UK Landlord magazine issue 144:May/June 2010 by Rubicon Marketing

Issue No.144

UKLandlord The magazine of the National Landlords Association MAY/JUNE 2010

Safety for female landlords in this issue

A welcome note to the new government

Expert advice on key AST clauses

Renting to the growing grey market

The full Sale and Rent Back regime

EDITORIAL

UKLandlord May/June 2010: Issue 144 ISSN 1741 8801 Publisher’s statement: Circulation 20,000 PUBLISHER The National Landlords Association 22-26 Albert Embankment, London SE1 7TJ Contact > Simon Gordon, Head of Communications 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. 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 Printed on paper from sustainable forests. Please pass this magazine on to another landlord and then recycle. Design and Artwork by Rubicon Marketing Ltd 0117 330 8370

Welcome... As we go to press with this issue, the Conservative Party has just formed an historic coalition government with the Liberal Democrats. In this issue NLA Chairman David Salusbury welcomes the incoming government and provides useful suggestions on how to foster a healthy private-rented sector. The business of renting continues for the rest of us. In this issue, we have very useful expert opinions on what to include in your Assured Shorthold Tenancy agreements (ASTs) when it comes to insurance obligations by both tenants and landlords. And, if you have a tenancy where the annual rents exceed £25,000, read the article on page 44 which tells you how this tenancy will become an AST overnight as from 1st October. Another must-read article for those thinking of getting into the Sale and Rent Back sector is the interview with Financial Services Authority which warns landlords to be prepared for its new regime as it carries a criminal offence if landlord investors do not have the relevant authorisation. We have lots of leads for finding reliable tenants in this issue, and feature the opportunities of renting to the elderly population. According to a new Age UK report by Julie Rugg and Karen Croucher, the private-rented sector is set to play a growing and strategic importance in meeting the housing needs of older renters. While our cover feature looks at the important issue of safety for female landlords, I would say that many of the tips are equally relevant for men too. However long you have been a professional landlord, consider it best practice to apply the basic safeguards suggested in this article to ensure your safety. Best practice is a key theme in the NLA Property Woman of the Year Awards 2010 and I look forward to announcing all the winners in our next issue. Best regards,

Andy Stern Editor andy.stern@uklandlord.org.uk

INTRODUCING THE NLA BOARD

Chairman & Interim Chief Executive David Salusbury

Director of Finance Patrick Jacobs

Director for Marketing Anthony Lock

Director of Operations Richard Price

Director for the Regions Barry Markham

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SPARE ADVERT

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CONTents

Inside this issue... NLA

04 CHAIRMAN’S MESSAGE

New branches planned for Scotland, the 10,000th NLA Tenant Check is taken out and the shortlisted nominees for NLA Property Woman of the Year Awards 2010.

23 HOT OFF THE PRESS

The media’s take on landlord issues.

28 NLA MEMBER VIEWPOINT

David Dixon sets out his investment plans and reflects on the benefits of renting to LHA tenants.

30 NLA EVENTS across the uk 32 PUBLIC AFFAIRS

Landlord representation in the new Government, how landlords are affected by proposed private sector housing reforms in Scotland, Northern Ireland and Wales as well as landlord liability for water in England.

35 NLA MEMBER BENEFITS

REFERENCE

08 SAFETY FOR FEMALE LANDLORDS 12 LANDLORD PROPERTY MANAGEMENT

NLA Chairman David Salusbury on the NLA’s How landlords can be proactive in minimising plans to increase working relations between risks to their safety and practical tips if local authorities and the private-rented problems arise. sector so that the new Government can focus 10 EXPERT ADVIcE ON INSURANCE on the core economic challenges ahead. CLAUSES IN ASTs NLA CAMPAIGNS Key insurance issues to consider when The latest on shared housing rules and preparing the Assured Shorthold Tenancy the NLA presses the new Government to Agreement, and more generally, mistakes to rethink the LHA rules. avoid when creating an AST.

22 NLA NEWS

FEATURES

A listing of the NLA’s Recognised Suppliers landlords can trust.

40 BANKING: ALLIANCE & LEICESTER 41 PLUMBING, GAS & ELECTRICS: LANDLORD RESPONSE 42 ENERGY EFFICIENCY: THe ENERGY SAVING TEAM 60 Letters & EMAILS

20 RENTING YOUR PROPERTY TO ELDERLY TENANTS

18 LOCAL HOUSING ALLOWANCE Savings accounts for LHA tenants and Landlord Action seminars.

19 sustainability Green loans for the PRS and the boiler scrappage scheme in Wales.

Tenancy agreements with aggregate annual rents between £25,000-£100,000 will become Assured Shorthold Tenancies overnight from 1st October.

46 REGULATION OF SALE AND RENT BACK – THE FULL REGIME

44 ASTs FOR RENTS UP TO £100k

The Financial Services Authority explains what landlord investors need to do to comply with the new SRB regime.

14 FINDING TENANTS Latest initiatives and tools to help landlords find new tenants. 16 LANDLORD & TENANT RELATIONS A guide for ‘virgin’ landlords and tenants’ dream celebrity landlords.

How landlords and local authorities in Shropshire have been affected since the creation of Shropshire Unitary Authority.

12 FINANCE & TAX How the pre-Election budget could affect landlords.

What to consider when marketing and preparing your rental property for the elderly.

24 PRS EXPERIENCES FROM A UNITARY AUTHORITY

12 BUYING & SELLING The NLA’s survey of landlords’ buying and selling intentions.

48 BOOKS FOR LANDLORDS A new guide to taking in lodgers. 50 HOUSE PRICES & LETTING MARKET

Latest market statistics and surveys on house prices and lettings market plus auction analysis.

54 MORTGAGE MARKET ROUNDUP

Analysis of trends and latest buy-to-let mortgage deals.

“By taking a few common sense precautions to manage your personal safety, you can greatly reduce any potential risks involved in dealing with tenants, would-be tenants or tradesmen” Ann Elledge, Director of Personal Safety, Suzy Lamplugh Trust Member of the Audit Bureau of Circulation

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message from the chairman

May/June 2010

How the new Government can focus on its core challenges

While the new Government finds its feet, NLA Chairman David Salusbury sets out the NLA’s plans to support local authorities in building lasting working relations with the private-rented sector. By the time this issue of UK Landlord reaches you, I am hopeful that Britain’s first hung parliament since 1974 will have resulted in a new Government that will work closely with the NLA to nurture the private-rented sector so that landlords can focus their time and energy on running their rental properties and on making future investments with certainty. Clearly the incoming Government’s first priority will be to tackle the huge financial problems facing the country, while fostering economic growth by creating the right conditions for businesses to thrive. The NLA looks forward to presenting to the new Government what we consider to be necessary changes that are vital for a healthy and successful private-rented sector. Local elections in many parts of the country mean there may well be changes in policy direction as well as political direction and we look forward to working with local authorities as we seek to provide good quality accommodation under sound management.

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Encouraging an integrated approach to housing The last Government was deeply wedded to the idea that central government had it in their power to drive out rogue landlords. Evidence to date suggests that, in spite of the raft of legislation in place, action against those unscrupulous landlords who persistently fail to provide adequate standards of housing to tenants cannot be taken effectively by central government. It seems patently clear that it is those on the ground – the local authorities which have the powers, the tools, and the resources – who can root out and prosecute those do not meet the standards set by legislation. However, very little is being done and by very few local authorities on this front. Our feeling is that there may be good reasons for this, in particular, a lack of understanding of how the private-rented sector operates, coupled with an imbalance of expertise and resources that are weighted in favour of addressing social housing requirements. We are all aware that budgets affecting the public sector

are likely to be cut in the next years. The NLA is calling for more effective engagement by local authorities through a shifting of priorities rather than spending more money or allocating more resources. During the course of 2010, we plan to increase our efforts to support local government officers working in local authorities, including those at director and manager levels, in gaining a more in-depth understanding of the growing role of the private-rented sector in supplying housing to diverse parts of the community. We will do this in a number of ways. First, more than 100 local authorities are now Associate Members of the NLA. This indicates the strong desire by these local authorities to work with private-sector landlords. This relationship enables the NLA to provide local authorities with clear, relevant and empirical information about the private-rented sector. We will continue to build working partnerships with these councils during 2010.

As many local authorities consider their future housing strategies, we offer our support in providing constructive and concrete suggestions for a more integrated approach to housing. Our framework local housing policies include making it a priority to deal with the rogue operators, without making life more difficult for the reputable landlord. Our landlord development and training courses are open to all landlords and local authorities. Many of our local authority Associate Members promote these courses to local landlords and we hope to see members of local authority housing teams, including heads of housing, sign up for the courses this year. We will also consider organising specific events for local authorities. Finally, as a national organisation, we place strong emphasis on our work across the regions so that landlords across the country

have access to guidance on how to run their lettings business in a professional manner. Barry Markham, who joined the NLA Board as a Director last year, has taken on responsibility for rolling out our presence and support throughout the country. Barry and his team are working hard to ensure the NLAâ&#x20AC;&#x2122;s regional network of representatives plays a critical role in building strong relationships with local authorities through playing an active role in local consultations, meetings and events and acting as direct liaison between the NLA, local authorities and landlords at the local level. We wish the new Government every good fortune in tackling the countryâ&#x20AC;&#x2122;s deficit and in returning the UK to prosperity; for our part we will work with both central and local government to raise standards in the PRS without increasing bureaucracy and increasing costs, both for government and for landlords.

As many local authorities consider their future housing strategies, we offer our support in providing constructive and concrete suggestions for a more integrated approach to housing.

For more information, please contact the National Landlords Association on 020 7840 8900 or visit: www.landlords.org.uk

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NLA CAMPAIGNS

Find out here about the NLA’s latest campaigns to encourage the Government to achieve a healthy private-rented sector. Shared housing rules dragged into political foray The NLA and its members alerted opposition parties to the fact that the last Government rushed in planning rules (without MP debate) which would have the effect of reducing the supply of shared housing. After Conservative Party leader David Cameron and all of his shadow Communities team signed an Early Day Motion to revoke these rules, over 600 NLA members wrote to their MPs urging them to add their signatures to the motion. In an extraordinary outburst just before the General Election, Secretary of State for Communities and Local Government, John Denham – who has been actively campaigning for a reduction in student housing and HMOs in his Southampton constituency – ironically accused David Cameron of a “devious misuse of the parliamentary process, apparently at

06 UKLANDLORD MAY/JUNE 2010

the behest of the National Landlords Association.” The new law requires planning permission for new shared housing where three or more unrelated people live together. The plans will limit shared housing in many areas affecting not just students, but migrant workers and those who rely on shared housing as an affordable housing option. Local authorities are currently grappling with how to implement the new planning rules, which are in any case

not retrospective so will not alleviate any problems associated with existing shared housing. The NLA is calling on the new Government to rethink these plans, working with MPs and stakeholders from all sides. NLA Chairman David Salusbury said: “We want to see more shared housing for people who need it and local authorities directly tackling the problems associated with houses in multiple occupation.” This planning change is the law until otherwise revoked.

Pre-Election plans for LHA need rethink Another topic to put on the new Government’s rethink pile is how to reform Local Housing Allowance rules. Research by the NLA shows that LHA has generated rent arrears across the whole private-rented sector of as much as £220m since it was rolled out nationally. The survey, based on nearly 1,000 landlords and 13,000 tenants receiving LHA, found landlords are experiencing rent arrears of £4.4m.

conditional on energy efficiency and recommended a more pro-active role by local authorities in identifying vulnerable tenants, and to provide more advice services and support. Underlying this was the Committee’s emphasis that “the onus should not be on the claimant to inform the local authority that they are vulnerable.”

The pre-election Budget in April 2010 cut top rates for LHA. The NLA believes that the next Government should prepare proper financial modelling for how these cuts will work and warns that dropping rates could make renting to LHA tenants in some parts of the country not financially viable. That would further decrease the availability of decent housing for those on housing benefit.

A recent Work and Pensions Select Committee report into LHA was critical of many of the Government’s proposals for reforms and recommended that the Government commissions an in-depth study on rent arrears “to gain a clearer picture of the scale of the problem.” The Committee came out strongly against the Government’s proposal to make direct benefit payments

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cover Feature: SAFETY FOR FEMALE LANDLORDS

Safety for female landlords How to prevent problems and what to do if they occur. Many landlords will run their residential lettings business without once encountering a dangerous situation when showing a property or dealing with an existing tenant. However, the dangers of showing properties to strangers should not be overlooked or underestimated, especially for women, as underlined by the tragic case of Suzy Lamplugh, a 25 year old estate agent who went to show a property to a potential buyer in 1986 and was never seen again. UK Landlord sought the advice of experienced female landlords – NLA regional and local representatives Maryann Pearce, Mary Latham, Marion Money and Julie Woolfenden – as well as the Suzy Lamplugh Trust and Wiltshire Police on how to avoid getting into a dangerous situation with tenants, prospective tenants or tradesmen. The key message for landlords is to be proactive in order to ensure they take the necessary precautions to minimise risk and avoid getting into dangerous situations. “It’s far easier and more effective to take precautions to avoid getting into a dangerous situation in the first place than it is to wait until you get into such a situation and then have to deal with it,” advises Ann Elledge, Director of Personal Safety, Suzy Lamplugh Trust. “By taking a few common sense precautions to manage your personal safety, you can greatly reduce any potential risks involved in dealing with tenants, would-be tenants or tradesmen.” This precautionary approach should be applied at all stages in the landlord-tenant relationship.

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Screening tenants If you are doing the initial viewings yourself, you should aim to get as much information as possible from the potential tenant before arranging a viewing and make sure you give that information to a third party prior to the viewing. Always check their identity as far as possible. As well as asking for their name, home and mobile numbers, and current address (including postcode) also ask for a work number and call it to confirm they are who they say they are. You can check that the home landline number they have given you is correct by dialling 1471 and verify their home postcode matches the address they have given by using the Royal Mail website at the following URL: http://postcode.royalmail. com/portal/rm/addressfinder If an applicant’s information does not stand up to this scrutiny you are best advised to cancel the appointment, politely but firmly. Any prospective tenant unwilling to provide this basic information is probably not the kind of tenant you want, so you should not be concerned about putting off good applicants by asking for verifiable contact details.

