Issue No.146
UKLandlord The magazine of the National Landlords Association SEPTEMBER/OCTOBER 2010
Achieving harmony between letting agents, landlords and tenants in this issue
Discrepancies in HMO licence fees across the UK
What is reasonable wear and tear?
Expert advice on rent arrears and regaining possession
David Kendall on investing in Glasgow
Follow us at twitter.com/nationalandlord
EDITORIAL
UKLandlord September/October 2010: Issue 146 ISSN 1741 8801 Publisher’s statement: Circulation 22,500 PUBLISHER The National Landlords Association 22-26 Albert Embankment, London SE1 7TJ Contact > Simon Gordon, Head of External Relations E: simon.gordon@landlords.org.uk EDITORIAL Editor > Andy Stern E: andy.stern@uklandlord.org.uk Managing Editor > Louise Gale E: editorial@uklandlord.org.uk T: 020 7722 4334 ADVERTISING & PRODUCTION For all enquiries and bookings: Advertising Manager > Steve Pearce E: advertising@uklandlord.org.uk T: 0117 330 8370 NLA CONTACTS Membership T: 020 7840 8937 (9am-5pm Mon-Fri) E: membership@landlords.org.uk Media Enquiries: T: 020 7840 8906 (9am-5pm Mon-Fri) E: press@landlords.org.uk General Enquiries and Correspondence with the NLA: 22-26 Albert Embankment, London SE1 7TJ T: 020 7840 8900 (office hours: 9am-5pm Mon-Fri) F: 0871 247 7535 E: info@landlords.org.uk www.landlords.org.uk Advice Line (members only): Telephone number available from Members Area of www.landlords.org.uk Registered as a magazine © The National Landlords Association 2010. All rights reserved. No part of this publication may be scanned, reproduced, stored in a retrieval system, or transmitted in part or whole in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without prior permission of the National Landlords Association.
Welcome... I hope this issue of UK Landlord finds you refreshed after the summer break and ready to take on the business opportunities that are opening up in the buy-to-let sector. NLA Executive Chairman David Salusbury looks at the reasons for landlords to be cheerful and why newcomers should be encouraged to help grow our sector in a responsible way. Our Regional Overview section examines investment opportunities in Glasgow and profiles some visionary initiatives for landlords at the local level. This issue focuses on the business of being a landlord. We talk to NLA Letting Agent Property Woman 2010 Claire Empson, her client landlord and his tenant to find out what it takes from all sides to make a success out of using letting agents. The article is full of useful tips from the perspective of all three and I can see why Claire was selected by the judges as such an outstanding letting agent. Rent arrears continue to be a concern for many landlords – the NLA’s latest research found that 1 in 5 landlords experienced rental arrears in the second quarter of this year. In this issue, we ask experts from Landlord Action and NLA Rent Arrears to guide us through the tricky process of tackling rent arrears and regaining possession of a property. We also look at ‘fair wear and tear’, an area that can often cause disputes between landlords and tenants when it is time to hand back the deposit. As landlords’ success rates in tenancy deposit claims improve, my|deposits has compiled useful key pointers for landlords on how to make a fair judgement call at the end of the tenancy period.
The description of a product or service in this publication does not constitute an endorsement by the National Landlords Association. The Publisher does not accept any responsibility for any claims made by advertisers. Written and oral advice from the National Landlords Association or contained in this publication is given in good faith but no responsibility whatsoever is accepted by the Association or its Officers for the accuracy of its advice, nor shall the Association be held liable for the consequence or reliance upon such advice. All the articles in this publication are for general information only and are not intended to be advice to any specific person. Readers are recommended to seek professional advice before taking or refraining from taking any action on the basis of the contents of any article in this publication. ISSN 1741 8801
As ever, your feedback is much appreciated.
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Andy Stern Editor
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INTRODUCING THE NLA BOARD
Executive Chairman David Salusbury
Director of Finance Patrick Jacobs
Director for Marketing Anthony Lock
Director of Operations Richard Price
Director for Regions Barry Markham
UKLANDLORD SEPTEMBER/OCTOBER 2010 01
02 UKLANDLORD SEPTEMBER/OCTOBER 2010
CONTents
Inside this issue...
NLA
FEATURES
04 04 CHAIRMAN’S MESSAGE
NLA Executive Chairman David Salusbury examines the case for becoming and remaining a landlord in the current climate.
06 NLA CAMPAIGNS
The Government should take action in response to the NLA’s unique research into the wide discrepancies over HMO licensing fees in the UK.
15 HOT OFF THE PRESS
The NLA’s new press officer Dane Svenson sets out his impressions of the media’s approach to landlords.
24 NLA NEWS Book your tickets for the NLA National
Conference, read about changes at the NLA and a visit by the Mayor of London’s housing advisor.
29 REGIONAL OVERVIEW How landlords and the NLA make the
Good Tenant Passport scheme, investing in Glasgow and the latest landlord events in your area.
08 GETTING THE MOST FROM LETTING AGENTS What makes a good letting agent? What
should landlords check before they sign a contract with a letting agent? These issues are discussed at our round-table with Claire Empson, NLA Letting Agent Property Woman 2010, her client landlord and his tenant.
12 EXPERT ADVICE ON RENT ARREARS AND POSSESSION
Paul Shamplina of Landlord Action and Nigel Saunders of NLA Rent Arrears address the nitty gritties of what to do when there are rent arrears and/or you want to regain possession of your rental property in England and Wales.
14 POSSESSION BASICS
47 LETTINGS WEBSITE: SPAREROOM 60 Letters & EMAILS
16 BUYING & SELLING Variations in residential land values and what students in London are looking to rent.
16 FINANCE & TAX NLA member wins Council Tax case, and tax treatment of Holiday Lets.
18 FINDING TENANTS Latest cases from the Property Ombudsman, NLA uncovers new Gumtree scam.
20 HMOs The NLA is calling for the Residential Property Tribunal Service to have jurisdiction to hear landlords’ appeals on local housing authority decisions.
22 Tenancy Deposit Protection Court case on obligations of landlords and letting agents in this area.
Nine guiding principles to bear in mind when deciding what is reasonable when it comes to returning your tenant’s deposit.
23 Landlord & Tenant Relations NLA guidance on AST threshold increases, including in relation to tenancy deposit and possession.
23 Social Housing Uncertain future for Tenant Services Authority.
41 NLA MEMBER BENEFITS Take advantage of the full range of the NLA’s
46 LEGAL FORMS: LAWPACK
22 Safety in your property Beware of a defective circuit breaker and new rules for CO alarms for fixed combustion appliances.
Find out what the NLA is doing about Housing Benefit reform, green loan schemes for rental properties, and the political agenda in Autumn.
Member Services, including a listing of the NLA’s Recognised Suppliers.
16 LANDLORD PROPERTY MANAGEMENT
As rent arrears continues to be the main reason for landlords seeking possession of their properties, we look at the main routes for regaining possession.
39 nla partner news
18
36
36 WHAT IS REASONABLE WEAR difference at the local level, Middlesbrough’s AND TEAR?
38 PUBLIC AFFAIRS
REFERENCE
23 Property maintenance & repairs New offerings from EnviroVent and Landlord Response.
48 BOOKS FOR LANDLORDS 50 MORTGAGE MARKET ROUNDUP “Read the agent’s terms and conditions carefully for extra fees such as renewal fees and additional admin fees; some agents seem to charge their landlords and tenants if they breathe!” Claire Empson, NLA Letting Agent Property Woman 2010
Analysis of trends and latest buy-to-let mortgage deals.
52 HOUSE PRICES & LETTINGs MARKET
Latest market statistics and surveys on house prices and the lettings market plus auction analysis.
UKLANDLORD SEPTEMBER/OCTOBER 2010 03
message from the chairman
September/October 2010
Is it worth being a landlord? People could be forgiven if they perceive there to be few benefits in being a landlord. In recent years the letting of private residential property has been beset with red tape and legislation, and the financial crisis is affecting tenants’ ability to pay their rents. Imminent public sector cuts are likely to exacerbate this situation. So is it worthwhile being a landlord? And should we continue to encourage others to become landlords? I would say the answer to both these questions is yes, for a number of reasons. To my mind, none of them has substantially changed over the years. Whilst not a universally acknowledged truth, it is probably not far off the mark to assert that property remains one of the few means open to the private individual of accumulating capital in this country. That is not to say that there is no other way, but simply to say that experience shows that property in general – and residential property in particular – is firmly lodged in the nation’s psyche as a route to prosperity and independence.
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Recent research shows that first-time buyers are still having difficulty in getting on to the property ladder. This situation – unsatisfactory for many – continues to fuel demand for private renting, creating opportunities for other individuals to invest and, if they get it right, prosper. Thus despite the current economic uncertainty, now is not a bad time to come into the privaterented sector, which many believe is set to grow. Increasingly, private-rented sector landlords are considered as both entrepreneurs and investors in local communities. We take the financial risks and profits from providing decent and affordable accommodation. Perhaps one day we will be regarded as part of the solution to the nation’s housing shortage, and not part of the problem.
Becoming a landlord For the right person, being a landlord does not have to be a 9-5 job. As readers of UK Landlord will know, landlords are a diverse group of people with interests ranging from the charitable, through to travel, sport and academic. Many of our members also run successful businesses or have positions in companies and organisations. Above all, many – perhaps even most – private landlords are sole practitioners, able to set their own agenda and determine their own priorities on which they will survive or flounder through their own efforts. It is this combination of independence and self-motivation that makes landlording an attractive option to anyone wanting to provide for their own future. Is the NLA doing enough for new landlords and
encouraging people to become landlords? I think we should do more. We are looking at what particular advice to provide to new and would-be landlords, always bearing in mind that being a landlord is about providing homes for people. Clearly one should only become a landlord with the understanding that you will be able to see through all your responsibilities and commitments. This may involve meeting tenants and dealing with problems out of normal office hours. It goes without saying that you also need to get your finances in order, investigate the property market you are targeting, and be aware of any
relevant rules and regulations that may affect the property you are planning to purchase. Anyone contemplating becoming a landlord with a positive attitude should be encouraged. The sector needs people with a professional approach who are attracted by the freedom and security being a landlord can bring and resourceful enough to seek out the advice and information that organisations like the NLA can provide. Being a landlord is a long-term commitment. While some may argue that at present the figures don’t stack up, I would say that for anyone who takes the right approach, the rewards are there.
Increasingly, private-rented sector landlords are considered as both entrepreneurs and investors in local communities.
For more information, please contact the National Landlords Association on 020 7840 8900 or visit: www.landlords.org.uk
UKLANDLORD SEPTEMBER/OCTOBER 2010 05
NLA CAMPAIGNS
Find out here about the NLA’s latest campaigns to encourage the Government to achieve a healthy private-rented sector. NLA exposes HMO licence fees differences Unique research carried out by the NLA has revealed vast discrepancies in the fees that local authorities charge landlords to license their Houses in Multiple Occupation (HMOs). In the North East, HMO licences can cost landlords anything from £300 to £1,250, depending on which local authority is managing the scheme. The NLA is calling on the Government to take a more consistent and transparent approach on HMO licensing fees. “Local authorities are charging wildly different amounts of money, often based on irrational accounting,” says David Cox, NLA Policy Officer. Many councils seem to have plucked figures out of thin air as the fees bear no relevance to the management costs of running this type of scheme.” For more information see www.landlords.org.uk
HMO Licence Costs Modal Average
165 Councils had HMO Licensing fees ranging between £250 and £500
Most Expensive HMO Licence
Tendring District Council (£2,665)
Least Expensive HMO Licence
Babergh District Council Mid Suffolk District Council North East Derbyshire District Council North Kesteven District Council Purbeck District Council Ribble Valley Borough Council West Lindsey District Council Wychavon District Council (£0)
Largest number of HMOs
Leeds City Council (2570)
Smallest Number of HMOs
24 Local Authorities have no HMOs
Council that spends the most money on HMOs
Manchester City Council (£3,066,918)
Council that spends the least money on HMOs
42 local authorities say that their schemes have not cost them anything to operate
169 Councils were not able to give any information of how much the HMO licensing schemes cost. 345 Councils responded out of 348 Councils that have authority over HMOs. The Councils that didn’t respond: London Borough of Newham Council, South Northamptonshire Council (East Midlands), St. Helens Borough Council (North West). NLA Research 2010
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Average HMO Licence Costs
North East £658 North West £498
£800 £700
Yorkshire & The Humber £309
£600 £500 £400
Yorkshire & the Humber
West Midlands
Wales
South West
South East
North West
North East
London
East of England
East Midlands
£0 National Average
West Midlands £473
£309
£473
£549
£351
£581
£498
£658
£761
£465
£100
£384
£200
£508
£300
NLA Research 2010
East Midlands £384 East of England £465
Wales £549
South West £351
South East £581
London £761
UKLANDLORD SEPTEMBER/OCTOBER 2010 07
cover feature - WORKING WITH LETTING AGENTS
Getting the most out of letting agents The Government has made it clear that it does not intend to regulate letting or managing agents in England or Wales for the time being. This means letting agents’ activities will continue to be determined by self-regulation and occasional interventions by the Courts, such as the recent ruling on Foxtons’ unfair renewal fees. We talked to Claire Empson, NLA Letting Agent Property Woman 2010, her landlord client and his tenant to find out what it takes from all sides to make a success out of using letting agents.
What makes a good letting agent? UK Landlord: Claire, what would you suggest should be a landlord’s criteria when looking for a good letting agent? Claire Empson: Landlords should prioritise looking for a letting agent with integrity and honesty, someone who has personal experience of letting their own properties. Smaller agencies may be more likely to fit these criteria as (like us) they may have started their agency after managing a number of their own properties. Look for one that will find good quality tenants for a reasonable fee
08 UKLANDLORD SEPTEMBER/OCTOBER 2010
and treats you like a human being along the way! It makes such a difference to landlords to be able to deal with someone who is polite, returns calls/ emails in a reasonable time frame and understands their concerns first hand. Please listen to your agent if they say something needs to be repaired! Sometimes, especially with overseas landlords as they are more removed, there is the temptation to think something doesn’t really need doing that might be mostly cosmetic. However for tenants, if they perceive their landlord doesn’t want to repair a property or keep it looking nice, however trivial the repair might seem, they will not treat it with the same care as they might otherwise have done. This could mean they are less likely to stay if they are not well looked after and feel valued. This reflects back on the agent too, as they might be perceived as doing a bad job, which won’t make them happy either as their reputation is on the line.
UK Landlord: Phil, as a landlord, tell us about your experience of lettings agents in general, and of Claire Empson in particular? Phil Vella: Having been in the industry for over 40 years I have been used to traditional methods of finding tenants. My advice is find an agent you get on well with. Maintain your loyalty and it will be repaid. On one particular vacancy I decided to use a well-known high street letting agent. We agreed a fee, and a contract was signed. When the payment statement arrived I noticed that I had been underpaid. This was reversed, but not without a challenge the likes of which I would not expect from a company with such a good reputation, or as I was led to believe. DaisyLets now is the only agent I will deal with, as their easy-to-understand tariff and prompt accurate payments are perfect.
UK Landlord: Freya, what made you use DaisyLets when looking for a property to rent? Freya Silk: The website was especially good for DaisyLets. I was searching for a property while I was living away from London so it was important for me to find thorough websites with easy-to-use search options. I’ve always rented privately in the past. It made a big difference using a letting agent this time round, especially as it was the first house I’ve rented in London. Everything was handled very professionally and you feel as though your best interests are being looked after. It’s important that a letting agent listens to what the tenant needs from a property, but at the same time asks questions the tenant may not think to ask! For example, asking what is most important for them in a property and catering for the needs of each individual. As someone just out of university, looking for a young, friendly place to live without breaking my budget I found Claire’s advice really useful, especially as she had already lived in the area.
UK Landlord: Phil, from a landlord’s perspective, what elements of the service that Claire provides have you most appreciated? Phil Vella: The human touch! Complete honesty, a fresh and truthful pair of eyes to review the condition of properties and she provides a genuine market appraisal. As Claire does not change jobs, I have been able to build a good rapport with her and DaisyLets.
UK Landlord: Have there been any difficulties in the tenancy and how did Claire help you resolve them? Phil Vella: There have been times when I needed a second opinion. Claire was available with a listening ear and has been resourceful at achieving all-round harmony.
UK Landlord: Is there any aspect of the relationship with DaisyLets that you would like to improve? Phil Vella: There is always room for improvement, but I think as the company expands DaisyLets needs to ensure that new team members have the same attitude towards its clients. Very similar to the high-brand department stores!
Avoiding renewal fees and securing deposits
Freya Silk, Tenant
UK Landlord: Were there any positive (or negative) aspects that stood out? Freya Silk: The service was great. As soon as I got in contact with DaisyLets I received emails about what was available and was told as soon as there were new properties to let. We were met by Claire to visit the two properties we viewed, even though it was in the evening. They showed a very flexible approach which I didn’t find with other letting agencies I was also using at the time.
UK Landlord: Given the High Court’s decision that Foxtons renewal fees policy was unfair, what should landlords expect to pay to letting agents, and what should they not agree to? Claire Empson: To be honest I don’t think landlords should pay anything to the letting agent if their tenant remains after the initial year is up and the contract is ‘rolling on’. It’s like buying a new car and then a year later getting charged for it again because you still have it! I can’t think of any other profession that would get away with this. We don’t charge renewal fees at all, but likewise don’t refund half our fee if the tenant exercises a six month break clause (which doesn’t often happen).
Claire Empson, DaisyLets
We think this is the fairest way. Landlords pay for us to find them good tenants, it shouldn’t make any difference how long they stay for. They might well stay two years or more, the fee should still be the same. Before I started DaisyLets, if I used an agent I would ask for the clause regarding renewal fees to be struck from the contract before signing. I received a letter once from a high street agent demanding a further fee, I advised them to go and double-check our original contract and I didn’t hear from them again. I think if a landlord wishes the contract to be renewed in writing then a nominal admin fee of £50 or under would be fair to produce a duplicate contract with dates updated and email it to them. Currently we do this for free but we may revise this as I actually think we are being too kind!
UK Landlord: Phil, given the lack of regulation by government, are there any clauses you look out for or require when dealing with letting agents’ contracts? Phil Vella: I don’t like the repeat annual fees letting agents charge. If I notice these ‘penalties’ I would either negotiate them out of the contact or move onto the next agent. I don’t expect to pay more than once for any service!
NLA Best Practice Guidance For more best practice on using a letting agent, see the NLA’s Fact sheet which highlights the need for landlords to see copies of tenant references and to see the tenancy agreement in advance. See www.landlords.org.uk/archive/factsheets/factsheet-findingandusinganagent.asp.
