The UK’s Trading Standards has recently released new guidelines for landlords on ground rents, in an effort to protect tenants from unfair practices. Ground rents are payments made to a landlord by a tenant in exchange for the right to use a property. These payments are typically made annually and are often used to cover the costs of maintaining the property.
The new guidelines set out by Trading Standards aim to ensure that landlords are not taking advantage of tenants by charging excessive ground rents. The guidelines also provide advice on how landlords should calculate and collect ground rents, and how they should deal with any disputes that arise.
The guidelines state that landlords must ensure that ground rents are reasonable and reflect the value of the property. They must also provide tenants with clear information about the amount of rent due and when it is due. Landlords must also ensure that any disputes are dealt with fairly and promptly.
In addition, the guidelines set out rules for landlords regarding the use of ground rents as security for loans. Landlords must not use ground rents as security for loans without the tenant’s written consent, and must ensure that any loan is at a reasonable rate of interest.
The new guidelines also provide advice on how landlords should handle late payments. They must give tenants reasonable time to pay, and must not take any action that could lead to eviction without first giving the tenant an opportunity to make payment.
The Trading Standards guidelines are designed to protect tenants from unfair practices and ensure that landlords are acting responsibly when it comes to collecting ground rents. It is important that landlords familiarise themselves with the new guidelines and ensure that they are following them correctly. This will help to ensure that tenants are treated fairly and that landlords are not taking advantage of them.