ISSUE No.147
UKLandlord THE LEADING PUBLICATION FOR THE PRIVATE-RENTED SECTOR
Maximise your returns with build-to-let
IN THIs IssUE
London boroughs investment focus
NOVEMBER/DECEMBER 2010
Lets with pets: the business case
The role of tenancy support in the PRS
Practical approach to pest control Follow us at twitter.com/nationalandlord
EDITORIAL
UKLandlord November/December 2010: Issue 147 ISSN 1741 8801 Publisher’s statement: Circulation 22,500 PUBLISHER The National Landlords Association 22-26 Albert Embankment, London SE1 7TJ Contact > Simon Gordon, Head of External Relations E: simon.gordon@landlords.org.uk EDITORIAL Editor > Andy Stern E: andy.stern@uklandlord.org.uk Managing Editor > Louise Gale E: editorial@uklandlord.org.uk T: 020 7722 4334 ADVERTISING & PRODUCTION For all enquiries and bookings: Advertising Manager > Steve Pearce E: advertising@uklandlord.org.uk T: 0117 330 8370 NLA CONTACTS Membership T: 020 7840 8937 (9am-5pm Mon-Fri) E: membership@landlords.org.uk Media Enquiries: T: 020 7840 8906 (9am-5pm Mon-Fri) E: press@landlords.org.uk General Enquiries and Correspondence with the NLA: 22-26 Albert Embankment, London SE1 7TJ T: 020 7840 8900 (office hours: 9am-5pm Mon-Fri) F: 0871 247 7535 E: info@landlords.org.uk www.landlords.org.uk Advice Line (members only): Telephone number available from Members Area of www.landlords.org.uk Registered as a magazine © The National Landlords Association 2010. All rights reserved. No part of this publication may be scanned, reproduced, stored in a retrieval system, or transmitted in part or whole in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without prior permission of the National Landlords Association. 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
Welcome... As the full extent of the cuts planned by the Coalition becomes clear, resulting according to recent forecasts in a loss of a million jobs in the public and private sectors, now is a good time to keep calm and focus on what we can do to move things in the right direction. For many landlords and their tenants, one of the biggest challenges will be coping with the drastic cuts to housing benefit. While the NLA accepts that everyone in the country must tighten their belts, it is campaigning for these cuts to be moderated in order to sustain stable tenancies and to prevent a devastating (and ultimately costly) rise in homelessness. Recent research by the NLA reveals that almost half of landlords cannot afford to accommodate the planned cuts, and 90 per cent could be less likely to take on a tenant receiving benefits if the proposed cuts go ahead. You can join the NLA’s campaign by writing to your local MP and this issue contains guidance on this, as well as expert guidance from tenancy support worker Doug Scott on how landlords can work successfully with tenants claiming housing benefit. This issue also looks at the business case for ‘lets with pets’ which many landlords may now be more open to given the need to appeal to the largest possible group of potential tenants in order to achieve the best possible tenancy. Of course every downturn brings with it opportunities as well, and the cover story of this issue of UK Landlord assesses the opportunities presented by build-to-let. With land prices still nearly half what they were before the credit crunch, some landlords with cash in the bank or with enough experience to make them eligible for development finance, could boost their bottom line with a new-build project. This issue considers the current market for plots, what finance options are available and talks to NLA Property Woman South East 2010 Hasmita Reardon, who has wide and positive experience of build-to-let. Best Regards,
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
Andy Stern Editor andy.stern@uklandlord.org.uk
INTRODUCING THE NLA BOARD
Executive Chairman David Salusbury
Director of Finance Patrick Jacobs
Director for Marketing Anthony Lock
Director of Operations Richard Price
Director for Regions Barry Markham
UKLANDLORD NOVEMBER/DECEMBER 2010 01
02 UKLANDLORD NOVEMBER/DECEMBER 2010
CONTENTs
Inside this issue...
NLA
fEATUREs
04 04 CHAIRMAN’S MESSAGE NLA Executive Chairman David Salusbury looks at the NLA’s approach to the localism agenda and key topics the Coalition Government now needs to address.
06 NLA CAMPAIGNS How you can help the NLA campaign against excessive cuts to housing benefit.
07 HOT OFF THE PRESS The media’s latest take on LHA cuts and the NLA’s call to crack down on rogue landlords.
26 NLA NEWS NLA hosts private-rented sector summit and UKALA joins forces with the NLA.
29 REGIONAL OVERVIEW The NLA’s London representatives set out the investment opportunities in their patch.
36 NLA MEMBER VIEWPOINT
REfERENCE
24 10 BUILD-TO-LET: A WAY TO BETTER PROFITS? A guide to selecting land for a successful build-to-let project, obtaining finance and the checks a landlord should make before investing.
14 DOUG SCOTT: THE TENANTS’ ADVOCATE The role of tenancy support in the PRS, and how landlords can work better with their tenants.
16 PRACTICAL APPROACHES TO PEST CONTROL NLA Director Richard Price responds to questions on responsibilities of landlords and tenants to prevent pests, and what to do if your property has a pest problem.
24 THE BUSINESS CASE FOR LETS WITH PETS A range of experts consider whether or not it is worth letting to tenants with pets.
38 PUBLIC AFFAIRS
18 FINANCE & TAX No tax breaks for institutional investment in the PRS. 19 FINDING TENANTS Challenging renewal fees and the latest case from the Property Ombudsman on holding deposits. 20 HMOS Stiff penalties for a portfolio landlord in breach of HMO rules. 20 LOCAL HOUSING ALLOWANCE Landlord challenges council’s failure to pay benefits directly, plus two reports on how housing benefits cuts could lead to housing hardship.
22 SUSTAINABILITY Solar panel buying group scheme promises returns for those who take part.
50 MORTGAGE MARKET ROUNDUP
42 NLA MEMBER BENEFITS
Analysis of trends and latest buy-to-let mortgage deals.
45 NLA PARTNER NEWS
60 LETTERS & EMAILS
18 BUYING & SELLING A RICS scheme to improve the quality of property valuation and the OFT’s plans to fine estate agents in breach of its money laundering policy.
22 SAFETY IN YOUR PROPERTY Niamh and Jeremy Downie successfully challenge Colchester on fire.
Diary of a policy manager, selective HMO licensing in Oxford, Scottish and Welsh reviews of their private-rented sectors, and latest developments relating to the NLA’s campaign against arbitrary cuts to LHA payments.
48 LANDLORD CLEANING SERVICES: SPICK & SPAN
18 LANDLORD PROPERTY MANAGEMENT
21 REGULATORY NEWS Find out which PRS-related quangos are to be axed.
Dave and Abi Knight’s approach to growing their property portfolio.
my|deposits nominated for dispute resolution award.