Phil Vella, Landlord
UKLANDLORD SEPTEMBER/OCTOBER 2010 09
cover feature - WORKING WITH LETTING AGENTS UK Landlord: Since there is no regulation of letting agents, what should landlords check before they sign a contract with a letting agent? Claire Empson: Landlords should check the agent’s policy on deposit registration. There were a number of rogue agencies saying they register or hold the tenants’ deposits themselves, then not registering the deposits and instead using the money themselves and then folding. Referencing is very important, check exactly what they do to reference the tenants. Quite often agents will subcontract referencing or use an on-line service. It could be a friend answering the automatic email – not an employer or landlord. We call and/or write to employers and landlords ourselves and get copies of passports/driving licences and take NI numbers and bank details, We run an on-line credit check too which gives an insight into past addresses and we can check if they correspond with information supplied by the tenant. You can’t use your gut instinct if it’s all automated. Read the agent’s terms and conditions carefully for extra fees such as renewal fees and additional admin fees; some agents seem to charge their landlords and tenants if they breathe! If they are engaging a management agent, double check that
fully managed actually means just that. I have heard reports that some large agents make their landlords take time off their day job and wait in for contractors despite charging around 17 per cent for full management, or they charge them an extra hourly rate, that’s just not right! Fees to tenants: you are more likely to get tenants viewing with an agent if they are not going to be charged a small fortune by the agent if they take the property. It’s a common question to us on viewings by tenants when choosing between two properties, and quite often it can be the thing that swings it when they find out we only charge tenants one referencing fee of £47 per applicant and no more admin fees. Some agents charge around £350 per couple in combined admin/referencing fees. Some agents proclaim not to charge admin/registration fees at first, but then will add a referencing fee.
Challenges for the buy-to-let sector UK Landlord: What do you think the biggest challenges facing letting agents are at present? Claire Empson: Red tape and legislation. The decision the present government have taken
to modify the recent change of use legislation brought in by Labour just before the election was wise and I hope paves the way for a smoother ride for landlords and agents in the next four years. The reduction in the number of buy-to-let mortgage products available over the last two years has had a knock on effect for the lettings industry with landlords not investing as they might otherwise have. Accidental landlords plugged this gap for a while and actually created a glut of property forcing the rental values down. Now they are starting to sell up it’s having the reverse effect and there is actually less property available to rent. There are still families that have not climbed back on the property ladder after selling and renting instead so there are far more tenants around than properties right now, especially for the family houses. Lettings agents have also had bad press in the last few years which makes it difficult as some landlords just assume all agents are the same.
Member Feedback What are your tips for ensuring good working relations with letting agents? Had any experiences others can learn from? If so, please write to us at editorial@uklandlord.org.uk
Letting agents’ self-regulation bodies Letting and managing agents who are members of a trade association are normally required to sign up to a code of practice. Landlords are encouraged to look through these codes of practice before selecting an agent. However, not all sections of the code will necessarily apply to all agents, and landlords should do their own research to ensure the reputation and practices of any particular agents are up to scratch. Contact details for the main letting and managing agent bodies are: National Association of Residential Letting Agents (ARLA) The National Federation of Property Professionals and its divisions have a combined membership of just under 14,000. The NFOPP is the group name for a number of membership organisations, including the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA), the UK’s leading professional bodies in the sales and letting sectors of the property market. Arbon House, 6 Tournament Court, Edgehill Drive, Warwick, CV34 6LG. For the NFOPP e-mail: info@nfopp.co.uk For ARLA e-mail: info@arla.co.uk For the NAEA e-mail: info@naea.co.uk
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Royal Institution of Chartered Surveyors (RICS) With around 100,000 qualified members and over 50,000 students and trainees in some 140 countries, RICS provides the world’s leading professional qualification in land, property, construction and the associated environmental issues. RICS Contact Centre, Surveyor Court, Westwood Way, Coventry, CV4 8JE. Tel: 0870 333 1600 E-mail: contactrics@rics.org Web: www.rics.org Founded: 1868 The National Approved Letting Scheme (NALS) Many agents are accredited by the National Approved Letting Scheme (NALS), a Government-backed accreditation scheme for lettings and management agents that is
supported by the main professional bodies in the lettings sector, including ARLA and RICS. Tavistock House, 5 Rodney Road, Cheltenham, GL50 1HX. Tel: 01242 581712 E-mail: info@nalscheme.co.uk Web: www.nalscheme.co.uk Established: 1999 The UK Association of Letting Agents (UKALA) UKALA was formed to meet the needs of letting agents, especially small to medium size organisations, and to safeguard their best interests while protecting the general public against malpractice. It is registered as a nonprofit making organisation. PO Box 10582, COLCHESTER, CO1 9JD Tel: 01206 765456 E-mail ukalasys@hotmail.com Web: www.ukala.org.uk/
UKLANDLORD SEPTEMBER/OCTOBER 2010 11
Feature – EXPERT OPINIONS
Expert advice on regaining possession With one in five NLA members reporting they have had rent arrears in recent months, UK Landlord asked experts Nigel Saunders at NLA Rent Arrears and Landlord Action’s Paul Shamplina for best practice approaches to tackling rent arrears and, if it comes to it, regaining possession of your property. UK Landlord: Some tenants assume the landlord will take the deposit in lieu of the last month’s rent. What can landlords do to avoid this? Nigel Saunders, NLA Rent Arrears: The tenant should not assume that the landlord will deduct the last payment from the deposit. Legally, if the tenant does not pay the last month’s rent, the landlord could take action for breach of contract. The landlord should ensure the tenancy agreement is absolutely clear in what the deposit covers and the terms and conditions for returning it.
UK Landlord: At what point should a landlord be concerned if a tenant is in arrears? Nigel Saunders: A landlord should be concerned as soon as the tenant falls into arrears with his rent. Addressing a late rent payment as early as possible is the proven best way to recover the situation, ideally by correcting the arrears position or, failing that, identifying a best strategy to manage the landlord’s exposure. To address rent arrears at this stage, we make early contact with the tenant by letter, and follow up by telephone to discuss the outstanding payment. In negotiating a satisfactory outcome it is important to understand what has caused the problem, what the solution to the problem is and to agree a mutually acceptable arrangement. If there is a guarantor in place, we contact the guarantor to advise them of the arrears and remind them of their responsibility.
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It is important to document any activity that takes place such as dates and notes of contents of telephone calls and letters. This will be important if further action is required. Debt collection protocols require a reasonable level of telephone and letter activity to be demonstrated prior to further action.
UK Landlord: If it gets to the point where a landlord needs to regain possession of their rental property what should landlords do? Nigel Saunders: Coping with rent arrears and any subsequent possession proceedings is one of the most stressful situations a landlord will encounter. Firstly the landlord should ensure that telephone and letter collection activity has taken place before starting legal action. With initial collection activity having failed, the first stage of this is to serve the appropriate notice. If the tenancy is still within the original fixed term (and there are at least two full months’ rent owing) then the landlord may serve a Section 8 Notice on the tenant. If the tenancy has reached the end of the original fixed term or the landlord wants to end it at the end of the fixed term and wants to evict the tenant from his property then a Section 21 Notice should be served on the tenant. However a Section 21 Notice does not recover rent arrears. Upon expiry of these notices appropriate legal action may be taken through the Courts.
UK Landlord: What are the main ways of repossessing a property and which do you advise landlords to opt for? Paul Shamplina, Landlord Action: A lot will depend on the individual circumstances of landlords and their tenants. For example, is the tenant on housing benefit? Are they a student? Are they an asylum seeker? What type of employment they are in? Since we are unable to give general answers to these sorts of questions, Landlord Action operates a free problem tenant advice line for landlords and letting agents, where one of our experts will be able to give specific advice in terms of the best way to proceed with a problem tenant. In terms of the best strategy to seek possession, use mandatory grounds as opposed to discretionary grounds. This makes the case much stronger, and our experts can advise landlords on an eviction strategy.
Paul Shamplina, Landlord Action
Feature – EXPERT OPINIONS
UK Landlord: Does it make any difference to the way in which you seek possession if a tenant is in breach of a clause in the lease or is in arrears? Paul Shamplina: Yes. If a tenant is in two or more month’s arrears, we would serve a Section 8 Notice and the judge will grant possession to the landlord based on the fact that rent arrears are a mandatory ground for seeking possession. Notices served based on breach of tenancy (for example, the tenant has changed the locks, pets, noise and general nuisance, etc) are discretionary grounds for possession and it is up to the judge’s discretion whether a possession order is granted. Clearly, seeking possession based on these sorts of grounds is weaker than under mandatory grounds.
UK Landlord: If a landlord serves a Section 21 notice at, for example, the start of tenancy and then lets the tenant stay on after the expiry of the lease, is it necessary to serve another Section 21 notice? Nigel Saunders: Yes, the landlord would have to serve another Section 21 notice as the tenancy has changed from a fixed term to a periodic tenancy.
UK Landlord: What is the best way for landlords to approach getting back the money owed to them once a tenant has been evicted? Paul Shamplina: The best way to getting your money back will depend on the due diligence that landlords will have completed prior to setting up the new tenancy. For
example, the landlord should look to secure a guarantor agreement (for example, from an employer, parent, business partner etc). This way, the guarantor would be liable to pay any outstanding rent that the tenant did not make themselves. If the tenant is in arrears and has been evicted, they will need to be traced to a new address (if they haven’t left a forwarding address). If it becomes clear that the tenant has many outstanding debts, or were on housing benefits, debt recovery would be fruitless. However, if the tenant has a good job or has other assets, then it is probably going to be worth pursuing.
UK Landlord: What are the main thing landlords should remember when it comes to recovering rent arrears and regaining possession of a property? Paul Shamplina: Many difficulties that landlords face could have been avoided if landlords and their agents were more thorough when it came to tenant referencing. There is no substitute for methodical referencing and being on top of credit control. Many novice landlords will wait for months before chasing up a tenant properly and serving notices. During this time, they are continuing to lose rent. So, the key is to act quickly. We always believe in giving the tenant a chance to pay off arrears. If you find out mid-tenancy that the tenant has lost their job or has fallen in financial hardship, make sure that you act promptly with regard to them applying for local housing allowance. Take them to the housing benefit office and help with their application – this will demonstrate that you are a responsible landlord, as well as keeping any arrears to a minimum.
Landlord Action Landlord Action offers fixed fees to landlords across the UK in debt recovery and eviction, with a free advice line. Founded in 1999 as the first ever fixed-fee tenant eviction specialist, the company has revolutionised this area of legal practice, helping landlords and property professionals deal with problem tenants. Tel: 0845 881 0011 enquiries@landlordaction.co.uk www.landlordaction.co.uk
Nigel Saunders, NLA Rent Arrears
NLA Rent RentArrears Arrears NLA Rent Arrears is an online facility that landlords use to instruct a professional rent recovery team to collect outstanding rental amounts from tenants. Acting on behalf of its client landlords, NLA Rent Arrears contacts tenants by phone or letter, visits them at the tenanted address, serves notice and undertakes possession proceedings. www.landlords.org.uk/rentarrears
NLA Rent Guarantee Insurance If you want to minimise the risks associated with rent arrears, you could save thousands of pounds by taking out NLA Rent Guarantee Insurance. NLA Rent Guarantee Insurance costs from £57.75 for six months’ cover (for NLA members) and offers a service that is professional, reputable and transparent. The scheme is fully backed by the NLA, offers a 24 hour legal helpline and provides cover up to £2,500 per month for unpaid rental income (up to a maximum of £15,000 or six months’ rent). Landlords can purchase NLA Rent Guarantee Insurance on-line within minutes. Visit www.landlords.org. uk/rentguarantee to find out more and to sign up for the service. Discounts for NLA members.
Member Feedback Have you encountered problems in regaining possession of your rental property? Please send details of your experiences to editorial@uklandlord.org.uk.
UKLANDLORD SEPTEMBER/OCTOBER 2010 13
Feature – POSSESSION BASICS The main possession routes in England and Wales The first stage of the process of regaining possession involves serving either a Section 8 Notice or Section 21 Notice upon your tenant(s). Under the Section 8 Notice landlords can seek both possession of their property and recovery of rent arrears. NOTE: before a notice may be served, you must have at least attempted to contact your tenant(s) regarding the outstanding arrears. To serve a Section 8 Notice on the tenant(s) you need to provide an accurate schedule of rent arrears accompany the notice. A Section 8 Notice may be served at any time (fixed term or periodic) as long as you adhere to the notice periods contained in Section 8 (i.e. 14 days for non-payment of rent). If the tenancy is still within the original fixed term (and there are at least 2 full months’ rent owing) then you may serve a Section 8 Notice
upon your tenant(s). In serving a Section 8 Notice there is a possibility that your tenant(s) may make a counter claim against you (if in their opinion you are in breach of your contractual obligations to them) if you were to subsequently progress legal proceedings. You can get your claim processed online, more quickly (4-8 weeks) and cheaper (£100) through Her Majesty’s Courts Possession Claim Online service (www.possessionclaim.gov.uk). Chris Hellings of the NLA Advice Line says it is important to note that if using Possession Claim Online you will have to send an up-to-date rent schedule containing dates and amounts of arrears within 7 days of making your application. The Section 21 Notice is for gaining possession of the property ONLY. No grounds need to be cited. If the tenancy has reached the end of the original fixed term or you wish to end it at the end of the
fixed term and you wish to evict the tenant(s) from your property then you should serve a Section 21 Notice on your tenant(s). Please note that Section 21 may not be used if you have NOT protected a deposit which was taken after 6/4/2007. The Advice Line also notes that you cannot use the ‘Accelerated’ route (N5b) if you are not in possession of a written Tenancy Agreement. If you wish to limit your exposure to a counter claim then NLA Rent Arrears advises that you should serve a Section 21 Notice and you should be aware that you will not be able to progress legal proceedings until the original fixed term period has expired. For more information, see the NLA’s Landlord Library at www.landlords.org.uk and call the NLA Advice Line.
Regaining possession in Scotland A tenancy can be ended in a number of ways: • You can serve your tenant with a Notice to Quit to end the tenancy at the end of the tenancy agreement. • Your tenant can give you a written notice to end the tenancy at the end of the tenancy agreement. • You and your tenant can both agree to end the tenancy at any time. Any such agreement should be documented in writing and signed by both parties. • If your tenancy agreement narrates, in full, Grounds 2, 8, 11 to 14 and 16 of the recovery grounds, stating that you will seek to end the tenancy and recover possession if conditions of the tenancy are broken, you may be able to give your tenant Form AT6 before the end date in the agreement and then raise a Court action. Procedures for ending a tenancy This depends on: • Why and when you want to end the tenancy. • The type of tenancy your tenant has. • Whether you want the tenant to leave. • Whether you want to offer the tenant a new tenancy agreement.
Options It is important to consider the options available to you when deciding that you wish to terminate a tenancy and remove a tenant. If the tenancy is an Assured tenancy, as opposed to a Short Assured tenancy, then you have to proceed on the basis of one of the seventeen ‘Grounds’ listed in Schedule 5 to the Housing (Scotland) Act 1988. If, however, the tenancy is a Short Assured tenancy, then in addition you can utilise the two month notice procedure set out in Section 33 of the said Act. This latter procedure, if properly followed, means the Court has to grant an order for eviction if it is complied with and it is therefore normally the preferable method. This means you do not have to give a specific reason for wanting to regain possession. Normally to end a tenancy you must always serve a Notice to Quit. This may not be required if the lease makes provision for repossession on the following grounds; 2, 8, 11 -14 and 16. In such circumstances an AT6 form must be served (see below) using the prescribed notice period which varies depending on the Grounds being cited. You may run into problems if you don’t use all the required forms and notices to set up and end your tenancy - particularly if the tenant does not leave when you expect them to. Notifying the Local Authority Section 11 of the Homelessness (Scotland) Act 2001 requires landlords to notify the local authority when they raise eviction proceedings against a tenant. • Notification is not needed at the stage where notices to end a tenancy are being served. • Notifications should be sent to the Housing Department of your local authority.
The NLA has extensive guidance and template notices to serve if you intend to raise possession proceedings in Scotland. For more information, see www.landlords.org.uk/archive/factsheets/factsheets.htm.
NLA Landlord Development Courses on Possession Sign up for the NLA’s one-day courses on Possession, with practical workshops on filling in the forms and notices. Courses in September and October take place in Birmingham, Leeds and London. For more information see page 25.
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Hot off the Press!! Dane Svenson NLA Press Officer Welcome to another edition of ‘Hot off the Press’. I’m the new Press Officer here at the NLA. I’m Australian (yes, another Aussie in the UK) and come from Sydney where I worked in communications at the Defence Force and I’m looking forward to keeping you updated with what’s happening in the Press Office.
LHA cuts could cost landlords As politicians head back to Westminster after their summer break, the big question landlords are asking is what does the government intend doing with the Local Housing Allowance (LHA)? They’ve made it clear that cuts need to be made and this won’t be good news for landlords. A recent NLA survey found one in five landlords is experiencing rent arrears. But in a double whammy, The Daily Telegraph has warned “private landlords face having to cut rents if they want to keep their tenants”. The NLA continues to lobby for the LHA to be paid directly to landlords – something the Conservative government promised to do but is yet to act upon.
Gumtree scams targeting tenants The NLA has been contacted by a number of tenants in recent months who’ve fallen for the so-called “Gumtree scam”. Gumtree is one of the most popular websites to advertise rental properties and spare rooms – but it’s also teeming with fraudsters. Tenants reply to the ads and are asked to send money to the “landlord” – who then disappears with the cash – never to be heard from again. The Times also reported on scam websites overcharging landlords for information that is much cheaper or even free on government-authorised sites. Our advice is report any fraud to police and do your research properly when buying information over the internet.
Farewell Steven Hilton Our resident PR maestro Steven Hilton is bidding farewell to the NLA in September and heading off to a new role – as head of PR activity at the Royal Collection. Over almost three years, Steven has worked tirelessly to raise the profile of the NLA, get our key campaigns into the media spotlight and lift our membership figures. Good luck with your new job, Steve – we’re sure you’ll love it!
Want to know more...? • Fancy a read of the NLA blog? It’s all here: http://nlauk.wordpress.com • Follow us on Twitter to read the latest NLA news and industry comment www.twitter.com/nationalandlord • Become a fan of the NLA on facebook: http://tinyurl.com/yztxyd4 • Drop us an email if you think there are issues that the NLA should be investigating: press@landlords.org.uk
UKLANDLORD SEPTEMBER/OCTOBER 2010 15
LANDLORD property management INFORMATION This section is intended to provide assistance to landlords throughout the life-cycle of buying, renovating, letting and selling a property. It also contains practical and technical information aimed to help landlords maintain their properties effectively and in compliance with the law.
