Yesterday’s Queen’s Speech symbolised the opening of parliament, a historical event, that the Queen missed this year due to her ill health. However, her son Prince Charles delivered the speech on her behalf and reconfirmed the Government’s pledge to reform the property investment market.
This includes the long-awaited change to section 21, (a legal method of evicting tenants from the rented property). The Renters’ Reform Bill would abolish Section 21, with the government instead of creating a new Ombudsman and property portal for landlords. The aim of this is to reduce the need for emergency housing, homelessness, and no-fault evictions.
In addition, the Queen’s Speech declared plans for new social housing regulations to protect the most vulnerable and a new planning system that some argue is designed to enable empty office space to be converted into residential.
To boost the high street, the speech also outlined plans for Landlords to offer a reduction in rent to businesses occupying high street commercial property.
But how does the Queen’s Speech affect Property Investors?
Well, the likelihood is that landlord and tenant litigation will dramatically change in the next year or so, with more power being given to the tenant. The government possibly will view this as a way of protecting those on a low income, especially with the cost of living rising.
Whilst many landlords are sympathetic to the needs of their tenants, this must be balanced with a business mindset. Non-paying tenants can quickly become costly to a landlord whether the tenant is a business or an individual. Therefore, it’s important you have your rental agreement drafted with these future changes in mind.
A property law expert such as Partner Will Oakes will be able to help you review your contracts and remove non-paying tenants. Often property investors only instruct a solicitor as and when required. However, with government legislation changing in favour of the tenant, it may be wise to get a retainer from a property law expert. A retainer would enable you to pick up the phone and discuss any issues and ask questions. Often adopting best practices early on in a rental agreement can prevent problems from escalating. Currently, at Attwells Solicitors we offer retainers for Block Management Companies and Letting Agents, however, private landlords are also welcome.
The package is ideal for property professionals with businesses and offers you:
- Debt recovery legal support, including contractual recommendations and legal advice.
- Access to an Employment Law expert who can help you with HR issues and contracts.
- Business Law covers legal advice about the structure of your company and partnership disputes plus favourable conveyancing partnerships.
- Legal guidance for Anti-Money Laundering.
If you are an accidental landlord or a landlord with a handful of properties, please contact Will Oakes who will be happy to offer you a retainer package.
Photo/image credit: BBC News