The evolving landscape of property law undergoes constant changes with amendments being brought about with a view to addressing the present requirements and emerging trends. As such, it is crucial for homeowners, investors, and other stakeholders to remain updated with the recent amendments in property law to safeguard their interests and assess the implications of these legal changes on their property decisions.
Changes in Residential Property Law
The amendments in the residential property law focus primarily on enhancing tenant rights. Highlighted in this regard is the tenant’s security of tenure. The Tenant Fees Act 2019 came into effect on June 1, 2019, providing a landmark resolution for tenants. It is geared towards eliminating excessive fees charged by landlords and agents, including tenancy renewal fees, referencing fees, and credit check fees, among others. Landlords and agents are now only permitted to charge for rent, deposits, and specific default fees.
Moreover, another recent focus has been possible changes to Section 21 Notices, often referred to as ‘no-fault evictions’. Currently, landlords can issue a Section 21 Notice without specifying a reason. But parliament and several tenant advocacy groups are voicing against this, viewing it as an unfair practice and calling for its abolition.
Changes in Commercial Property Law
On the commercial front, the Business Tenancies (Extension of Protection from Forfeiture: Relevant Period) (Coronavirus) (England) (No. 2) Regulations 2020 has made significant alterations. The law temporarily prohibits landlords from terminating commercial leases due to non-payment of rent. This protection has been extended and currently is in effect till March 2022, providing respite to businesses grappling with the economic impact of the pandemic.
Furthermore, The Leasehold Reform (Ground Rent) Act 2022 which received Royal Assent on 8th February 2022, is a significant legislation that restricts ground rents to a peppercorn (effectively zero) for new long residential leases, further pushing the shift in law towards protecting the rights of tenants.
The Impact of These Amendments
In general, these amendments have been implemented to establish a balance between the rights of landlords and tenants. They aim to encourage a fair and equitable relationship between the parties involved. The residential tenant’s changes appear to focus on creating a more protective and regulative environment, reducing the costs for tenants, while also reviewing the eviction rights of landlords. In contrast, commercial changes due to the COVID-19 pandemic have been primarily designed to support businesses during the economic downturn by preventing lease terminations due to rent arrears.
Conclusion
With the property law landscape constantly changing, it is essential to stay up-to-date with recent developments, whether you are an owner, a tenant, or a stakeholder in the property market. The recent amendments aim to maintain the delicate balance between the interests of the tenants and the landlords, while also adapting to the economic realities brought about by external factors like the COVID-19 pandemic. Of course, the full implications of these amendments will only be clear as we navigate further into their enforcement.
Frequently Asked Questions
1. What are the primary changes in Residential Property Law?
The key changes include the implementation of The Tenant Fees Act 2019 limiting the fees chargeable to tenants and the ongoing debate around potential changes to Section 21 Notices, also known as the ‘no-fault evictions’.
2. How has Commercial Property Law been affected by recent amendments?
The regulations brought about in 2020 prohibit landlords from terminating commercial leases due to non-payment of rent, providing a protective environment for businesses struggling due to the pandemic. Also, the recent Leasehold Reform (Ground Rent) Act 2022 imposes restrictions on ground rents for new long residential leases.
3. What is the primary intent behind these amendments?
The intent behind these changes is to provide a more balanced and equitable relationship between landlords and tenants, with a particular focus on tenant protection. Each amendment aims to take into account the current economic realities and shifts in societal norms.
4. How do the changes in the law affect me as a tenant/landlord?
As a tenant, you stand to benefit from reduced costs and enhanced protection from eviction in certain circumstances. As a landlord, these changes impact your rights and responsibilities, making it vital to stay informed and adapt your practices accordingly.