Buying & Selling Wide variations in residential land values across the UK Make sure you research your market if you plan to buy land to develop residential property. While competition for development land is boosting development land values, a real gulf is emerging between small sites in high demand housing markets, particularly in London and the South East, and larger sites elsewhere in the country. According to new research by property services company Savills, across the country some developers have recapitalised and are actively seeking land, creating competition again for small ‘easy’ sites in areas with an identifiable housing need or shortage. The rarity factor of such sites in prime locations is what is driving up prices, in some cases now within 20 per cent of peak 2007 levels, according to Savills.
Although the average value of residential development land has showed growth this year, albeit modest, Savills warns to treat average growth figures with caution as these can disguise huge variations. Yolande Barnes of Savills Residential Research explains: “The development land market is now polarised on virtually every level: between North and South; high and low value housing markets; large, infrastructure-hungry sites and small easy to develop de-risked sites. More than ever, those in the market need to evaluate sites on a caseby-case basis, since the value of each site and, ultimately, its ability to generate revenue, will be determined by regional and, in many cases, highly localised factors.”
London students prefer PRS accommodation Satisfaction levels from students living in shared flats and houses in the private-rented sector scored the most in a survey by the University of London. A total of 1,753 students took part in the survey between March and May 2010, which asked students to record how satisfied they were with their current housing choice. Satisfaction levels across all forms of housing were relatively high, although those living in shared flats and houses in the private rented sector were the most satisfied. Private halls of residence scored the lowest, closely followed by studio flats. “Given the overwhelming demand for places in University Halls of Residence, they tended not to perform as well as expected,” according to
the survey. “The greatest surprise was how well resident landlords performed.” The survey also cross-references the time taken to travel to College against rent paid for those living in the HMO rented sector, providing interesting insights for landlords thinking of investing in this sector. There was a wide spread, but most students mainly clustered around a 20-30 minute journey to College with a rent of between £100-£129 per week, exclusive of bills. The survey also notes that there has been an increasing trend of students living more centrally and in smaller groups, with two sharers now the most common number of sharers, closely followed by 3-4 sharers.
Finance & Tax Tax treatment of holiday lets HM Treasury is consulting on reform of the tax treatment of holiday lets, the aim being to ensure that Furnished Holiday Lettings are fully compliant with EU law and are better targeted at businesses that are run commercially for profit rather than for personal use. The proposals are to: • increase the minimum period over which a qualifying property is available to let to the public during a year from 140 to 210 days; • increase the minimum period over which a qualifying property is
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actually let to the public during a year from 70 days to 105 days; and • to restrict the use of loss relief from furnished holiday lettings so it can only be set against certain income from the same business. The Government has indicated that any changes will take effect from 1 April 2011 for companies or from 6 April 2011 for individuals. For the current tax year 2010-2011, the existing rules will continue to apply. The NLA is submitting a detailed response to this consultation.
LANDLORD property management INFORMATION
Finance & Tax Dealing with rent arrears Rent arrears continues to be the main reason for landlords seeking possession of their properties. A fifth of private-residential landlords had tenants in rent arrears during the second quarter of 2010, according to new research published in July by the NLA. Between April and June 2010, just over 21 per cent of landlords experienced rental arrears. This represents a small improvement on the previous quarter when 24.5 per cent of landlords reported the same. At the same time, the average amount of outstanding rent arrears has dropped significantly from £978 in Q1 to £799 in Q2. This could reflect seasonal trends in tenant payment behaviour around Christmas time or, more positively, it could indicate that financial pressures on tenants have started to ease as the fragile economic recovery continues. David Salusbury, Executive Chairman, NLA, commenting on the latest research, said: “Rent arrears are a serious problem for landlords all over the UK. It is good to see the latest data which represents a small improvement in that more tenants are keeping up with their rent payments and not putting pressure on their landlords who may well have mortgage repayments to consider. It is critical that tenants and landlords communicate and work together to tackle financial problems before they result in a loss of rent or even the tenancy.” Motivation for possession As part of the NLA’s recent quarterly survey, landlords were asked to indicate why they had (most recently) sought possession. The largest single group indicated that rent arrears was the primary reason, although more than one third of respondents stated that they had never sought possession of a rental property. Almost 25 per cent of landlords questioned indicated that unacceptable tenant behaviour or Anti Social Behaviour was their motivation.
Possession - motivation
Possession - time taken
Possession - cost
Time and costs for possession The majority of landlords reported that possession took less than three months. However almost one quarter have experienced proceedings lasting up to six months. Although more than a quarter of landlords indicated that they had not sought possession, the largest single proportion who had experience of possession proceedings stated that their costs had amounted to less than £250. A significant percentage of landlords indicated much higher costs. Source: NLA Survey Q2 2010
UKLANDLORD SEPTEMBER/OCTOBER 2010 17
LANDLORD property management INFORMATION
Finance & Tax NLA member wins Council Tax case NLA member Ralph Wood has successfully challenged a decision by Bournemouth Borough Council which tried to charge him Council Tax for the last day of his student tenants’ contracts. Mr Wood’s tenants rented two properties for the academic year from 1st September 2008 to 30th June 2009. As both tenancy agreements had no time constraints, the tenants were entitled to stay in the property
until the end of the last day of the tenancy agreement. On advice from the NLA, Mr Wood considered that his tenants were responsible for the property until the end of the day and therefore liable for Council Tax purposes. This position was confirmed by the Valuation Tribunal for England which said that since the tenancies did not give a specific time to vacate the properties, the tenants, if they so wished, could remain in the property
until the end of the day. That would have meant that Mr Wood would have no right to take possession of the properties for the whole of that day. Mr Wood says he is pleased with the outcome. “If the Council had won, then if I had back-to-back contracts with different tenants (one out on day 1 and the new ones in on day 2), I would still be liable for a day’s tax!”
Finding Tenants Landlord’s ‘hands-off’ approach does not go down well with Property Ombudsman The Property Ombudsman has released its latest summary of cases on which it has adjudicated. The remit of the Ombudsman, which is independent of agents, includes dealing with complaints in relation to property sales and lettings, and is open to all firms whose principal or director is a member either of the National Association of Estate Agents (NAEA) or the Royal Institution of Chartered Surveyors (RICS). Check-out inspection. One case summarised by the Ombudsman was that of a straightforward tenancy which became contentious following the check-out inspection. The complainants (the tenants) argued that the manner in which the agent conducted the checkout inspection caused them financial loss and distress, aggravation and inconvenience. The Ombudsman’s review found that the agent had proposed charges for two items of cleaning and for repairing a dent in the hall wall, which he considered should not have been the liability of the complainants since all three items were present in the original inventory. However, other than the costs for these items, the Ombudsman considered that the deposit deductions proposed by the agent were fair. He noted that the complainants had reached a settlement (which reduced the charges proposed by the agent) regarding the deposit deductions directly with the landlord and that they did not raise their dispute via the tenancy deposit scheme within the required timescales. Given these factors, he considered that the complainants had not suffered any financial loss or any distress, aggravation or inconvenience, which they could have otherwise avoided themselves, so no award of financial compensation was given to the tenants. Management fees. In another case, the complainant was the landlord of the property, who claimed that the agent had not provided or explained any Terms of Business with regard to management fees, which it was claimed had been taken in advance for twelve months. The landlord claimed that the agent had not passed on any rent or advised of rental arrears, had failed to communicate with the landlord or tenants; had refused to evict the tenants and had not produced a check-out report or returned the keys. The agent disputed all allegations, and counter-stated that the complainant had failed to comply with his duties as landlord to
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provide a habitable property. The agent said that they had not taken management fees, but rather the agreed tenant-finding fees, the tenants having withheld rent due to the condition of the property. The agent said the tenants vacated after repeatedly requesting improvements to be made to the property since before the tenancy began to no avail, and the complainant had not been to check the property since (twelve months), or subsequently re-let. The Ombudsman found that the minimal evidence provided by the complainant did not substantiate his claims, and appeared to corroborate the agent’s version of events. In the view of the Ombudsman, the Complainant had shown a very hands-off approach to being a landlord. For example, in correspondence to the agent, he referred to “your tenants”, seemingly unaware that the Tenancy Agreement was between the tenants and himself. The Ombudsman did not support the landlord’s complaints and made no award of financial compensation.
LANDLORD property management INFORMATION
Finding Tenants NLA uncovers new Gumtree scam Several defrauded tenants have contacted the NLA about a new wave of scams on the online classifieds website, Gumtree. Unsuspecting potential tenants, usually from overseas, reply to advertisements on the website for rental accommodation in the UK. After supposed satisfactory e-mails, tenants are asked to send money to the ‘landlord’. Having sent the money, when the tenants attempt to make contact with the ‘landlord’ or, indeed, collect keys to the property, the ‘landlord’ is uncontactable and the potential tenant has been defrauded. In this latest scam, uncovered by the NLA at the end of July, the ‘landlord’ claims to be a member of the NLA, uses the NLA logo and has created fake stationary copying that produced by the bona fide, NLA Tenant Check service. NLA Director of Operations Richard Price advises: “Tenants, no matter where they are from, should not send payment to advertisers before they are certain that the advertiser is genuine. Overseas applicants needing to secure accommodation before they arrive in
the UK would be well advised to first seek the help of the employer or university they are coming to. They will be knowledgeable of standard practices in the UK and often have lists of accredited landlords and local letting agents.” Prospective tenants can check www.goodlandlord.org.uk to see whether a prospective landlord is genuinely a member of the National Landlords Association. If you know of someone who has fallen victim to this kind of scam, please ask them to contact the relevant authorities in their own country, the police in the UK and the NLA on info@landlords.org.uk
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LANDLORD property management INFORMATION
HMOs Challenging an HMO licensing decision Following a case where a local authority prosecuted two landlords, the NLA is calling for the Residential Property Tribunal Service to have jurisdiction so that a landlord can appeal local housing authority decisions. NLA member Linda Clarke and her business partner Reg Garcha have spent two stressful years defending their reputations after Newport City Council took them to court to force them to license one of their properties. Linda and Reg were convinced they had a case for not having to do so, but the Council refused to listen. Following the court hearing which found in their favour, they have now submitted a complaint about their ordeal to the Ombudsman for Wales and the Information Commissioner’s Office. “These landlords showed enormous strength of character by standing up to a local authority which refused to listen to their case and appeared too ready to drag them through the criminal courts,” NLA Executive Chairman David Salusbury told UK Landlord. “There must be a way for the RPTS to be able to deal with this type of case so that responsible landlords can legitimately argue their case, rather than having to either accept what they believe to be wrong or be subjected to criminal prosecution.” Key points from Linda and Reg’s case Linda and Reg own a property in Newport, Wales in an area where there is an additional HMO licensing scheme to tackle problems from smaller properties. The property had been converted into five self-contained flats and had been registered under the local HMO scheme. However when the Housing Act 2004 was introduced, it changed the definition of an HMO to exclude properties that met the 1991
Building Regulation standards. Linda and Reg believed their property now fell outside the new definition and that they did not need to apply for licensing. When Newport City Council disagreed, Reg and Linda provided a report from an independent Building Control inspector that supported their view. Latest guidance from the Department of Communities & Local Government says such evidence should be regarded as conclusive, unless the Local Housing Authority has strong evidence to the contrary. In spite of the independent report, the Council sent its own staff to take photos of the interior of each individual flat without giving the landlords or their tenants any advance notice. The Council then commenced criminal legal proceedings. Keeping strong Reg and Linda tried hard to communicate with the Council by contacting officers and staff at all levels and at all stages in this case. They checked with other local authorities in Wales who confirmed their understanding of the HMO rules was similar to Reg and Linda’s. They contacted the NLA’s Advice Line who passed the matter on to Dave Offord, NLA Operations Manager who has a good deal of experience in dealing with local housing authorities. Dave also contacted the relevant Council head of service to persuade the Council that their interpretation of the licensing rules was not correct. Nevertheless, the Council proceeded with its criminal prosecution. When the case eventually came to Court, after an initial hearing, the Council accepted they were wrong and presented no evidence.
The Court agreed that Reg and Linda’s costs would be met from central funds. “This was an extremely anxious and stressful time for both Linda and Reg,” Dave told UK Landlord magazine. “By defending their position, they risked getting a criminal record. This could have meant their mortgages would be revoked, that they would no longer be considered fit and proper persons to run licensed HMOs, as well as a substantial fine, and possibly losing much in back rent if a rent repayment order were made.”
Linda Clarke
Reg Garcha
Hefty fine for HMO breaches in Leeds A residential property company in Leeds has been fined over £21,000, including more than £4,000 in costs awarded to the council, for nine breaches of the Management of Houses in Multiple Occupation (England) Regulations 2006. When Leeds City Council officers made a routine visit to the property in Chapeltown, Leeds, they discovered a defective fire alarm system, seriously damaged fire doors, broken windows, exposed electrical wiring, staircases without handrails, broken glazing and damaged kitchen units.
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Vital safety certificates were also absent, and tenants were left without heating when Southwind Developments Limited – which owns more than a dozen rental properties in the Leeds area – failed to pay a gas bill. The council’s HMO Licensing Team had made the routine visit to establish how many tenants were living in the property. Although Southwind directors Saleem Aslam and Zulfiqar Ahmed pleaded guilty at Leeds Magistrates Court, they blamed the condition of the property on the tenants. The Court said that it was the landlord’s responsibility to maintain their property.
UKLANDLORD SEPTEMBER/OCTOBER 2010 21
LANDLORD property management INFORMATION
Tenancy Deposit Protection First High Court ruling on TDP obligations The English High Court clarified landlords’ and agents’ obligations in relation to tenancy deposits recently when it considered the case of Draycott v Hannells. In this case, the landlord had asked the letting agent to deal with the letting and the associated deposit. However the letting agent did not protect the deposit with a scheme within the 14-day period prescribed by the Housing Act 2004. When the tenant brought a claim against the letting agent for failing to comply with the legislation, the agent said
that the claim should be against the landlord instead. The Court held that the tenant could bring proceedings against an agent who receives the deposit and fails to protect it. In this particular case however, as the agent eventually did protect the deposit within a government-approved scheme, the agent was not fined. The landlord also avoided penalties as the deposit was protected and the prescribed information had been provided before the tenant issued their claim.
The main point UK Landlord takes from this case is to make sure, whether you are the landlord or the agent, that a tenant’s deposit is paid into the relevant tenancy deposit protection scheme within 14 days of receipt. For more information, see Draycott v Hannells Lettings Ltd [2010] EWHC217 (QB). See page 36 for my|deposits’ guide to establishing fair wear and tear.
Scotland considers tenancy deposit rules in detail The Scottish Government has announced plans to introduce new laws to protect tenants’ deposits in Scotland. The Housing (Scotland) Act 2006 gives Scottish Ministers powers to introduce a national, mandatory tenancy deposit scheme. Ministers are currently consulting on new rules that would require landlords to protect a deposit taken in relation with a relevant tenancy. This would include the types of tenancy that are covered by the Scottish Landlord Registration Scheme. Some tenancies will be excluded, including lets to family members, resident landlords, life rents and holiday lets. Landlords taking a deposit will be required to protect it with an ‘Approved Tenancy Deposit Scheme’ within 30 working days. The plans currently allow for a custodial based scheme (where the landlord passes the deposit to a third party), or an insurance based scheme (the landlord keeps hold of the deposit).
Landlords will also have to give Prescribed Information about the protected deposit to their tenants within 30 working days. Landlords who fail to comply with the rules may have to pay their tenant a sum equivalent to 3 times the value of the deposit. In contrast to the courts’ powers in England and Wales, it is intended that the courts will have discretionary powers to consider the circumstances of each case. The sanction relates to the initial receipt of the deposit in connection with a relevant tenancy. Therefore an agent receiving a deposit on behalf of a landlord will be subject to the same duties to comply, and any subsequent action raised through the court for non-compliance with the rules. Again this is different to England and Wales where the landlord is ultimately responsible. The NLA will work with the Scottish Government to make sure landlords’ views are represented in the consultation process.
Safety in Your Property Electrical safety The Welsh Housing Minister, Jocelyn Davies, has contacted NLA Wales Representative Lee Cecil to alert members to a defective circuit breaker which if left in place could cause a house fire. The manufacturer of Electrium Miniature Circuit Breakers (MCBs) has issued a statement that MCBs supplied from April 2009 to February 2010 under the brand names Wylex, Crabtree (Loadstar only) and Volex are not performing as they should and the company is undertaking to replace them in order to ensure all affected homes have a safe MCB in place. For more information, see the NLA’s safety notice at www.landlords.org.uk/archive/factsheets/factsheetproductrecallnotices.htm
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CO alarms for fixed combustion appliances New Building Regulations are due to come into force this October requiring carbon monoxide (CO) alarms where a new or replacement fixed solid fuel appliance is installed in a dwelling. Fire protection specialists Aico are calling for mandatory CO alarms in relation to gas appliances as the most common cause of a carbon monoxide leak is a faulty appliance or from one that has been incorrectly installed, regardless of the type or age of the appliance. For more information on the new Building Regulations Approved Document J ‘Combustion appliances and fuel storage systems’ see www.planningportal.gov.uk.
LANDLORD property management INFORMATION
Landlord & Tenant Relations AST threshold increase The NLA has updated its fact sheet to guide landlords on the new rules which come into effect on 1st October which will require all tenancies with an annual rent of between £25,000 and £100,000 to become Assured Shorthold Tenancies. Chris Norris, NLA Policy Manager, believes there may be a 6-month moratorium on possession orders in respect of ‘new’ ASTs. However, he warns that it will be up to a judge whether a tenancy that becomes an AST under these rules will be considered as ‘new’ or ‘existing’, and therefore whether possession may be granted. Further, possession claims which straddle the switchover date (i.e. where proceedings have begun but the tenancy was not legally terminated prior to 1st October) will be caught by the legislation.
Impacts on tenancy deposit and possession For tenancies agreed after 6 April 2007, the NLA recommends that in order to ensure compliance with respect to tenancy deposit protection rules, landlords issue either a new tenancy agreement or variation of terms to their tenants. “This is of particular importance in relation to the notification requirements of tenancy deposit protection, although it will also be advisable in relation to the obligations and procedures associated with ASTs,” says Chris. When seeking to end a tenancy, landlords should also serve the relevant Housing Act notices in order to ensure possession. Where appropriate, they may be able serve a standard notice to quit providing two months’ notice rather than the one month usually stipulated for non-Housing Act tenancies. Chris explains that this notice
can be deemed a Section 21 notice as there is no prescribed form for such a notice. However, to be valid the landlord must have protected any relevant deposit monies in respect of tenancies begun after 6 April 2007. Letting agents will also need to notify all clients of the need to protect deposits, where relevant, when a tenancy deposit was passed to the landlord. If they fail to do so they may be liable under Section 213 of the Housing Act 2004. Finally, for the avoidance of doubt, company lets fall outside of the Housing Act 2004 and these changes. For more information, see the NLA’s fact sheet at www.landlords.org.uk, and for specific guidance on the impact on your tenancy deposit, see www.mydeposits.co.uk.
