Welcome to the September edition of our Brookings newsletter.This month, there’s news that home movers are including COVID-19 clauses in their conveyancing agreements. The latest figures reveal that July was the busiest month for house moves in a decade and we take a look at the most searched for home improvement in recent months.

There’s also welcome news from the Bank of England who have confirmed the base rate will be frozen, new reforms to help leaseholders and an easier way of signing Land Registry documents.

Here at Brookings, the team are continuing ensure that we provide a full service whilst maintaining social distancing so please feel free to get in touch with our team – we’re here to help!

Get in touch with me by emailing emma@brookings.co.uk or call me on 020 8591 9088.

Brookings newsletter

September 2020

Changes to notice requirements and possession proceedings for residential landlords and tenantsThe Government has announced a raft of measures affecting residential landlords and tenants.

The measures include a requirement that landlords give at least six months’ notice to tenants before evicting them until March 2021, apart from in certain circumstances. Meanwhile, the stay on possession proceedings introduced earlier this year has been extended until 20 September. The changes came into effect from 29 August and notices served before that date are unaffected by the changes. Landlords may give shorter periods of notice in the following circumstances: Anti-social behaviour (now 4 weeks’ notice) Domestic abuse (now 2 to 4 weeks’ notice) False statement (now 2 to 4 weeks’ notice) Over 6 months’ accumulated rent arrears (now 4 weeks’ notice)

Breach of immigration rules ‘Right to Rent’ (now 3 months’ notice).

Changes to court procedures from 20 September will require landlords to set out in their claim information about a tenant’s circumstances, including information about the effect of COVID-19. Judges will be able to adjourn proceedings where this information is not provided. Robert Jenrick, the Secretary of State for Housing, said: “We have developed a package of support for renters to ensure they continue to be protected over winter. I have changed the law so that renters are protected by a six month notice period until March 2021. “No tenant will have been legally evicted for six months at the height of the pandemic as the stay on possession proceedings has been extended until 20 September. “For the most egregious cases, for example, those involving anti-social behaviour or domestic abuse perpetrators, notice periods have returned to their normal levels, and landlords will be able to progress serious rent arrears cases more quickly. “These changes will support landlords to progress the priority cases while keeping the public safe over winter. We will keep these measures under review and decisions will continue to be guided by the latest public health advice.”

July the busiest month for property sales in a decadeAccording to the latest research, the UK housing market experienced its busiest month for home buying since the data was first tracked by Rightmove ten years ago.

July saw more than £37 billion worth of property sales agreed in the UK, as buyers continue with their home-moving plans following lockdown.

The data has revealed that there is a significant increase in the number of properties coming to the market in many regions. London has 69 per cent more properties coming to market, with the South East at 60 per cent and the East at 56 per cent.

It is believed that with work and transport patterns changing for many, there is less of a desire to be close to the city, bringing the focus on commuter belt property. With significantly lower living costs, as remote working continues.

The story is similar outside of London, with the market kept

active with workers looking for commuter belt homes which are cheaper than the capital but also bigger for working from home and with outside space for the children.

Jeremy Leaf, former RICS residential chairman, said: “The housing market is receiving added impetus not just from buyer and seller post-lockdown pent-up demand but from others bringing forward-moving decisions prompted by the stamp duty holiday.

“Despite some suggestions the momentum may fizzle out, there is not yet any sign of bad economic news raining on the parade. Instead, a more broad-based sustainable recovery may be underway with increased activity in most price ranges.”

So if you are planning to take that next step, particularly in light of the Chancellor’s recent Stamp Duty holiday announcement, get in touch with the team here at Brookings and we’ll be happy to help.

Homeowners’ online searches for extensions double during past few monthsAccording to the latest industry research, Google searches for garden rooms and conservatories doubled during the COVID-19 lockdown.

The research by Westbury Garden Rooms compared search volumes for April to June 2020 with the same period in 2019. They looked at a wide variety of keywords relating to conservatories, garden rooms and orangeries.

‘Garden rooms’ were the most sought after extension type with a 165 per cent increase, followed by orangeries (89 per cent) and conservatories (68 per cent).

Experts believe that COVID-19 has led to many of us changing our habits and lifestyles, the most significant of which the level of people working from home who may never return to the workplace life they previously experienced.

