Houses in Multiple Occupation

In response to a consultation on houses in multiple occupation and residential property licensing reforms, the Department for Communities and Local Government states that, subject to parliamentary clearance, landlords renting properties in England occupied by five or more people, from two or more separate households will need to be licensed.

For more information see ‘Houses in Multiple Occupation and residential property licencing reforms‘ from the Department for Communities and Local Government.

Unfair Practices in the Leasehold Market

In response to the consultation on tackling unfair practices in the leasehold market, the Department for Communities and Local Government sets out new measures, including a ban on leaseholds for almost all new build houses. Changes will also be made so that ground rents on new long leases – for both houses and flats – are set to zero and it will be made cheaper and easier for existing leaseholders to buy-out their freehold.

For more information see ‘Tackling unfair practices in the leasehold market‘ from the Department for Communities and Local Government.

Deadline for Rent Review

Proxima GR Properties Ltd v Spencer (UT) – concerning the premiums payable for three new lease claims, in particular the amount payable in respect of ground rent where a rent review was due in 2005 but the new rent was not determined until 2016 – considers the legal effect of letters sent by the leaseholder in 2010 which set a deadline for the rent review, and whether they had made time of the essence for the rent review.

For more information see the UK Upper Tribunal (Lands Chamber).

Law of Property Act 1925

A notice under the Law of Property Act 1925 s.146 could only be validly served if a right of re-entry to leasehold premises had arisen through a particular breach under the provisions of the lease having occurred. There was no authority for the proposition that a s.146 notice could be served before the relevant right to re-entry had occurred, on the basis of an anticipated breach.

For more information see the England and Wales High Court (Queen’s Bench Division) Decisions.