Property Maintenance & Repairs Landlord Response launches new offering NLA Recognised Supplier Landlord Response has launched a new Executive Package service offering for landlords, which not only covers gas, electrics, plumbing, drainage and certifications, but also appliances, lock outs/locksmiths and loss of keys. The Executive Package includes parts and labour cover for up to four appliances, which can be changed at renewal each year. Landlord Response offers full replacement of appliances if they cannot repair them, subject to the terms and conditions laid out on the initial inspection report. The four appliances could include, for example, washing machines, tumble dryers, fridges, freezers, fridge freezers, ovens and hobs. The Executive Package also includes accidental lock outs & key loss up to £1000 p/a, and a key holding service, and is currently available at a discounted price to NLA members of £ 49.50 per month. For more information, call 0844 472 9880 or visit www.landlordresponse.co.uk, and remember to quote the reference number NLA10 to claim your discount.
Social Housing Tenant Services Authority faces the scrap heap The Government is reviewing the role and purpose of the Tenant Services Authority and the framework for social housing regulation in England. This review is being taken forward in line with the Government’s commitments to reduce the number and cost of quangos and to cut unnecessary regulation and inspection.
Now is the time to tackle condensation! NLA Recognised Supplier EnviroVent is urging landlords to act now to deal with problems in homes prone to condensation. EnviroVent recommends installing home ventilation and condensation control units which are designed to gently ventilate the home from a central position on the landing or central hallway. PIV (Positive Input Ventilation) delivers fresh, filtered and clean air into a property at a continuous rate. Moisture-laden air is diluted, displaced and replaced to control humidity levels at around 55 per cent. This significantly reduces or eliminates surface condensation, the main cause for mould growth, a problem which may lead to the loss of a good tenant if not dealt with effectively. Each product in EnviroVent’s Lifetime® Range has been designed to outlast the lifecycle of the property it is installed in and comes with a 5-year guarantee. For more information call EnviroVent on 0845 2727 807 or visit www.homeventilation.co.uk
UKLANDLORD SEPTEMBER/OCTOBER 2010 23
NLA NEWS
For the latest news visit: www.landlords.org.uk
Mayor seeks NLA’s views
NLA management changes
Richard Blakeway, the Mayor of London’s Advisor for Housing, paid a visit to the NLA Head Office recently to find out more about the NLA’s activities and vision for private sector housing from NLA Executive Chairman David Salusbury.
The NLA’s Board has decided on a simplification of the senior management structure by placing most activity under one of the three executive directors: Director of Finance (Patrick Jacobs); Director of Operations (Richard Price); and Director for the Regions (Barry Markham), thus reducing the day-to-day span of control for David Salusbury, who now assumes the title of ‘Executive Chairman’. NLA seeks to widen participation in the PRS Simon Gordon has been appointed to a newly created position of Head of External Relations. This change marks an important new step in the NLA’s strategy to develop and deepen its network of links and relationships. Since he joined the NLA in 2002, Simon has run the NLA’s Public Affairs and then Communications departments. His in-depth understanding of the private-rented sector and broad range of contacts in housing will be vital to the process of widening participation in order to underline the central role that the sector plays in providing housing solutions for more and more people.
NLA press contacts The NLA’s media supremo Steven Hilton has left the NLA to become Media Relations Manager at The Royal Collection. Over the past 3 years, Steven has worked tirelessly to improve the private-rented sector’s public image with regional, national and trade media and he has been extremely successful in providing a unified voice for private landlords throughout the country. “Setting up the NLA Press Office and developing our PR function has been a real challenge but also brought massive personal
reward,” Steven told UK Landlord. “I’m very lucky to have worked in a highly competent and creative team and I certainly wish the NLA all the best as it faces the many challenges coming up. The spectre of regulation is only ever just around the corner, so PR will come to play an ever more important role.” For all media inquiries, please contact Dane Svenson, the NLA’s new press officer on tel: 020 7840 8925 and Dane.Svenson@landlords.org.uk.
Dane Svenson, NLA Press Officer
NLA Property Women Awards on YouTube The video of the highlights of the gala ceremony for the NLA Property Women Awards 2010 is now available on the NLA’s YouTube Channel. To watch the highlights, go to www.youtube.com/user/NatLandlordsAssoc.
24 UKLANDLORD SEPTEMBER/OCTOBER 2010
nla landlord development
For the latest news visit: www.landlords.org.uk
Portable Appliance Testing for Landlords This course is designed for landlords wishing to carry out safety checks on the electrical appliances they provide for their tenants. Testing equipment will be available for delegates to gain practical experience and the trainer can explain all that is necessary in the domestic situation.
Price: £150 (including VAT) for members and £175 (including VAT) for non-members. To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
New Courses To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
Possession One-day course on Possession, with practical workshops on filling in the forms and notices: Price: Members: £85 (inc VAT) Non-members: £110 (inc VAT) 2010 DATES
LOCATION
LOCATION
Friday 24th Sept
Leeds
Brighton
Wed 29th Sept
London
Tuesday 26th October
Birmingham
Wed 29th Sept
Birmingham
Tuesday 12th October
London
Tuesday 2nd November
Bournemouth
ALL TIMES: 9.00am start; 5.00pm finish
Thursday 4th November
Edinburgh
Tuesday 9th November
Bristol
Deposits, Damages & Disputes
Wednesday 10th November
Cardiff
Wednesday 17th November
Leeds
Tuesday 7th December
Glasgow
Tuesday 7th December
London
Half-day course on Deposits, Damages and Disputes, incorporating Inventories and how to deal with disagreements: Price: Members: £40 (inc VAT) Non-members: £55 (inc VAT)
2010 DATES Tuesday 5th October
ALL TIMES: 9.00am for 9.30am start; 4.30pm finish
Landlord Foundation Courses The NLA runs one-day courses designed to help both new and experienced landlords to develop their professional skills. The course focuses on the main issues facing landlords, including: • finding tenants • setting up • managing and ending a tenancy • keeping records • repairing obligations The programme offers an excellent opportunity to network with other landlords and discuss face-to-face ideas, problems and possible solutions.
Price: Members £85 (including VAT), non-members £110 (including VAT) To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
2010 DATES
LOCATION
Thurs 23rd Sept
Leeds
Tues 28th Sept
London
Tues 28th Sept
Birmingham
ALL TIMES: 1.30pm for 2.00pm start; 5.30pm finish
Local Housing Allowance Half-day course on Local Housing Allowance, what to be wary of and how the system can work for you: Price: Members: £40 (inc VAT) Non-members: £55 (inc VAT)
2010 DATES
LOCATION
Friday 24th September
Slough*
Wednesday 20th October
Nottingham
Tuesday 23rd November
London
*NLA accredited Foundation Course
ALL TIMES: 9.00am for 9.30am start; 4.30pm finish
2010 DATES
LOCATION
Thurs 23rd Sept
Leeds
Tues 28th Sept
London
Tues 28th Sept
Birmingham
ALL TIMES: 8.30am for 9.00am start - 12.30pm finish All in a day’s work The 2 half-day courses on LHA and Deposits, Damages & Disputes can be followed on the same day.
UKLANDLORD SEPTEMBER/OCTOBER 2010 25
national conference 2010
NLA National Conference 2010 Landlords: We’re in Business Saturday 27 November 2010, Park Plaza Victoria, London (next to Victoria railway station) 10.45am start (follows the NLA Annual General Meeting). 5.00pm close. 5.00pm-6.00pm Conference Reception.
Landlords report increased confidence. No more red tape says Government. But what will the prospect of cuts and slow economic growth mean for landlords and tenants? Listen to and question industry experts. Join the debate about the threats and opportunities facing landlords in the current economic climate.
Conference highlights
Keynote speakers and business panel Keynote speakers will discuss the market and analyse trends. You can make your opinion heard in our business panel debate. Topics to be debated include: • Opportunities and threats for the business of letting • Business models for successful renting • How to maximise rental income • Avoiding the pitfalls
Exhibition and networking breaks Breakout sessions Discuss the practical side of letting with experts and other landlords during our interactive sessions. Delegates can pick and mix areas of interest: • Do your tenants need training? • Tax planning for landlords • Getting to grips with the planning system
• Leasehold versus Freehold • Practical Possession Proceedings • Making private renting the tenure of choice
Conference Reception Reflect on the issues of the day over drinks and make new contacts at the Conference Reception.
Delegate Rate Day Delegate Rate including Conference Reception
NLA member rate
Non-member rate
£95 inc VAT
£120 inc VAT
Please note these rates do not include accommodation.
Places are limited. Reserve your place today by calling 020 7840 8920 or emailing bookings@landlords.org.uk Full programme and booking details are available at: www.landlords.org.uk/conference
26 UKLANDLORD SEPTEMBER/OCTOBER 2010
For more information:
UKLANDLORD SEPTEMBER/OCTOBER 2010 27
NLA news Multi-year membership fees Landlord Membership of the NLA
Price
Savings
Individual 1 year
£80 + joining fee of £18 (pay by direct debit and save £10)
-
Individual 3 year
£195
£63
Individual 5 year
£320
£98
Who can join under this Package?
}
Individual landlords (including spouse/ partner)
NLA National Conference 2010 – Saturday 27 November 2010
at Park Plaza Victoria London, near Victoria Station, Central London For details and to register your interest please visit: www.landlords.org.uk/conference
28 UKLANDLORD SEPTEMBER/OCTOBER 2010
REGIONALVIEW REGULAR LOCAL BUSINESS AND INVESTMENT NEWS
REGIONS
ISSUE TWO SEPT/OCT 10
NEWS >>
Welcome BARRY MARKHAM Director for the Regions
It’s interesting to see that localism is high on the Coalition Government’s agenda at the moment. Making the difference at the local level is what many landlords strive to do on a daily basis And, as you’ll see from the stories in this section, the NLA continues to focus its efforts on issues arising at the local level. We were there right at the start to support the local private landlord energy efficiency initiative in Bournemouth that has recently received national recognition and accolades. And, we are constantly on the lookout for other promising best practice local schemes, such as the Good Tenant Passport in Middlesbrough profiled on page 33, which we hope will be taken up by other local authorities. Being a landlord involves keeping abreast of investment opportunities in new locations, and David Kendall, our Scotland Representative shares his strategy for investment and gaining good returns from property in Glasgow. Talking to other landlords and to the specialist experts who attend the NLA’s landlord meetings is another way we help our landlords run their buy-to-let businesses. We have a packed programme of local landlord events over the next few months (see pages 30-31) and I look forward to meeting you at some of these events. Barry.Markham@landlords.org.uk
For more information:
Landlord energy project wins awards The NLA has played a key role in an award-winning project by local landlords in Bournemouth, Poole and Southampton to make their rental properties more energy efficient so that tenants will pay lower bills and will live in warmer homes. Since 2004, the Private Landlords Insulation Project has insulated 7,500 dwellings for 750 local landlords and made savings in CO2 emissions of over 8,000 tonnes per year. The project was started by Bournemouth Borough Council and managed by the Dorset Energy Advice Centre which now also helps Southampton City Council and Poole Borough Council to encourage landlords in the private rented sector to fit insulation into their properties. The utility companies have made £1.6m of funding available for loft and cavity wall insulation in the area to date. The scheme also supplies free low energy light bulbs, hot water tank jackets, power down plugs and information on reducing condensation and keeping warm. Recognition of the huge success of the project has come in the form of regional awards by the Carbon Action Network and the National Energy Action (NEA), and the project also recently won the NEA’s prestigious national Footprint Award. The NLA has been involved in the project from the start, helping to get a credible and working scheme in Boscombe off the ground. Richard Price, NLA Director of Operations said: “All too often projects start with a lack of foundation and fail without having achieved any real benefits. Thanks to everyone involved,
Peter Bywater, Dorset Energy Advice Centre this project has made a difference and its success will benefit many more in other areas.” The prize money from the national award will be used to promote the scheme further and to create a ‘Green Landlord’ award. Peter Bywater (pictured), who manages the scheme for the Dorset Energy Advice Centre, says “We are also hoping to use some of the prize money to assist a local Bournemouth HMO landlord to install a photovoltaic system. The grant would be around £3,000 toward the cost with the remainder coming from the interested landlord. If you are a local landlord and interested in this opportunity, please contact Peter on 01202 307416 and peter@deac.co.uk
The NLA in Kent The NLA has organised a series of practical, business-related events for landlords across the country this Autumn. NLA Executive Chairman David Salusbury will also be travelling around the country to meet NLA members and local landlords. His first stop is West Kent where the NLA is sponsoring the landlord fair in conjunction with Tunbridge Wells Borough Council, and the District Councils of Sevenoaks &
Tonbridge & Malling on 11th October. This event is free and landlords can benefit from up-to-date advice on all aspects of lettings and property management, including a talk by Paul Shamplina from Landlord Action on how to legally evict a tenant when you made a mistake. For more information about the event, see page 31.
UKLANDLORD SEPTEMBER/OCTOBER 2010 29
LANDLORDEVENTSGUIDE 2010 Please note this is a listing of pre-planned events. Additional events will be added to UK Landlord and the website throughout 2010. Agenda topics are normally finalised and published on www.landlords.org.uk/events about 4 weeks in advance of meetings. Reminder emails will also be sent to members in relevant areas so please do check with our member team (020 7840 8937) that we have your current email addresses.
DATE
EVENT
REGION
Tue 14 Sep
NLA North East Branch Meeting North East
LOCATION
NLA event Other event TIME
Novotel Newcastle, Ponteland Road, Newcastle upon
6.30pm for
Tyne, NE3 3HZ
7.00pm start
Tue 14 Sep
NLA Teesside Branch Meeting
North East
The Blue Bell Hotel, Acklam, Middlesbrough, TS5 7HL
7.30pm
Wed 15 Sep
NLA & Leeds Council
Yorkshire & The Humber
John Charles Centre for Sport Events Hall,
10.30am - 2.30pm
Landlord Fair
Middleton Grove, Leeds LS11 5DJ
Wed 15 Sep
NLA Eastbourne & Wealden
Lansdowne Hotel, Alfriston Room, King Edward’s Parade
6.30pm to
Branch Meeting
(Eastbourne Seafront), East Sussex BN21 4EE
to 9.00pm
Wed 15 Sep
NLA Portsmouth Meeting
Queens Hotel, Clarence Parade, Southsea,
7.00pm to
Portsmouth, Hampshire, PO5 3LJ
9.00pm
Thurs 16 Sep
NLA Hastings & Rother
The Manor Barn, Bexhill-on-sea, East Sussex, TN40 2HA
9.30am to
Branch Meeting
Thurs 16 Sep
Bury Private Landlord Forum
North West
The Peel Room, Elizabethan Suite, Knowsley Street, Bury BL9 0SW 6.00pm to 8.45pm
Thurs 16 Sep
Landlords Exchange
East Midlands
South East
South East
South East
1.00pm
North West Leicestershire District Council, Council
6.00pm
Chamber, Council Offices, Coalville, Leicestershire, LE67 3FJ
to 8.00pm
Tue 21 Sep
NLA Brighton Branch Meeting
Hilton Brighton Metropole, Kings Road, East Sussex, BN1 2FU
6.30pm to 9.00pm
Tue 21 Sep
NLA and the Borough Council East of England
The Town Hall, Saturday Market Place, King’s Lynn,
6.30pm for
of King’s Lynn & West Norfolk
Norfolk, PE30 5DQ
7.00pm start
- working together
Tue 21 Sep
NLA Meeting Lincoln
Lincoln Golf Centre, Lincoln Suite, Moor lane, Thorpe On
6.30pm
The Hill, Lincoln LN6 9BW
to 8.30pm
Tue 21 Sep
NLA Weymouth Branch
Weymouth Working Mens Club, Mitchell Street, Weymouth,
7.30pm
meeting Launch
Dorset DT4 8BT
Wed 22 Sep
Newport Landlords Forum
Newport Civic Centre, Committee Room 7, Newport,
South East
East Midlands
South West
Wales
5.30pm
South Wales, NP20 4UR
Wed 22 Sep
NLA Inaugural Huddersfield
Huddersfield Methodist Mission, 3 - 13 Lord Street,
7.00pm
Meeting
Huddersfield, HD1 1QA
to be confirmed
Wed 22 Sep
NLA Southampton
Landlords Meeting
Road, Western Esplanade, Southampton, SO15 1RA
Thu 23 Sep
NLA Dorset Branch Meeting
South West
Hotel Miramar, East Overcliff Drive, Bournemouth, Dorset, BH1 3AL 7.30pm
Thu 23 Sep
NLA Nottingham & Derby
East Midlands
Novotel Hotel, Bostock Lane, Long Eaton, M1 Junction 25,
Branch Meeting
Nottingham NG10 4EP
for 7.30pm start
Tue 28 Sep
NLA East and South East
London
7.00pm to
London Members meeting
8.30pm
Tue 28 Sep
Gloucestershire Landlord
The Hall of Fame, Cheltenhan Racecourse, Prestbury Park,
12.30pm to
Advice Day and Expo 2010
Cheltenham GL50 4SH, Tel 01793 514 777
to 6.00pm
Wed 29 Sep
NLA & Scarborough
Spa Complex, South Bay, Scarborough, North Yorkshire, YO11 2HD 2.00pm to
Landlord Fair
30 UKLANDLORD SEPTEMBER/OCTOBER 2010
Yorkshire & The Humber
South East
South West
Yorkshire & The Humber
IBIS Hotel, Winchester Room, Southampton Centre, 9 West Quay 7.00pm to
Brunel Museum, Railway Avenue, Rotherhithe, London SE16 4LF
9.00pm
7.00pm
6.00pm
LANDLORDEVENTSGUIDE 2010 DATE
EVENT
REGION
LOCATION
TIME
Wed 29 Sep
Bury St Edmunds Housing
East of England
St Edmundsbury Borough Council, West Suffolk House,
5.30pm start
Options and NLA Landlord Forum
Western Way, Bury St Edmunds, Suffolk, IP33 3YU
NLA Reading Branch Meeting
Best Western Reading Moat House, Mill Lane, Sindlesham,
6.30pm to
Wokingham, Berkshire, RG41 5DF
8.30pm
Thu 30 Sep
NLA Colchester and Ipswich
Village Hall, The Street, Capel St Mary, Ipswich IP9 2EP
6.00pm
Landlords Meeting
Thu 30 Sep
NLA Swindon Branch Meeting South West
Campanile Swindon, Delta Business Park, Great Western Way,
7.00pm
Wed 29 Sep
South East
East of England
Swindon SN5 7XG Tel: 01793 514 777
Wed 6 Oct
Caistor Hall Hotel, Caistor St Edmund, Norwich, Norfolk NR14 8QN 6.30pm for
NLA Norwich Landlord Forum
East of England
7.00pm start
Thu 7 Oct
NLA South Somerset Landlords South West
6.00pm for 6.30pm
Meeting in partnership with
South Somerset District Council
Fri 8 Oct
Bournemouth Landlords
Conference
6.00pm
Mon 11 Oct
NLA Bradford Branch Meeting Yorkshire & The Humber
Shipley Club, 162 Bradford Road, Shipley BD18 3DE
7.30pm for 8.00pm
Mon 11 Oct
NLA West Kent Landlords Fair
South East
The Ramada Inn, Tonbridge Road, Pembury, Kent TN2 4QL
4.00pm to 9.00pm
Mon 11 Oct
NLA North Hamptonshire
South East
Council Chamber, Civic Offices, London Road,
7.00pm to
Landlords Meeting
Basingstoke, RG21 4AH
9.00pm
Tue 12 Oct
HMO Network conference
Mercure St Paul’s Hotel, 119 Norfolk Street, Sheffield, S1 2JE
South West
Yorkshire & The Humber
The Manor Hotel, Hedford, Yeovil, Somerset, BA20 1TG
start to 8.00pm
AFC Bournemouth, Kings Park, Bournemouth, BH7 7AF
11.00am to
For more information see www.nationalhmonetwork.com
Tue 12 Oct
Redditch Borough Council
Redditch Borough Council, Town Hall, Walter Strantz
4.00pm to
Landlords Forum
Square, Redditch Worcestershire, B98 8AH
6.00pm
Wed 13 Oct
NLA and Doncaster Council
Doncaster Dome, Doncaster Lakeside, Bawtry Road,
Check website
Landlord Forum
DN4 7PD
for details
Wed 13 Oct
NLA Wessex Branch Meeting
Lansdown Golf Club, Lansdown, Bath BA1 9BT
1.15pm for
(Bath)
2pm start
Wed 13 Oct
NLA Great Yarmouth
The Imperial Hotel, North Drive, Great Yarmouth,
6:30pm for
Landlord Forum
Norfolk, NR30 1EQ
7.00pm start
Thur 14 Oct
NLA Swansea Branch Meeting Wales
Liberty Stadium, Landore, Swansea, SA1 2FA
6.00pm to 7.30pm
Thur 14 Oct
NLA Chichester Landlords
Chichester University, College Lane, Chichester, PO19 6PE
7.00pm to 9.00pm
Mon 18 Oct
NLA Birmingham and Solihull West Midlands
Solihull Council House, Committee Room 1, The Civic Suite,
5.00pm to
Branch Launch in partnership
Solihull B91 9QS
8.00pm
with Solihull Council
Tue 19 Oct
NLA Weymouth Branch Meeting South West
Weymouth Working Mens Club, 1 Mitchell Street Weymouth,
7.30pm
West Midlands
Yorkshire & The Humber
South West
East of England
South East
Dorset DT4 8BT
Wed 20 Oct
NLA Guildford Landlords
Council Chamber, Guildford Borough Council, Millmead House,
7.00pm to
Meeting
Millmead, Guildford, GU2 4BB
9.00pm
South East
For an up-to-date list visit: www.landlords.org.uk/events UKLANDLORD SEPTEMBER/OCTOBER 2010 31
LANDLORDEVENTSGUIDE 2010 Please note this is a listing of pre-planned events. Additional events will be added to UK Landlord and the website throughout 2010. Agenda topics are normally finalised and published on www.landlords.org.uk/events about 4 weeks in advance of meetings. Reminder emails will also be sent to members in relevant areas so please do check with our member team (020 7840 8937) that we have your current email addresses.