50
“In a way my job is a form of risk management. Vulnerable tenants are a risk but I work with them and their landlords to control the risk.”
52 HOUSE PRICES & LETTINGS MARKET Latest market statistics and surveys on house prices and lettings market.
Doug Scott, Tenancy Support Worker
UKLANDLORD NOVEMBER/DECEMBER 2010 03
message from the chairman
November/December 2010
Less legislation, more localism and caps on LHA ... the new PRS landscape Six months after the new government came into office, NLA Chairman David Salusbury looks at how the Coalition Government has performed from the perspective of landlords operating in the private-rented sector. The Coalition Government got off on the right foot as regards its relations with landlords, with our being able to welcome the statement by the new Housing Minister, Grant Shapps MP, that plans to launch a landlord register and an online ‘Trip Advisor’ style landlord feedback portal would be abandoned. Since then, the Minister has attempted to encourage greater certainty for landlords by outlining a more sensible approach to the management of shared homes. The previous administration’s introduction of a new Use Class for Houses in Multiple Occupation created confusion and inconvenience, and as a result, would not, we believe, have improved the supply of affordable accommodation. These rules have now been amended with the aim of still giving councils greater flexibility to manage high concentrations of shared housing in their areas, but without tying up landlords in unnecessary costs and red tape. We will keep an eye on the impact this and the new general consent to introduce licensing schemes have on the sector, and we are ready to challenge local authorities whom we consider to be misusing this flexibility or misinterpreting the spirit of the new rules. Above all, we welcome Grant Shapps’s statement that the Government has no plans for further regulation of the private-rented sector, believing that the balance at present is about right.
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Working at local level The Government’s localism agenda clearly points us towards working with local authorities. The NLA will seek to do this in a variety of ways:
strategy for raising standards and awareness of best practice in the private-rented sector. All they have to do is encourage landlords to join the scheme.
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We provide advice and assistance to any local authority that wishes it. This can range from, for example, contributing policy input towards their housing strategies, to supporting their work to drive out rogue landlords, to assisting them with pressing problems of homelessness. The NLA also works with Homeless Link, Crisis and Shelter.
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Around 120 local authorities have chosen to strengthen their links with the NLA by becoming Associate Members. These members can take advantage of selected benefits, including the Advice Line, Landlord Library, and UK Landlord.
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A key element of our country-wide strategy is to set up regular local meetings and events for landlords in cooperation with local authorities. Such is the success of this initiative to-date, we now have at least one meeting somewhere in the country every working day of the year. They are organised by our regional and local representatives, who work hard to forge ever-productive working relations with local authorities.
•
NLA Landlord Accreditation was launched in May this year, following successful pilot studies in different parts of the country. This is a UK-wide internet-based scheme enabling landlords to undergo professional development free via Landlord Library. Alternatively, for a small fee, they have the option of an attendance course. The scheme is available to local authorities – at no cost to them – if they wish to use it as part of their
We see our approach to working with local authorities as an appropriate response to the localism agenda. We envisage this will form an important feature of the private-rented sector landscape for the coming years and will support the NLA in establishing itself as the selfregulating body of the sector. LHA, Possession, HMOs: problems ahead? Although the new Government has allayed many of our concerns, we consider there is an urgent need for attention on the specific topics of Local Housing Allowance and direct payments, as well as HMOs and possession.
At the top of the list is Local Housing Allowance. In its recent Spending Review, the Government recognised the real cost involved in providing homes to rent. However, it is clear that the social housing sector will not be able to meet current demand by itself. The Government must now put in place a strategy to incentivise the growth of the private-rented sector and support professional landlords in providing much needed homes to rent. Despite the Government’s recognition of the true cost of providing homes to rent, its planned cuts to Local Housing Allowance (LHA) could well result in heavy additional financial burdens on the private-rented sector, at precisely the time that demand for affordable housing to rent will be increasing. We are pressing the Government to rethink cutting LHA rates to the 30th percentile of market rates in one go and introduce transition arrangements until the new Universal Credit (which will combine income-related benefits and tax credits) is finalised and implemented. We believe that, at the very least, interim
arrangements for LHA should be rolled in to the Universal Credit last of all. In addition, increasing the age limit for the shared room rate from people aged 25 to 35 will place a greater local demand on shared housing. It will be important for local authorities to work closely with the sector to understand how best to meet this demand. Direct HB payments. We will continue with our campaign to persuade the government to restore the option for Housing Benefit to be paid directly to landlords. Possession. Finally, there is the recurring question of possession. We are finding that our members continue to be put to unnecessary costs, loss of rent and inconvenience through the application of the current court processes connected to Sections 8 and 21 of the Housing Act 1988. We continue to make representations to call for an improved, and overhauled, approach to making these processes more efficient.
We will continue to press for change on behalf of landlords on these issues and we are keen to work with central and local government in developing policies to ensure the private rented sector can provide quality affordable accommodation. To end on a positive note, I’d like to mention an exciting development for the NLA in the form of the announcement by UKALA, the UK Association of Letting Agents, which represents more than 500 letting agents, who have decided to establish close links with the NLA. This represents an excellent opportunity to create a more unified voice for landlords, tenants and letting agents across the private-rented sector. Landlords and agents represent two sides of the same coin and this mutually beneficial business agreement will benefit both as we strive for higher standards of practice.
For more information, please contact the National Landlords Association on 020 7840 8900 or visit: www.landlords.org.uk
UKLANDLORD NOVEMBER/DECEMBER 2010 05
NLA CAmpAIGNs
Find out here about the NLA’s latest campaigns to encourage the Government to achieve a healthy private-rented sector. Help us to help you We all recognise that the current economic climate requires everyone to tighten their belts and it would be naïve to think that housing benefit could escape unscathed. However, the Government seems to have come to the conclusion that landlords possess an infinite capacity to cut rents and absorb losses. Obviously this is not the case, a fact which the NLA spends a great deal of time conveying to policy makers in Westminster and Whitehall. MPs tend to receive far more correspondence from tenants in their constituencies than from their respective landlords. Many seem to forget that not only are landlords providers of essential housing, and businesses in their own right, they are also voting constituents with just as much right to representation as their tenants. Which is where you – the NLA members – come in. The NLA can make representations, and engage with Government, but individual constituency MPs have an obligation to work on behalf of their constituents and to discuss matters of importance with them. Defending your lettings business is just such an issue. Cuts to LHA We believe that the majority of MPs do not understand the impact that the planned LHA cuts will have on the private-rented sector and need your help to make them understand. What can you do? This is up to you, and will depend on how much time you have to spare. MPs have an obligation to make themselves available to meet with their constituents. However you may prefer simply to write to them explaining your concerns. If you have the time, and would like to, go along to their local surgery, or ask for a private appointment to discuss the LHA cuts. How? Firstly, if you don’t already know, find out who is your MP. You can do this by calling the House of Commons on 020 7219 4272.