As a result of this, there is a greater demand from homeowners for multifunctional spaces in the home such as these.

James Upton, Managing Director of Westbury Garden Rooms, said: “Throughout lockdown, homeowners were using their homes in ways they may have never previously considered and our research bears out the claustrophobia that many people experienced whilst being cooped up for days on end.

“Therefore, it is perhaps of little wonder that many homeowners were not only researching ways to extend their home but that they were specifically looking for a glazed extension, which not only increases square

footage but also adds unparalleled natural light and overall space too.

“A glazed extension, such as an orangery, is a striking addition to any home but homeowners should consider the practical use of the space before going ahead. A good designer will work with the family to understand their needs and create a new room that works for everyone whether that be cooking, entertaining, working, simply relaxing or all of the above.”

HM Land Registry confirms it will begin accepting electronic signaturesHM Land Registry has confirmed that it will begin accepting electronic signatures for transfers of property ownership, leases, mortgages and other property matters.

Once a conveyancer has uploaded the deed to the online platform, an email will be sent to the signatories, with a two-factor verification code sent to them by text message. They can then sign the documents electronically in the physical presence of witnesses.

Once the document is signed, a notification is sent to the conveyancer, who can then submit the completed document to HM Land Registry.

Simon Hayes, Chief Executive at HM Land Registry,

said: “What we have done today is remove the last strict requirement to print and sign a paper document in a home buying or other property transaction.

“This should help right now while lots of us are working at home, but it is also a keystone of a truly digital, secure and more efficient conveyancing process that we believe is well within reach.

“The more sophisticated qualified electronic signatures are a part of that vision and encouraging those is where our attention will be directed next.”

It will remain possible for a signature page to be printed for signing and witnessing in pen.

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New report unveils significant reforms to leasehold propertyThe Law Commission has published a new report which seeks to reform common issues with leasehold arrangements, as it looks to reshape the future of homeownership.

Leasehold problems have blighted home and flat owners for many years and have made national news headlines for the large ground rents and fees charged.

In the newly published 13th Programme of Law Reform, the Commission focuses on leasehold enfranchisement, including reforms for lessees and their landlords, aimed at improving the existing system of leasehold ownership, right to manage and commonhold.

The proposals for an expansion of enfranchisement would allow individuals that hold a long lease to potentially purchase the freehold or extend their lease further for longer periods.

The reforms are intended to protect leaseholders against the imposition of onerous or unreasonable costs on the obtaining of the freehold on their home.

The Commission recommends that leaseholders of houses and flats should have the right to a lease extension for a 990-year term.

Most leasehold extensions are only offered for shorter periods, such as 90 or 50 years, under the current law. In some cases, where leases only have a short time remaining, homes may become less saleable.

The reforms have been welcomed by many leaseholders, but are likely to be less popular amongst landlords and property owners who are reliant on ground rent and lease extension fees as part of their income.

If brought into law, the reforms would give leaseholders more control over their homes, making the process of enfranchisement easier and less costly.

It would also seek to make commonhold agreements simpler to achieve, which would allow a group of tenants to purchase and manage the building in which they live. Although rules around commonhold already exist, this process is rarely used due to its complexity.

Bank of England freezes base rateThe Monetary Policy Committee voted unanimously in August to keep the base rate at its historic low of 0.1 per cent.

Reading their minutes they cite the unusual uncertainty around the impacts of the pandemic as being the driving force behind their decision.

The BOE hope that by keeping interest rates low, businesses and households will be able to get cheap loans and reduce the costs they face. In turn they hope lenders will be passing on these low-interest rates to customers although at present we are seeing the opposite with lenders increasing rates, especially on the higher loan to value mortgage products.

In May 2020, the BOE predicted the end of year would

see a reduction in the economy of 14 per cent due to COVID-19, they have now amended this to a reduction of nine per cent.

They have also predicted an increase in Britain’s economic output in 2021 of nine per cent which represents a slow recovery.

In simple terms, this suggests that the economy will be back to where it was in May 2020 by the end of 2021, although the world will undoubtedly look very different then.

If you would like help with finding a mortgage that’s right for your particular needs, contact us and we will be happy to put you in touch with the friendly and knowledgeable team at our sister company, Home of Mortgages.