Before the appointment Maryann Pearce, NLA Regional Representative for London says she always tries to chat to prospective tenants before even booking a viewing: “You can usually get a feel for whether you are happy to meet them. If you are at all worried, take somebody with you.” “The greatest risk for female landlords will be at initial viewings of the property, especially if it is empty,” according to Marion Money, NLA Local

Maryann Pearce, NLA Regional Representative (London)

Representative for Kent. If you are doing the viewing alone, female landlords should take the following precautions: • Ascertain who will be viewing the property, how many people and genders. • Try and do viewings in daylight hours. • Arrange to meet outside the property, so you can make a judgement before you go into property with them. Before setting off to the meeting NLA Local Representative in Shropshire and North Wales Julie Woolfenden says she lets someone know

Julie Woolfenden, NLA Local Representative (Shropshire & North Wales)

which property she will be visiting or leaves a written note of the address and postcode of where she will be along with her mobile phone number, as well as leaving full details of the person she is meeting. “Estimate how long you expect to be before returning,” adds Julie. “Ensure you have your mobile phone with you, fully charged with credit on it. Keep it in a pocket, not in your handbag, which might be in another room if you need the phone.” Wiltshire Police recommend carrying a personal attack alarm and keeping it close at hand in case you need it. At the property Mary Latham, NLA Local Representative based in the West Midlands, endorses the detailed advice on the Suzy Lamplugh Trust website advising female landlords to always trust their own instincts. “If something doesn’t feel quite right, act right away to remove yourself from the situation,” she advises. “If you really must do a viewing alone and you feel in any way uncomfortable open the door and invite the viewer to go in and look around at their leisure without you ‘breathing down their neck’. Clearly you won’t be able to do this if the property is occupied and there are issues around the security of the tenants’ belongings, in which case say you ‘have forgotten to bring the keys’ and rearrange the viewing.”

Do not let people into the property if they turn up with people you were not expecting advises Ann Elledge of the Suzy Lamplugh Trust: “If they say it will just be one person and more people turn up, do not let them into the property. Make an excuse – one which implies there are other people in the property. If they arrange to come another time, make sure that someone is with you for the viewing.” Mary Latham also advises that if the viewer arrives by car you should text the car registration number to a friend or relative. If necessary, you could tell the viewer afterwards that you have done so. Arrive at the property before the viewer and unlock all exits, and when showing the person around always ensure you stay nearest the door so you can get away quickly if the need arises. “Once a viewer or tradesmen is in the property,” adds Ann Elledge, “make a call on your mobile (to a friend, colleague or even your own answer machine) in front of them saying ‘Mr X has just arrived and we’ll be finished the viewing in 10/15 minutes so I’ll see you then if you want to come round.’ This lets Mr X know that he has been logged in with a third party and implies that someone else will shortly be arriving at the property.” During tenancy If a tenant starts to make you uneasy once they have signed the contract and moved in, trust your instinct and take someone with you when you visit the property. David Cox, NLA Policy Officer, advises landlords to get their tenants to set up a standing order, so that you will not have to collect the rent personally. Wiltshire Police add that you should use a separate account for your lettings business and should not disclose details of your personal account. If you are having work done on your property make sure you use reputable tradesmen and get quotes from several different companies before deciding on who to use (or use the NLA’s Recognised Supplier Scheme). Maryann Pearce deals with tradesmen regularly: “I think it’s about being definite and confident with them. Always be clear on what you want before you start. Don’t be pushed into anything, or rushed just because the other person says they need to make a decision quickly. ” Julie Woolfenden recommends that if a tenant or tradesman has a genuine grievance, let them express it. “They will feel happier once they have verbalised whatever is bothering them,” she says. “If things get really serious, stay calm and try and talk your way out of it. If all else fails and

Marion Money, NLA Local Representative (Kent).

there is physical contact, remember: S.I.N.G. – Shin. Instep. Nose. Groin. Try and kick them in the shins, stamp on their instep, bring the heel of your hand up hard under their nose and knee them in the groin.” The main objective is to exit the situation and the property as calmly and quickly as possible so that you are no longer in a dangerous situation, and then you should contact the police and report the incident. If you need to evict a tenant, whether live-in or not, Marion Money advises that if you feel intimidated by them, consider using an outside body to serve notice so that you have no further direct contact with them. Live-in Landlords An increasing number of landlords take in lodgers or live in a house they have subdivided into flats. Amanda Baldwin, Crime Reduction/Architectural Liaison Officer at Wiltshire Police, advises the following precautions: • If you live on the premises, ensure your part of the residence has a secure door with a minimum 5-lever mortice lock and preferably a secondary Yale-type lock. Fit a door chain and use it every time you open the door. • Have set rules about when tenants may approach you. • Don’t let tenants know if you live alone, refer to a partner when talking to tenants. Be vague if tenants ask you questions about your personal life.

Member Feedback Do you have any other safety tips on this issue that you would like to share with other readers? If so please send an email outlining your advice to editorial@uklandlord.org.uk

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Feature: EXPERT OPINIONS

Expert advice on insurance clauses in ASTs Making sure the Assured Shorthold Tenancy agreement contains watertight clauses setting out tenants’ obligations is one part of the landlord-tenant relationship that can easily be overlooked in the rush to sign an AST. NLA Recognised Suppliers Hamilton Fraser Insurance and Lawpack identify the insurance issues that should be considered when preparing an AST, and advise on pitfalls to avoid when drafting an AST. UK Landlord: What are the main clauses landlords should ensure are in their tenancy agreements in order to ensure landlords and tenants insurance responsibilities are made clear? Tessa Shepperson for Lawpack: Landlords will usually arrange for insurance cover, but the tenancy agreement should prohibit the tenant from activity which will affect the validity of the insurance cover. The tenancy agreement should also include a clause that states that the tenant will be responsible for any increase in the insurance premiums due to the tenant’s behaviour. But the tenant cannot be expected to be able to comply with this if the tenant doesn’t know what behaviour is prohibited by the insurers, so the tenancy agreement should also state that the landlord will provide the tenant with a copy of the insurance policy. Alternatively, the landlord can provide the tenant with a summary of the relevant terms. Tenants will usually be responsible for the insurance of their own belongings. If landlords include a term in the tenancy agreement requiring the tenant to take out insurance for their own property, particularly if it’s via a specified insurer, this clause will be void. It’s a matter for tenants whether they want to insure their possessions or not. Landlords cannot insist upon it.

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Ian Langley, Hamilton Fraser Insurance: It is usual for the landlord to take the responsibility for insuring the structure of the property being let and any fixtures and fittings belonging to the landlord that are in the property. The landlord would then usually require the tenant to insure their own possessions that they bring in to the property that they are renting. It is possible for the landlord to make the tenant responsible for the landlord’s fixtures and fittings and it would then be necessary for the landlord to write into the AST the requirement for the tenant to insure the landlord’s fixtures and fittings that they are responsible for. If the property is let furnished then the AST will usually include a clause making the tenant responsible for all of the contents of the property and, in this instance, the tenant will need to arrange a suitable insurance cover for the landlord’s contents that they are responsible for. Whatever insurance is arranged by the landlord, there will be ‘Conditions’ imposed by the insurer and very often an ‘Excess’ that will make the landlord responsible for the first part of any claim, for example the first £100 of any claim made. If this is the case, it is likely that the landlord will want to make the tenant responsible for repaying this Excess to the landlord if the cause of the claim was damage or loss caused by the tenant. A cautionary note is needed here though - under the Tenancy Deposit Protection requirements of the Housing

Act 2004, the landlord must specify exactly what the circumstances will be whereby the landlord would retain all or part of the tenant’s deposit. This means that if a landlord intends to recover any insurance Excess from the tenant’s deposit he will need to state that in the AST. In a similar vein, most insurance policies have ‘Exclusions’; effectively things that will not be covered by the insurance. It will, therefore, be essential that the landlord makes it clear in the AST what those exclusions are. For examples, most insurance policies will exclude: • Damage by tenant’s pets • Damage if property left unoccupied for long periods • Any claim if a business is conducted from the premises • Claims where basic security locks and bolts are not used on doors and windows in buildings, garages or sheds In addition to meeting the requirements of the insurance policies that the landlord has arranged, the landlord will also need to ensure that the tenant does not breach any obligations that might be imposed by any Restrictive Covenant that might apply to the property. Examples here might include: • No caravans or commercial vehicles to be parked on the property. • No non-domestic animals to be kept. • Only one family to reside in the property. • No business to be conducted from the property.

Feature: EXPERT OPINIONS

UK Landlord: What are the main mistakes landlords make in tenancy agreements? Hamilton Fraser Insurance: Many landlords are paying lawyers to draft an AST for them when, if they joined a landlord association, they can normally obtain a ‘tried and tested’ AST from their association for no extra cost. In addition, many of the landlord associations also have a ‘member’s helpline’ available which will help landlords with any queries that they might have about the AST and its use. In respect of the actual wording of the AST, landlords should be aware that, since the introduction of the Tenancy Deposit Protection requirements of the Housing Act 2004, if they take a deposit from their tenant they need to comply with the Prescribed Information requirements of that legislation and state: “the circumstances when all or part of the deposit may be retained by the landlord, by reference to the tenancy”. Unfortunately many landlords are not complying with this requirement and are making deductions from the tenant’s deposit before returning it that they have not specified at the commencement of the tenancy and this is causing them to lose deposit disputes as the independent adjudicator can find no legitimate basis for the deduction that has caused the tenant to raise a dispute. Tessa Shepperson for Lawpack: Many landlords mistakenly think that they can alter clauses in a tenancy agreement to suit their own circumstances, but they must beware of doing so. For most alterations, even some that seem straightforward, it’s best to get your proposals checked or re-

drafted by a residential property solicitor. It’s very easy for a landlord who doesn’t know what they are doing to invalidate a clause by using inappropriate wording. Landlords need to make sure that the tenancy agreement is clear and legible and that all of the details (e.g. the parties’ names and the address of the property) are correctly spelt. Landlords should also ensure that the fixed term and the rent are correctly given, as once the tenancy agreement is signed landlords will normally be bound by the terms in the tenancy agreement. Landlords must also make sure that both the landlord and tenant sign and date the tenancy agreement to ensure that the tenancy agreement has been correctly validated. The tenancy agreement must give an address for the landlord in England and Wales (otherwise the agreement will not comply with section 48 of the Landlord and Tenant Act 1987 which means that rent will not be payable by the tenant). The address can be that of an agent if the landlord is living abroad or in Scotland. Landlords must also ensure that they are using the right type of tenancy agreement. In particular, if a landlord is letting to a limited company, at a rent of over £25,000 per annum (increasing to £100,000 in October), they need a Non-Assured Shorthold Tenancy Agreement. If they are letting rooms in a shared house, they need a House/Flat Share Agreement (Non-Resident Owner). More on ASTs For information on new rental thresholds for ASTs and what this means for landlords, see page 44.

Tessa Shepperson for Lawpack

Ian langley, Hamilton Fraser Insurance

Member Feedback Have you encountered problems as the result of the wording of one of your ASTs? Is there wording you always include to avoid a specific problem? If so please send an email outlining your experiences or advice to editorial@uklandlord.org.

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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 NLA members consider portfolio expansion The latest quarterly landlord survey by the NLA recorded an increase in the number of landlords who plan to increase the size of their rental portfolio. Seventeen per cent of landlords participating in the survey in March 2010 confirmed their intention to grow their portfolio between March and May 2010 in comparison with only 13 per cent in the last quarter of 2009. However, this increased confidence was not mirrored in respect of expectations of rent arrears. In the first quarter of this year 39 percent of landlords responded that they are concerned that they will experience arrears in the next 12 months while only 29 percent expressed the same fear last quarter.

Finance & Tax The pre-election Budget 2010 The March 2010 budget held few surprises for landlords, with unpopular moves such as tax rises and spending cuts held back until after the General Election. Despite the overall lack of major announcements in the pre-election budget there were a number of announcements that may remain on the table for the new Government: • Local Housing Allowance. The Chancellor, Alistair Darling, announced that the top 8 per cent of rents are to be removed from the calculation of LHA rates from October 2011. While it is not yet clear how the Department of Works and Pensions intend to implement the policy, it is likely the change will impact on some rates of LHA at the top end of the market. • Stamp Duty Land Tax (SDLT) for £1m + purchases. From April 2011, a new 5 per cent top band of SDLT will be applied

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to property transactions in excess of £1,000,000. This is likely to apply to individual property transactions and portfolio acquisitions alike meaning that landlords making bulk purchases will face considerably higher tax bills. • Inheritance Tax (IHT). The threshold for IHT liability is to be frozen for four years.

The transferability of the allowance gives an effective joint tax-free maximum of £650,000 for married couples and civil partners. • Bank Accounts: The Chancellor pledged that everyone will have access to a ‘basic bank account’- bringing around one million additional people into the banking system over the next five years. “Overall Budget 2010 was hardly a tremendous boost for landlords,” commented the NLA campaigns team, “but rest assured, the NLA is already pushing away at the Treasury in advance of the spending review – or even a second Budget in the spring.” For more information on the implications of the March 2010 Budget and future tax announcements, contact the NLA’s Recognised Suppliers, Acklands Accountants and Fairhust Accountants, whose contact information is listed on page 35.

UKLANDLORD MAY/JUNE 2010 13

LANDLORD property management INFORMATION

Finding Tenants Finding reliable tenants in South West London Landlords looking for stable tenants who are prepared to pay good market rents in South West London may be interested in contacting Golden Lane Housing – a leading national charity that specialises in housing people with a learning disability. Working in an on-going partnership with the London boroughs of Lambeth, Wandsworth, Richmond, Merton, Kingston, Croydon and Sutton, the charity aims to provide quality homes around which people with a learning disability can build their lives. Since it was established by Mencap in 1998, Golden Lane Housing has housed over 1,000 people and helps hundreds more every year

with specialist housing, advice and guidance. As part of its Southwest London Homefinders Project, the charity is looking for landlords who would either consider renting directly to individuals or for Golden Lane Housing to take a lease on properties and then sublet to the individuals. While no specific adaptations normally need to be made to the rental property, the charity is looking for leases of a minimum of one year and up to five years. Tim Wotton of Golden Lane Housing told UK Landlord that since most of the tenants will be receiving support from the social services, the charity provides supported

landlord services to ensure that landlords receive the rent. “We can make the case to local authorities that landlords need to receive the rent directly for housing people we are helping, and the alternative is that we take on the lease and pay the landlord directly on behalf of the tenant.” For more information, you can get in touch with Golden Lane Housing on telephone 0845 604 0046, by e-mailing Homefinders@glh.org.uk or register through their website www.glh.org. uk/homefinders.

Accomodationforstudents.com hits the streets An online presence for over 8 years, NLA Recognised Supplier accomodationsforstudents.com is now working with landlords to advertise their properties by making available and putting up To Let boards. Each To Let board will have a unique property reference number that will take students directly to the full property and landlord contact details. Students can also reference these immediately via accommodationforstudents.com’s recently introduced iPhone App. AFS has started this initiative regionally and intends to extend it throughout the country for private landlords and for its letting agency customers. Around 200 boards have already been put up outside key landlord properties in the Fallowfield area of Manchester, as well as outside properties in Liverpool and Preston. Landlords and agents will be given the option of buying a board for regular use on their properties. AFS will also post landlords an advertising pack which contains a property for rent window acetate, again with its unique property reference number providing full property and contact details. For more information, see page 35 for contact details of accomodationforstudents.com.