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Alternatively, if you are online the ‘My Society’ project provides a really useful website (www.theyworkforyou.com ) which will not only locate the correct MP, but also allow you to email them directly through the site. What should I say? The Government has estimated that the average cut per household will be £12p/wk, yet the majority of LHA landlords tell us that they cannot afford to cut their rents anywhere near this amount. MPs need to understand the additional risks (rent arrears, property damage, etc) that can be involved in renting to LHA tenants. MPs may argue that the total LHA bill needs to be brought under control: • You can argue that the current costs simply reflect the cost of housing at the moment, and that by pushing people to the cheapest housing the Government is not recognising what quality or professional service costs; and • Total Government cost of administration of housing benefit is £1bn; efficiencies here could be used to mitigate the cuts. Above all, remember that MPs receive lots of information, but you explaining the impact of these cuts on your business and your tenants will be more real than statistics in any briefing. You can mention anecdotes about your tenants and personalise it so they are reminded that you are talking about the impact on real people with real lives. If your MP wants to discuss the issue in greater depth or detail then encourage them to contact us directly, on 0207 840 8919 or email Vincenzo.rampulla@landlords.org.uk For more information on LHA and the forthcoming changes see the campaigning section of www.landlords.org.uk
Hope for direct LHA payments? Housing Minister Grant Shapps recently voiced his belief that direct payment of Local Housing Allowance to landlords should be reinstated. At an event organised by the NLA at the Conservative Party Conference in Birmingham, Grant Shapps MP reiterated that further regulation from Whitehall was not the best way forward for the private-rented sector and that local authorities should use the powers they already have to tackle rogue landlords. The Housing Minister warned an audience of 200 landlords, MPs, councillors and housing representatives that the Coalition Government’s spending review will affect everyone in society and landlords should be prepared for some cuts. However, in response to questions from the floor, he confirmed his position that LHA payments should be paid directly to landlords.
Hot off the Press!! Dane Svenson NLA Press Officer It has been a busy time in the NLA Press Office with cuts to local housing allowance attracting a lot of media attention, while the NLA joined a campaign to crack down on rogue landlords. Our Advice Line also participated in our first online web chat.
Local Housing Allowance cuts One of the hottest issues for landlords at the moment is the cuts to Local Housing Allowance. An NLA survey found 90 per cent of private landlords would be less likely to take on a tenant receiving benefi ts if the cuts go ahead. The Guardian.co.uk reported the Guardian.co.uk Guardian.co.uk reported the NLA’s concerns that it could increase homelessness, and the British Property Federation warned it could be a recipe for destitution. While we agree cuts need to be made to balance the budget, they shouldn’t have been so extensive.
Rogue landlords Since our last issue the housing and homelessness charity Shelter launched a campaign against rogue landlords – something we at the NLA also feel very passionate about. Rogue landlords give the entire sector a bad name, but it’s only a “small but dangerous” group of them who are responsible. And in some cases, particularly internet scams, it’s not even landlords who are responsible. The Daily Mirror Mirror agreed, by saying many would-be tenants are the victims of professional criminals who aren’t landlords at all, but prey on people with scams while they’re looking for a home on the internet. The NLA has called on councils to take a zero tolerance approach to landlords who wilfully break the law and to prosecute them.
Our live Q & A on www.thetimes.co.uk In a fi rst for the NLA, our Advice Line guru John Coyne joined a live web chat Question and Answer session on The Times newspaper website. He was a guest of the Money Surgery web chat session on www.thetimes.co.uk which is held each Thursday afternoon at 1:00pm. John answered a range of questions from what to do about noisy tenants to how to approach tenants suspected of illegal activity in a property. The Times said it was one of the best Q & A sessions they’ve ever had and John’s responses were outstanding.
Want to know more...?
Housing Minister Grant Shapps at the NLA’s Conservative Party event in Birmingham
• 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 NOVEMBER/DECEMBER 2010 07
NLA CAmpAIGNs
Councils must prosecute rogue landlords Following a recent investigation by the housing charity, Shelter, exposing a “small but dangerous” group of rogue landlords, the NLA is urging local authorities to prosecute landlords who wilfully ignore laws aimed at protecting tenants. Shelter’s report found that the approach of rogue landlords is damaging often vulnerable tenants, with consequences for the wider neighbourhood from rundown properties blighting communities. NLA Executive Chairman David Salusbury said: “We roundly condemn the worst excesses in the private-rented sector where a small minority of landlords choose to exploit their tenants by offering sub-standard property which can endanger lives. This is unacceptable and local authorities must act.” The NLA supports Shelter’s view that most private landlords are responsible and honest in how they deal with their tenants and look after the properties. Where landlords wilfully ignore the rules and regulations in place to protect tenants, they should expect severe penalties. “Local authorities simply must do better by adopting a ‘zero tolerance’ approach to those landlords who wilfully
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break the law,” said David Salusbury. “If this rogue element within the sector goes unchallenged, then reputable landlords are tarnished and the image of the private-rented sector is damaged.” To see more about the external affairs activities of the NLA, go to the Public Affairs section on page 38.
UKLANDLORD NOVEMBER/DECEMBER 2010 09
cover feature – build-to-let
Build-to-let: a way to greater profits? How to get financing for build-to-lets, finding the right land to build on, and practical advice from successful new-builder, Hasmita Reardon, NLA Property Woman South East 2010. While new builds are generally associated in the public mind with large-scale developments undertaken by PLCs and large privately-owned companies, many smaller scale property investors have built new properties to let out to tenants, raising the value of their portfolio and maximising rental returns. The credit crunch and financial crisis that followed it have taken their toll on development land values. According to Savills Research consultancy, although greenfield and urban land values rose by 17 and 14 per cent respectively between June 2009 and June 2010, “this must be judged in the context of the 55 per cent falls in values over the preceding 18 months.” The main reasons for the dramatic falls in land values, which have been far greater than those associated with built residential property, is that until recently “development finance became not so much scarce as virtually impossible to secure.” This situation has changed in recent months, as
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confidence in building on relatively low-risk sites increases, which the analysts anticipate could mean that demand will be for small sites and serviced plots for houses, rather than flats, in highdemand, low-supply markets. Financing a build-to-let project If you have sufficient cash to undertake a new build project without financing this will put you in a good position to pick up bargains once you have identified the right opportunity. For those who need finance, in the present climate, previous experience is a must. Paul Rockett of NLA Mortgages advises that: “Development Finance would be required, and this is currently very difficult to obtain. The client must have experience of at least 3 projects previously built. Once properties are finished the financing would need to be switched to a Buy-to-Let Mortgage. There are a limited number of buy-to-let lenders who would consider replacing development finance and often the properties would need to
have been completed for a minimum of 6 months before they would consider.” Generally, the Development Finance would cover the cost of buying the plot of land and the cost of the build. It is usually released in stages as the work progresses. Paul says the level of information and expertise required by lenders is far greater than that on a simple buy-to-let purchase, and lenders require evidence that full planning permission has been obtained, along with a breakdown of build costs and timing. Full Accounts, Asset and Liability documentation would also be a must. “You should really only consider build-to-let at present if you are already experienced in the field,” he advises. Finding the right plot Assuming that financing your investment is feasible, the next step is to consider what kind of plot to buy or, if you already have land with development potential, what type of land you should consider building on.
