Residential property update

While UK house prices increased by 0.9 per cent in September, the legal landscape has also seen a number of updates. There's been help through the Enterprise and Regulatory Reform bill for listed property owners who wish to make changes to their homes, changes to stamp duty land tax and the Superstrike case, which has implications for landlords and tenant's deposits. Japanese knotweed remains a continuing problem for lawyers while rent deposits present a further concern. And the one-year anniversary of the new residential squatting law has come round but commercial buildings are still unprotected.

Rent desposits

The recent case of Superstrike vs Marino Rodrigues has potentially wide-reaching implications for landlords and the deposits they hold in the tenancy deposit scheme (TDP).The judgment concluded that a statutory periodic tenancy is a new and distinct tenancy, not a continuation of a tenant's previous status. The legal position was '¨that the deposit held by the landlord at the end '¨wof the fixed term was deemed to have been received in relation to the periodic tenancy in January 2008.

As it was received in January 2008, after TDP was introduced, it should have been protected. Because the landlord did not comply with section 213 of the Housing Act 2004, they did not have the right to serve a section 21 (a notice to end the periodic tenancy). The ruling does not apply to any deposits taken after 6 April 2007. Neither does it look into financial sanctions.

It's a real warning to landlords with tenants from pre-dating 2007 who subsequently continued their tenancies on a statutory periodic basis. If this happens, all deposits - even those paid before 2007 - need to be protected.

Residential conveyancers should also take note and ensure that they investigate fully when acquiring a buy-to-let property, checking the letting history to find out whether or not a rent deposit has been properly registered.

Listed buildings

The Enterprise and Regulatory Reform Act 2013 came into force on 1 October and this has brought help for owners of listed dwellings. It is often problematic to establish whether or not minor alterations made to a listed building might be the subject of enforcement action and which proposed changes might need listed building consent. '¨These changes should make it easier to deal with listed buildings - although they only apply to England, not Wales.

The listing arrangement is also changed in the latest bill. Since the original act was introduced '¨in 1948, any structure or object attached to a listed building was automatically listed - even if the addition would not be listed and had no architectural merit. This has now changed, much '¨to the relief of preservationists.

Japanese knotweed

This invasive garden visitor has long caused a headache for property owners and agents. Research from the BBC's Countryfile has '¨shown that the weed costs the British '¨economy £165m annually.

In terms of guidance for property owners, lenders and investors, the Property Care Association has published its code of practice for the management of Japanese knotweed and the Council of Mortgage Lenders has recently noted that all mortgage lenders will expect the weed to be noted on a residential valuation report.

The guidance is relevant in other areas, and Japanese knotweed is being taken into account even when valuing a flat for the purpose of a claim for lease extension under the Leasehold Reform, Housing and Urban Development Act 1993, as the potential cost of dealing with an invasion on communal land for which the tenant may be responsible through the service charge could, arguably, depress future saleability.

However, it remains a growing problem and homeowners must tread carefully when dealing with this alien plant.

Stamp duty

There have been changes to sub sale rules in relation to stamp duty land tax on pre-completion transactions from HMRC as they clamp down on tax avoidance.

Concerning the purchase of land, these new rules replace the old transfers of rights regime and apply to all pre-completion transactions entered on or before 17 July, when the Finance Act 2013 was passed.

Estate rent

Conveyancers dealing with estate rent charges that have been set up to secure the ability to enforce covenants by freehold owners to pay for maintaining communal land and providing a services account must be aware of the amended regulations about registration. It has never been necessary for a company to register the grant of a rent charge in the past, but under the new regime this must now be done. The Land Registry is also amending its practice.

Residential squatters

Squatting in residential properties was outlawed and a year on, it has been revealed that 69 suspected squatters have been brought before the courts. This law has been hailed a success and a weight off many residential property owners' minds.

However, a recent case in Streatham, London, has highlighted the loophole in the law where squatting in commercial property is not unlawful. This means residents have no powers to evict '¨the unwanted neighbours who, it has been reported, cause a menace to the neighbourhood with loud music, rubbish and invasion to privacy.

There was a similar story in Tower Hamlets '¨where squatters were living in a council building that could be used for social housing. Local authorities are unable to remove the squatters immediately because of the law as it stands.

Although there have been numerous calls to extend the squatting laws to cover commercial '¨as well as residential property - most recently '¨from three Labour MPs -there remains a long '¨road to travel until squatting is outlawed in commercial buildings too.

The issue will continue to affect residential properties, as communities are affected by squatters moving into empty offices and shops and potentially damaging the area with nuisances such as litter or noise, or halting further residential or commercial development. SJ