New student accommodation website launched Bumptheagent.com, a new website that aims to provide a national database of private landlord accommodation for students to browse free of charge, recently joined the NLA’s Recognised Suppliers Scheme. Founded by Claude Farren and Tony Tailford from Newcastle upon Tyne, it allows landlords to promote their properties to a wider student

14 UKLANDLORD MAY/JUNE 2010

audience. The website will use student ambassadors to promote the new service at universities up and down the country. The site already has hundreds of properties listed, mostly from the Newcastle area and the company plans to target other North East universities in Durham, Sunderland and Teesside before raising awareness in other major university cities such as York, Manchester and Leeds later on in the year. As well as providing a portal for landlords

to list their properties, landlords can also download standing order forms and guarantor forms directly from the website, and can buy A3 and A4 window display adverts and to-let boards online. The cost for landlords to advertise on the site is £20 per year + VAT per property. See page 36 for contact details of www. bumptheagent.com

UKLANDLORD MAY/JUNE 2010 15

LANDLORD property management INFORMATION

Finding Tenants New scheme for landlords In Hertfordshire

James Fraser, NLA Regional Representative (Hertfordshire)

Local representative James Fraser has come across a new scheme that may be of interest to landlords in Hertfordshire, in particular those with empty properties or those who are already working with social lettings. The Herts Resettlement Scheme is looking for landlords of studio or one-bed properties across Hertfordshire and particularly in the Watford and Welwyn-Hatfield areas to expand their venture already running in Watford and Dacorum. The Scheme, which is part of the Druglink network and has backing from Herts County Council, aims to provide housing for adults with vulnerable backgrounds who are trying to get back to independent living.

“Whilst this is an area many landlords might instinctively shy away from,” says James, “there are a number of excellent benefits to this scheme that by-pass many of the traditional problems landlords experience.” These include rent being paid direct to the landlord, continuous support offered to both tenant and landlord by the Scheme, no letting fees, a guaranteed deposit and regular visits by the administrators of the Scheme to ensure the tenancy is well maintained and problemfree. For an information pack or to discuss the scheme in more detail, call 01923 260 733.

Landlord & Tenant Relations Tenants want landlords with people skills New research by the NLA shows that tenants increasingly make their renting decisions based on the ability of the landlord to provide a caring role. While female tenants are more interested in their landlords providing a practical approach using DIY skills (47 per cent versus 35 per cent for men), male tenants stated that they are looking for a good listener in their landlord (30 per cent versus 20 per cent for women). In fact, 27 of the 1,000 tenants surveyed went so far as to say they were specifically looking for a landlord with a mothering nature. When it comes to reasons to extend their tenancy agreements, researchers found tenants prioritised landlords with a friendly nature (37 per cent) over those with good DIY skills (35 per cent). Responding to queries quickly (83 per cent), not turning up unannounced (60 per cent) and giving tenants space to enjoy the rental property (48 per cent) were also key factors in keeping tenants happy and potentially renting their properties for longer. Dream landlords The research also asked tenants about their dream celebrity landlords. Television presenter Philip Schofield came out on top with 20 per

16 UKLANDLORD MAY/JUNE 2010

cent choosing him for his compassionate nature, and 19 per cent said he would be a friendly and sociable landlord, while 15 per cent considered him a reliable person to turn to in a crisis. The top female celebrity landlord was property guru Kirsty Allsop, who came second in the survey for her sense of urgency in getting things done. This appealed to over a quarter of respondents, while 16 per cent thought her maternal instincts would make her a good choice to be a great landlord. Both men and women considered her DIY skills

more dependable than Philip Schofield’s. The important role that women play in the private-rented sector is acknowledged by the NLA through its NLA Property Women Awards 2010. With nominations now closed, the judges have made a shortlist of possible winners for the 16 categories and an overall winner in time for the awards ceremony which will be held on 24th June 2010. For more information, see www. propertywomenawards.org.uk.

Top 10 dream celebrity landlords 1. Philip Schofield 2. Kirsty Allsop 3. Alan Titchmarsh 4. Fern Britton 5. Bob The Builder 6. Terry Wogan 7. Alan Sugar 8. Cheryl Cole 9. Dr Hilary Jones 10. Gloria Hunniford

Philip Schofield

UKLANDLORD MAY/JUNE 2010 17

LANDLORD property management INFORMATION

Landlord & Tenant Relations Guide for ‘virgin’ landlords my|deposits.co.uk has issued a guide to help the growing numbers of new landlords entering the property market navigate the many roles and responsibilities the job entails. “With new landlords entering the property market each week, many are choosing to take the DIY route. They are opting to take care of the letting themselves,” said Eddie Hooker, Chief Executive, my|deposits.co.uk, the tenancy deposit protection company run jointly by the NLA and Hamilton Fraser Insurance. “This means they are going it alone without the help of an agent, be it to have control over how the property is managed, or to save on fees. Are these novice landlords truly prepared for everything the job entails?” he added. The guide addresses some of the key things new landlords need to bear in mind and includes topics such as making sure your mortgage and lease (if you own leasehold property) allow you to let property, setting rent

at a realistic level, and not to discriminate on the basis of race, gender, disability, sexuality or religion when interviewing prospective tenants. my|deposits.co.uk guide also reminds landlords to be aware of their legal obligations as a landlord, for example, fire and gas safety standards, to protect a deposit through a Government-authorised protection scheme, and that the landlord must, at the end of the lease, once outstanding bills have been made and repairs accounted for, return the deposit promptly to the tenant. “Being a landlord isn’t just about collecting rent every month. There are lots of things to consider before you take the leap as a landlord. For example landlords who fail to comply with the tenancy deposit protection law face considerable risks,” said Eddie Hooker. “They could be forced to pay a fine of three times the deposit amount and limits will be placed on their ability to seek possession

for as long as the deposit remains unprotected. It’s worth knowing your responsibilities before you set out to avoid any problems in the future.” To see the full guide visit www. mydeposits.co.uk/landlords/landlord.htm

Local Housing Allowance Government rewards saving by LHA tenants The first Saving Gateway bank accounts will be available as from July 2010. These will provide a savings account for working age people on lower incomes, typically those eligible for Local Housing Allowance. The Saving Gateway encourages people to save through a government reward of 50 pence for each pound saved. NLA Local Representative for Kent, Marion Money, has welcomed the move: “Not all tenants abscond with their LHA

18 UKLANDLORD MAY/JUNE 2010

money! And those who have managed to cope with handling their own affairs and managing to save are now to be rewarded by the Government.” The Saving Gateway aims to kick-start a saving habit for working age people on lower incomes, and to promote ‘financial inclusion’. Accounts will be offered by financial institutions such as banks, building societies, credit unions and the Post Office. “My view is it is all about helping our tenants achieve the best use of their money, whether it is the best rates for utilities or council tax reductions if they are single occupants etc,” Marion told UK Landlord magazine.

Landlord Action seminars Landlord Action is running a series of workshops for private landlords, lettings agents and temporary accommodation suppliers who are either already operating in, or, considering entering into the Local Housing Allowance sub-market. Run jointly with Settled Housing Solutions, the comprehensive one-day seminars look at useful topics such as the latest rules relating to safeguard policies and direct payments to landlords, how LHA rates are calculated, evidence required for housing benefit claims, understanding Broad Rental Market Areas and managing housing benefit claims. The workshops provide practical advice to support landlords in a variety of areas, such as dealing with overpayments, increasing rental profits, avoiding bad tenants and eviction procedures. For more information, contact Landlord Action – see page 36.

LANDLORD property management INFORMATION

Sustainability Boiler scrappage in Wales Although the boiler scrappage scheme has closed in England, landlords with properties in Wales may be eligible to apply for a voucher worth £500 if they are planning to replace an old boiler in their rental properties. The Energy Savings Trust which administers the Government scheme says the scrappage scheme in Wales will specifically target people in fuel poverty. From 6th April the scheme has been open to applications from homeowners over the age of 60 who can apply for a £500 voucher towards the cost of replacing a G-rated boiler with an A-rated boiler. Applicants to the Welsh boiler scrappage scheme may also be able to benefit from additional discounts offered by British Gas, Eaga Heat, Npower hometeam and Swalec. For more information telephone on 0800 316 2816 or go to www.heeswales.co.uk.

Landlords welcome ‘green loan’ proposals Plans to introduce ‘green loans’ are likely to have positive benefits for the private-rented sector. The new payas-you-save loan scheme aims to encourage householders to make their homes warmer and cheaper by installing renewable technologies such as heat pumps and solar thermal water heating. The initiative, launched by the last government in March to help the UK reduce carbon emissions from the household sector by 29 per cent, will cover the upfront capital costs of renewable technologies, with repayments being set at lower than the predicted savings on energy bills, allowing the technology in effect to pay for itself. The loan will remain attached to the property, rather than the owner. As people move house on average every

9 to 12 years, and in some installations the financial payback can take longer than this, the possibility of not seeing a return on their investment may have discouraged householders from exploring green technologies. However under the new scheme, future occupants of the property will also benefit from the lower running costs and can continue to repay the loan from the savings on energy bills. Chris Norris, NLA Policy Manager, welcomed the measures: “It is reassuring that these proposals will be available across all types of tenure. Privately rented property tends to be older and harder to make more energy efficient. It is hoped these measures will remove some of the barriers to making all accommodation less damaging to the environment.”

UKLANDLORD MAy/JUNE 2010 19

Feature: FINDING TENANTS

Renting your property to elderly tenants Thanks to modern health care and innovative technology, people are living longer than ever before. As a result, the elderly population in the UK is growing quickly and landlords can play a role in ensuring stable housing opportunities for this section of the community. According to the Office for National Statistics, by 2011 there will be 11.9 million pensioners in the UK, and there will be 16.1 million by 2040. Additionally, the number of people aged 85 or over will increase by 2.3 million by 2036 – a 184 per cent increase. This rapidly ageing population will certainly have an impact on the housing market and offers opportunities for landlords to secure reliable tenants who are likely to stay in the same place for longer than many younger tenants. By renting to an older tenant, landlords can reduce hassle that comes with switching tenants often, and avoid voids. What the elderly look for in a home There are some specific things the elderly want from their rental properties, the most important being that the property should be a home for life, and have the ability to adapt to the changing needs of the tenant as they age. If the property is on more than one level, room for a stair lift is one such adaptation that could be made to a property for elderly tenants. Alternatively, a room that can be converted at a later stage into a ground-level bedroom, plus a bathroom on that level will work well. Older tenants may need larger doorways and rooms to provide easy mobility in case they ever need a wheelchair. Extra space to accommodate visiting

20 UKLANDLORD MAY/JUNE 2010

family or a carer will also be a plus. As for the neighbourhood where the property is located, most elderly people appreciate access to good local transportation, facilities, shops, and services. Safety and security in the neighbourhood is especially important to older tenants. New builds for the elderly Most houses and flats have not been designed for an older population and in some cases it may be difficult and expensive to redesign. If you are thinking of investing in newly built property to rent to the elderly, apply the same precautions you would to other new-builds – in particular, research carefully what the real value of the property will be and do not be taken in by the headline price suggested by the developer. Age UK, the charity which now combines Age Concern and Help the Aged, has successfully campaigned for the Lifetime Homes Standard, a set of design measures that if followed when building new homes, will allow people to stay in their homes for much longer as they age. All public sector funded housing in England will be built to the Lifetime Homes standard from 2011, with a target of 2013 for all private sector dwellings. “A rapidly ageing population is going to have a huge impact on the housing market. Given this is not about ‘specialist’ retirement housing,

promoting general needs accommodation that has lifetime home (LTH) features is a more generic approach to improving the attractiveness of property,” says Joe Oldman of Age UK. “We hope that in time the LTH concept will gain wider understanding, in the same way we are seeing with the eco homes. Private sector landlords need to be aware of legal changes taking place and the rapidly changing expectations of older tenants.”

Private sector landlords need to be aware of the rapidly changing expectations of older tenants. Joe Oldman, Age UK

Legislation and elderly tenants Landlords considering renting to the elderly should bear in mind that, regardless of the tenant’s age, landlords under the 2005 Disabilities Discrimination Act have an obligation to make ‘reasonable adjustments’ to their property, for instance building a temporary wheelchair ramp, if the adjustment is necessary for them to be able to live there. Under the legislation, the landlord is not required to make alterations to the physical features of the property, so will not be required for example to demolish steps to a front door, install a stair lift or undertake any other sort of adaptation which requires large-scale changes to the fabric of the property. Looking to the future There is no doubt the elderly population is growing, and they will be looking for homes that fit their needs, whether it is with adaptations or a new home built to the Lifetime Homes Standard. With such a large population of elderly people who have specific housing needs, the aging society could open up new opportunities in the housing market.

Age UK report on renting to the elderly Age UK, the charity which combines Age Concern and Help the Aged, has recently published a research report on Older People’s Experiences of Renting Privately carried out by Julie Rugg and Karen Croucher of York University. The report provides an overview of the sector and makes recommendations for a Government strategy for the PRS and the elderly, including: •

Local authorities should consider keeping a register of adapted rental properties suitable for different levels of disability, encouraging landlords to let through the register. LAs could inform landlords of best practice and give them access to advice on grants for aids and adaptations.

• Better advice and information is needed on LHA for older people in work, approaching retirement and fully retired. •

Local authorities and environmental health officers should work with housing officers to complete a ‘health check’ on all regulated tenancies in the area. Tenants in regulated tenancies where property conditions are detrimental to their health should be made aware of the full range of their housing options and where possible assisted to move if this is their wish.

For more information, contact Age UK: www.ageuk.org.uk

UKLANDLORD MAY/JUNE 2010 21

NLA NEWS

For the latest news visit: www.landlords.org.uk

NLA Property Women Awards 2010 Nominations for the awards closed on 12 April. The judges have drawn up a shortlist of the winners for each of the 12 regional awards as well as the NLA Green Property Woman Award, NLA Young Property Woman Award (under 30), NLA Letting Agent Property Woman Award, and the NLA Local Authority Property Woman Award. The judges are: Clare Bettelley, Editor, Negotiator Patrick Clift, Residential Editor, Estates Gazette Simon Gordon, Head of Communications, NLA Lynette Lackey, Chairman, Association of Women in Property Rebecca O’Connor, Property Correspondent, The Times Ian Potter, Operations Manager, Association of Residential Lettings Agents Tessa Shepperson, Solicitor and Author, The Landlord Law Blog Jane Slade, Property Editor, Sunday Express.

For information on the shortlisted nominees, see page 26. The winners will be announced at the awards ceremony on Thursday 24th June in London. For information about attending the ceremony, see www.propertywomenawards. org.uk.

Landlord Exhibitions in Scotland The NLA is holding 3 Landlords’ Exhibitions in early June this year – in Edinburgh, Glasgow and Aberdeen. The main topics that will be covered by experts at each of the meetings include: • Latest changes to Scottish legislation • The correct way to end tenancies and regain possession of your property • Maximise tax relief on buy to lets • Funding your property portfolio.