Since you are building with a view to renting at a profit, you will need (much in the way you would when buying a built property to let), to have a good knowledge of the market in the area you intend to invest in and the rent you will be able to achieve once your project is complete, as well as a firm idea of the total development costs. Other sources of information about possible plots include local newspapers, estate agents, auction houses and private sales through your
network of contacts. Websites such as www. BuildStore.co.uk have a plot finder service which, for an annual fee, will help you identify suitable plots. Once you have found a plot, research the history of the land, consult an architect and talk to local councils and neighbours. Architect Simon Miller recommends checking out the history of large extensions and new-builds in the area. “Nowadays you can do this via the local council planning website,” he says.
“Often finding a good precedent in the last, say 5 years, can help reinforce your rationale in relation to what you are proposing.” Buyers would also be well-advised to check if the plot is in a conservation area, and if so what restrictions with regard to the conservation area guidelines may be in place, looking for example to see if there are trees that have preservation orders placed on them, which could restrict the extent of the build.
Successful build-to-lets in the South East Winner of this year’s NLA South East Property Woman 2010, Hasmita Reardon talks about her experience of build-to-let. “We have tried to build on land belonging to one of our properties when possible. On two occasions we have had large plots of land on the side of the properties, or purchased 3 properties in a line and obtained planning by taking up some of the gardens. On one plot we knocked down four garages and built two 2-bedroom semi-detached houses. Last year we decided to get planning and converted two Victorian properties into flats. This worked well as we increased our portfolio for less than purchasing the properties, so out of two properties we gained four, and at the same doubled our income without having the need to re-mortgage. Eco-friendly new builds We have also purchased a bungalow which is a very small one but on a large plot; the idea is either to convert it or knock down the bungalow to build a brand new 4-bedroom eco-friendly property. The reason we purchased a bungalow was its potential: it is in a fantastic location overlooking fields, and there are other developments of large properties in the area. We are still in the process of planning however we are confident that we will obtain planning as a residential property is already on the land. Even in a worst case scenario we would just extend the property and then sell it on. Eco-friendly properties are much more expensive to build but have their advantages when selling as they are unique. Buying plots of land with planning permission In the past we have purchased land already with planning and then applied for further properties on the land as this is a safe bet. It’s always dangerous to buy land unless you are very experienced. The pitfall is you could get stuck with it for years, or until the council is happy to allow a development. When purchasing land always obtain advice from the local council. This may cost a fee but is very worthwhile. Also always remember to see if it is a brown field site as this is a good sign that you may get planning. Green field sites would not usually obtain planning permission. Also check to see if any planning has been refused
Hasmita Reardon, NLA South East Property Woman 2010
before and why, as you may waste your money on buying land where someone has already tried to get planning and failed. You can check this by going online at www.ukplanning.co.uk. We have never purchased land unless it has planning or is adjoining a property that has had planning permission. Professional advice We also talk to our architect in the first instance as he is knowledgeable in what the council expects and if the planning is likely to fail and why. If you do your homework then there should not be a problem apart from objections from neighbours and parish councils as we have had in the past. If there are three objections, planning has to be referred to a committee which can be stressful. However, if you have followed the council’s rules and recommendations then there is no reason why it should fail, even on an appeal. Rental returns Renting out new build properties is always good if you have built to a high standard as the maintenance is much lower. You can also charge a higher rent for property that is brand new and fresh. We always work on the theory that if we purchase a property at a good price and planning is not granted for whatever reason, then at least we can continue to rent or sell and not take big risks with our money.”
UKLANDLORD NOVEMBER/DECEMBER 2010 11
COvER fEATURE – BUILD-TO-LET
Remember digital! When planning a build-to-let, remember to get all the wiring in place so broadband and cable or satellite television are wired in before the final decoration stage takes place. This ensures each flat has facilities most tenants will expect from a new-build and that you don’t ruin the look of the property by having to accept ugly surface wiring after the builders have left. “However much thought has gone into designing a building, prospective tenants are much more likely to sign-up to a property that is digitally ready,” says Pascal Wharton, Head of Sky Communal Solutions. “I would advise anyone contemplating a build-to-let to seek professional advice early on at the planning stage. The most suitable systems can then be identified and incorporated along with other services such as electrical wiring,
thereby minimising disruption and maximising the aesthetics of the build.” Sky offers developers an Integrated Reception System (IRS), a ‘platform neutral’ solution, distributing signals cost-effectively to lots of homes from a single multi-purpose reception unit and offering a variety of digital options. A discreet faceplate is fitted in each flat, so that residents can get access to any of their chosen services including a range of Sky packages, Freesat and Freeview. For more information contact Sky Communal Systems on 08442 410 331 or visit http://communaltv.sky.com.
New building regulations According to Gina Graydon of EnviroVent, the latest revisions to the Building Regulations will have a huge impact on anyone planning to build a new property. “New developments will have to achieve a higher level of energy efficiency in line with The Code for Sustainable Homes target emission rate,” she advises. “Ventilation is a necessary requirement of building a new property and as we continue to ‘seal up’ our homes, we increase the need to provide good ventilation in order to avoid compromising on air quality and avoid condensation and mould problems.” From October anyone embarking on a new development project will have to ensure that their chosen method of ventilation is energy efficient and has been installed correctly. A check list will have to be completed for each new dwelling and passed over to the building control body. Getting your head around the Building Regulations, choosing the right product along with finding a competent installer can be difficult and frustrating. Providing innovative solutions and expert advice to take the stress out of the new building requirements, EnviroVent employs its own nationwide team of accredited installers. For further information contact the NLA’s recognised supplier, EnviroVent, on 0845 2727 807.