DATE
EVENT
REGION
LOCATION
South West
BAWA, 589 Southmead Road, Filton, Bristol, BS34 7RG
NLA event Other event TIME
Wed 20 Oct
NLA Wessex Branch Meeting
(Bristol)
7.00pm start
Thu 21 Oct
South Staffordshire Council
The Council Offices, Codsall, Wolverhampton Road,
6.30pm to
Landlords Forum
South Staffordshire, WV8 1PX
8.30pm
Thu 21 Oct
Shepway and Dover
Shepway District Council Address Civic Centre
4.00pm to
Landlords Forum
Castle Hill Avenue, Folkestone, Kent, CT20 2QY
6.30pm
Tue 26 Oct
NLA Peterborough
Ramada Hotel, Fenland Suite, Ramada Peterborough, Thorpe
6.30pm to
Branch Meeting
Meadows, Peterborough, Cambs, PE3 6GA Tel: 01733 564240
8.30pm
Wed 27 Oct
NLA Exeter Branch Meeting
Southgate Hotel, Southernhay East, Exeter, Devon, EX1 1QF
6.00pm for
West Midlands
South East
East of England
South West
6.30pm for
6.30pm start
Sat 30 Oct
Medway Landlords Training
Day in conjunction with NLA
Tue 2 Nov
NLA Cumbria Branch Meeting
North West
University of Cumbria, Fusehill Street, Carlisle, Cumbria CA1 2HH 7.00pm
Wed 3 Nov
Medway Landlords Training
South East
Medway Council Offices, Gun Wharf, Dock Road, Chatham, ME4 4TR 4.30pm to
Day in conjunction with NLA
9.00pm
Thu 4 Nov
NLA Thanet Branch Meeting
5.00pm to
in conjunction with Thanet
District Council
Mon 8 Nov
NLA Shropshire Branch Meeting West Midlands
in partnership with Shropshire
Council
Mon 8 Nov
NLA Bradford Branch Meeting Yorkshire & The Humber
South East
South East
Medway Council Offices, Gun Wharf, Dock Road, Chatham, ME4 4TR 9.30am
Marlowe Innovation Centre, Marlowe Way, Ramsgate, CT12 6FA
Shire Hall, Shrewsbury, SY2 6ND
Shipley Club, 162 Bradford Road, Shipley BD18 3DE
to 3.00pm
9.00pm
6.00pm
7.30pm for
8.00pm start
Tue 9 Nov
NLA Teesside Branch Meeting
North East
The Blue Bell Hotel, Acklam, Middlesbrough, TS5 7HL
7.30pm start
Tue 9 Nov
NLA Fife Branch Meeting
Scotland
Gilvenbank Hotel, Huntsman Road, Glenrothes, Fife KY7 6RA
7.00pm start
Tel 01592 742077
7pm start
Tue 16 Nov
Weymouth Working Mens Club, 1 Mitchell Street Weymouth
7.30pm
NLA Weymouth Branch Meeting South West
Dorset DT4 8BT
Wed 24 Nov
North Warwickshire Borough
North Warwickshire Borough Council,The council house,
12.00pm to
Landlord Forum
South Street, Atherstone CV9 1DE
2.00pm
Thu 25 Nov
NLA Dorset Branch Meeting
South West
Borough of Poole, Civic Centre, Poole, BH15 2RU
7.30pm
Sat 27 Nov
NLA Conference
London
Park Plaza Victoria, near Victoria Station, Central London
10.45am start to
West Midlands
5.00pm
Tue 30 Nov
5.45pm
NLA Cardiff Branch Meeting
Wales
SWALEC Staduim, Sophia Close, just off Cathedral Road,
Cardiff CF11 9XR
Wed 1 Dec
Lansdowne Hotel, King Edward’s Parade (Eastbourne Seafront),
6.30pm to
East Sussex BN21 4EE
9.00pm
NLA Eastbourne & Wealden
South East
For an up-to-date list visit: www.landlords.org.uk/events 32 UKLANDLORD SEPTEMBER/OCTOBER 2010
NEWS >>
Middlesbrough’s Good Tenant Passport Scheme A proactive approach to tenant referencing in the North East has been welcomed by the NLA which hopes other local authorities will follow suit. In place since 2004, Middlesbrough Council’s Good Tenant Passport Scheme provides a free tenant referencing service based on a confidential record of each tenant’s housing history, references from the police, housing associations, as well as housing benefits and housing departments. The Council puts together a Good Tenant’s Passport which has the tenant’s photo, membership number and the start and expiry dates of this accreditation which usually runs for one year for applicants who receive ‘green light’ accreditation under the scheme’s traffic light system.
Reassurance for landlords Prospective tenants can show landlords their passport to establish that all their reference checks have been passed. An amber light accreditation lasts for six months and indicates that there have been some issues with previous tenancies but with support the tenants could work towards full accreditation. “However, this is decided by the landlord as it’s for him or her to make an informed choice,” says Monica Marron, Principal Environmental Housing Officer at Middlesbrough Council’s Community Protection Service. “We recognise that
landlords have a business to run and landlords need extra reassurance beyond simply a credit reference.” David Cox of the NLA believes this approach “sets a useful precedent for achieving long-term tenancies and good working relations between landlords and local authorities.”
For more information, contact Monica Marron, Principal Environmental Housing Officer, Middlesbrough Community Protection Service by email Monica_Marron@middlesbrough.gov.uk.
Leeds guide for landlords Leeds City Council is due to publish its Private Rented Sector Landlords – Good Practice Guide, intended for use as a ready reference by private rented sector landlords in Leeds whose properties are inspected and regulated by the council. The edition covers recent changes in legal requirements and developments in good practice in the private rented sector. The handbook will be distributed to members of the Leeds Landlord Accreditation Scheme, HMO & Selective Licence holders, as well as during inspection visits by the Council’s officers and in response to requests for guidance on relevant housing standards.
Finding tenants in the South East Brighton Housing Trust (BHT) is expanding its private rented sector services to Eastbourne and Hastings this Autumn. BHT supports private sector landlords to ensure long-lasting tenancy arrangements with tenants who find it difficult to overcome the practical barriers to accessing the private rented sector.
Lee Cecil of NLA Wales has welcomed Pembrokeshire County Council’s recent decision to join the NLA. “It means all 22 local councils in Wales are working closely with the NLA to promote greater understanding and cooperation between local authorities and landlords in the private-rented sector,” he says.
The registered charity leases studio flats directly from landlords, offering a 3-year lease arrangement with a guaranteed market rental rate of up to £500 PCM. There is a 3-month release clause for landlords after the first 9 months of the lease, rent and maintenance is guaranteed throughout along with a guarantee over condition at the end of the lease. There are no fees, management costs or responsibility for landlords throughout this arrangement. BHT then sublets these flats to BHT clients who are tenancy ready but experiencing practical barriers to accessing the private rented sector. Its studio flat leasing scheme serves as a stepping stone for people to overcome these barriers and move to full independence.
The NLA provides local authorities with support for landlord forums and events, advice and opinion on policy developments and implementation and access to the NLA Landlord Library.
For more information, call 01273 234750, email prsi. initiatives@bht.org.uk or see www.bht.org.uk and follow the private-rented sector links.
All Welsh Councils now NLA associate members
NLA BRANCH NEWS >>
New branch for Birmingham and Solihull The Mayor of Solihull, Councillor Ian Courts, will be launching the new Solihull and Birmingham NLA branch in October. The event is being organised by the NLA jointly with Solihull Metropolitan Borough Council whose staff will be there to talk about opportunities for private landlords and respond to questions
on private-rented sector services. The launch takes place on 18th October (5-8pm) and Mary Latham, the NLA’s West Midlands regional representative, will be there to provide latest news and information for landlords. For more information about the event, see page 31.
UKLANDLORD SEPTEMBER/OCTOBER 2010 33
REGIONAL INVESTMENT >>
Bristol and HMOs NLA member Angela Hardacre has been looking at the potentially damaging impacts to the expansion of the private-rented sector (PRS) if planning consent for new HMOs were to be required in Bristol. She believes that the main way for the PRS to expand in Bristol is for landlords to purchase property for conversion to HMOs. Here are her facts: • Bristol is part of a local sub-region with councils – North Somerset, Bath & North East Somerset (B&NES) and South Gloucestershire.
• The 4 councils make considerable effort to co-ordinate their policies with respect to the PRS, particularly HMO licensing and accreditation. • There are 28,000 licensed HMOs in England and Wales of which 1,600, 5.7 per cent are in Bristol. • High property prices, mortgage costs plus modest rent levels mean it is uneconomic to buy and rent out urban flats or an average 3-bed property in the city, which brings in an average rent of only £600-£750 pcm.
Angela hopes that local planning departments will support landlords’ plans to create more HMOs.
REGIONAL INVESTMENT FOCUS >>
Spotlight on Glasgow As part of our ongoing series looking at residential investment opportunities and markets in different parts of the United Kingdom, UK Landlord talked to David Kendall, NLA Scotland Representative, about the area he knows best. UKL: What should buy-to-let investors know about Glasgow? David Kendall: The majority of my properties are within 3 miles of Hamilton, where I live. The rental market is strong and on my new purchases I am able to achieve yields in the region of 7.5 per cent. The selling market remains slow but is showing some signs of improvement.
UKL: What is your current investment strategy? D.K.: Two years ago I was buying repossessions; they were incredibly cheap and no one else seemed interested in them. Now repossessions are generating much more interest, agents are pricing them low and then if there are sufficient interested parties they go to closing dates which means that the final sale price will often be much greater than the original asking price. Therefore my strategy has changed and my four most recent purchases have all been properties which builders have taken in part exchange. This has become a popular way for builders to shift their stock and a stress-free way for people to sell their current home. Basically the builder gives the homemover the full valuation on their existing property and in turn the homemover pays the full asking price on their new property. The discount that the homemover may have been able to negotiate on their new property is then
34 UKLANDLORD SEPTEMBER/OCTOBER 2010
taken off the part exchange property and I get a bargain! Often £15-£20k below market value, it’s a win-win situation all round.
UKL:What advice would you give to anyone thinking of investing in an area different to where they live? D.K.: Research the area very carefully, consider the time you will spend travelling and the cost of servicing the properties. I have six properties in Aberdeenshire, which is 180 miles from where I live. It works well because I have an agent I can trust and reliable tradesmen in the area. Without this local support, it would be impossible to work at such a distance.
UKL: What advice would you give to landlords looking to maximise rental yields? D.K.: You make your money on the purchase and the rental yield. Currently I only buy if I make an absolute minimum of £10k on the purchase and at least £150pcm profit after covering my mortgage and insurance etc. Property must be viewed as a long-term hold. The best advice is never sell, then you never pay CGT whatever the rate – but it is a bit of a inconvenience to have to die to avoid tax!
David Kendall, NLA Scotland Representative
UKL: Have you made any investment mistakes and what lessons did you learn from them? D.K.: Yes, I bought a property specifically for a tenant, they promised me they would be staying for at least 5 years, but after 12 months they bought a house in the same street and I had to reduce the rent to secure a new tenant. This property produces my lowest yield. I now only buy if the property ticks all the boxes for my investment criteria.
Fife branch meetings Interesting discussions are in store in Fife where the NLA meetings will have specialist talks on mortgage opportunities, tax issues, private sector leasing and local housing allowance. For more information, see events on pages 30-32.
UKLANDLORD SEPTEMBER/OCTOBER 2010 35
Feature: LANDLORD AND TENANT
What is fair wear and tear? Many costly landlord-tenant disputes have arisen as a result of differing interpretations of what is fair wear and tear. Knowing what is reasonable is, of course, critical when it comes to returning a tenant’s deposit. my|deposits, the tenancy deposit protection scheme operator jointly owned by the NLA and Hamilton Fraser Insurance, has created a guide for landlords, offering advice on how to make a fair judgement call at the end of the tenancy period. According to Eddie Hooker, Chief Executive of my|deposits, “Wear and tear is always a hot topic of debate and is very much situation-dependent. We have worked with landlords and our in-house disputes team to compile the guide, which is by no means definitive, but hopefully gives landlords some benchmarks and examples to consider when checking out their tenants.” Nine guiding principles Unlike office leases which can require tenants to leave the property as they found it, often involving complete redecoration, domestic tenancies must allow for reasonable wear and tear. Unfortunately, but perhaps unsurprisingly, there are no precise rules on what is ‘reasonably acceptable’. Is that carpet just well used or irretrievably stained? What about picture hooks left on the sitting room wall? Or the cooker that looks as if it has produced a good three meals a day, every day? The House of Lords defines fair wear and tear as:“Reasonable use of the premises by the Tenant and the ordinary operation of natural forces.” When do ‘natural forces’ become ‘extreme heavy use’ or worse?
36 UKLANDLORD SEPTEMBER/OCTOBER 2010
1. Length of tenancy The longer the tenancy, the more natural wear and tear will occur. Common sense questions you should ask before you decide a deduction, for example in the case of a carpet, include: • how much wear does a carpet in your own home show after one, two or three years? • what was its condition in the first place? Was it brand new or has it already seen a few tenancies come and go? Take account of all these factors before you decide what is fair.
3. Wear and tear versus actual damage When is deterioration in the property classified as damage rather than normal wear? If something has been broken, then that is certainly damage and would require either replacement or repair by a specialist. Light marks on the carpet might have to be viewed as unavoidable: fist marks in the plaster would not be. Equally, damage such as nail varnish spills on the floor or iron burns that have occurred due to negligence could see the tenant liable for repair. my|deposits advises landlords to consider whether the item has been damaged or worn out through natural use versus sheer negligence when making a judgement call. In a dispute about whether cleaning/repair is necessary versus complete replacement at the end of the tenancy, an adjudicator will examine the Check-in/out report, Statement of condition and any photos/videos in order to make an assessment of the condition of the property in relation to the original condition.
2. Number and age of occupiers The more bedrooms and occupants, the higher the wear and tear in all the common parts (sitting room, passages, stairs, bathrooms and kitchen). If some of the occupants are children, factor that in too. Scuffs and scrapes are unavoidable in normal family life. A property occupied by a single person will see far less wear than a family of four, so bear this in mind when it’s time for tenants to check out.
4. Quality of the accommodation Another consideration is the quality or fabric of the property itself. Many new builds tend not to be quite as robust as older properties or conversions. Walls, partitions and internal painted surfaces tend to be thinner and therefore likely to suffer more stress, particularly in higher footfall areas of the property. This inevitably means that there is a greater need for redecoration at the end of the tenancy period.
To help fill the gap left by current legislation, my|deposits offers the following nine pointers to help landlords decide what’s fair and what’s not. Clearly there are financial consequences when it comes to returning all or only part of a tenant’s deposit, so they should be viewed in the context of each particular tenancy.