There will be question & answer sessions with key speakers Carl Bayley (Tax Café), Steve Simpson (NLA Mortgages), Paul Harper (Lindsays solicitors - Glasgow and Edinburgh events), Alan Burns (Stewart Watson solicitors, Aberdeen) and the Shelter Representative for Glasgow and Edinburgh. All events will allow participants to meet local NLA Representatives, local authority personnel and local suppliers.

For more information, see www.landlords.org.uk/scotland.

NLA National Conference date The NLA’s annual National Conference and AGM will take place on Saturday 27th November 2010. The one-day event will take place at Park Plaza Victoria London, near Victoria Station, central London For details and to register your interest please visit: www.landlords.org.uk/conference

22 UKLANDLORD MAY/JUNE 2010

New branches planned for Scotland The NLA is planning to significantly increase local meetings around Scotland in the coming months. While the Fife branch already holds regular meetings for landlords in Glenrothes, branches are also due to be established in Edinburgh, Glasgow, Hamilton and Dundee over the course of the coming months, with a longer term aim of setting up a branch in Inverness. If any NLA members in these areas are willing to help out at meetings as a volunteer or to contribute to a branch committee at a later stage, please contact David Kendall, the NLA’s National Representative for Scotland, and Local Representative for Glasgow by email: David.Kendall@landlords.org.uk.

NLA NEWS

NLA Tenant Check rewards its 10,000th user NLA Tenant Check celebrated its 10,000th tenant check in April. NLA member Caroline Read, from Slough in Berkshire, who was lucky enough to commission the check, will receive three years’ free membership of the NLA and a further five free full tenant checks in order to commemorate the event. The NLA’s advice to landlords is that they should always make background checks on potential tenants, as failing to do so significantly increases the risk attached to every tenancy where the landlord has no idea about a tenant’s past financial history. If a potential tenant has a track record of not paying their rent or states they are employed when in fact they got sacked, the landlord should know. Caroline Read (pictured), who has used the NLA’s Tenant Check service on a number of occasions, is a fan. “I like the fact I can set it up online so my tenants can fill in the information themselves, I appreciate the discount for NLA members and I have generally found it to be a very efficient service,” she told UK Landlord. A thorough tenant check will investigate County Court judgments, bankruptcy and insolvency searches, linked addresses and name aliases as well as references from employers and previous landlords. This information provides a clear indication of whether a future tenant will be able to meet their rental payments.

Hot off the Press!! Ellie Irwin NLA Press Officer As Hot off the Press goes to print we still aren’t clear who will take responsibility for the private-rented sector, let alone what the new government has in store for landlords.

Reluctant landlords move out The latest residential lettings survey from the Royal Institution of Chartered Surveyors found demand for rental property was rising, in part due to reluctant landlords selling up and leaving the market. Meanwhile, BBC News used NLA research which revealed that although void periods remain high they have stabilised. Is this thanks to those ‘reluctants’ finally packing their bags, or because those scrooge-like banks won’t lend to first time buyers unless they have a huge deposit?

Do you take proper checks? Unfortunately we’ve all experienced someone who can be perfectly charming before you hand over the keys and then prove to be the tenant from hell. We think proper tenant checks aren’t an optional extra and the Leicester Mercury explained why... ‘Failure to make checks could be costly mistake’. And on the lighter side of the issue, best pun surely has to go to Blackpool Gazette for their ‘Make key checks.’ Very good...

For more information, see the NLA’s Services on page 38.

Meeting landlords from all walks of life “No two landlords are the same.” That’s the view of Callum Cretney (pictured) of the NLA’s Membership Department who has enjoyed being in direct contact over the past three years with many members, whom he says come “from all walks of life.” Callum is leaving the NLA to travel around the world before returning to his home in Wellington, New Zealand. “It has been exciting seeing the NLA’s membership grow enormously over the past years and to be part of an Association that has gone from strength to strength.” Callum’s highlights from working at the NLA include participating in the Thames 21 Clean Up, his television appearance on a programme about what checks you need to do on your tenant, and becoming great friends with his work colleagues. Dean Johnson has now joined the Membership Department.

Tenants love a bit of Philip Research conducted for the NLA’s Property Women Awards 2010 revealed tenants were looking for a shoulder to cry on from their landlord, as well as somewhere to live. A columnist in London’s Evening Standard disagreed, saying she wasn’t there to be a surrogate mother to her tenants. Paisley Express focused on another part of the research which found Philip Schofield was the nation’s ideal landlord, because he is a good listener. Personally, I’d rather have Brad Pitt, but that’s just me!

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 MAY/JUNE 2010 23

NLA ASSOCIATE MEMBER NEWS

For the latest news visit: www.landlords.org.uk

Private sector housing services from a unitary authority Just over a year after Shropshire Council became a unitary authority, UK Landlord talks to Graham Jones, Private Sector Housing Manager about how the change has affected landlords in the private-rented sector. focus on providing a consistently good service to landlords and tenants, and have developed much closer and more regular links with our other housing colleagues which means we can respond to housing matters with fewer delays,” he says. “For landlords, there is now one point of contact when it comes to private sector housing issues.”

Graham Jones, Private Sector Housing Manager

Significant changes to how housing services are delivered in the vast area spanning part of the West Midlands have been made as a result of the creation of Shropshire’s unitary authority on 1st April 2009. By bringing together the housing authorities from five different District and Borough Councils, there is now a single housing strategy, housing assistance and enforcement policies and budget that can be applied consistently across the Council’s area. According to Graham Jones, before the unitary authority was created, most District and Borough Councils in Shropshire delivered private sector housing as an integral part of their environmental health function. The remaining District council had 3 separate teams working on different aspects of private sector housing. The change to a unitary authority has seen all Council staff working on private sector housing move to the Council headquarters in Shrewsbury, working in either the Renewal team or the Assistance team. “By having these 2 distinct teams, we keep our

24 UKLANDLORD MAY/JUNE 2010

Landlord communications While the transition to a unitary authority has brought benefits of greater focus and less administration, it also means relying on relatively low overall staffing numbers in the private sector housing team. There are currently 13 full-time equivalent staff dealing with nearly 130,000 properties, many of which are in rural areas. A comparatively small proportion of these properties (between 13,000 and 14,000) are in the social sector. The rest are owneroccupied or private rented. For Graham and his team, the NLA’s active engagement with the Council, primarily through the NLA’s Local Representative for Shropshire and North Wales, Julie Woolfenden, has meant that communicating with a significant proportion of landlords across such a broad geographical area is straightforward and effective. “We see our relationship with NLA Shropshire as a working partnership,” he says. The Council hosts the NLA’s branch meeting three times a year and sends out invitations and minutes of the last meeting to landlords before each meeting. It is in contact with the NLA about working together on landlord accreditation schemes.

Shropshire Council’s private sector housing service Assistance Team: Disabled Facilities Grants and other grant assistance to private sector owners and tenants. Of particular interest to landlords are grants to bring vacant properties back into use and improve fire safety. Renewal Team: housing advice and enforcement, HMOs, empty homes, energy efficiency initiatives.

Member Feedback Do you have experiences you want to share about changes in landlord service levels from councils being moved into unitary authorities? If so, write to editorial@uklandlord.org.uk.

UKLANDLORD MAY/JUNE 2010 29

NLA PROPERTY WOMEN AWARDS 2010

Shortlisted Nominees NLA Property Women Awards 2010 The NLA Property Women Awards 2010 highlight the work of the most effective and respected women in property across the UK. These women are helping to transform the private-rented sector with their business savvy approach and willingness to go above and beyond the call of duty. The Awards are all about best practice, regardless of how many properties entrants own, how long they have worked with a local authority, or run their lettings business. So who is the cream of the property crop? Read on for the list of shortlisted* names... East Midlands

North West

Wales

• Tracey Abbiss

• Christine Jones

• Jane James

• Rachel Hutchinson

• Sylvia Marrs

• Elizabeth Paterson

• Tamson Sapwell

• Tammy Silcock

• Lilly Sharma

East of England

Scotland

West Midlands

• Myra McNeil

• Mhairi Noble

• Samantha Collett

• Karen Murray

• Nora Rojas-Sinclair

• Amy Dixon

• Irene Turner

• Elanie Stenson

• Glenda Houston

London

South East

Yorkshire and Humber

• Georgina Bloomfield

• Anna Bowden

• Shona Davison

• Bindar Dosanjh

• Diane Fry

• Lesley Jackson

• Coral Humes

• Hasmita Reardon

• Sandra Widdrington

North East

South West

Northern Ireland

• Juliet Ashton-Taylor

• Claire Heale

Owing to insufficient entries, this Award will

• Maria Beckwith

• Anne Jarrett

not be featured this year.

• Joan Briggs

• Fiona Macaskill

NLA Green Property Woman Award

NLA Young Property Woman Award (under 30)

NLA Letting Agent Woman Award

NLA Local Authority Woman Award

• Tracey Abbiss

• Nina Batley

• Claire Empson

• Jan Colgan

• Fiona Macaskill

• Amy Dixon

• Glenda Houston

• Kim Waugh

• Elaine Stenson

• Marta Lijoi

• Caroline Lindegaard

• Nicola White

*Shortlisted names correct at the time of going to press.

The winners, including the overall title of NLA Property Woman of the Year 2010, will be announced at the NLA Property Women Awards ceremony on Thursday 24 June. If you wish to attend the ceremony, individual tickets are £100 each and a limited number of tables are also available for purchase. Please e-mail nla@bravepr.com for further information.

26 UKLANDLORD MAY/JUNE 2010

nla landlord development

For the latest news visit: www.landlords.org.uk

“Very Good Value for money and tailored to landlords.” Peter Johnson, Landlord, PD Management

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 booking@landlords.org.uk

“I have learnt a great deal from the course. The trainer was very enthusiastic, clear and helpful. It is one of the best courses I have attended.” Harpal Pooni, Landlord

2010 DATES

LOCATION

2010 DATES Contd...

LOCATION

Monday 24th May

London

Tuesday 2nd November

Brighton

Wednesday 9th June

Cardiff

Wednesday 17th November

Leeds

Wednesday 9th June

Edinburgh

Tuesday 7th December

Glasgow

Tuesday 5th October

Brighton

Monday 20th December

London

Tuesday 26th October

Birmingham

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 booking@landlords.org.uk

2010 DATES

LOCATION

Monday 17th May

Brighton

Wednesday 20th October

Nottingham

Tuesday 23rd November

London

ALL TIMES: 9.00am for 9.30am start; 4.30pm finish

UKLANDLORD MAY/JUNE 2010 27

NLA member viewpoints

Landlord views: David Dixon David Dixon, five-year membership

I’ve been a member of the NLA for 3 years. I needed the support of a professional representative body. The ‘forms’ section of the NLA website is an absolute boon, allowing me to generate a tenancy agreement very quickly when I’m with the prospective tenant. Likewise the credit rating system is first rate. The most rewarding aspect of being a landlord is the social interaction with tenants. Because I’ve lived in Telford, Shropshire, for 22 years, I can help with local information on job opportunities, police liaison, the borough council and leisure generally.

I have just supported an application by a 15-year old son of a tenant to enter the Telford Volunteer Police Cadets, which was his burning desire – how rewarding is that? Apart from being a landlord I am also the founder and the Chief Executive Officer of Village Water, a charity that works in Zambia and employs a field director and 20 African professional and manual workers. This requires me to be out there twice a year for three weeks each time and to run an office with 1 fundraising employee in Telford. My wife and I jointly own 32 properties: 29 flats and houses in Telford, one flat in London, a holiday apartment in Italy and one converted barn where

we live in Shropshire. Of the 29 in Telford, sixteen are let to professional working adults who occupy 1 and 2-bedroom flats and houses. I plan to dispose of most of these when the market improves. They all lose money to a greater or lesser extent. Voids and losses are compensated by our LHA lettings that never change. We have 11 LHA tenants. The concept of Broad Market Rental Areas for the assessment of LHA rentals, based simply on the number of bedrooms, is excellent. It’s a real breakthrough by The Rent Service.

DAVID’S TIPS • Avoid buying properties that “I could live in.” • Houses in town centres, even if the gardens are pocket handkerchiefs, are always in demand, but strenuously avoid expensive new apartments. • Don’t turn your back on low-income families.

•

Don’t think of doing all this without ‘friends’ around you, even if you don’t use them much: property sales & letting agents, tradespeople, private rented sector housing department officers in your borough council, the local landlords’ association and the NLA hotline and web connection which is a privilege of your membership.

• Most people like to have a pet, even in a flat. Allow for that, • Ultimately, it’s down to you, you’ll make mistakes, but take a deposit and withhold it if necessary until damage is fewer and fewer each year. remedied. If you want to contact David to find out more, email him at david@skippy.biz.

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

28 UKLANDLORD MAy/june 2010

Who can join under this Package?

}

Individual landlords (including spouse/ partner)

UKLANDLORD MAY/JUNE 2010 29

NLA LANDLORD EVENTS

For an up-to-date list visit: www.landlords.org.uk/events

2010 Events Guide

NLA event

Other event

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 8900) that we have your current email addresses.