Renting out new build properties is always good if you have built to a high standard as the maintenance is much lower. You can also charge a higher rent for property that is brand new and fresh. Hasmita Reardon, NLA South East Property Woman 2010
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UKLANDLORD NOVEMBER/DECEMBER 2010 13
fEATURE – EXpERT OpINIONs
The tenants’ advocate The role of tenancy support in the PRS
Doug Scott, Tenancy Support Officer
Most landlords are genuinely surprised when their tenants fall into rent arrears. Tenancy support worker Doug Scott isn’t. Doug, a former petrochemical contract negotiator, tells UK Landlord readers why it happens and how landlords can work better with their tenants
UK Landlord: What does being a tenancy support worker involve?
UKL: What are the dilemmas of your job?
Doug Scott: I deal with client’s housing issues, give debt advice and help with all their welfare benefits, especially housing benefit (HB) problems. The nature of my work is broad – it covers helping homeless clients find accommodation or avoid losing their tenancies and sorting out their financial problems. In a normal day, I will be dealing with landlords, the Council’s housing department, the HB office, various benefit agencies, and a wide range of other specialist services, always with the ultimate goal of preventing homelessness.
DS: I am conscious that by being effective in my job for my clients, it could mean they don’t try to improve their lot themselves. For that reason, I work in partnership with my clients, and encourage them to do as much as they can for themselves.
I need to know about the ins and outs of housing benefits and personal benefit rules, as well as the operation of statutory loan or grantmaking bodies, such as Warmfront. I have, for example, made several successful applications to the Southern Water Trust fund to write off all or part of the water arrears of clients who have got into financial difficulties. I am based out of a law centre on the Isle of Wight and I have a caseload of between 15-20 tenants. Most issues get resolved within a few months, although they can take anything up to a few years. I usually visit tenants in their homes or they come to see me at the law centre.
UKL: What is the main reason for tenants coming to you? DS: The key problem for most tenants is that they are poor communicators. That’s how the problems get out of hand. A number of my clients who are on benefits are made vulnerable by, say, mental or physical disabilities, or a range of other difficulties. They may find it difficult to complete forms, deal with correspondence, or assert themselves with officialdom. My job is to provide that effective communication by advocating on their behalf with landlords, benefit agencies, or anyone else necessary, to ensure that their vulnerability does not put them at risk of homelessness.
14 UKLANDLORD NOVEMBER/DECEMBER 2010
UKL: How do you work with landlords in the private-rented sector? DS: My aim is to build relationships of trust with reputable landlords in the area. I like to give these landlords the reassurance that I am not going to place a vulnerable tenant with them and then disappear. I’m quite happy to give some sort of undertaking that I am there to support the tenant until such time as they feel they can cope without my help. With the tenant’s consent, I am happy to deal directly with the landlord as necessary.
UKL: How can landlords get Local Housing Allowance paid directly to themselves? DS: There has been a recent sea change in Local Housing Allowance (LHA) rules, which now state that HB can only be paid to the landlord directly if it can be shown that the claimant, i.e. the tenant, is likely to have difficulty in managing their affairs, or it is improbable that they will pass on the HB to the landlord in the form of rent. This means, in my experience, that to get direct payments you have to make a persuasive case to the HB office based on the claimant’s vulnerability (with their consent, of course) to show that they come into this category. The active assistance of other agencies who may be involved with the tenant, like Social Services or a community psychiatric nurse, may help here.
UKL: What type of information do you need in a letter of consent?
My role is primarily one of acting for my client, the tenant, and as such it occasionally brings me into adversarial contact with the landlord. But this is the exception. Far more often, I find that my work with a tenant will also be of benefit to the landlord. Regular jobs like ensuring a correct HB claim is lodged at the start of the tenancy so that the rent is paid from day one, dealing with maintenance and repair issues, and promoting good neighbour relations, are all to the mutual benefit of tenant and landlord.
DS: This letter should be signed by the tenant and authorises the local authority to provide relevant information to the landlord about the tenant’s housing benefit or LHA application and entitlement. You need the tenant to fill in their date of birth, their National Insurance number, and their full name and address on the letter.
In a way my job is a form of risk management. Vulnerable tenants are a risk but I work with them and their landlords to control the risk. Many tenants find it difficult to rent because they don’t have personal records such as proof of identity or of income, and I can assist with this.
DS: We are moving to a non-literate society, with more and more people not reading. If your rent is not being paid, instead of relying on a letter to the tenant, I would recommend you telephone or pay a visit to the tenant to find out what is going on. A little bit of time and effort by the landlord usually pays off!
UKL: What do you recommend landlords do if there are rent arrears or other problems with their tenants?
“Tenancy support should not be considered a bar to working with landlords. If you have a problem with a tenant, try directing them to a law centre for tenancy support.”
UKLANDLORD NOVEMBER/DECEMBER 2010 15
Q
&A
STARTING UP
With Richard Price NLA Director of Operations
What to do about pests
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Most landlords have at some point or other faced the problem of mice, rats and other pests in their rental properties. In the first of a new in-depth question and answer series, Richard Price advises on the respective responsibilities of landlords and tenants to prevent pests, and what to do if your property has a pest problem. Q. What are the main pests landlords should be aware of? A. Richard Price: Pests commonly found in
this country include insects such as fleas, bed bugs, cockroaches, ants and wasps, as well as mice, rats, pigeons, foxes, and even squirrels. Mice and rats are probably the most common, although the NLA’s Advice Line has taken calls over the years about most of the above.
Q. What are the respective responsibilities of landlords and tenants in relation to pests? A. RP: As a landlord, you would be expected,
as far as possible, to keep your property free from pests and in a way that neither attracts them nor makes it easy for them to occupy the property. The Prevention of Damage by Pests Act 1949 is still in force and you could be served with a statutory notice to eradicate the pests if an infestation at your property is causing a problem for tenants or neighbours. If your property is infested and deemed to be in a ‘verminous condition’ you could also be obliged to take action to remove the risk under Public Health laws.
by leaving food lying around on surfaces or failing to dispose properly of waste. If the tenant who caused the problem has moved out, the landlord will usually be obliged to eradicate the pests before the next tenant moves in. If the problem only became apparent after new tenants moved in, but it was obvious that it wasn’t their fault, again, the landlord would be expected to sort it out. In addition to this, the Housing Act 2004 introduced the Housing Health and Safety Rating System (HHSRS) as a means of assessing potential hazards in accommodation. Of these, the Domestic Hygiene, Pests and Refuge hazard deals with: • Poor design, layout and construction meaning that a dwelling cannot be readily kept clean and hygienic • Access into, and harborage within the dwelling, for pests • Inadequate and unhygienic provision for storing and disposal of household waste. If inspectors consider there is sufficient evidence of a problem, they may ask the landlord to rectify it under this legislation.