5. Prevention There are a number of ways in which wear and tear can be kept to a minimum. Firstly, keeping tenants happy so that they choose to extend their tenancies means you will reduce tenant turnover and will not be redecorating/renewing the property as frequently as you would for shorter tenancies. Secondly, if tenants are in for longer periods of time, say two years plus, try to freshen up the property at regular intervals. For example, you could replace the carpet or paint a room. Strategic upgrades or enhancement of the property on a regular basis help to maintain the standard of the property and reduce the need for refurbishment at the end of the tenancy period. Treating the property as an owner-occupier means that you are ultimately minimising the wear and tear and need for redecoration when the tenant moves out. Finally, set your expectations of the tenants from the outset. Remind them that regular cleaning and maintenance can keep a property in good condition. Perhaps conduct a regular check every three months or so, particularly early on in the tenancy, to check that everything is in order. 6. Photo & video evidence Photo and video inventories are a helpful means of recording the condition of the property pre and post the tenancy and should provide a clear record of the property prior to its occupation. Equally, being able to document and provide photographic/ video evidence to support a claim against a tenant
will help everyone know where they stand. Make sure all photographic and video evidence is clearly dated. You should, for example, try to capture photos/ video footage of burn marks/permanent carpet stains, damage to flooring, scratches/damage to woodwork, tears and rips in furniture. Photos and video evidence on their own may not be sufficient, so support this with a comprehensive, detailed inventory. If you are preparing the inventory yourself, rather than using an independent specialist, ensure that the tenant is provided with a copy, both at the Check-in/Check-out stage, and signs a copy so that they understand, and have a chance to discuss with you, what deductions you are proposing to take from the deposit. Ultimately, the more evidence you have the better, so keep the inventory, photos, video, receipts and correspondence safe. 7. Common sense It is important to correctly describe the condition of items when listing them e.g. if something is down as ‘brand new’ it needs supporting bills/ receipts to prove this. 8. The adjudication process Remember that the adjudication process in the event of a dispute, is independent and like a court of law, evidence based. An adjudicator cannot ‘assume’ and can only make a decision based on the evidence provided to him/her. You cannot
challenge an adjudication decision unless it is via a court of law. The more evidence you produce and the more transparent you are with the tenant the higher your chance of success if a dispute is brought against you. my|deposits cannot interfere or ‘review’ any decision made by the adjudicator and cannot tell you what evidence will be acceptable to the adjudicator and what will not. 9. Best practice Wear and tear is a topic that is open to interpretation. Ultimately, as a landlord, your aim is firstly to minimise the level of wear and tear in your properties and secondly to ensure that you have covered all bases in the unlikely event of a dispute with your tenant over the return of the deposit.
my|deposits discounted joining fee offer NLA members can join my|deposits for just £10, saving 50% off the usual registration fee. Offer ends 1 November 2010. To find out more, see www.landlords.org.uk
A tenant’s view of deposit protection Gavin Thomas, a student at The University of Sheffield has been renting a property in Upperthorpe since 2008. Gavin’s landlord, Shay Popat, explained to him that it’s the legal responsibility of the landlord to protect his deposit in a government-approved tenancy deposit protection scheme, and that he used my|deposits to do this. Once Shay had registered and protected the deposit, Gavin received a Deposit Protection Certificate as proof of protection and the my|deposits Information for Tenants guide.
“By speaking to my landlord and reading the information from my|deposits, I have a good understanding of how everything works and will suggest the scheme to any future landlords,” said Gavin. “I personally haven’t had any difficulties obtaining my deposit at the end of previous tenancies, but I think that schemes such as my|deposits are a valuable means of protection for tenants, particularly against more unscrupulous landlords. I think it makes the system fairer for everyone involved.”
UKLANDLORD SEPTEMBER/OCTOBER 2010 37
PUBLIC AFFAIRS
Developments that could affect landlords in the UK Housing Benefit cuts and caps The NLA has been setting out its concerns about the Coalition Government’s changes to Housing Benefit rules. In response to consultations by the Work and Pensions Select Committee and the Social Security Advisory Committee on the effects of proposed LHA changes, the NLA has put together a series of real case-studies of how the changes will affect landlords and tenants in concrete terms. According
to NLA Public Affairs Officer Vincenzo Rampulla, “our aim is to demonstrate the true value of good housing rather than any quick fixes that may be gained through large-scale cost-cutting in this area.” The NLA is calling on the Coalition Government to act on alternative solutions so that any changes to housing benefit and local housing allowance rules will not lead to crises in housing supply.
A green deal for landlords The NLA is participating in detailed consultations with the Department of Energy & Climate Change which is planning to introduce a green loan scheme to help households, including landlords’ properties, become more energy efficient. David Cox of the NLA’s policy unit believes the DECC’s current plans for a green loan scheme look promising as landlords are not likely to be saddled with any costs to improve their properties. The loans will be available for energy efficiency improvements such as for insulation of lofts, cavity walls and water pipes. The loan will be repaid by whoever pays the energy bills. In the case of the private-rented sector, this is usually the tenant, unless the property is a house in multiple occupation, in which case it will often be the landlord.
Obligations on utilities The loan will be repaid through the utility bill for the property over 25 years. As the improvements will benefit the occupier of the property, the loan is linked to the property rather than its owner, which means it will be passed on to any new tenant or new owner. If the occupant changes energy company, the cost will simply transfer to the new energy company. The Government plans to introduce legislation that will make it impossible for a new energy provider to provide energy without taking on the costs associated with the green deal finance. In allocating the loan, there will be no reference to the credit score of the household. It will not be a personal loan, a green mortgage or a charge on the property. The underlying basis for the loan scheme is that the combined sum of the loan repayment and energy bills must be lower than energy bills that would have been paid had the energy efficiency improvement not been made. This financial initiative is be introduced by Spring 2012.
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Concerned about microgeneration? Climate Change Minister Greg Barker is pushing for greater self-sufficiency by households in the way they use heat and power. The Coalition Government’s microgeneration strategy involves encouraging households to generate heat and power using electricity technologies less than 50 kW in size, and heat generating technologies less than 300 kW in size. This includes air, ground and water source heat pumps, solar photovoltaics, solar thermal water heating, biomass boilers, micro Combined heat and power, micro wind turbines, fuel cells, micro hydro schemes, and, passive flue gas recovery devices. Other than the installation costs, do you have any concerns or views about this approach? If so, please email David.Cox@landlords.org.uk.
NLA PARTNER NEWS How new tenancy threshold rules could affect your tenancy deposits By Ian Langley, Technical Director, HFIS plc From the beginning of October 2010 the Tenancy Deposit Protection (TDP) legislation extends to tenancies with an annual rent between £25,001 and £100,000. Remember that the change in legislation is retrospective so, regardless of when the original tenancy was granted, if you have taken a deposit you must protect it with my|deposits on, or as soon as possible after, the 1st October 2010 or you risk breaking the law. We understand that the Courts will show some leniency to landlords/agents who genuinely forget to protect the deposit, or are late in protecting the deposit, but there is no guarantee of this and the Courts act within their own powers of interpretation without influence from other Government departments. TDP schemes can take no responsibility for any landlord/agent failing to protect a deposit and we cannot intervene in cases brought in front of the Courts. You have been warned!
my|deposits does, however, have some concerns that our landlord and agent members may be considering issuing either a new AST or a ‘notice of variation’ to their existing tenant(s) in order to comply with the changes in legislation. Whilst we have no specific guidance or advice as to whether or not this is the correct course of action, we must stress that landlords/agents need to follow the same ‘protocols’ to these changed or reissued tenancies as they would normally apply to a brand new tenancy. By this I mean that landlords and agents should remember to ensure that they have: prepared a full inventory; prepared a schedule of condition referring to every item on the inventory; obtained the tenant(s) signature to confirm agreement to both documents and provide them with copies; and provided the tenant (s) with the relevant Prescribed Information, as detailed on our Deposit Protection
Certificate, together with the other supporting documentation, remembering to sign the Certificate and then get the tenant(s) to sign too. This reminder is more relevant if a deduction from the tenant’s deposit is required at the end of the tenancy which may lead to a deposit dispute with the tenant. Protection of the deposit allows a tenant access to my|deposits’ free Alternative Dispute Resolution (ADR) process, subject to the rules governing this process and the fact that legislation prevents the Scheme from influencing the independent adjudicator. With deposit values likely to be higher on upper rent level ASTs, the sensitivity of deposit disputes increases, potentially leading to more disputes and the requirement for concrete evidence from the member becomes paramount. For more information, see the my|deposits website, www.mydeposits.co.uk.
Disclaimers This article and the rules discussed relate purely to my|deposits. Whilst the legislation that came into effect in April 2007 is relevant to all deposit protection schemes, the other two schemes may have different rules and processes and if you protect your deposit via these other schemes you will need to speak with their scheme administrators. Please note that my|deposits are not legal advisors and in all cases you should take legal advice from your own solicitors if you are unsure of your own individual requirements.
UKLANDLORD SEPTEMBER/OCTOBER 2010 39
PUBLIC AFFAIRS
What’s in store on the Autumn political agenda? As well as setting out the NLA’s clear concerns about cuts and caps on Housing Benefit and Welfare Reform, the NLA’s policy team has been busy during the Summer months responding to Green Papers and policy consultations in advance of the autumn parliamentary session. Here’s a taste of what’s being considered by the current Government
HM Treasury is consulting on reform of the tax treatment of holiday lets. The Government has proposed changes to the current furnished holiday lets arrangements. (For more information, see Finance & Tax story on page 16.)
England: The Ministry of Justice is currently consulting on proposals to reform the provision of county courts in 16 areas in England. This has the potential to impact on landlords’ access to the courts and their capacity to handle cases.
Northern Ireland: The NLA has been invited to submit written evidence to the Northern Ireland Committee for Social Development in relation to its serious concerns about moves to introduce a landlord register in Northern Ireland.
Scotland: With tenancy deposit protection now almost a given in Scotland, the Scottish Government is consulting the NLA and other bodies on the most effective way of implementing a scheme. It is possible that a Scottish scheme will allow a broader selection of companies to be eligible to run the tenancy deposit protection scheme. See page 14 for more details of the Scottish Government’s plans. Wales: The Welsh Assembly Government has asked the NLA for its input into domestic fire safety plans which could require automatic fire suppression in all new residential premises.
Call for an end to rent control in Portugal The UIPI, which represents the NLA at the EU level, met in Lisbon, Portugal to highlight its concerns about the destructive nature of rent control legislation on landlords in Portugal. The relevant legislation has been in place for 100 years resulting in extremely low rents for residential properties.
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The UIPI’s Executive committee called on the Portuguese government to rescind the legislation, to compensate landlords for their losses and to exempt landlords from paying taxes or administrative costs for works to improve buildings that have been the subject of rent control.
NLA MEMBER BENeFITS
For an up-to-date list visit: www.landlords.org.uk
Suppliers You Can Trust
How to join the NLA’s Recognised Supplier Scheme
Look for the Partner or Recognised Supplier logo Vying for your money With so many companies in the market place vying for your money, the Recognised Supplier Scheme helps you narrow your search by selecting suppliers you can trust! Suppliers you can trust We undertake series of checks before approving a supplier. These include: 1, Checking financial stability 2, Taking up references of landlords who have used the service before 3, Referring the application to our decision making panel. A majority decision determines acceptance
For the scheme application pack, please visit the NLA website: www.landlords.org.uk or email recognised supplier@landlords.org.uk or phone Christian Kent on 020 7840 8917 Once a supplier is approved, we regularly assess how many landlords are using the service and deal with any issues. Over the year ahead you will begin to see a database of suppliers who have met these key requirements, so remember to look out for the scheme logo when searching for a reputable supplier!
NLA PARTNERS Hamilton Fraser Insurance Tel 0800 634 3880 Fax 0845 310 6301 landlords@hamiltonfraser.co.uk www.hamiltonfraser.co.uk Hamilton Fraser is the NLA’s number one choice for landlord insurance. Our policies offer a wide range of protection options to meet your individual requirements, at a price that will suit your budget. From individual properties to large portfolios, we have got the insurance solutions to protect your investment should the unthinkable happen. With some of the most extensive covers in the buy-to-let market and great savings for NLA members why not call and speak to one of our expert advisers.
my|deposits Tel: 0844 980 0290 Fax: 0845 634 3403 info@mydeposits.co.uk www.mydeposits.co.uk
Our scheme is the only one that enables landlords to take and hold deposits themselves. This insurance-backed scheme strikes a fair balance between landlord and tenant and offers the flexibility of being able to retain control of the deposit. The scheme provides evidence-backed dispute resolution and a simple to use ‘pay-as-you-go’ format. Members of the NLA qualify for discounted rates.
NLA RECOGNISED SUPPLIERS Accommodation for Students Tel 0845 351 9911 Fax 0161 332 8261 enquiries@easyafs.com www.accommodationforstudents.com AccommodationforStudents.com is the UK’s No1 website for advertising property to students. It enables students to find their ideal digs fast and make enquiries. Featured at the top of the search engines for all ‘student housing’ related keyword searches AccommodationforStudents attracts in excess of 350,000 unique visitors per month. NLA members qualify for discounts. Acklands Tel 0117 923 7788 Fax 0117 923 8123 support@acklands.co.uk www.acklands.co.uk Acklands Ltd was founded in June 1994 and is well established in Bristol having served the South West, Midlands and London regions for many years. Acklands Ltd is a member of the Institute of Chartered Accountants in England & Wales (ICAEW) and offers NLA members a 10% discount on first year fees. Alliance & Leicester Tel 0800 068 6698 www.alliance-leicestercommercialbank.co.uk/nla Business.Development@Alliance-Leicester.co.uk Alliance & Leicester Commercial Bank is working with the National Landlords Association as a Recognised Supplier providing access to its award winning Free Business Current Account, which meets the demands for better value banking. Alliance & Leicester Commercial Bank is now part of the Santander Group – one of the safest banks in the world.
British Gas Tel 0800 980 4302 MTTPAYGE@britishgas.co.uk www.britishgas.co.uk/multitenancy British Gas can help you to manage your property portfolio by providing a dedicated account manager. We can ensure tenancy changes are managed more efficiently and provide discounts on our maintenance and repair range, as well as energy efficiency advice. The service is offered to NLA members completely free of charge. Bump The Agent claude@bumptheagent.com www.bumptheagent.com www.bumptheagent.com is a national database of private landlord student accommodation. The purpose of www.bumptheagent.com is to put students directly in touch with private landlords so that both parties can avoid tenant finding fees charged by letting agents. List your property and reach thousands of students looking for accommodation. Colin Simpson Consultancy Tel 01582 699363 colin.simpson29@yahoo.co.uk www.colinsimpsonconsultancy.co.uk Vacant possession of your property for £295(no vat) - that is the specially discounted sum for NLA members, excluding court fees, that we charge for helping you with the process of taking your tenant to court. I will help you through the whole process and you will save a large legal bill.
UKLANDLORD SEPTEMBER/OCTOBER 2010 41
NLA RECOGNISED SUPPLIERS
For an up-to-date list visit: www.landlords.org.uk
EnviroVent Ltd Tel 0845 2727 807 info@envirovent.com www.envirovent.com Our systems are designed to eliminate streaming windows, condensation and mould whilst protecting your investment. We manufacture the world’s most innovative, eco-friendly ventilation solutions saving local authorities, landlords, specifiers & developers vast amounts of money in maintenance and disrepair problems. To help achieve the Decent Homes Standard, EnviroVent offers substantial discounts to NLA members. E.ON Tel 0845 301 4897 eonlandlordservice@eonenergy.com www.eonenergy.com As one of the country’s leading suppliers of gas and electricity, our products and services are as varied as our customers. Created especially for busy property managers, our dedicated landlord service could help you save precious time, energy and money when letting or re-letting your properties.
Fairhurst Tel 01942 241103 Fax 01942 825689 webenquires@fairhurstaccountants.com www.fairhurstaccountants.com We offer a range of tax services covering both self assessment tax reporting and planning (personal and corporate) in respect of all relevant taxes, providing you with a competitive edge. We are also able to provide a comprehensive range of business and financial planning services to meet your needs.
Hallmark Tel 0800 458 1523 Fax 01652 601401 enquiries@hallmarkcorporate.com www.hallmarkcorporate.com We are the UK’s leading utilities management partner for the lettings industry. Hallmark is an established, well respected company who work in association with The Scottish and Southern Energy Group (Southern Electric, Scottish Hydro, SWALEC, Atlantic Electric & Gas) providing products and services that offer benefits and savings to Landlords and Tenants.
Landlord Action Tel 0845 881 0011 enquiries@landlordaction.co.uk www.landlordaction.co.uk LANDLORD ACTION was set up 9 years ago by two landlords frustrated with solicitors charging fat fees for eviction. We offer fixed fees to landlords in eviction, with a free advice line. We are the market leaders in fixed fee eviction and have successfully evicted over 17,000 tenants. Also we have appeared on BBC 1’s War at the Door, and ITV’s Tenants from Hell. NLA members can claim a £15 discount on instruction.
Landlord Response Tel 0844 462 9880 customercare@landlordresponse.co.uk www.landlordresponse.co.uk Landlord Response are true specialists dealing with gas, electric and plumbing requirements for landlords. A unique service to cover property breakdowns and avoid unexpected repair bills, as well as issuing your annual Landlord’s Gas Safety Certificate. Keep your property safe and compliant for as little as 50p per day. NLA members can benefit from a 10% discount off all packages.
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Lawpack Tel: 020 7394 4040 Fax: 020 7394 4041 enquiries@lawpack.co.uk www.lawpack.co.uk Landlords: Need a Tenancy Agreement, Section 21 Notice or Property Inventory? From just £9.99, you can “Download Now” solicitor-approved tenancy legal forms at Lawpack, plus pick up To Let signs, 99p Rent Books, Commercial Leases, Eviction Notices and Tax-Saving Guides. 15% off all Landlord & Tenancy products for NLA members.
LettingZone Tel 01622 720072 Fax 01622 726175 enquiries@lettingzone.com www.lettingzone.com LettingZone the ‘The UK’s Premier Landlord Letting Portal’. Let your property on Rightmove, Findaproperty, Primelocation, Gumtree, Zoopla, Globrix and over 100 other leading letting sites from only £39 + VAT until let, by using our promoted UK Tenant Find Service. Also Full Management Service available from only £60 + VAT per month.
OHS Limited Tel: 0800 834 293 info@ohs.co.uk www.ohs.co.uk OHS the leading independent health safety and environmental management consultancy with offices throughout the country, highly qualified professionals who work with companies and organisations of all sizes making sure that they are fully compliant and in line with HSE directives. Negotiated special prices for NLA members.
Pinnacle Cleaning Services Tel: 0845 202 5757 webenquiries@pinnacle-cleaning.co.uk www.pinnacle-cleaning.co.uk Pinnacle is an elite cleaning company with over 20 years diverse experience in the Industry - including Environmental / Trauma Scene Cleaning, Fire & Flood Restoration and Void Property Remediation. We dispatch experienced and professional emergency response teams 24/7/365 throughout the UK. Up to 15% Discount for NLA members.
Property Owners Directory Tel 020 7722 4334 Fax 020 7722 5335 info@propertyownersdirectory.com www.propertyownersdirectory.com POD is the UK’s leading online recommended tradesmen and property services directory. NLA members are entitled to a 15% discount for a site listing, and can claim a £20 cashback for recommending reliable tradesmen who sign up for a paid listing.