DATE

EVENT

REGION

LOCATION

TIME

Wed 19 May

St Albans Landlords Forum

East of England

Committee Room 1, St Albans District Council Offices, 7.00pm - 9.00pm

St Peters Street, AL1 3JE

Wed 19 May

Ibis Hotel, Winchester Room, Southampton Centre,

NLA Southampton Meeting

South East

9 West Quay Road, Western Esplanade, Southampton SO15 1RA 7.00pm - 9.00pm

Mon 24 May

NLA and Craven Council

Council Chamber, Granville Street Offices,

Landlords Meeting

Skipton BD23 IPS

Tue 25 May

NLA Peterborough Branch

Ramada Hotel (formally The Butterfly), Thorpe Meadows,

Meeting

Peterborough PE3 6GA

Wed 26 May

NLA Portsmouth Meeting

Queens Hotel, Clarence Parade, Southsea,

Yorkshire & The Humber

East of England

South East

6.00pm - 8.00pm

6.00pm for 6.30pm

Hampshire PO5 3LJ

Thu 27 May

Hotel Miramar, East Overcliff Drive, Bournemouth,

NLA Dorset Branch Meeting

South West

7.00pm - 9.00pm

7.30pm

Dorset BH1 3AL

Tue 1 Jun

The Londesborough Hotel, 3 Market Place, Town Centre,

NLA Selby Branch Meeting

Yorkshire & The Humber

7.00pm

Selby YO8 4NS

Tue 1 Jun

NLA Cumbria Branch Meeting

North West

University of Cumbria, Fusehill Street, Carlisle, Cumbria CA1 2HH 7.00pm

Wed 2 Jun

NLA Glasgow Exhibition

Scotland

Woodside Town Hall, 36 Glenfarg Street, Glasgow G20 7QF

Thur 3 Jun

NLA Edinburgh Exhibition

Scotland

Edinburgh Corn Exchange, 11 Newmarket Road,

12.00pm - 7.00pm

Edinburgh EH14 1RJ

12.00pm - 7.00pm

Thur 3 Jun

NLA Swansea Branch Meeting Wales

Liberty Stadium, Landore, Swansea SA1 2FA

6.00pm - 7.30pm

Fri 4 Jun

NLA Aberdeen Exhibition

Scotland

Inchgarth Community Centre, Aboyne Place, Aberdeen AB10 7DR 12.00pm - 7.00pm

Mon 7 Jun

NLA Fife Branch Meeting

Scotland

Gilvenbank Hotel, Huntsman Road, Glenrothes, Fife KY7 6RA

7.00pm start

Tue 8 Jun

NLA North East Branch Meeting North East

Novotel Newcastle, Ponteland Road, Kenton NE3 3HZ

6.30pm

Wed 9 Jun

Eastbourne and Wealden

Lansdowne Hotel, King Edward’s Parade (Eastbourne Seafront),

Branch Meeting

East Sussex BN21 4EE

Wed 9 Jun

Newport Landlords Forum

Newport Civic Centre, Committee Room 7, Newport,

South East

Wales

6.30pm - 9.00pm

5.30pm

South Wales NP20 4UR

Thu 10 Jun

SWALEC Stadium, Sophia Close, just off Cathedral Road,

NLA Cardiff Branch Meeting

Wales

Cardiff CF11 9XR

5.45pm

Tue 15 Jun

NLA Lincoln Branch Meeting

East Midlands

Bentley Hotel, Newark Road, South Hykeham, Lincoln LN6 9NH

6.30pm - 8.30pm

Tue 15 Jun

NLA & West Lindsey

East Midlands

Council Chamber, The Guildhall, Marshall’s Yard,

Landlords Meeting

Gainsborough, DN21 2NA

Wed 16 Jun

NLA & Kirklees Council

The Galpharm Stadium, Stadium Way, Huddersfield,

Landlord Fair

West Yorkshire HD1 6PG

King Georges House, 40-46 Stockwell Road, Stockwell,

Yorkshire & The Humber

1.00pm - 3.00pm

2.00pm - 8.00pm

Thu 17th Jun

Lambeth Private Sector

Housing Forum

London SW9 9ES

Mon 21 Jun

Birmingham and Sandwell

The Richardson Suite, West Bromwich Albion Football Club,

Landlords Forum

30 UKLANDLORD MAY/JUNE 2010

London

West Midlands

Hawthorns, Halfords Lane, West Bromwich B71 4LG

5.30pm - 8.00pm

12.30pm - 4.00pm

NLA LANDLORD EVENTS

For an up-to-date list visit: www.landlords.org.uk/events

DATE

EVENT

REGION

LOCATION

TIME

Tue 22 Jun

NLA with Cherwell Housing

South East

Holiday Inn Express : Banbury M40, Jct 11/ Ermont Way,

Providers Forum

Stroud Park, Banbury OX16 4AE

6.15pm

Wed 23 Jun

NLA & Calderdale Council

The North Bridge Leisure Centre, North Bridge,

2.00pm - 5.00pm

Landlord Fair

Halifax HX3 6TE

Thurs 24 Jun

NLA & Bradford Council

Great Victoria Hotel, 39 Bridge Street,

Landlord Fair

Bradford BD1 1JT

2.30pm - 7.30pm

Thurs 24 Jun

NLA Property Women

Park Plaza Riverbank Hotel, 18 Albert Embankment,

Champagne 6.45pm

Awards 2010

London SE1 7TJ

Dinner at 7.30pm

Wed 30 Jun

NLA Exeter Branch Meeting

South West

Southgate Hotel, Southernhay East, Exeter, Devon EX1 1QF

6.00pm for 6.30pm

Sat 10 Jul

Medway Landlords Training

South East

Day in conjunction with NLA

Chatham ME4 4TR

Mon 12 Jul

NLA Shropshire Branch Meeting West Midlands

Shire Hall (by the Column), Abbey Foregate, Shrewsbury SY2 6ND 6.00pm

Tue 13 Jul

NLA Teesside Branch Meeting North East

The Blue Bell Hotel, Acklam, Middlesbrough TS5 7HL

7.30pm

Tue 13 Jul

Boston Borough Council

Municipal Building, Boston PE21 8QR

7.00pm

Yorkshire & The Humber

East Midlands

Medway Council Offices, Gun Wharf, Dock Road, 9.30am - 3.00pm

Landlords Forum

Wed 14 Jul

NLA and Ryedale Council

Yorkshire & The Humber

Landlords Meeting

Old Malton Road, Malton, North Yorkshire YO17 7HH

Wed 14 Jul

Medway Landlords Training

Medway Council Offices, Gun Wharf, Dock Road,

Day in conjunction with NLA

Chatham ME4 4TR

Thu 15 Jul

Islington Council and NLA

Islington Assembly Rooms, Town Hall, Upper Street,

Joint Landlords forum

London N1 2UD

Dartford Borough Council, Home Gardens, Dartford,

South East

London

South East

Ryedale District Council Offices, Ryedale House, 6.00pm - 8.00pm

5.00pm - 9.00pm

6.00pm - 8.00pm

Thu 15 Jul

Dartford and Gravesham

Landlords Forum

Kent DA1 1DR

5.15pm for 5.30pm

Thu 22 Jul

NLA Dorset Branch Meeting

South West

Borough of Poole, Civic Centre, Poole BH15 2RU

7.30pm

Mon 6 Sep

NLA Milton Keynes Branch

South East

Abbey Hill Golf Centre (Main Building), Monks Way,

Meeting

Two Mile Ash, Milton Keynes MK8 8AA

Tue 7 Sep

NLA Cumbria Branch Meeting

University of Cumbria, Fusehill Street, Carlisle,

North West

6.00pm for 6.30pm

7.00pm

Cumbria CA1 2HH

Mon 13 Sep

NLA Northampton Branch

Northampton Rugby Club, Weedon Road, Northampton

Meeting

NN5 5BG

Tues 14 Sep

NLA North East Branch

Novotel Newcastle, Ponteland Road, Kenton

Meeting

East Midlands

North East

NE3 3HZ

6.00pm for 6.30pm

6.30pm

Scottish Landlords Exhibition â&#x20AC;&#x201C; The Future of Letting in Scotland Keep checking www.landlords.org.uk/scotland/ for details and to book your place. UKLANDLORD MAY/JUNE 2010 31

PUBLIC AFFAIRS

Who will represent landlords in the next Parliament? By Chris Norris, NLA Policy Manager At the time of writing, the Conservative Party has just formed an historic coalition with the Liberal Democrats following Britain’s first hung parliament since 1974. Of course here at the NLA we are far more interested in who can legitimately claim to represent landlords in the next parliament. So, concentrating only on landlords, we undertook our own opinion poll in the weeks leading up to 6 May. Here are the results: • 39% of landlords backed the Conservatives • 19% of landlords backed the Labour Party • 10% of landlords backed the Liberal Democrats • 10% of landlords backed one of the smaller parties • 11% Were yet to decide and; • 11% did not intend to vote for any party Given that recent Government policy has included: • The introduction of a ‘National Landlord Register’ • Requiring planning permission for all new shared housing

• Expanding local licensing schemes for rental

property • Restricting payment of Local Housing Allowance (LHA) direct to landlord ... it was perhaps unsurprising that landlords are much less supportive of the Labour Party. Only 19 per cent of landlords said they intended to vote Labour compared to the national result of 29 per cent. However, landlords were more forgiving of the Conservative Party and their policies including: • Re-introduction of direct payment of LHA to landlords • Annulment of HMO planning legislation • Abolition of Home Information Packs. As a result 39 per cent of landlords favoured the Conservatives. Landlord voting at the General Election Interestingly this poll indicates that a ‘landlord only’ electorate would also result in a hung parliament. Although, in recognition of some arguably more landlord-friendly policies, it puts the Conservative

Investment in the UK private-rented sector Following on from its proposals to regulate buy-to-let mortgages, the Treasury has now published plans to encourage investment in residential housing from further afield. Its consultation document sets out the importance of the PRS to individuals, the housing market and the wider economy. Acknowledging that demand for PRS accommodation seems likely to increase, it is seeking to establish how effective the sector will be at increasing supply to respond to such demand, or whether Government will need to intervene. A key area for consultation is initiatives to incentivise large-scale investment in the private-rented sector and the NLA is determined to ensure that smaller portfolio landlords are not swept aside by eagerness to court the big pension funds.

Party in a stronger position than is the case in reality. It seems that landlords would prefer a Conservative administration. But are not quite convinced that they have done enough to warrant an overall majority. As things currently stand it looks like they have got their wish with a Conservative minority.

HMO licensing fees The NLA is currently conducting research into fee levels applied by local authorities for licensing Houses in Multiple Occupation (HMOs). Using the Freedom of Information Act, the NLA has contacted all 436 local authorities in the UK, except Northern Ireland where it is the Northern Ireland Housing Executive rather than the individual Councils that deal with HMO licensing. All the local authorities have a statutory responsibility to respond, and the NLA is analysing the responses as they come in. David Cox of the NLA’s Policy Unit told UK Landlord magazine: “From the responses we have already received, it appears that charges levied and methods of charging by local authorities vary drastically across the country.” The NLA plans to publish its analysis in the next few months.

The new Government ministers with responsibilities affecting the private-rented sector are: Eric Pickles, Communities Secretary, Grant Shapps, Minister for Housing and Iain Duncan Smith, Work & Pensions Secretary

32 UKLANDLORD MAY/JUNE 2010

AIIC

UKLANDLORD MAY/JUNE 2010 33

PUBLIC AFFAIRS

Private housing reforms for Scotland The Scottish Government has launched consultations on a proposed Private Housing (Scotland) Bill in a bid to improve the standard of private rented housing in Scotland. Views are being sought about the private rented sector, licensing of mobile homes and twenty year residential lease and standard security rules. The NLA has responded to the consultation and has highlighted the Scottish Government’s proposed reforms to refine the landlord registration system, improve the existing tenancy regime and HMO licensing for particular consideration. “It’s a mixed bag,” says NLA Public Affairs Officer, Vincenzo Rampulla. “Although there is no single, coherent policy, the Scottish Government appears to have cherry-picked specific policies, some workable, others not quite so much.”

NI landlord registers unworkable The NLA has criticized the proposed strategy to require landlord registration for the private rented sector in Northern Ireland (NI). Responding to the NI Department for Social Development’s publication of its strategy, David Cox, NLA Policy Officer, said: “The NLA fails to see how a list of landlords is going to target the worst excesses in the sector. A register of property addresses will be almost permanently out of date as landlords change the composition of their portfolios. This approach would render a register utterly unworkable if landlords are only required to re-register every two or five years. It is of no use to tenants at all.” As well as proposing a mandatory electronic register of private landlords, the consultation (Building Sound Foundations – A Strategy for the Private-Rented Sector) will require landlords to demonstrate that their rental properties meet an improved Fitness Standard before a new tenancy is agreed, aims to create greater security of tenure of long-term tenants and to establish a tenancy deposit protection scheme.

For example, the Bill proposes to allow landlords to gain possession of abandoned properties by providing sufficient evidence to relevant authorities rather than in the present case without going to court. It also simplifies possession procedures, reducing the current obligation to submit 3 forms to only one single notice which will be less bureaucratic and cumbersome for landlords. Vincenzo explains that landlord registration exists in Scotland in so far as landlords register with a local authority and establish they are a fit and proper person. The Bill proposes to require landlords to use their landlord registration number when advertising properties which is likely to unnecessarily add to costs.

Welsh PRS review The NLA has submitted recommendations for measures to help develop and improve the private rented sector in Wales. The Welsh Assembly Government is carrying out a consultation which covers topics including introducing a national register of private landlords,

regulation of private sector letting agents and managing agents, written tenancy agreements, an increase in the threshold for assured shorthold tenancies, and improving the information base on the private rented sector in Wales.

New water bill for England Following the publication at the end of last year of the Walker Review on charging and metering for water and sewerage services, the Department for Environment, Food and Rural Affairs (DEFRA) is drafting legislation on the topic for England. The Government department is working on an impact assessment of the new bill and has approached the NLA for assistance. The key issue according to Vincenzo Rampulla of the NLA’s Policy Unit is likely to be on what basis a landlord should share information and what type of information landlords need to provide in order to discharge their liabilities for water bills in their rented properties. The Walker Review suggested that the new water regulations should stipulate the type of information the landlord is required to provide. The NLA is working with DEFRA to ensure that regulations are proportionate and do not add significant administrative burdens on landlords.

Making energy efficiency measures more useful for landlords The NLA shared experiences on energy efficiency with other landlord associations from various European countries at the Energy Week conference in Brussels organised by the UIPI, the international property owners’ association. The aim of the conference was to compare government initiatives and incentives for landlords to upgrade the energy performance of their properties, and assess the real impacts of the EU-wide Energy Performance Certificate scheme. Simon Gordon, the NLA’s Head of Communications, spoke at the conference which was attended by members of the European Parliament and officials at the European Commission. The NLA believes there are four key areas which would encourage energy efficiency improvements in the private-rented sector: • EPCs to be more useful to landlords, letting agents and tenants. The NLA is calling for free updates on EPCs when landlords make energy efficiency improvements, an easier to understand Recommendation Report, and details of the approximate cost of the property’s utility bills on the EPC.

34 UKLANDLORD MAY/JUNE 2010

• The single largest energy efficiency improvement is a new boiler. The NLA wants to see LESA extended to include both boiler upgrades and double-glazing. •

At the moment, when a landlord is making energy efficiency upgrades, they are in void periods so not generating any rental income but still having to pay their mortgages. The NLA would like to see a commitment by mortgage companies to provide mortgage holidays for landlords whilst they are undertaking energy efficiency improvements.

•

Finally, the large energy suppliers now have an obligation to achieve carbon reduction targets in the household sector and the NLA is calling on them to use a percentage of their Carbon Emissions Reduction Target funding to assist specifically with energy efficiency improvements in the PRS.

NLA MEMBER BENeFITS

For an up-to-date list visit: www.landlords.org.uk

Suppliers you can trust (Look for the Partner or Recognised Supplier logo) Vying for your money There are certainly plenty of companies in the marketplace vying for your money! We don’t want to tell you who you should use but we want to try and help you narrow your search. That is why we have launched the NLA Recognised Supplier Scheme. Over the year ahead you will begin to see a database of suppliers who provide products and services that will help you with your day-to-day activities.

HOW TO JOIN THE RECOGNISED SUPPLIER SCHEME If you use a company or supplier who would be interested in joining the scheme please email: recognisedsupplier@landlords.org.uk or phone Christian Kent on 020 7840 8917 for details.