Q. What steps can landlords take to prevent pests infesting their property? A. RP: Prevention is better than cure, as an
infestation can cost landlords dear in terms of callouts from pest control companies and lost rent if the property is uninhabitable for any period of time due to a serious infestation.
These notices could be served on the tenants if it is deemed to be their responsibility, being caused by their lifestyle or actions, for example
16 UKLANDLORD NOVEMBER/DECEMBER 2010
Practical steps landlords can take to avoid pests include: • Making sure the layout of the property makes it easy to keep clean, and prevent build up of dirt and dust that could enable organisms to multiply. • Areas intended for the personal washing sanitation or for food storage, preparation and cooking should be capable of being maintained in a hygienic condition.
• The outside of the property should be free of cracks and unprotected holes. Grilles should be used to protect breaches of the walls where these are necessary such as for ventilation. • Spaces under floors, roof spaces or service ducting should be effectively sealed off from the living area, although there should be access in case an infestation does occur. • There should be suitable provision for storing refuse, both inside and when awaiting collection or disposal outside the property.
Q. If an infestation occurs, what should landlords do? A. RP: Call the local council first, as they often have a pest control section and may deal with the problem for a little or no fee. Failing that, use a reputable company to sort it out. The British Pest Control Association (www.bpca.org.uk/; tel: 01332 294288 ) represents commercial pest control companies and includes a directory of members.
For more information, see the NLA Landlord Library, www.landlords.org.uk
UKLANDLORD NOVEMBER/DECEMBER 2010 17
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 RICS acts to ensure high surveying standards RICS, the Royal Institution of Chartered Surveyors, has launched a Valuer Registration Scheme to ensure that its members adhere to, and can be monitored on, practising the standards contained in the RICS Valuation Standards. The aims of the scheme are to improve the quality of valuation, to meet RICS’ requirement to self-regulate effectively and to protect and raise the status of the valuation profession. Any member registered on the scheme will be entitled to use the term ‘RICS Registered Valuer’ on their business stationery and marketing material.
Roll out of the scheme will happen in stages, with voluntary registration available for UK members first, after which it will then be available to members in the rest of the world. The valuer registration scheme is expected to become mandatory in mid-2011. The scheme will be open to any member who carries out valuations in line with RICS Valuation Standards (known as the Red Book), both in the residential and commercial sectors as well as rural property and specialist areas including business assets, plant and machinery, minerals and trade related property.
OFT warns estate agents on money laundering The Office of Fair Trading has published its interim policy on imposing financial penalties on estate agents who have failed to register under its money laundering registration scheme but continue to carry on a supervised activity. The Anti-Money Laundering Interim Penalties Policy makes clear that if estate agents (and certain credit lenders) do not register with the OFT, they will be subject to fines that start at £2,000 and increase by £1,000 for each additional unregistered
premises. In cases where the OFT believes estate agents and certain credit lenders are not registered and are nevertheless carrying on a supervised activity, it will give them 21 days to apply for registration or to explain why they are exempt from registration, before notifying them of the intention to apply a financial penalty. The OFT’s Interim Penalties Policy is available at www.oft.gov.uk/shared_oft/ money-laundering/OFT1271.pdf
Finance & Tax No tax breaks for institutional investment in the PRS The Treasury indicated in September that no tax breaks for institutional investment in the Private Rented Sector are planned. The position is in response to a consultation launched by the previous Government, ‘Investment in the Private Rented Sector’, intended to unlock new sources of capital for house building in the face of constrained bank lending and falling public spending. Despite calls from an alliance of industry bodies representing institutional investors, the Treasury ruled out giving financial support to increase the delivery of homes to rent, claiming that institutional investment would remain a ‘niche’ part of the sector. The NLA welcomes tax breaks for the PRS, but only if these are spread evenly across the sector, ensuring a level playing field for all landlords.
18 UKLANDLORD NOVEMBER/DECEMBER 2010
LANDLORD property management INFORMATION
Finding Tenants If a holding deposit is non-refundable, put it in writing The Property Ombudsman has found against a lettings agent who tried to keep a holding deposit after the prospective tenants requested its return, less than two days after handing it over. In this recent case, the prospective tenants paid the holding deposit after office hours. They stated that they had never received any documentation from the agent in relation to their application to rent the property. The agents stated that they informed the complainants (the
prospective tenants) that the holding deposit was non-refundable but did not say when they advised them of this. Thirty-six hours after the prospective tenants paid the holding deposit they informed the agents that they did not want to continue with their application as they were separating. From the information provided to the Ombudsman, it appeared that the first time the complainants were aware that the holding deposit was non-refundable was when they decided to withdraw from renting the property. The Property Ombudsman Code of Practice makes it clear that agents must put in writing any circumstances in which tenants or prospective tenants would have any potential financial liability to them or the landlord for fees or charges should they withdraw their application. In the view of the Ombudsman
this meant that the agent had an obligation to inform the complainants in writing at the time they took the holding deposit that this sum was not refundable; it was not sufficient for them to verbally advise the prospective tenants of this fact either before or as it appears in this case, after they wanted to withdraw. In the Ombudsman’s view the agents acted unfairly towards the complainants and therefore he supported this element of the complaint. He also supported the complaint that the agents acted unfairly towards the complainants when they refused to communicate with them after they requested the return of the holding deposit until the complainants threatened the agents with legal action. The Ombudsman therefore made an award of £600 which included the holding deposit.
Landlord’s successful case against renewal fees Landlord Patrick Smart has successfully challenged renewal fees requested by London lettings agent Kinleigh Folkard & Hayward in the small claims court. His claim was based on the OFT vs Foxtons judgement and he was awarded an amount equivalent to the total of renewal fees paid, plus costs. The background to the case may well be familiar to other landlords who have been asked to pay renewal fees on one or more occasion. Patrick says he engaged KFH to find a tenant on the basis that he would manage the tenancy himself. When a tenant was found he paid their fees. In the second year they negotiated a small increase in the rent and renewed the contract for one year and he paid them a renewal fee.
