Legal update


n A shared housing arrangement has undergone significant changes (e.g. tenants moving out) and its closure or reconfiguration is necessary for the feasibility of the scheme.


These grounds will be mandatory (i.e. if proven, the court must order possession) apart from when the tenant is not engaging with the support, where there is scope for differing views between the parties. The notice period for the new ground will be one month. Much of the detail will need to be worked out following the publishing of the Bill, and it will be interesting to see how the courts interpret the new legislation. In practice, as mentioned above, the reality is that the county courts are struggling with a backlog of cases and it could take some time for possession orders to be issued.


Pets


The white paper states that the government will legislate to ensure landlords do not unreasonably withhold consent when a tenant asks to have a pet in their home. The tenant will be able to challenge a landlord’s decision. It remains to be seen on what grounds a care home operator could lawfully refuse such a request.


Rent increases The government intends only to allow increases to the rent once a year. It will end the use of rent review clauses and improve tenants’ ability to challenge excessive rent increases through the First Tier Tribunal (this is a form of court which deals only with property disputes). The Tribunal will be prevented from increasing the rent beyond


28


the amount the landlord initially asked for when they proposed a rent increase.


Improved dispute resolution


Tenants’ ability to hold landlords to account will be strengthened and there will be a new single Ombudsman scheme introduced that all private landlords must join. This is potentially good news (given my comments about the delays in the county court system). However, as with all new measures, it is essential that the government provides substantial funding to allow the new dispute resolution forum to work efficiently and quickly.


The new Ombudsman will have powers to put things right for tenants, including requiring landlords to issue an apology, provide information, take remedial action, and/or pay compensation of up to £25,000. Interestingly, the white paper states that better access to redress at an earlier stage would free up time for the courts to deal with the most serious cases. In the 2018 Call for Evidence, more than 90 per cent of landlords who responded said that they had experienced delays when taking court action for possession.


Property Portal


A new Property Portal will be introduced to make sure tenants, landlords, and local councils have the information that they need. The intention is to strengthen local councils’ enforcement powers and their ability to crack down on criminal landlords. The Property Portal will provide a single ‘front door’ to help landlords understand and demonstrate compliance with legal standards. They will be legally required to


Tom Lumsden


Tom Lumsden is a partner at CooperBurnett LLP in Tunbridge Wells, specialising in commercial property. He has particular expertise in the sale and purchase of care homes, including acquiring land for care home developments.


register their property on the portal. Will this registration requirement also apply to all care homes whose residents are tenants? Those who do not register will face enforcement action from the local council. Again, any Property Portal will need substantial government funding for it to be effective. In summary, the proposed changes are significant. Once the draft Bill has been published, care home operators to whom the new laws apply should take professional advice.


Disclaimer The above article is not intended as legal advice and must not be relied upon as such.


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www.thecarehomeenvironment.com September 2022


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