Property Portfolio Software Tel 01925 398 599 enquiries@propertyportfoliosoftware.co.uk www.propertyportfoliosoftware.co.uk Property Portfolio Software provides solutions to help landlords get better organised when managing multiple properties. Our software solutions are designed by landlords for landlords and are guaranteed to save you time, money and effort in running all aspects of your property business. NLA members can claim a 15% discount.
NLA RECOGNISED SUPPLIERS
For an up-to-date list visit: www.landlords.org.uk
Salans Solicitors Tel 020 8290 7745 bromleyLT@salans.com www.salansdirect.com Salans is a full service international law firm globally operating from 19 offices. Within our Bromley offices we have an in-depth understanding and wealth of experience acting for residential and commercial landlords for possessions and outstanding rent arrears. We also specialise in all types of residential sale, purchase and remortgage conveyancing, to include buy to let and shared ownership. We use a competitive fixed price strtegy: NLA members can benefit from a 15% discount from our standard fee. Seddons Solicitors Tel 020 7725 8000 enquiries@seddons.co.uk www.seddons.co.uk Seddons is a Central London law firm with a specialist Property Dispute Resolution team advising landlords on all tenancy problems including rent arrears, squatters and the recovery of possession. We also have a significant commercial and residential property practice with teams for secured lending, commercial contracts and employment issues. Upon verification of their membership status, Seddons will offer NLA members a 15% discount on its usual fees for landlord and tenant disputes. An estimate of fees will be provided at the outset.
Sky Communal Solutions Tel: 0844 241 0331 no-reply@skyhomes.co.uk www.sky.com/managers Sky Communal Solutions (part of BSkyB group) equips private blocks of flats with high-quality digital TV. Our communal TV solutions are Shared Dish and Integrated Reception System (IRS). They will meet all your digital TV needs, get blocks ready for the digital switchover, and give residents great viewing options.
SpareRoom.co.uk Tel: 0845 644 4029 landlords@spareroom.co.uk www.spareroom.co.uk/landlords SpareRoom.co.uk is the UK’s No.1 Flatshare website with over 1/2 million visitors per month. Whether you’re targeting students or professionals, there’s nowhere better to advertise your rooms to rent and whole properties suitable for sharing. NLA members receive one week’s free advertising for up to 10 adverts.
Spick & Span Commercial Services Tel: 023 80602299 info@cleaningforlandlords.co.uk www.cleaningforlandlords.co.uk Spick & Span Commercial Services provide end of tenancy cleaning to Landlords and letting agents across the UK. We can cover any number of properties within your portfolio whilst keeping superior quality of service. We have been in business for over 20 years and tailor our services to individual needs.
The Energy Saving Team Tel: 0800 988 5928 info@TheEnergySavingTeam.com www.TheEnergySavingTeam.com Properties rent quicker & tenants remain longer by getting them insulated from just £129 using government grants for loft or cavity wall insulation, which is reclaimable using the Landlord Energy Saving Allowance, saving you nearly £1000 on the full cost. It will also help to reduce condensation, damp & mould.
UKLANDLORD SEPTEMBER/OCTOBER 2010 43
NLA SERVICES
We have a range of carefully selected NLA products and services for busy landlords. Finding the right supplier can be a challenge, especially when there are so many vying for your business. We offer you professional services that can easily be purchased online and each offers dedicated support to answer any queries or questions you may have. NLA services offer discounts, rewards and other privileges for NLA members, including FREE services.
NLA Mortgages
NLA Conveyancing
Best of market mortgages sourced for you
Find the right law firm for you
NLA Mortgages provides a free online mortgage search facility for all private landlords enabling you to source a highly competitive range of buy-to-let mortgage schemes that are researched on a daily basis.
Looking for the right solicitor can be a challenge as it’s so difficult to compare the services in the marketplace at any given time. Our online system enables you to research and compare prices immediately and without the need to make any phone calls. Compare and choose froma range of solicitors by:
• • • •
Research the buy-to-let market yourself Find schemes that fit your expected rental income Cashback available for NLA Members Free support and information helpdesk
Cashback for all NLA members for NLA members on every successful mortgage completion*. Get the right mortgage for you online at
www.landlords.org.uk/mortgages
• • • • •
Price Distance from the property Distance from your home address Recommendation Free helpdesk
£100 cash back
Register now to quote & compare online at
www.landlords.org.uk/conveyancing
NLA EPCs
NLA Tenant Checks
Reliable and professional service from fully qualified assessors
Don’t take a risk with tenants!
EPCs are legally required for the majority of lettings. • • • •
Fully accredited assessors Fast, non-invasive assessments Simple online booking Dedicated helpline to answer any of your questions
From £55 inc. VAT*
for NLA members on every successful property completion.*
If you’re looking to take the risk out of renting then you should always carry out regular checks on your new and existing tenants. • • • •
A choice of Basic or Full Tenant Reference Checks Instant results displayed on screen Simple, online application process Affordability assessment provided with a full tenant check
From £8 for a Basic Tenant check
and £23.00 for a Full Tenant check.*
Register and purchase online at
Register and purchase today to ‘be in the know’ about your tenants at
www.landlords.org.uk/EPCs
www.landlords.org.uk/tenantcheck
44 UKLANDLORD SEPTEMBER/OCTOBER 2010
NLA Inventories
NLA Rent Guarantee Insurance
Protect your property
Save yourself thousands and months of worry
Inventories are a crucial part of any letting agreement. The Tenant Deposit Scheme can rely on an inventory when any disputes arise between a landlord and tenant over any repairs or replacements needed at the end of a tenancy period. • Safeguard your property • Peace of mind for you and your tenant • Ensure you have a secure basis for claims against a tenant’s deposit • Negotiations on the deposit can be dealt with quickly and easily • Select the right report for you
With disputes taking on average 6 months to resolve and the average monthly rent now over £800, you could find yourself thousands of pounds out of pocket if things go wrong. NLA Rent Guarantee Insurance • • • • •
From £73 for an unfurnished, one bedrom property.*
See a sample report and book an interview by registering online at
Professional, reputable and transparent Fully backed by the NLA 24 hour legal helpline Cover up to £2,500 per month for unpaid rental income (up to a maximum of £15,000 or six months rent) Transparent terms and conditions
From £57.75 for 6 months cover
www.landlords.org.uk/inventories
www.landlords.org.uk/rentguarantee
NLA Rent Arrears
NLA Forms
1 in 3 landlords have tenants in arrears
‘Best Practice’ landlord - tenant forms and letters
Acting on your behalf, we can contact your tenant(s) by phone or letter, visit them at the tenanted address, serve notice and undertake possession proceedings. Whichever service you require, you can be sure that we will offer a professional approach to you and your tenant(s).
Regularly updated, it covers over 40 subjects, including:
Here’s what we’ll do on your behalf: • • • •
Contact the tenant by phone and letter Visit the property Serve appropriate notice(s) through the courts Seek repossession through the courts
Only available to NLA members
Protect yourself - register and purchase online at
• • •
Editable, saveable personalised letters & forms Includes tenancy agreements, letters, forms and formal Court documents NLA endorsed for confidence in content and tone
FREE to NLA Members
See full details of the service and register online at
Access NLA Forms at
www.landlords.org.uk/rentarrears
www.landlords.org.uk/forms
NLA Landlord Library
NLA Online Store
All the assistance you need in the format of your choice
Access to a range of landlord resources
Regularly updated, it covers over 40 subjects, including: • • • • •
Regulatory Regime: civil and criminal law Property: licensing, HMOs, energy efficiency Tenancy: tenancy types, rent, tenancy deposits Safety: Housing Health & Safety Rating System Finance: tax, record-keeping, mortgages
FREE to NLA Members
Use the NLA Online Store to book courses, order pre-printed tenancy agreements, purchase fire safety and portable appliance testing equipment, as well as tenant information packs and folders. The Online Store is open to all landlords 24hrs a day. • • • • • • •
Fire Extinguishers and Blankets Carbon Monoxide Detectors Smoke Alarms • Fire Safety Logbook Portable Appliance Testing Equipment Landlord Development Manual Landlord Courses Pre-printed ASTs and more!
Significant savings for NLA members
Access NLA Library at
Take a look at the products, courses and publications available today at
www.landlords.org.uk/library
www.landlords.org.uk/onlinestore
*Only NLA members qualify. Subject to landlord (or tenant) providing the necessary information. Prices correct at time of print. Prices include VAT. Prices subject to change. Terms and conditions apply. UKLANDLORD SEPTEMBER/OCTOBER 2010 45
NLA RECOGNISED SUPPLIER PROFILE
Lawpack
To further its core objective to raise standards in the privaterented sector, the NLA vets companies that it considers professional and offer good value for money to its members under its Recognised Supplier Scheme.
Lawpack: solicitor-approved agreements and forms for landlords Lawpack’s aim is to help landlords save legal fees and resolve everyday legal problems without the use of a solicitor.
Jane Bell, Lawpack Web Editor
Lawpack is the UK’s leading provider of legal forms, DIY legal kits and legal guides. In areas such as wills, tenancy, divorce, power of attorney and business contracts, Lawpack helps its customers to get things done with minimum fuss, time and expense.
Tenancy Agreements – from £9.99 • Furnished/Unfurnished Tenancy Agreements • Lodger Agreements • Contractual/Common Law Tenancy Agreement • Holiday Letting Agreements • Company Let Agreement Commercial Leases – from £43.49 • Short-Term/Long-Term Commercial Lease • Shop Lease • Office Lease • Workshop Lease
One of the main benefits for landlords from Lawpack’s products and service is that it is often more cost-effective to draw up your own documents youreslf – say a standard tenancy agreement or an eviction notice – than go to a solicitor. “Why should landlords pay exorbitant fees to a letting agent to draw up a tenancy agreement when they can download Lawpack’s solicitor-approved tenancy agreement for just £9.99?” says Jane Bell of Lawpack. Managing your rental property doesn’t have to be difficult Lawpack has a wide range of landlord products – all available to ‘Download Now’ instantly and with expert guidance notes.
46 UKLANDLORD SEPTEMBER/OCTOBER 2010
Eviction Notices – from £9.99 • Section 21 Notice • Section 8 Notice • Section 33 Notice • Notice to Terminate a Lodger Property Management Forms – from £1.99 • Rent Books • Property Inventory • Lodger/Tenancy Application Forms • To Let Sign Landlord Guides – from £7.79 •How to Avoid Landlord Taxes • Residential Lettings – The Complete Guide • Landlord’s Letters
Solicitor-approved and up-to-date All of Lawpack’s products are approved by solicitors, so you can be assured that they are legally binding and up-to-date. This means you will be able to save on your legal fees. All of Lawpack’s legal forms: • have been approved by expert solicitors • are reviewed by lawyers on a regular basis • include expert guidance notes on filling them in • can be downloaded from our website instantly. All of Lawpack’s legal guides are: • written by specialist authors who are experts in their field • clear step-by-step guides, packed with tips and easy-to-follow legal advice. Special offer for NLA customers We’re offering 15 per cent off all our Landlord & Tenancy products (apart from our Commercial Leases) to NLA members. Go to www.lawpack.co.uk and enter eVoucher code NLA15 at the checkout to secure your saving.
For more details, see www.lawpack.co.uk
NLA RECOGNISED SUPPLIER PROFILE
Spareroom
SpareRoom: Letting out rooms across the UK
SpareRoom’s aim is to provide landlords with the best platform for reaching anyone looking for a room in the UK.
Matt Hutchinson, Communications Director, Spareroom
SpareRoom is the busiest specialist flat and house share website in the UK. According to Hitwise statistics the site gets 95 per cent more traffic than its nearest competitor. “Our position as number one isn’t just down to traffic levels though,” says SpareRoom’s Communications Director Matt Hutchinson. “We pride ourselves on our commitment to customer safety and great service. As a result we have a dedicated team of staff in the office 7 days a week to answer all phone and email enquiries and monitor the ads placed on SpareRoom to make sure nothing fraudulent spoils our users’ experience.”
SpareRoom is actively developing close relationships with landlords wherever possible and provides help and information to make the landlord’s job easier. Its monthly Room Rental Index lists average room rental values in all UK post towns and postcodes and also includes information on levels of demand in those areas. This index is completely free to download every month from www.SpareRoom.co.uk/rentalindex A quick and inexpensive way for landlords to find tenants SpareRoom understands that many professional landlords with several properties will find they can make significant savings by not using
a letting agent. In addition, by dealing with tenants yourself, SpareRoom believes landlords have more of an opportunity to establish a relationship with tenants from the start. “As a good landlord-tenant relationship is key to a successful let, it makes sense for landlords to handle this yourselves,” Matt says. This same customer relationship approach is applied by SpareRoom to its landlord clients. “If SpareRoom as a company didn’t spend so much time dealing with customer enquiries (and we could easily farm this out to someone else) we simply wouldn’t get a chance to hear what our customers are saying,” says Matt. “As a landlord your customer is your tenant so take the opportunity to develop a good relationship from day one, rather than first coming into contact when money needs paying or something goes wrong.”
If SpareRoom as a company didn’t spend so much time dealing with customer enquiries (and we could easily farm this out to someone else) we simply wouldn’t get a chance to hear what our customers are saying. Matt Hutchinson
Free trial for NLA members SpareRoom is offering all NLA members the opportunity to try its Bold advertising package, which ensures that your advert appears higher up on the listings, completely free of charge for one week. The package allows landlords to advertise up to 10 properties. All users of SpareRoom can contact you free of charge during this trial week and your advert will be prominently displayed.
To take advantage of this special offer, NLA members should log in to the NLA website, go to the Recognised Supplier page dedicated to SpareRoom – located at www.landlords.org.uk/services/ suppliers/spareroom.asp For more details, see www.SpareRoom.co.uk. UKLANDLORD SEPTEMBER/OCTOBER 2010 47
BOOKS FOR LANDLORDS Editor Andy Stern reviews a publication designed to help readers make sense of economics.
Guide to Economic Indicators, Making Sense of Economics By Richard Stutely Many landlords will have tried to make sense of the current recession and the prospects for the private-rented sector over the past few years. Like me you may have studied the latest house price statistics, and scrutinised the financial press for indications as to which way the economy will go. With a plethora of sources of this kind of information, it is sometimes difficult to see the wood from the trees. This succinct Economist publication is intended to help the non-specialist reader understand and interpret the main economic indicators in order to cut though the media hype that so often accompanies the release of new data. This Guide makes the point early on that all politicians seem able to demonstrate that their party presided over the fastest economic growth, the biggest fall in unemployment or the lowest inflation. It seeks to demonstrate that “economic figures can be manipulated to demonstrate almost anything” 48 UKLANDLORD SEPTEMBER/OCTOBER 2010
and to give the reader tools to understand and analyse the figures so that he or she can make up their own mind as to what the figures actually mean and what conclusions should be drawn from them. More of a reference book perhaps than a book to be consumed at one sitting, this guide explains in clear, simple language topics such as Gross Domestic Product, Gross National Product and Gross National Income, as well as growth, trends and cycles, money and financial markets, investment and savings and the balance of payments. The book is enlivened with some well chosen and humorous quotes such as Dr Laurence J. Peter’s definition of an economist as “an expert who will know tomorrow why the things he predicted yesterday didn’t happen today.” Published by The Economist, recommended price £20 (ISBN 978-1-84668-17-69). Seventh Edition, published August 2010.
UKLANDLORD SEPTEMBER/OCTOBER 2010 49
MORTGAGE MARKET ROUNDUP New deals The buy-to-let market has remained stable over the last couple of months with supply and demand relatively constant. That said, Paul Rockett of NLA Mortgages says that “there have been a few highlights with lenders offering semi-exclusive products via NLA Mortgages, but these have been withdrawn quickly following high demand. It is therefore a good idea for landlords looking for a buy-to-let mortgage to check the NLA Mortgages online sourcing system to see what products are currently on offer.” NLA
Mortgages is now offering a niche bridge-to-let scheme which comprises a six-month bridging loan up to 75 per cent of the open market value at 1.65 per cent per month whilst works are carried out, followed by a 2-year 6.99 per cent fixed buy-to-let mortgage. Paul says this product “could be useful for professional landlords looking to purchase bargain properties in need of some refurbishment. For the right investor, this product enables portfolio development and leaves little capital tied up at the end of the term.”
Remortgaging makes a comeback
Market deals
NLA Mortgages has recently published its Property Investor Profile for Q2 2010 which tracks the product choices of landlords arranging buy-to-let mortgages via its online service. For the third quarter in succession, NLA Mortgages has seen an increase in the proportion of applications for buy-to-let remortgages – 45 per cent in Q2 2010 which is up from 41 per cent and 31 per cent in the previous two quarters. Although purchases still account for over half of applications received, the availability of some competitively priced products in the market place, including specific remortgaging products offering free valuation and free legal fees, has enabled landlords to remortgage more readily. The total number of applications for fixed rates and trackers was fairly evenly split in Q2 2010 with 55 per cent opting for a fixed rate and 45 per cent choosing a tracker. The proportion of fixed rates has increased for the second quarter in a row from 52 per cent last quarter and just 30 per cent in Q4 2009. “The growing popularity of fixed rates reflects the professional landlord’s desire for certainty and control over their expenses and the availability of 80 per cent loan to value (LTV) fixed rate products,” according to Paul Rockett of NLA Mortgages.
NLA Mortgages’ best selling products in August were: • 5.49% 3 year fixed up to 80 % LTV with 3% fee • 4.99% 1 year fixed up to 80% LTV with 2.5% fee • 4.60% 2 year tracker up to 75% LTV with 2.75% fee Gareth Lowman of Savills Private Finance reports that with the Bank of England Base Rate still at 0.5 per cent, since March 2009 and widely anticipated to remain relatively low for the foreseeable future, product focus for many SPF customers has switched on to what trackers are available. Principality BS has launched a new BTL tracker range. The headline rate is 3.64 per cent, for a 2 year tracker which comes with a hefty 3.5 per cent fee. This has a maximum loan amount of £250k but for those seeking to borrow less than £150k, a flat fee product, is available at 4.79 per cent with only a £999 fee. Rental should be at least 25 per cent more than the mortgage interest repayments but this would be based on the Standard Variable Rate currently 4.99 per cent. To use NLA Mortgages’ free online mortgage search, see www.landlords.org.uk
CML reports slight growth in buy-to-let The freezing up of the buy-to-let mortgage market that accompanied the credit crunch appears to have eased a little, according to the latest buyto-let survey results from the Council of Mortgage Lenders. While the CML says that buy-to-let lending is still very subdued and ongoing challenges remain, in the second quarter of 2010 the number of buy-to-let mortgages taken out was 24,900. This was 13 per cent up on the 22,000 in the first quarter, and 15 per cent higher than the 21,600 in the second quarter of 2009. The value of buy-to-let lending in the second quarter was £2.4bn, of which £1bn was remortgaging. Although business is only just over a quarter of its level of three years ago, both the number and the value of buy-to-let loans were at their highest level since the fourth quarter of 2008 (other than in the fourth quarter of 2009 where demand was artificially inflated by the end of the stamp duty concession). B2L mortgage arrears The number of properties taken into possession by first-charge mortgage
50 UKLANDLORD SEPTEMBER/OCTOBER 2010
lenders continued to fall in the second quarter of 2010, according to the latest data from the Council of Mortgage Lenders. There were 9,400 repossessions (down from 9,800 in the first quarter and 11,800 in the second quarter of 2009). The number of mortgages behind with payments also fell. As at the end of June there were 178,200 loans with arrears equivalent to 2.5 per cent or more of their mortgage balance. This was 5 per cent lower than at the end of March, and 17 per cent lower than a year earlier. The continuing welcome decline in payment problems has led the CML to revise its forecasts for arrears and repossessions in 2010 as a whole. The CML now expects 175,000 mortgages to end the year 2.5 per cent or more in arrears, compared with the previous forecast of 205,000. A total of 39,000 repossessions is now forecast for 2010 as a whole, compared with the previous forecast of 53,000.