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. UKLANDLORD MAY/JUNE 2010 35

NLA RECOGNISED SUPPLIERS Bump The Agent claude@bumptheagent.com www.bumptheagent.com

For an up-to-date list visit: www.landlords.org.uk

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.

EnviroVent Ltd Tel 0845 2727 807 info@envirovent.com www.envirovent.com Our systems are designed to eliminate streaming windows, condensation and mould, and protect your investment. EnviroVent manufactures the worlds most innovative and eco-friendly ventilation solutions, saving local authorities, social and private landlords, specifiers and developers vast amounts of money in fan maintenance and disrepair problems and making significant contributions to the environment. To help you achieve the Decent Homes Standard, EnviroVent is offering 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.

FlatmateClick Tel 0800 404 9187 customerservice@flatmateclick.co.uk www.flatmateclick.co.uk FlatmateClick enables thousands of landlords and accommodation seekers to come together every day online. If you have a room or flat you want to let then don’t advertise in the paper or with flyers. You can pro-actively search through detailed profiles for the perfect match and keep the agency fee for yourself. NLA Members can claim an Exclusive 10% discount on the subscription/listing fee.

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.

36 UKLANDLORD MAY/JUNE 2010

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 15,000 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 Platinum Cover for the price of Gold Cover, a saving of £60 per year.

LettingZone Tel 01622 720072 Fax 01622 726175 enquiries@lettingzone.com www.lettingzone.com LettingZone is the ‘UK’s Premier Landlord Letting Portal’ which displays all the key services landlords need to successfully manage and grow their rental portfolio. LettingZone display a range of services from a popular Tenant Find Service to our Latest Landlord Daily News. Other benefits include: Free ‘Ask The Expert’ facility, Free twice monthly newsletters, and a Services Directory. All this information is supplied completely FREE of charge. In addition NLA members are given a code which entitles them to 17% off the UK’s leading Tenant Find Service.

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.

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.

NLA RECOGNISED SUPPLIERS

For an up-to-date list visit: www.landlords.org.uk

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. 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 strategy: 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.

The Energy Saving Team Tel: 0800 988 5928 info@TheEnergySavingTeam.com www.TheEnergySavingTeam.com The Energy Saving Team provides government grant assisted insulation & heating to improve the rentability and value of your properties. Reduce condensation, damp, mould & climate change; loft & cavity wall insulation from just £99 each for 5 bed house (saving £977), reclaimable using Landlord Energy Saving Allowance. Typical saving of £365pa on heating bills!

UKLANDLORD MAY/JUNE 2010 37

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:

• • • • • •

Best in market products; researched daily Many products attract a 0.25% cash back Other financial rewards are available Research the buy-to-let market for yourself Find schemes that fit your expected rental income FREE helpdesk for information and support

• • • • •

Price Distance from the property Distance from your home address Recommendation Free helpdesk

Cashback for all NLA members

£100 cash back

for NLA members on every successful mortgage completion*.

for NLA members on every successful property completion.*

Get the right mortgage for you online at

www.landlords.org.uk/mortgages

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*

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.*

www.landlords.org.uk/EPCs

www.landlords.org.uk/tenantcheck

38 UKLANDLORD MAY/JUNE 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 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 MAY/JUNE 2010 39

NLA RECOGNISED SUPPLIER PROFILE

Aliance and Leicester Commercial Bank

To further its core objective to raise standards in the private-rented sector, the NLA vets companies that it considers professional and offer good value for money to its members under its Recognised Supplier Scheme.

Alliance & Leicester Commercial Bank: preferential business banking for landlords Members of the NLA can now take advantage of a market-leading business current account, thanks to a specially negotiated deal with Alliance & Leicester Commercial Bank, part of the Santander Group which has more than 150 years’ experience in banking. Ceri Henfrey, Alliance & Leicester

The Free Business Current Account offers NLA members free and unlimited day-to-day banking including: • Free and unlimited cheques issued and deposited, BACS payments, Direct Debits and standing orders • Free ATM withdrawals. It also allows members to: • Deposit up to £3,000 cash per month free, then pay only 45p per £100 thereafter • Bank online, over the telephone, using deposit machines at Alliance & Leicester branches or at any Post Office® branch. The only transaction charges are for CHAPS payments, change giving and other non-standard charges. “It is an ideal account for landlords,” says Ceri Henfrey, Head of Direct and Affinity Channels at Alliance & Leicester Commercial Bank, “as it offers free banking and will allow landlords to keep their business and personal transactions separate.” Unlike most banks, Alliance & Leicester Commercial Bank does not charge a monthly fee. All they ask is that payments into your account total at least £1,000 each month (excluding transfers between your Alliance & Leicester accounts); if this is not the case in any given month, you will be charged £5 for that month only.

40 UKLANDLORD MAY/JUNE 2010

Preferential rates on business loans and International payments By opening the Free Business Current Account, NLA members can take advantage of preferential interest rates on business loans up to £25,000 and overdrafts – the rate is currently reduced by 1 per cent for members. NLA members will also receive reduced fees on International payments – currently reduced to a £5 fee from £17.50.

It is an ideal account for landlords.

A winner for landlords What’s more, Alliance & Leicester Commercial Bank, part of the Santander Group, has won ‘Best Business Current Account Provider’ for an unprecedented eighth successive year. Santander also received the prestigious award of ‘Business Bank of the year’ in 2010, as well as winning ‘Best Service from a Commercial Mortgage Provider’. All Alliance & Leicester Commercial Bank customers can use any of the 11,500 Post Offices® across the UK to deposit and withdraw over the counter. NLA members can also use their secure online banking service and make deposits and withdrawals at any Alliance & Leicester selfservice branch machine. The Free Business Current Account product is available to businesses with an annual business turnover of up to £1 million. Alliance & Leicester provides a free switching service for Direct Debits, standing orders and bill payments from your existing business account.

Applications are subject to status and the right to decline any application is reserved. Minimum age 18. UK business applicants only. Terms and conditions apply. Lines are open 8am – 8pm Monday to Friday, 8am – 2pm Saturday. Calls are recorded and may be monitored for security, quality control and training purposes.

NLA members who want to find out more should call 0800 068 6698 quoting reference AF0397 and tell the advisor that they’re a member of the National Landlords Association. Alternatively they can apply online for the Free Business Current Account by visiting www. alliance-leicestercommercialbank.co.uk/nla

NLA RECOGNISED SUPPLIER PROFILE

Landlord Response

Landlord Response: meeting landlords’ gas, electric and plumbing requirements Landlord Response offers an attractive range of maintenance and repair packages to landlords, with discounts available to NLA members worth £60 per year.

Rhonda Kneller, Landlord Response

Set up by landlords for landlords, Landlord Response offers a range of packages designed to keep your property compliant with legislation and your tenants safe, starting from 50p a day. Landlord Response has packages to suit all budgets that include gas safety tests, electrical safety testing of fixed wire electrics, portable appliance testing and inspections. Peace of mind from 50p a day As well as offering a cost-effective first rate service supported by a 24-hour per day helpline and unlimited callouts as standard with all packages, Landlord Response will, if you wish, take all your calls from tenants relating to gas, electric and plumbing problems, allowing you to enjoy peace of mind and to keep a professional boundary with tenants. Landlord Response is offering NLA members Platinum Cover for the price of Gold Cover until 30th June, which can offer savings from the start. “Say a client takes our Platinum Cover, this includes a Boiler Service, Gas Safety Certificate, Fixed Wire Test and Portable Appliance Test,” explains Rhonda Kneller of Landlord Response. “These tests alone cost £334.88 (including VAT, and based on London prices). Our Platinum Cover costs NLA Members £300 (using the current offer saving of £60.00) so NLA Members are better off by £34.88 to take out our cover as not only do they get all the certificates required by letting agents they are also covered for any boiler, central heating, plumbing & drains and electrical breakdowns.” This pitch becomes even more attractive if you consider the thousands of pounds saved by the policy which covers free of charge replacement for boilers that cannot be repaired and are under 7 years old.

Landlord Response also offers attractive deals for portfolio landlords looking to cover 10 or more properties. Other services for landlords offered by Landlord Response include all aspects of maintenance works such as door and window repairs, redecoration works, plastering/rendering, kitchen and bathroom installations, providing landlords with a one-stop-shop to which they or their tenants can report any problems which will be dealt with promptly and efficiently.

Saving you money

Landlord Response is offering NLA members Platinum Cover for the price of Gold Cover until 30th June which can offer savings from the start.

There are four levels of cover available: Bronze: for Boiler and Controls, all parts & labour, annual boiler service, 24hr helpline, unlimited call outs, Gas Safe registered engineer (£15/month) Silver: The same as Bronze plus parts & labour on central heating system, annual landlord’s gas safety inspection and certificate (£20/month) Gold: The same as Silver plus parts and labour cover and two yearly inspection on plumbing and drainage systems (£25/month) Platinum: The same as Gold plus two yearly inspect on electrical systems, annual portable appliance testing on property appliances, fixed wire test (£30/month).

To find out more about how Landlord Response can support you, call 0844 472 9880 or email customercare@landlordresponse.co.uk or visit www.landlordresponse.co.uk UKLANDLORD MAY/JUNE 2010 41

NLA RECOGNISED SUPPLIER PROFILE

The Energy Savings Team

The Energy Saving Team: Government grants and tax allowances for landlords’ energy efficiency needs The Energy Saving Team helps landlords improve the value and rentability of their rental properties by using Government grants and tax allowances for insulation & heating. It also carries out free energy efficiency surveys and utility bill reviews. Parmi Janagle with some members of the Energy Saving Team

More than 25 per cent of the CO2 emissions in the UK come from heating our homes. The UK target is to insulate all residential properties by 2015. Parmi Janagle, Managing Director of The Energy Saving Team, sees opportunities for landlords from this commitment: “Everyone is entitled to the Government grants available,” he says. “Landlords can take full advantage of the Government grants out there to better insulate their rental properties, for cavity wall and loft insulation. Tenants will be happy to know the bills from the property are going to be less expensive for them to run and the property is less likely to have condensation, damp and mould.” Saving money for landlords The Energy Saving Team works with landlords to take advantage of the various schemes to reclaim the costs of energy efficiency measures. For example, using these grants, landlords can spend as little as just £99 and save in the region of £1000 on the costs of loft and cavity wall insulation. This could provide attractive savings for tenants of £365/yr on their heating bills in a typical 3-bed house. Landlords can also re-claim the full cost of insulating their properties as a tax saving under the Landlord Energy Saving Allowance of up to £1500 per property. Although the Boiler Scrappage Scheme has ended in England, the Energy Saving Team has negotiated an extremely competitive and flexible deal for landlords with one of the UK’s biggest

42 UKLANDLORD MAY/JUNE 2010

heating installers, offering 5-year warranty and ‘buy now- pay later’ payments. Utility bills are usually the second highest monthly outgoing for many tenants after paying their rent. The more landlords can reduce these costs, the more likely tenants are to be able to pay the rent and cope with rent increases. In Houses of Multiple Occupation where bills are included with the rent, this can make a significant difference to landlords’ profits. The Energy Saving Team will review utility bills relating to your rental property and can recommend much better deals for tenants, provided the landlord agrees.

The Energy Saving Team works with landlords to take advantage of the various schemes to reclaim the costs of energy efficiency measures.

How The Energy Saving Team works A passionate supporter of the need to reduce carbon emissions, the way the Energy Saving Team works is to provide a free energy efficiency survey of your rental property. This will involve taking pictures of the loft and inspecting the cavity wall using a special camera. If the EST energy survey considers your property would be eligible for insulation work, it will arrange for an insulation company in your area to carry out the work. An EST grants advisor will set out which grants the landlord can use and will identify what, if any, costs will be necessary. The Energy Savings Team is paid by the insulation companies who can receive Government grants provided there are appropriate properties that require energy efficient insulation. To find out more contact The Energy Saving Team Helpline on 0800 988 5928 or by email info@TheEnergySavingTeam.com or visit www.TheEnergySavingTeam.com

UKLANDLORD MAY/JUNE 2010 43

Feature: increase of rental threshold for asts

ASTs for annual rents up to £100,000 As from 1st October, if you rent out a property in England for which the annual rent is anything up to £100,000, the tenancy will be considered an Assured Shorthold Tenancy agreement. One of the main results of this change is that landlords will have to protect the deposits for such tenancies, and this particular change will apply to existing as well as new tenancies. One of the parting housing measures announced by the last Government was that the annual rental threshold for assured tenancies would be extended from £25,000 to £100,000. The intention of raising the threshold is to bring a greater number of tenancies within the framework of the Housing Act 1988 which introduced Assured Shorthold Tenancies for private sector residential tenancies in England and Wales, with corresponding rights and obligations for landlords and tenants. The rental threshold was originally introduced because it was considered that ‘luxury let’ tenants paying very high rents did not need statutory protection. When the Housing Act came into force, a rent of £25,000 per year would have been considered at the top end of the market (equivalent to a calendar monthly rent of just over £2,083 or £480 per week) and would only have been achievable by a small number of properties. Following the consultation on the findings of the Rugg Review of private sector housing, the last Government decided to raise the annual rental threshold to reflect rental market increases, and cited as an example lettings of shared houses to students which run the risk of being excluded from being assured tenancies because although their rent is not exceptionally high by today’s standards, it is above the 1988 Housing Act threshold. Impacts on landlords All new tenancies created with aggregate rents of £25,000 to £100,000 per year will default to Assured Shorthold Tenancy (AST) status. This means that all of the rights and responsibilities associated with the Housing Act 1988 will be

44 UKLANDLORD MAY/JUNE 2010

extended to higher rent properties within the £100,000 threshold. Crucially this will also be applied to existing tenancies. Any tenancy with annual rent between £25k and £100k in existence on 1st October 2010 will become an AST overnight (provided that there is no other relevant exemption). Communities and Local Government (CLG) considers the proposed increase in rental threshold to be prospective in so far as it will not affect the rights of tenants and landlords until this change kicks in on 1st October. The only key area where landlords are expected to take any steps in response to this change is in relation to tenancy deposit protection. As from 1st October 2010, landlords will be expected to protect tenancy deposits in respect of existing tenancy agreements which cover rental incomes of between £25,000 and £100,000. The Housing Act 2004 requires landlords of all ASTs entered into on or after 6 April 2007 to protect their tenants’ deposits in a recognised scheme. Since the common law tenancies (i.e. the tenancies which did not fall within the previous threshold set by the 1988 Housing Act) falling within the new increased threshold will become ASTs, CLG’s rationale is for the tenancy deposit rules to therefore also apply to existing tenancies. Tenancy deposit protection It is worth noting that failure to comply with this requirement means a landlord will be in breach of the Tenancy Deposit Protection regulations, and will not be able to use notice-only possession to recover his or her property. So, it makes sense for landlords to protect deposits as from 1st October taken in respect of tenancies which will be fall into the new category of ASTs. Clearly it will not have been possible for landlords to protect the deposits within 14

days of receipt when the tenancy commenced! The NLA has warned the Government that this change has been rushed through without a full consideration of the practical consequences on the lettings market. NLA Chairman, David Salusbury, said “The retrospective nature of this change is highly regrettable, and it could have a wide-ranging impact on the letting of private residential property. For example, landlords in this higher rent bracket will have to protect deposits for the first time. If they fail to do so by 1st October 2010 they could be in breach of the law.” CLG has confirmed to the NLA that it is not their intention that landlords should be “caught out” by this change, and it will be working with the Ministry of Justice to prepare detailed guidance to the courts to pre-empt the confusion that may well arise in respect of rights and obligations of tenants and landlords that apply to these tenancies which fall within the new threshold, including in relation to tenancy deposit protection. The threshold will not be reviewed again for five years.