Before the start of the third year, Patrick and his tenants agreed not to renew the contract and instead to enter a periodic tenancy. “I informed KFH of this new arrangement and they responded by contacting me frequently; initially advising me against this and then insisting that it was a bad idea,” he told UK Landlord. “However, the arrangement suited both the tenant and myself and I was well aware that KFH were trying to justify another fee.” KFH continued to pursue Patrick for a renewal fee so he decided to take the case to the small claims court. Having studied the OFT vs Foxtons case, he argued that renewal fees were not prominent in KFH’s Terms & Conditions in the contract between him and KFH. Secondly, renewal
fees were neither flagged up nor mentioned in the sales process or their sales material. At the court hearing, the magistrate told Patrick he would have to demonstrate what ‘flagging up’ of renewal fees should be. “During the lunch break I ran to the nearest Foxtons and got hold of their latest marketing pack,” Patrick told UK Landlord. “As I had guessed, they have revised their T&Cs so that renewal fees are now not only the first item, they are in a bold font at least 30 per cent larger than the rest of the text. I was awarded all the renewal fees paid and costs.” If you have tested the OFT judgement by resisting renewal fees demanded by a lettings agent please write to us at editorial@uklandlord.org.uk.
UKLANDLORD NOVEMBER/DECEMBER 2010 19
LANDLORD pROpERTy mANAGEmENT INfORmATION
HMOs £14,000 bill for HMO breaches in Leeds A Leeds landlord has been fined £8,000 and ordered to pay £6,000 in costs after pleading guilty at Leeds Magistrates Court to thirteen separate charges including failing to take care of and overcrowding some of his properties. The landlord, James Warner, is landlord of more than 200 properties in Leeds, more than 40 of which are licensed Houses in Multiple Occupancy (HMOs). The charges related to five licensed properties in Headingley where, in nearly all cases, Mr Warner had failed to provide Leeds City Council with gas safety and electrical installation certificates within seven days. When the certificates were eventually provided, nearly all of them were
dated after the inspection was undertaken by the council. Properties were also overcrowded, Mr Warner allowing more people to live there than were allowed under the terms of his licence. Commenting on the case, Councillor Peter Gruen, Leeds City Council’s executive board member for housing, said: “These licenses exist for a very important reason – to protect tenants. The majority of landlords take their responsibilities seriously but when inspections reveal those who are failing to do so, we will take action against them.” In another recent case, another Leeds landlord, Charles William Langton, pleaded
guilty to operating a licensable HMO without a licence in relation to a property and was fined £2000. Costs of £1344.60 were awarded to the council in addition to a £15 victim surcharge.
Local Housing Allowance Landlords braced for cuts to housing benefits Proposed cuts to Local Housing Allowance (LHA) will leave many landlords with reduced rental income and could add to homelessness, according to a recent NLA member survey. The survey of LHA landlords found that as many as 90 per cent of private landlords could be less likely to take on a tenant receiving benefits if proposed cuts announced in the budget go ahead. Over one million tenants receive housing benefits and the Department for Work and Pensions estimates that the impact of the proposed cuts will be an average reduction of £12 per week. Yet almost half of respondents said they could not afford to accommodate these cuts and reduce their rent in order to keep an LHA tenant, and two-thirds of landlords surveyed were unsure about what the reforms will mean to the future of their lettings business. Rent arrears could worsen The government is proposing to cut the maximum LHA available from the 50th percentile to the lower 30th percentile of market rents. A cap would also be introduced, based on the number of bedrooms in a rental property and future LHA increases would be linked to the Consumer Price Index. The survey revealed that many landlords are unaware of the implications these cuts will have on their rental income, with many indicating they want more information on the proposed cuts. The NLA is calling on the government to re-assess the impact of the planned changes on the private-rented sector. As a first step, the NLA believes government should reconsider restoring the right of the benefit claimant to have their rent paid direct to their landlord instead of to the claimant. For NLA Chairman David Salusbury, this change “would at least give the landlord more certainty that rent will be paid and go some way towards cushioning the impact of the forthcoming cuts.”
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Report on affordable housing in an age of austerity A recent think-tank report assessing the costs and consequences of the Coalition Government’s cuts for the social housing sector argues that “the mixed funding (cross-subsidy) model that has underpinned housing association investment for more than 20 years is broken.” The Smith Institute’s report warns that “without new solutions for affordable housing there is a real risk that the government’s housing aspirations will meet with bitter and damaging disappointment.” The report was prepared by Andrew Heywood, former deputy head of policy at the Council of Mortgage Lenders. It outlines the unprecedented housing challenges England faces; namely, the lowest level of house building for 60 years; 1.8m people on housing waiting lists; average house prices at six times’ annual earnings; and mortgage funding constraints on first-time buyers who need deposits of 20-25 per cent. The planned cuts in Local Housing Allowance, along with cuts in the grants for affordable housing, are set to make the situation worse, according to the report. The report makes a number of recommendations for Government action to mitigate the housing crisis which include “ensuring that any reform programme for housing benefit provides for the continuation of some form of stable and reasonable Local Housing Allowance paid directly to landlords.”
LANDLORD property management INFORMATION Notts landlord wins housing benefit challenge The Local Government Ombudsman has found against a council which refused to pay rent to a landlord when it knew that the housing benefit tenant was in rent arrears. According to a report in The Nottingham Post, Gedling Borough Council was alerted by local landlord Mick Roberts that his tenant was in
arrears, and nevertheless continued to pay her housing benefit instead of paying Mr Roberts. The Council has now been ordered to pay the landlord the amount of benefit paid to the tenant while it knew the rent was in arrears. Even though Mr Roberts contacted the Council by telephone and fax to inform them about the
missing payments, the Council refused to pay him the rent directly. In frustration, he made a formal complaint to the Local Government Ombudsman.The report of the case is unpublished, which is common for the LGO. For more information about the LGO, see www.lgo.org.uk
Regulatory News Bonfire of the quangos A number of bodies relevant to landlords in the private-rented sector will be affected by the recent Government cull of some of its quasiautonomous non-governmental organisations (quangos) as part of the Coalition’s efficiency drive. Cabinet Office Minister Francis Maude has announced that 192 quangos will be axed, 118 merged and 171 substantially reformed, bringing the total number of these agencies from 901 to 648. At the time of writing, it is known that these bodies will include the Rent Assessment Panels and the Residential Property Tribunal Service, which will be abolished. Jurisdiction will be transferred into the Ministry of Justice’s tribunal service. The Tenant Services Authority
will also be abolished with its functions passed to the Homes and Communities Agency, as will the Valuation Tribunal Service whose functions are being transferred to the Ministry of Justice’s tribunal service. The Homes and Communities Agency will be retained but “substantially reformed” so that it becomes a smaller enabling and investment body working for local communities, and it will take on the regulation of social housing. Its powers are expected to be devolved in London to mayor Boris Johnson. The Commission for Architecture and the Built Environment is “under consideration”. HM Land Registry is set to be retained but substantially reformed, and the Government will consider opportunities for private sector involvement in its activities.