UKLANDLORD SEPTEMBER/OCTOBER 2010 51
HOUSE PRICES AND LETTINGS SURVEYS
House Prices House price growth slowing, likely to be flat for the rest of 2010. According to most indices, house prices are rising but only slightly. The latest
and December 2009 to February 2010, rather than activity in more recent
house price index from Communities and Local Government (CLG) records
months. The report anticipates that “as these early months drop out from the
that prices stayed at the same level between May and June and rose by 0.8
annual calculations, we will see the annual rate of growth continue to fall
per cent in the quarter ending June 2010. This compares with a rise of 2.8
over the remainder of the year.”
per cent for the quarter ending March 2010 (seasonally adjusted). The mix-adjusted average house price in the UK stood at £210,775 in June 2010 (not seasonally adjusted). The main house price index sources gave a mixed picture for house prices in July, with most suggesting a slight rise in prices while Nationwide reported that prices fell in July.
Regional trends Annual average house prices rose in England (10.5 per cent), Scotland (3.7 per cent) and Wales (13.5 per cent) but fell in Northern Ireland (-7.7 per cent), according to CLG. The UK average house price rose by 9.9 per cent in the year to June 2010, compared with a rise of 10.6 per cent in the year to May. Average mix-
• The Land Registry reported that prices rose by 0.4 per cent in July
adjusted house prices rose in all English regions in June with the exception
which marked an annual price rise of 6.7 per cent. According to the Land
of the East of England, the North West, and Yorkshire and the Humber. All
Registry, the average house price is now £166,798.
regions saw increases in average house prices over the year to June, the largest being in London (14.8 per cent) and the smallest in Yorkshire and the
• The Halifax house price index reported that house prices increased by
Humber (5.0 per cent).
0.6 per cent in July, reversing the fall in prices which took place in June.
Average mix-adjusted house prices in June were £217,911 in England,
Halifax believes that the mixed pattern of monthly rises and falls over the
£168,401 in Scotland, £160,668 in Northern Ireland and £155,492 in Wales.
first seven months of the year is consistent with a slowing market. It is also
London remains the English region with the highest average house price
in line with Halifax’s view that house prices will be broadly unchanged over
(£338,508). The North East was the lowest at £141,903.
2010 as a whole. Halifax says prices in July were marginally (0.8 per cent) lower than at the end of 2009 but were 8.3 per cent above their April 2009 trough. The average house price is now £167,425; 16 per cent below its August 2007 peak. • House prices fell by 0.5 per cent in July, according to Nationwide. This brought annual house price inflation down from 8.7 per cent in June to 6.6 per cent in July, and the price of an average house to £169,347. The 3 month on 3 month rate of change – a smoother indicator of the near term price trend – fell from 1.7 per cent in June to 1.3 per cent in July, significantly below the peak of 4.0 per cent reached in September 2009. Commenting on the figures, Nationwide’s Chief Economist Martin Gahbauer said: “So far in 2010, demand from homebuyers has made little progress in building upon the recovery seen during much of 2009. Despite the introduction of a second stamp duty holiday for the vast majority of first-time buyers and record low interest rates, the number of properties changing hands across the UK is still running at only half the levels seen prior to the financial crisis and recession.” • House prices in England and Wales rose by 0.1 per cent in July, according to the LSL Acadametrics house price index, with the average price of a home in England & Wales £220,685. At this level, LSL Academetrics believes it is down £11,143, or 4.8 per cent, from its peak in February 2008 of £231,828. The still-considerable annual rate of growth at 8.1 per cent reflects the significant rises that took place between August to October 2009
52 UKLANDLORD SEPTEMBER/OCTOBER 2010
Regional house price indices 12-month percentage change for the latest month
Source DCLG
HOUSE PRICES AND LETTINGS SURVEYS
Auction sale rates rise Latest data from RAPID (Residential Auction Property Investment Data) covering July 2010 has indicated that the overall sales rate rose to 65.7 per cent, an improvement on June (61.4 per cent) and close to May (66.8 per cent). The number of residential lots offered was down 10 per cent in July 2010 compared with July 2009, while the number of lots sold was down by 10.9 per cent. RAPID, which is compiled jointly by auctioneer Allsop and the Essential Information Group (EIG), reported that the quarterly and yearly comparisons for residential lots show a very steady market in terms of amount raised with virtually no difference in the periods. David Sandeman of EIG notes that not surprisingly the figures for lots offered and lots sold reached their peak in 2006 and 2007, before the recession, whilst 2008 saw the lowest figures, with some improvement evident in 2009 and 2010
with a return to close to the long term average.“Looking forward I believe that the auction market has adjusted itself to the new market conditions and will perform relatively well going forward,” he said. On a more upbeat note, Allsop Residential reported a major two-day sale in mid-July raising £43.4m from the sale of 358 lots, with a success rate at 78 per cent. This was significantly higher than the 61.4 per cent national average for June this year. Commenting on the result, Allsop auctioneer Gary Murphy said “this was a great result given the challenging conditions of the market. From the rostrum it was clear that bidder sentiment had hardened since our May sales. Buyers are less willing to take risks than earlier this year and there’s a general apprehension about the duration of the economic recovery. This is exacerbated by continuing restraints on new lending.”
54 UKLANDLORD SEPTEMBER/OCTOBER 2010
HOUSE PRICES AND LETTINGS SURVEYS
Lettings Surveys Record 50,000 new tenants enter the UK rental market Letting agent Countrywide reports that 50,480 new tenants registered for rental accommodation in the second quarter of the year, a 16 percent increase since the start of the year. Countrywide indicated that June saw the sharpest increase with over 18,000 new tenants registering at the agency’s 211 branches, 22 per cent more than the previous month. The rise in demand is a sharp contrast to the fall in the number of new properties being offered, which has fallen 6 per cent in the last three months. High demand for rental accommodation has led to slight increases in rental prices, according to Countrywide, with rises particularly marked for four bedroom properties where the average rent has risen to £1,090 per calendar month – a four percent increase compared to Q1 2010. There are now an average of 5.5 tenants vying for each property compared to 4.9 tenants in the first three months of the
year. The highest demand remains for two bedroom houses with 8.9 tenants vying for each property. This level of demand is having a significant impact on the market, with properties being snapped up within on average two weeks – 3 days less than in Q1 and 6 days less than in Q4 2009. Countrywide reports that a severe lack of supply of two-bedroom houses in the South West has continued to push up demand with 23.1 tenants vying for every two bed
property entering the market. In London, two-bedroom flats made up the majority of the properties on agents books but demand outstrips supply and is pushing up rental prices in some areas, including Kensington, Chelsea and Islington. Meanwhile, there is a greater demand for family homes in the North with over 50 per cent of tenants looking for three- and four -bedroom properties.
Cautious optimism in response to RICS data The NLA has welcomed the findings from a recent residential lettings survey compiled by RICS, the Royal Institution of Chartered Surveyors, which point to strong demand for rented property. “The growing need for private-rented accommodation demonstrates the importance of the role played by residential landlords,” said David Salusbury, Executive Chairman of the NLA. However, the NLA warns that with one in five landlords experiencing rent arrears and many concerned about the increase in Capital Gains Tax, the landlord community has reason to be cautious. David Salusbury cited the forthcoming cuts to Local Housing Allowance and the possibility of increased interest rates which will make it clear that “any increase in
56 UKLANDLORD SEPTEMBER/OCTOBER 2010
rents will be quickly offset by these additional factors that have to be taken into account.” The Q2 2010 RICS residential lettings survey records a buoyant lettings market as increased tenant demand and a shortage of properties pushes rents higher. Tenant demand increased across all regions, and was strongest in London and the East of England. Continued difficulty in securing mortgage finance, worries over a double dip in housing and large deposits required by lenders are leading to higher numbers seeking to rent rather than buy. In addition, a shortage of properties is pushing rents higher. RICS states that although interest rates are at a record low, difficulty in securing buy-to-let
mortgages is contributing to the lack of supply for both new and existing landlords. New supply of property to the market remains low and has now fallen for four consecutive quarters, although at a slightly slower pace. Existing landlords do not appear to be in any rush to dispose of their property; just 4.1 per cent of landlords said they intended to sell their properties at the end of a tenancy agreement. Looking ahead, the outlook for rents remains positive. 33 per cent more surveyors expect rents to increase over the next quarter rather than fall. Rents for houses are expected to marginally outperform flats, with the net balances for this forward looking indicator moving to +34 and +31 respectively.
The National Landlords Association President
Geoffrey Cutting
Executive Chairman
David Salusbury
Head of External Relations
Simon Gordon
Communications Director for Regions Public Relations Manager Policy Manager Public Affairs Officer Policy Officer Press Officer
Barry Markham to be announced Chris Norris Vincenzo Rampulla David Cox Dane Svenson
Editor NLA Publications
Andy Stern
Managing Editor UK Landlord
Louise Gale
Marketing & Sales Head of Marketing & Sales
Paul Berwick
Marketing Executive
Christian Kent
Marketing Executive
James Acreman
Affinity Marketing Manager Marketing Assistant Website Executive
Claire Mansell Tasha Hettiarachchi Andrew Cieciala
Operations Director of Operations
Richard Price
Landlord Development Manager
Alison Perkins
Member Services Manager
Meurig Lloyd
Operations Manager Operations Support Officer Local Government & Accreditation Officer
Dave Offord Charlotte Clements Siobhan Cannon
Telephone Advisers Chris Hellings, John Coyne, David Mclean, Tesh Rai, Jilly Westcombe-Evans, Gordon Brierley, Jackie Taylor, James Fraser, Alan Jakeway, Pinday Wright, Catherine Behdad, Sally Blunt, Stephanie Traynor, Paul Gosal. Finance & Membership Administration Director of Finance and Company Secretary
Patrick Jacobs
Membership Manager
Pauline Wilson
Membership Administrator
Dean Johnson
Membership Administrator
Vicky Little
Membership Administrator
Shabana Khan
Accounts Manager
Ian Wilcox
Book-keeper
Janet McCarthy
HR Executive
Christine Williams
Systems Head of Systems
Richard Marston
Subs renewals/queries/change of address Tel: 020 7840 8937 E: membership@landlords.org.uk To purchase Tenancy Agreements Tel: 020 7840 8900 General Correspondence: 22-26 Albert Embankment, London SE1 7TJ Tel: 020 7840 8900 Fax: 0871 247 7535 E: info@landlords.org.uk www.landlords.org.uk
Regions Director for Regions Barry Markham Regional Coordinator Sally Thorn Regions Support Officer Lyra Haldane England East of England Regional Representative Lynsey Sweales Local Representative (Bedfordshire, Cambridgeshire, Essex & Hertfordshire) James Fraser Local Representative (Norfolk & Suffolk) Graham Walker East Midlands Local Representative (Derbyshire & Nottinghamshire) Christine Darvill Local Representative (Northamptonshire) John Socha Local Representative (Lincolnshire) Paul Collins London Regional Representative Maryann Pearce Local Representative EuGin Song Local Representative Richard Blanco Local Representative Yvonne Baisden Local Representative Philip McGriskin North East Regional Representative Johnny Lighten Local Representative (Tyne & Wear) Bruce Haagensen North West Regional Representative Tom Reynolds Local Representative Carolyn Uphill Local Representative Mark Barrett Local Representative Garry Heil South East Local Representative (Kent) Marion Money Local Representative (Berkshire, Buckinghamshire & Oxfordshire) David Kybett Local Representative (East Sussex) Tony Richard Local Representative (West Sussex) Susan Bryer Local Representative (Hampshire) Ken Staunton South West Local Representative (Wessex) Lesley Dove Local Representative (Dorset) Steve Bartlett Local Representative (Mid-Devon & Exeter) Claire Heale Local Representative (Cornwall & Plymouth) Paul Hicks Local Representative (Taunton & Yeovil) Jane Smith West Midlands Local Representative (Staffordshire, Warwickshire & West Midlands) Mary Latham Local Representative (Shropshire & North Wales) Julie Woolfenden Yorkshire and the Humber Regional Representative Paul Gott Northern Ireland Northern Ireland Representative Connor McCann Scotland Scotland Representative David Kendall Local Representative (Dundee & Fife) Gerry McDougal Local Representative (Edinburgh) Tristan Compton Local Representative (Aberdeen) Refer to website Wales Wales Representative Lee Cecil Local Representative (North Wales) Julie Woolfenden Local Representative (South Wales)
Vince Botham
The Aims of the NLA The National Landlords Association aims to establish itself as the leading national representative organisation for private landlords. It seeks to raise standards and encourage best practice in the private rented sector, principally by helping landlords to be aware of their obligations and responsibilities and by codes of practice. It lobbies government and other national and supra national bodies with a view to influencing public policy for the legislative and regulatory environment affecting the letting of private residential accommodation. It seeks to create an effective regional and local branch network that can work in co-operation with local and devolved government, and works in co-operation with non-government organisations where there is a common interest in the private rented sector. It develops, promotes and offers a range of services designed to meet the needs of private landlords.
UKLANDLORD SEPTEMBER/OCTOBER 57
products and SERVICES directory Products and Sevices Directory - adverts are booked in units or multiples of units. Each single unit measures 3cm x 1 column (6cm) wide. Prices are given per unit, as a total cost for the full schedule booked. See below. For all advert enquires please contact Steve Pearce at advertising@uklandlord.org.uk or on tel: 0117 330 8370
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UKLANDLORD SEPTEMBER/OCTOBER 2010 59
LETTERS & EMAILS Letters to UK Landlord are welcome and should be sent by email to editorial@uklandlord.org.uk or by post to The Editor, UK Landlord Magazine, 22-26 Albert Embankment, London SE1 7TJ. Finding an efficient boiler We all want ‘A’ rated energy efficient boilers in our properties but my experience of modern boilers is extremely mixed. The first boiler I bought 20 years ago was a Potterton system boiler which has not broken down once. I have recently had to replace the pump but that means this is the most cost effective from an annual maintenance cost viewpoint. On the other hand my experience of combination or combi boilers is not impressive. One lasted 12 years and had to be replaced. Its replacement in the main is doing a fine job. Mind you at 2 years old, so it’s early days. In another of my buyto-lets I replaced the boiler with a combi boiler about five years ago. The plastic on /off controls are so flimsy my lodgers now use a screwdriver to turn it on. I had to replace the mother board last year and that cost a whopping £200 plus £60 labour. Nobody wants an almost £300 repair bill after just 4 years. I have been advised to
avoid condensing combi boilers by a friend who happens to be an ex-Corgi engineer. He swears by system boilers that don’t have highly expensive mother boards to go wrong. Do other members have information they can share on this? Andy Muir
e
Dealing with rogue landlords and tenants I was reading a back copy of UK Landlord and David Salusbury’s article on tackling rogue operators in the private rented sector. His only recommendation was to give more money to environmental health officers to employ more staff and spend more money. In fact we should we should be cutting the funds to local authority environmental health officers and not increasing them. It is this misguided philosophy which resulted in the last government trying to license all landlords. May I suggest a more imaginative answer would be to direct all local authority enquiries to solicitors who operate a no-win no-fee arrangement? The landlord is more likely to take notice from a solicitor’s letter than from a local authority letter. This way we could reduce the requirement to have so many environmental health officers and put the saved resources into more practical use in dealing with anti-social behaviour of rogue tenants. Peter F Gunby, B. Bailey & Co
Amenity and space standards in HMOs Your feature on HMOs (in UK Landlord 145) significantly omitted mention of amenity and space standards – these have often been described as “draconian” by licensed HMO landlords, and have been a major reason for disinvestment in the sector. They often complain of having to meet the council’s standards – often to the last detail – while the council seems to turn a blind eye to illegal HMOs, that are undercutting them. English Housing Condition Surveys have observed that HMO tenants are among the poorest members of society. They are therefore very price sensitive, and will normally choose more basic accommodation in unlicensed HMOs, if it is more affordable. With the introduction of the Housing Act 2004 (HA 04), the Government published national standards, following consultation, to overcome the problem of differing approaches by councils to this issue. These are found in Statutory Instrument (SI) 2006/373, but this was amended by SI2007/1902 following a campaign by landlord groups and certain enlightened councils. The response of most councils is that the amendment has removed the prescriptive nature of these standards, and that they need to fill the perceived vacuum thus created. Most councils have had “Adopted Standards” (AS) since the early 1990s, but despite revisions, they still reflect the 1994 “Amenity Standards for HMOs” publication of the Chartered Institute of Environmental Health, instead of the abovementioned national standards. Normally, affected parties had no say when these ASs were “rubber stamped” by councillors, just as with the 1994 publication. Some councils have since held consultations about revisions to their ASs, but these have
normally been restrictive in nature, and have used their original standards (on which there was no consultation) as the starting point anyway. Under S65 HA 04, councils may set conditions when granting an HMO licence, such as their standards. However, this power does not apply non-licensable HMOs, where the council must rely on “weaker” powers such as the Housing Health & Safety Rating System, and Overcrowding Notices. Consequently, onerous AS, that disregard local housing conditions including in unlicensed HMOs, create an HMO dichotomy, to the economic detriment of licensed HMOs. For example, where the AS prescribe a minimum room size of 12 square metres (not unusual), unlicensed HMOs can realise 84 per cent more occupants per square metre (under Part 10 HA 1985) than neighbouring licensed HMOs. Small wonder that EHCS’s have observed bedsit HMOs to be a declining sector. Mark Gora
The letters on this page express the views of those who wrote them and the NLA cannot take responsibility for their accuracy or for the views expressed. Please note that letters received may be edited. 60 UKLANDLORD SEPTEMBER/OCTOBER 2010