As 1st Oct. 2018 Looms...

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    As 1st Oct. 2018 Looms...

    I have an excellent tenant on an AST agreed in Feb. 2009 via an agent which drafted the agreement, which has a clause allowing for rent increases in line with inflation. The property is self-managed but the agent has now suggested a rent increase to bring it into line with current rates. Tenant has never missed a single rent payment and the relationship is very stable and cordial, so any rent increase needs to be handled sensitively.

    The deposit is protected via the agent's scheme but no 'prescribed information' was given as it was not then a requirement. As 1st October approaches what if anything must I now do to make certain the current AST is compliant? Will it be necessary, for instance, to serve him with a EPC and prescribed information relating to the deposit? Or is it a good time to start a new AST?

    Forum's thoughts would be appreciated.

    #2
    Originally posted by RayG View Post
    The deposit is protected via the agent's scheme but no 'prescribed information' was given as it was not then a requirement.
    There have never been a period where deposit protection regulations was in force without the requirements to provide prescribed information. Deposit protection came into force on 6 April 2007.....

    If you never gave the prescribed information before the end of the amnesty period on 5 May 2012 (Localism Act 2011), then you are not in compliance and is liable to s215 penalties of no valid s21 notice until it's rectified. You'd also be subject to deposit protection penalty subject to limitation.

    Originally posted by RayG View Post
    As 1st October approaches what if anything must I now do to make certain the current AST is compliant? Will it be necessary, for instance, to serve him with a EPC and prescribed information relating to the deposit?
    The How to Rent guide requirements doesn't apply to pre October 2015 tenancies, since the Deregulation Act explicitly excluded that. As it stand, the effect of no s21 from non-provision of GSC & EPC doesn't apply either since the prescribed regulations excluded such tenancies. Non-compliance with the respective EPC & GSC regulations itself being criminal offences are seperate matters.
    I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

    I do not answer questions through private messages which should be posted publicly on the forum.

    Comment


      #3
      Thanks... this is a minefield. The best approach is to end this tenancy and issue a new and compliant one.

      Comment


        #4
        But does not the Deregulation Act sweep up all pre-21015 tenancies on 1st Oct? This appears to be retrospective legislating, ffs.

        Comment


          #5
          ... or the govt would say it is just delaying the application of the 2015 Act. LOL

          Comment


            #6
            Originally posted by RayG View Post
            But does not the Deregulation Act sweep up all pre-21015 tenancies on 1st Oct? This appears to be retrospective legislating, ffs.
            Some parts of the deregulation apply from 1st October to all tenancies, but nothing that would require a time machine.
            Even parliament realises that they can't retrospectively make something mandatory that had to be done in the past.

            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              Originally posted by RayG View Post
              But does not the Deregulation Act sweep up all pre-21015 tenancies on 1st Oct? This appears to be retrospective legislating, ffs.
              Section 33 - 40 of the Deregulation Act came into force on 1 October 2015 for all new assured shorthold tenancies granted from that date, excluding any statutory periodic AST arising from a fixed term AST from before that date.

              Section 33 - 38, and section 40 of the Deregulation Act apply to all AST from 1 October 2018.

              Section 39 (Providing prescribed information - i.e. How to Rent) does not apply to older tenancies ever. (Assuming no new law change.)

              For section 37 (Prescribed section 21 form) and section 38 (Compliance with prescribed legal requirements), the actual prescribing is found in secondary legislation. This secondary legislation (The Assured Shorthold Tenancy Notices and Prescribed Requirements (England) Regulations 2015) itself excluded pre-October 2015 tenancies so doesn't apply to older tenancies even after October 2018 unless new secondary legislation are lay down to change that.
              I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

              I do not answer questions through private messages which should be posted publicly on the forum.

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