted and debated.  Far from making private renting more affordable for tenants the banning of a one-off fee of £275 to £300 will result in higher monthly rents which in turn will make passing rental reference checks harder, and security deposits larger.

Without a massive increase in the supply of new affordable starter and second homes in Oxford, house prices will force many people to rent.  The properties being sold by landlords exiting the Oxford market will continue to be unaffordable to young couples and many families.  Whilst Brexit is having a drag on property sales, to date Oxford prices have held firm.  The only solution is to increase the supply. 

Until then, Oxford needs private landlords, and should create an environment that values high quality rental properties provided by good landlords and which recognises the vital role they play in the City’s housing market.  Without the private rented sector, people will be forced out of Oxford to Bicester, Abingdon, Didcot and Kidlington.  In turn increasing commuter journeys, worsening road congestion and pollution in and around the City.

Fighting against the rising tide

The rising tide of legislation impacting landlords shows no sign of abating.  Just as global warming is causing sea-level to rise, lettings legislation is causing landlords to drown.

From mandatory HMO licencing, to mandatory information for tenants and minimum EPC standards the burden of rules is ever-increasing.  It is now all too easy for good self-managing landlords to forget something and find themselves in breach of their obligations.  For others, they are being let down by their agents, who have not kept up to date themselves.

The most recent example of this is was recently reported in Property Industry Eye which reports that landlords inadvertently granting assured tenancies rather than the Assured Shorthold Tenancies they had intended.

It means that they will always be unable to use Section 21 notices for repossession.

Judgment in a court case last year has led to what could be ‘thousands’ who thought that they had complied with the law – but now find that they haven’t.

Furthermore, attempts to put right a simple administrative error would be out of the question.

In last February’s case, Caridon Property Ltd v Monty Shooltz, it was ruled that a landlord who failed to give the tenant a current gas safety certificate before the start of the tenancy, could not put it right by issuing it after the tenancy began.

The judge ruled that under the Deregulation Act 2015, failure to issue a gas certificate before a tenancy begins invalidates any subsequent Section 21 notice. The mistake cannot be corrected.

In Caridon Property Ltd v Monty Shooltz, District Judge Bloom ruled that because the tenant had only been served a gas safety certificate 11 months after the tenancy began, a prescribed requirement had not been complied with.

The landlord had served a Section 21 notice on the tenant, but the Judge ruled this invalid.

Normally, rulings in county courts are not treated as binding or as legal precedents. But it is reported that the ruling in Caridon Property Ltd v Monty Shooltz is likely to be considered definitive by other courts.

Until the case, landlords – and agents – who had failed to issue a gas safety certificate at the prescribed time, would do so later before serving a Section 21 notice.

Following last year’s case, the legal community and landlord bodies had widely expected the Government to address the issue by amending the AST and Gas Safety Regulations, arguing that it had never been intended to impose such draconian requirements on landlords.

Many self-managing landlords’ will be well advised to appoint a reputable letting agent that is a member of a professional body such as The Association of Residential Lettings Agents (ARLA) so that they are properly advised and through their agent ensure that they remain on the right side of the law.

It seems that Government just can’t stop meddling in the buy to let sector – the abolition of mortgage interest rate relief, the ban on fees charged to tenants, ever-draconian requirements of landlords to protect tenant interests.  None is well considered, do nothing to improve the market but do appeal to the 5million voters who privately rent their home.