Need more information? • NLA’s Fact Sheet: www.landlords.org.uk/pdf/free/ ASTThresholdQ&AMarch2010.pdf •

Explanatory Memorandum to the Assured Tenancies (Amendment) (England) Order 2010 (Statutory Instrument 2010 No.908): www.opsi.gov.uk/si/si2010/em/ uksiem_20100908_en.pdf

UKLANDLORD MAY/JUNE 2010 45

Feature: SALE AND RENT BACK

Regulation of sale and _ rent back the full regime UK Landlord talks to Lynda Blackwell, Manager, Mortgage Policy Team at the Financial Services Authority, to find out about the full Sale and Rent Back regime which comes into force in June 2010. Sale and rent back (SRB) involves individuals – often those facing financial difficulties – selling their home at a discount in return for the right to remain as a tenant for a set period. The Financial Services Authority began regulating SRB under an interim regime on 1 July 2009. This was introduced quickly to provide a basic level of protection for consumers. The full regime, which provides a more comprehensive suite of consumer protections, replaces the interim regime on 30 June 2010.

UK Landlord: What type of landlords are affected by the full SRB regime? Lynda Blackwell, FSA: All landlords involved in the SRB market may be affected by the full regime. FSA regulation of the SRB market came into force on 1 July 2009 at the outset of the interim regime, and will continue under the full regime. Under regulation you must be authorised by the FSA to carry out certain ‘regulated activities’. These ‘regulated activities’ are: • advising on an SRB agreement; • arranging an SRB agreement; • entering into an SRB agreement; and • administering an SRB agreement. Landlords are most likely to undertake the ‘entering into’ and ‘administering’ activities, for example: • ‘entering into’ an SRB agreement when buying residential property and renting it back

46 UKLANDLORD MAY/JUNE 2010

•

to the vendor, or when buying a property that is already subject to a regulated SRB agreement (a regulated SRB agreement is an SRB agreement entered into since 1 July 2009); and ‘administering’ an SRB agreement when collecting rent due under a regulated SRB agreement.

However landlords may also undertake the ‘advising’ and ‘arranging’ activities, particularly where they source the SRB properties and arrange the deals themselves. For example: • ‘advising on’ an SRB agreement is where you recommend a particular SRB agreement to a consumer; and • ‘arranging’ an SRB agreement is where you arrange for a consumer to enter into an SRB agreement. Landlords involved in SRB must be authorised by the FSA before undertaking any of these activities.

UKL: Why are these rules necessary? Lynda Blackwell: In 2008 concerns were raised over the treatment of consumers in the SRB market, and in response the OFT conducted a market study into SRB. They found a number of problems for consumers, including that SRB deals are complex to evaluate, particularly for consumers in already stressful and difficult

financial and emotional situations. In addition, some consumers were entering into SRB agreements when it was not necessarily the best option for them, and the lack of long-term security of tenure was putting tenants at risk of eviction.

UKL: What are the main elements of the full regime? Lynda Blackwell: The main elements include: • SRB customers must be given security of tenure for a minimum of five years, through the use of a fixed-term assured shorthold tenancy agreement (or equivalent in Scotland and Northern Ireland); • firms must meet capital resources requirements (for example SRB providers must have minimum capital resources of £100,000) and have professional indemnity insurance (PII) in place; • a 14 day cooling-off period has been introduced to give consumers more time to make decisions and seek advice on sale and rent back; • an affordability and appropriateness check must be done for all SRB sales to check that the SRB deal is right for the consumer; • cold calling and dropping promotional leaflets through letter boxes is banned; • the use of emotive terms like ‘fast sale’, ‘mortgage rescue’ and ‘cash quickly’ is prohibited in promotional literature; and • a risk warning must be used in SRB adverts.

UKL: What should landlords with an SRB portfolio do now? Lynda Blackwell: You must get authorised before you can undertake SRB business. It can take up to six months for a fully completed application to be considered, so allow sufficient time. If you are already authorised under the interim regime you must re-apply and be granted authorisation for the full regime, or you will have to cease regulated SRB activities by 30 June.

SRB agreements entered into before 1 July 2009 are not regulated, so if you continue to let property under an SRB agreement entered into before this date then you are unlikely to fall within the scope of regulation, and are unlikely to require authorisation.

UKL: What are the penalties for landlords if they are not authorised? Lynda Blackwell: Conducting an FSA-regulated activity without the necessary permission to do so is a criminal offence. Therefore you must be authorised before undertaking regulated sale and rent back business, or face a potential fine or imprisonment. The FSA is proactively monitoring the SRB market for unauthorised activity, and will take action if necessary.

For more information on Sale and Rent Back Information on the full regime, the application process and application forms are available on the FSA website: www.fsa.gov.uk/smallfirms/your_firm_type/mortgage/rentback/

NLA National Conference 2010 â&#x20AC;&#x201C; 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

UKLANDLORD MAY/JUNE 2010 47

BOOKS FOR LANDLORDS

The Quick Guide to Taking In A Lodger By Tessa Shepperson

There are helpful books on property management and then there are helpful books on property management. Not only does property guru, Tessa Shepperson, know her onions but she’s got every recipe under her belt. Tessa, what would we do without you? There’s no doubt the recession has encouraged a rise in people taking in lodgers. It still remains a relatively easy and risk-free way of earning a bit of extra cash. And if you keep the rent below a certain level, the cash is also

48 UKLANDLORD MAY/JUNE 2010

tax-exempt. The likelihood is that along the way, lifelong friends will be made, but then it’s also possible that you might meet a few nutters. Luckily, for the pro and novice alike, Tessa covers every eventuality in this new book from the Lawpack stable.Starting with the legal and practical considerations and then on to the financial issues, everything is covered off in the right level of detail. What permissions are needed? How does insurance work? What about gas safety and furniture? Of course, the good news is that live-in landlords don’t have to bother with Energy Performance Certificates although Tessa optimistically suggests that a more energy-efficient property may attract more interest. I am not convinced. A sterling piece of advice for landlords of every stripe finds itself shoved in at the end of chapter two: keep proper records. There’s no point in scrawled lodger agreements on fag packets or rent increase letters on the back of gas bills. Landlords, sort out your filing or you will get in a mess – for goodness sake, buy a filing cabinet if you haven’t got one. Via a chapter on HMOs, the book then moves on to finding, keeping and losing your tenants. When

I say ‘losing’ I actually mean Tessa’s advice on what happens when the lodger is leaving. For me, this is the real meat of the book. Where do you get your lodgers? What services will you provide? How do you interview and vet lodgers properly? Tessa (and this is her legal eagle training) even offers letter templates on everything from employer references to credit check permissions.Finally, covering off lodger agreements and how to end even the most acrimonious lodger arrangement, the book comes to a polite end when the landlord is meant to offer the departing lodger a chance to sign the Visitors’ Book. I didn’t even know visitors’’ books were still being produced. And that is the great thing about this little gem: every page a different thing you thought you already knew. Published by Lawpack, recommended price £9.99 (ISBN 978-1-90697119-9).

Review by NLA Media Manager Steven Hilton

UKLANDLORD MAY/JUNE 2010 49

HOUSE PRICES AND LETTINGS SURVEYS

House Prices House prices continue to rise, while sales volumes remain low. The latest house price index from Communities and Local Government (CLG) records that prices fell 0.1 per cent between January and February 2010, but rose 2.7 per cent in the quarter ending February 2010. This compares with a larger rise of 3.4 per cent for the quarter ending in November 2009 (seasonally adjusted). The mix-adjusted average house price in the UK stood at £ 204,359 in February 2010 (not seasonally adjusted). The main house price index sources generally reported rises in the first quarter of this year, other than the Land Registry which reported a slight fall in prices in March. • House prices in England and Wales rose by 1.1 per cent in March, according to the Financial Times house price index. This made it the eleventh consecutive month in which prices rose. In March, average prices in England and Wales were 13.4 per cent higher than a year ago, “a significant recovery albeit in a market still characterised by great uncertainty” according to Acadametrics, which prepares the survey for the FT. The average price of a house in London reached £376,605. This price is £748 above the previous high recorded in February 2008 and prior to the recent housing market slump. “Given the overall context this is a significant outcome, and it points to the unique pressures and dynamics of the London market,” said the consultancy. “We observe that the ‘effect’ of London on our price measures is strengthening, as it has in the past when it also led the recovery.” • The Land Registry reported that prices went down by 0.6 per cent in March, which nevertheless marked an annual price rise of 7.5 per cent. According to the Land Registry, the average house price is now £164,288. • The Halifax house price index reported that house prices increased by 1.1 per cent in March, partly offsetting the 1.6 per cent fall recorded in February. This marked the eighth rise in the past nine months, taking the average price to 9.1 per cent above the low point reached last April. Prices in the first three months of 2010 were 0.6 per cent higher than in the final quarter of 2009. “This was smaller than the 3.6 per rise between the third and fourth quarters of 2009, suggesting a slowdown in the trend rate of house price growth” according to Halifax housing economist Martin Ellis. “There are signs that an increase in the number of properties available for sale is beginning to reduce the imbalance between supply and demand. This should help to contain the upward pressure on house prices.” • House prices increased by 1 per cent in April, according to Nationwide. This brings annual house price inflation to 10.5 per cent, and the price of a typical house to £167,802. April’s figures leave house prices exactly 10 per cent below their October 2007 peak. The 3 month on 3 month rate of change edged lower from 1.5 per cent in March to 1.1 per cent in April, primarily reflecting, according to Nationwide, the 1 per cent drop in houses prices recorded in February. Nationwide’s Chief Economist Martin Gahbauer said: “Rather than a surge in cash buyers, the more important driver of rising house prices has been the low level of stock for sale, as many homeowners and buy-to-let landlords continue to wait for prices to recover to peak 2007

50 UKLANDLORD MAY/JUNE 2010

levels before deciding to sell up or move. The very low level of interest rates has been supportive of this wait-and-see approach, particularly in the buyto-let sector. Many landlords have seen their mortgages revert to base rate trackers and are now earning significantly higher net rental income than a few years ago.” Regional trends Annual average house prices rose in England (7.9 per cent), Scotland (4.2 per cent) and Wales (4.7 per cent), but fell in Northern Ireland (-8.3 per cent), according to CLG. The annual house price rates of change in England ranged from 3.5 per cent in the North to 10.6 per cent in London. The annual growth rates in the other regions were 3.9 per cent in the West Midlands, 5.1 per cent in both Yorkshire and the Humber and the East Midlands, 5.3 per cent in the North West, 7.5 per cent in the South West, 8.5 per cent in the East and 10.0 per cent in the South East. Average mix-adjusted house prices in February 2010 were £211,299 in England, £152,841 in Wales, £159,865 in Scotland and £167,832 in Northern Ireland. The English region with the highest average house price in February remains London at £321,289. The lowest average price was in the North East at £137,523. Source DCLG

Regional house price indices 12-month percentage change for the latest month

UKLANDLORD september/october 2009 41

HOUSE PRICES AND LETTINGS SURVEYS

Auctions continue to offer opportunities Distressed sales continue to offer good buying opportunities for landlords, and while the percentage of distressed sales at auction is now diminishing, auctioneer Allsops has reported that its latest sale at the end of March 2010 contained 48 per cent distressed stock. 84 per cent of the lots offered sold successfully raising over £35m. VirtualLetz.com confirms that landlords using their services see property auctions as the way to grow their portfolios in the current economic climate: “If buy-to-let investors can secure discounted properties these will offer higher capital growth potential and increased rental yields.” New builds Latest data from RAPID (Residential Auction Property Investment Data) compiled jointly by auctioneer Allsops and the Essential Information Group (EIG), has indicated that the number of new build flats offered at auction has declined rapidly since Q4 2008. The data, which is based on sales from the last quarter of 2009, shows that the largest numbers of new build flats offered at auction have been in the north of England, Scotland and Northern Ireland. RAPID considers anticipates UK prices to remain largely stable in the first half of 2010, and expects any changes in housing performance to vary by micro-markets: by region, town, postcode area and even street address over the coming months.

52 UKLANDLORD MAY/JUNE 2010

HOUSE PRICES AND LETTINGS SURVEYS

Lettings Surveys Rents set to rise as supply falls The supply of new properties coming on to the rental market has fallen for the second consecutive quarter possibly bringing an end to the downward trend in rents that has been in place since the autumn of 2008, according to the latest lettings survey published in March by The Royal Institution of Chartered Surveyors (RICS). The net balance of chartered surveyors reporting rising rather than falling rents in the three months to January 2010 was zero. This follows five quarters of negative readings, and is in marked contrast to April last year when 58 per cent more chartered surveyors were reporting falling rents, an all-time low for the survey. In addition, expectations as to the outlook for rents continue to strengthen with a net balance of 33 per cent of respondents believing rents will rise over the coming quarter (up from 22 percent). B2L investment opportunities The more positive picture for rents can be attributed to the continued decline in supply of both flats and houses in the marketplace. RICS spokesman Jeremy Leaf confirmed that movements in the housing market are affecting lettings: “the RICS housing survey has seen a steady increase in the number of new instructions coming on to the market over the past few months, whilst simultaneously we see with this survey that the number of properties available to rent has decreased,” he said. RICS

believe this is a clear sign that the accidental landlords are returning to the sales market. If demand remains strong, which it is likely to as many first time buyers are still finding themselves priced out of the housing market, then rents should continue to rise as would-be tenants compete for fewer properties. RICS’ conclusions are supported by figures released by Countrywide, the UK’s biggest lettings agent, for the first quarter of 2010 which show a record 48,332 new tenants registered for rental accommodation, a 48 per cent increase since Q4. Countrywide’s survey of its UK network of more than 200 branches revealed that there is now an average of 4.9 tenants vying for every property compared to 2.9 tenants in January 2010. This is having a significant impact on the

housing market and the property register of letting agents as demand outstrips supply. Countrywide believes rising demand and the lack of supply has already led to an increase in rental prices with the UK average monthly rate up 2.5 per cent to £683 per calendar month. John Hards, Countrywide Residential Lettings, Co-Managing Director said: “Demand for rental properties has rocketed over the last few months and the shortage of properties is pushing up demand across the country as house hunters continue to struggle to get on the property ladder. Buy-to-let landlords are using this as an opportunity to increase their property portfolios as rental yields improve in key locations, which is helping with the severe shortage of supply in many locations.”

MORTGAGE MARKET ROUNDUP Mortgage lending rose in March 2010 Mortgage lending rose to an estimated £11.5 billion in March, a 24 per cent rise from £9.3 billion in February and a 3 per cent rise from £11.2 billion in March 2009, according to data published by the Council of Mortgage Lenders. Gross lending for the first quarter of 2010 was therefore an estimated £29.5 billion, a 24 per cent decline from the fourth quarter of 2009 (£38.9 bn) and a 9 per cent decline from £32.4 billion in the first three months of 2009. This is the lowest

54 UKLANDLORD MAY/JUNE 2010

quarterly lending total since the first three months of 2000, and is in line with the CML’s forecast of a gross lending total of £150 billion this year. CML economist Paul Samter commented: “Overall, housing and mortgage activity remains subdued, but is comfortably higher than in the depths of the recession a year ago... with the gradually improving economic backdrop and interest rates still low, we continue to expect a gentle improvement in market conditions later

in the year.” The CML believes that longer-term problems facing the market remain and will limit the speed of recovery in the housing market and wider economy. Financial institutions still face the prospect of around £300 billion of official support schemes beginning to end from next year, and will need to find alternative funding sources. Most commentators consider this will limit how much new funding can be made available to the housing market.

MORTGAGE MARKET ROUNDUP continued Market Deals The buy-to-let mortgage market continues to tick over slowly without any major sign that a return to the old lending ways are set to return any time soon. “Despite the CML reporting increased lending in the Buy-to-Let market during the last two quarters of 2009, market conditions remain tough,” comments Gareth Lowman of Savills Private Finance. “Lender activity remains weak as there is little sign of the wholesale money market re-opening. Paul Rockett of NLA Mortgages confirms that no significant new product ranges or radical criteria changes have been announced recently. Rocket says he is already picking up signs, from specialist buy-tolet lenders, however, that the situation is unlikely to continue through 2010: “I am confident that we will see some new products arrive by the middle of the year.” NLA Mortgages best-selling products in April were: • 4.35 per cent on a 1-yr tracker, up to 75 per cent LTV (loan to value) with 3 per cent completion fee. • 4.74 per cent on a 2-yr tracker, up to 75 per cent LTV with a £800 completion fee with free valuation and free legal fees. • 3.99 per cent on a 2-yr tracker, up to 70 per cent LTV with 3.5 per cent completion fee. “Across the water, President Obama appears to be looking to move interest rates up in the coming months which may be a bigger indicator of what may happen here in the UK,” he adds. For the time being though, property investors appear confident of a continuing period of low interest rates and NLA Mortgages’ current best-selling products are short-term trackers.

UKLANDLORD MAY/JUNE 2010 55

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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56 UKLANDLORD MAY/JUNE 2010

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3 issues Black - £200 Colour - £260 6 issues Black - £380 Colour - £495 Prices per single unit 3cm x 6cm

products and SERVICES directory LANDLORD PORTAL

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Your guide to what’s new in the sector for landlords

GAS SAFETY To advertise on these pages please contact: editorial@uklandlord.org.uk or tel: 020 7722 4334 KEEPING UP TO DATE WITH ELECTRICAL LEGISLATION DX Electrica understands that as a landlord it is difficult to be up to date on the electrical legislation. Being in the electrical contractor industry they see a repeated pattern on where landlords could improve and make savings. 1. With many of the commercial premises in London their distribution boards are either in need of upgrading, are overloaded or don’t comply with electrical regulations. Be aware of the health and safety implications with your distribution board. 2. Financial Help - There are loans, grants and claimable schemes from the ECA and the carbon trust for low energy products installed. Visit www.carbontrust.co.uk/loans and www.eca.gov.uk for more details.

3. Electrical Landlord certificate – this certificate is required before your tenant moves in (for both commercial and electrical.) The certificate states that the electrics have been tested inspected and comply with regulations. Tenants also have a responsibility to have their electrics tested and inspected if they modify their distribution board during their tenancy. 4. Recent air conditioning units provide both heating and cooling and in most cases can be more efficient to run than a boiler. 5. September saw the phasing out of traditional light bulbs. Low carbon lighting systems can also reduce your energy usage by up to 50% when compared to standard lights. For more fact sheets

and helpful information please visit www.dxelectrica.net

UKLANDLORD MAY/JUNE 2010 57

The National Landlords Association President

Geoffrey Cutting

Chairman & Interim Chief Executive

David Salusbury

Communications Head of Communications Policy Manager Public Affairs Officer Policy Officer Media Relations Manager Press Officer Editor NLA Publications Managing Editor UK Landlord

Simon Gordon Chris Norris Vincenzo Rampulla David Cox Steven Hilton Ellie Irwin Andy Stern Louise Gale

Marketing Head of Marketing Marketing Executive Marketing Executive Affinity Marketing Manager Marketing Assistant

Paul Berwick Christian Kent James Acreman Claire Mansell Tasha Hettiarachchi

Operations Director of Operations Landlord Development Manager Member Services Manager Operations Manager Operations Support Officer Accreditation Development Officer

Regional Representatives England East of England Regional Representative

Lynsey Sweales

Local Representative (Bedfordshire, Cambridgeshire, Essex & Hertfordshire) Local Representative (Norfolk & Suffolk)

James Fraser Graham Walker

East Midlands Local Representative (Derbyshire, Leicestershire & Nottinghamshire) Local Representative (Northamptonshire) Local Representative (Lincolnshire & Rutland)

Christine Darvill John Socha Richard Withington

London Regional Representative Local Representative (London West)

Maryann Pearce EuGin Song

North East Regional Representative

Johnny Lighten

Local Representative (Teesside)

Richard Hutchins

Local Representative (Tyne & Wear)

Bruce Haagensen

North West Richard Price Alison Perkins Meurig Lloyd 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

Regional Representative

Tom Reynolds

South East Local Representative (Kent) Local Representative (Berkshire, Buckinghamshire & Oxfordshire) Local Representative (Surrey) Local Representative (East Sussex) Local Representative (West Sussex) Local Representative (Hampshire)

Marion Money David Kybett Refer to website Tony Richard Susan Bryer Ken Staunton

South West Finance & Membership Administration Director of Finance and Company Secretary Office Manager Membership Administrator Assistant Membership Administrator Assistant Membership Administrator Accounts Manager Book-keeper HR Executive Systems Head of Systems

Patrick Jacobs Michelle Harris Pauline Wilson Dean Johnson Vicky Little Ian Wilcox Janet McCarthy Christine Williams

Regional Coordinator Regions Support Officer

Lesley Dove

Local Representative (Dorset)

Steve Bartlett

Local Representative (Cornwall, Devon and Somerset) Local Representative (Herefordshire & Worcestershire) Local Representative (Staffordshire, Warwickshire & West Midlands) Local Representative (Shropshire & North Wales)

Sally Thorn Lyra Haldane

Jackie Nicholson Mary Latham Julie Woolfenden

Yorkshire and the Humber Local Representative (South Yorkshire) Local Representative (West Yorkshire)

Barry Markham

Refer to website

West Midlands

Regional Representative Richard Marston

Regions Director for the Regions

Local Representative (Wessex)

Paul Gott Teresa Galley Refer to website

Northern Ireland Northern Ireland Representative

Connor McCann

Scotland Scotland Representative

Subs renewals/queries/change of address Local Representative (Dundee & Fife) Local Representative (Edinburgh) Tel: 020 7840 8937 E: membership@landlords.org.uk Local Representative (Aberdeen) To purchase Tenancy Agreements Tel: 020 7840 8900 Wales General Correspondence: 22-26 Albert Embankment, London SE1 7TJ Wales Representative Tel: 020 7840 8900 Fax: 0871 247 7535 E: info@landlords.org.uk Local Representative (North Wales) www.landlords.org.uk Local Representative (South Wales)

David Kendall Gerry McDougal Tristan Compton Refer to website Lee Cecil Julie Woolfenden 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.

58 UKLANDLORD MAY/JUNE 2010

PROPERTY FOR SALE Property For Sale Adverts can be booked for as little as £40 (£50 for non-members). For more details visit: www.landlords.org.uk/propertyforsale or call 0117 330 8370

South Southampton SO14 • 14 rooms (4 en-suite), two s/c flats • Tenanted • Income £82,560pa • £950,000 • Elaine - 07831 155558, aks0908@sky.com Attractive 4-storey victorian townhouse, ample car parking, within walking distance to Southampton City Centre, hospitals, Solent and Southampton Universities. HMO Licensed.

London

Postcode

Romford, Essex RM7 • 3 bedroom Semi-detached house • Untenanted • £215,000 • k.macabuag - 07910329022 kpnut007@yahoo.com

North West

Postcode

Fauld House, Palatine Road, Blackpool • 9 Bedroom Guest House • Potential for Student Accomodation (subject to planning) • Guide Price £115,000+ • Emma - 0800 242 5847 www.auctionmove.co.uk

London SE15

North West

Blackpool • • • •

£92,500 4 bedroom terraced house Untenanted Christine Roberts - 01492 533427 t.r.eng@homecall.co.uk

• • •

6 bedroom Semi-detached house Untenanted • £634,995 Tesh Rai - 07956920323 or 0207 693 1168 buythishouse@tiscali.co.uk

Spacious four bedroom property with detached garage. Ideal for letting to a family or as a student house. Blackpool & the Fylde College within walking distance. Good condition.

Large semi-detached Victorian house. OS parking 6/7 cars. Possible conversion into large HMO selfcontained bed-sits or B&B; planning permission one bed self-contained flat Viewing highly recommended www.houseforsaleinsouthlondon.co.uk for detailed information.

North West

• 7 bedroom HMO and 2 shops (House in multiple occupation) • Tenanted • £395,000

• 2 separate properties • Tenanted • £425,000

Lucrative Investment Opportunity. 2 shops and 7 bedsits, all fully-let. Annual rental £32,000, producing yield of over 8%. Planning permission granted for 3 further bedsits, increasing annual rental to £45,000+

Superb Investment Opportunity. 2 separate properties for sale. Manchester (shop and 3 bedsits), annual rent £18,920. Lancaster (shop and 2-bed flat), annual rent £13,780. Combined price £425,000. May sell separately

• Jeff Draper - 07919 536551 jeff@felicity.co.uk

Scottish Landlords Exhibition – The Future of Letting in Scotland Keep checking www.landlords.org.uk/scotland/ for details and to book your place. UKLANDLORD MAY/JUNE 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, 22-26 Albert Embankment, London SE1 7TJ. Guarantors to avoid rent arrears I would like to comment on Antony Atkins’ letter regarding his inability to recover rent arrears. My solution is to always take a guarantor. Tenants will always find a guarantor in order to get a tenancy. The guarantor should sign to cover all debts resulting from the named tenancy which will cover rent arrears and damage to the property. Make sure that the guarantor is a home owner – this

can be checked out on the Land Registry website for a fee of £4. If the home that the guarantor owns is in joint names then all parties to the home ownership must sign the guarantor form. I have recovered in excess of £20,000 from guarantors for various tenancies, sums which would not have been covered by a simple damage deposit/bond. Sue Thompson

The cost of bedbugs The story is simple. I had 3 female nurses from India who managed to infect the house badly with bed bugs. I got in Chester City Council (as it was known until it merged last year) who came and put smoke bombs in the house to try and get rid of the infestation. They did this 3 times. The smoke bombs were getting bigger and stronger every time. None of this worked. This went on for weeks. On the first floor of the property, I stripped bedrooms and areas of all goods, beds, wardrobes the lot, then stripped all the wallpaper, carpets, skirting boards, switches, plugs et al ...anything where the bugs can hide and lay eggs. I then had to keep the property heated and empty for six months so any remaining eggs laid would hatch and die of starvation. On top of this I sprayed the rooms including walls with a high-grade chemical application. I lost around 7 months’ rental income plus all the costs of replacing wallpaper, carpets, beds, etc. The total cost was about £10,000. Did I get anything off the tenants? Yes I did keep the deposit, but they did not argue after they saw my bills. They made a delicious meal for all of my family as a way of saying sorry. I never thought bed bugs or any other infestation would cost me like this! Shaun Murphy

Local councils can’t recoup LHA from faultless landlords I refer to Neil Laubach’s comments (March / April issue) on local councils recouping over payment of Local Housing Allowance from the landlord. Can I point out that as long as the landlord did not at any time collude with the claimant so as to cause the overpayment nor acted or neglected to act in such a way as to contribute to the period or amount of overpayment. Reg. 101(2) states that, where the overpayment arose as a consequence of

a misrepresentation or failure to disclose a material fact by or on behalf of the claimant, the recovery should take place from the person who misrepresented or failed to disclose that material fact. This point was further proved in the case of The Secretary of State for Work and Pensions v Chiltern District Council. I have had a similar problem with my local council but as soon as I pointed out the above, they dropped their case. C Evans

Please note letters may be edited for length and clarity and only a selection can be published. 60 UKLANDLORD MAY/JUNE 2010

HMO planning and sound insulation Whilst we can all probably agree there are no obvious merits to the Government’s plans to require residences intended to accommodate 3+ people to have planning permission for HMO usage, I can’t help wondering if the NLA has recognised the real threat that arises once local Planning and Building Control departments become involved with a Change of Status application that will change a property’s status to anything other than ‘residential’. The following provides a salutary example: In April 2009, we purchased a domestic residence property and lodged a planning application and a building control application to install en suites and generally upgrade the property. Having completed these works we applied to the relevant council’s planning department for a change of use to an HMO, as we were going to exceed their 6-room threshold and let the property to multiple tenants. Whilst Planning has their 6-room definition of an HMO, Building Control said they are obliged to view an HMO as any property containing rooms for residential purposes (in turn, defined as a lockable internal room). We duly submitted a Building Control Application (+ fee!). Although we received ‘Planning’ approval for the HMO fairly speedily, Building Control told us we needed to upgrade the loft insulation, install a further smoke detector and carry out a sound insulation test (£500-£800 for the test and an anticipated £3K-£5K for the anticipated remedial work). Faced with this considerable expense, a speedy re-assessment of our financial business model suggested a B&B would a better bet. A preliminary discussion with Planning indicated a C1 (Guest House) application would most likely be successful, but Building Control stated it would still treat applications incorporating lockable internal rooms (e.g. most B&Bs, Guest Houses & HMOs) as applications requiring a sound insulation test. Apparently this all results from the application of a recent Central Government technical guidance document. This being the case, the proposed legislation is likely to be the “kiss-of-death” for conversion properties or anything other than a purpose-built HMO. Draw your own conclusions, guys. Me? – I think I’ll shoot off and set up a sound testing business!! Stephen Wrinch, Innocence Partnership