UKLANDLORD NOVEMBER/DECEMBER 2010 21
LANDLORD pROpERTy mANAGEmENT INfORmATION
Safety in your property NLA members successfully challenge Colchester on fire Niamh and Jeremy Downie are NLA members who started as landlords in 1996 when they bought and renovated a near derelict property. Following this success they have built up a portfolio of 8 properties let to staff and students of the University of Essex. In July 2008, LACORS, after working closely with the NLA, fire and local authorities, and others, published a set of national fire safety guidelines for domestic houses including Houses in Multiple Occupation. This was updated the following March with specific clarification concerning shared houses. Previously, authorities tended to take an individual and patchy approach. Following discussions between Colchester Borough Council, landlords and the University, the Council carried out HHSRS inspections of all the student properties included in the University accreditation scheme. The inspection reports were fed back to the landlords with various recommendations. However, many landlords objected to the Council requiring work to be done that was not required by LACORS guidance. The key issue concerned the fact that consideration of an internal escape route is unnecessary, in small shared houses, when there are
adequately sized and positioned windows for use in an emergency as a means of escape. Confirmation of LACORS guidance They raised the issue via their local landlord group. The Council dismissed these objections despite detailed correspondence in this regard. Although many landlords just complied for the sake of an easy life, Niamh and Jeremy contacted the NLA’s Advice Line who passed them over to Dave Offord who supported them through this process by visiting the properties with the Council and the Downies and giving advice where he could on technical and legal issues. Eventually, the Downies were the only ones who defied the Council and took the risk of receiving a Housing Act notice and appealing to a Residential Property Tribunal (RPT). In July this year, 16 months after the saga began, the case was considered and the RPT found in their favour. The RPT supported LACORS guidelines giving landlords an even playing field across the country and vindicating the NLA’s confidence in backing these guidelines. While this is good news, unfortunately the Downies have over the last two years had to cope with
Niamh and Jeremy Downie, NLA Members
the anxiety and expense of the inspections, negotiations, Notices of Intended Entry, threats of enormous fines and finally forcing the issue through to the RPT. The RPT did not request the Council to compensate the Downies for bringing the case. The Downies are now considering making a formal complaint about Colchester Borough Council to the Local Government Ombudsman. Dave Offord of the NLA says: “I hope that if local authorities heed the words of Housing Minister Grant Shapps and use their formidable powers to target rogue landlords, rather than reputable landlords like Niamh and Jeremy, then others will not suffer the same fate.”
Sustainability Generating your own energy An interesting solar panel group buying scheme is taking off in London, the South and South East of England. GenYO is a company which puts together local groups of property owners with the aim of purchasing and installing state-of-the-art solar panels at cheaper cost. “By leveraging the group buying power we negotiate discounts from installers on behalf of group members,” Heather Daniell of GenYO told UK Landlord. The company also makes sure that the panels are installed by highly professional and experienced installers. Members of these buying groups can take advantage of the attractive government Microgeneration Feed-in Tariff scheme (also known as Clean Energy Cashback) which can provide returns of 120 per cent or the equivalent of £26,000 on a standard system, provided this is not affected by the Spending Review. According to the Department of Energy and Climate Change, solar panels cost between £5,000-£8,000 per kW. The standard cost for a 2 kW system (average system size) is £12,000. Through its buying groups, GenYo aims to lower prices by up to 30 per cent. The feed-in tariff is guaranteed for
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25 years and is inflation adjusted. The return on a 2kW system over the lifetime of the tariff (e.g. 25 years) would be 120% with GenYO prices it increases up to 215% over the 25 year lifetime of the tariff. For more information, see www.genyo.co.uk
UKLANDLORD NOVEMBER/DECEMBER 2010 23
Feature – FINDING TENANTS
The business case for lets with pets Latest research suggests that 47 per cent of households in the UK own a pet, so any landlord wanting to appeal to the largest possible group of potential tenants will want to consider whether letting to pet owners makes good business sense for them. As with any business choice, landlords need to weigh up the pros and cons of taking on a household that includes domestic pets. Mark Garner of online letting portal LettingZone remarks: “Simply stating ‘no pets’ when looking for a new tenant can be a big barrier to entry and can severely restrict your potential tenant demand.” That said, pets can increase the likelihood of damage being done to the property. And noisy dogs could make you as a landlord unpopular with neighbours, especially if the tenancy is in a flat where noise insulation is not of high standard. “Removal of pet hair is essential before re-letting a property to new tenants,” says Sandy Unwin of Spick & Span cleaning.”This is particularly
24 UKLANDLORD NOVEMBER/DECEMBER 2010
important as your next tenants may be allergic to a particular animal.” Mark recommends first of all gauging whether your property is suitable for pets. “For example, a sixth floor flat may not be really suitable for a tenant with a dog, whereas a garden flat may be more suitable,” he says. “Normally I ask for £200 per pet extra deposit and ask that all carpets are steam cleaned at the end of tenancy. In my experience over the last 15 years I find pet owners tend to stay longer and so make good tenants.” Advantages of lets with domestic pets Dogs Trust, the UK’s largest dog welfare charity, and a strong advocate for lets with pets, endorses Mark Garner’s business approach towards keeping an open mind to the merits of lets with pets.
According to the Trust, a ‘No Pets’ policy drastically limits landlords’ rental market which it considers “makes no business sense.” In spite of this, a survey carried out by Dogs Trust revealed that 78 per cent of pet owners looking for privately rented accommodation had experienced difficulties finding a landlord who would accept their pets. And 54 per cent of pet owners were unable to find any suitable rented accommodation. Clare Kivlehan, Lets with Pets Campaign Manager, believes this demonstrates that “pet owners are a largely untapped market, which landlords cannot afford to overlook in the current unstable property market.” This argument becomes even more persuasive when you consider that pet owners who find a suitable property tend to stay longer as they
know how hard it is to find a pet-friendly landlord. They are also often willing to pay a higher deposit to cover any damage their pets may cause. Many will also accept a clause in the tenancy agreement that requires them to pay for the property to be professionally cleaned when they move out. Pet clauses The Office of Fair Trading considers a blanket ban on keeping pets in a property to be unfair under the Unfair Terms in Consumer Contracts Regulations 1999. The OFT suggests that a fair clause in a tenancy agreement would require the tenant to get the landlord’s consent before they bring pets into the property but the landlord should not unreasonably withhold their consent.
Request a ‘pet CV’ giving proof of flea treatments, behaviour assessments and references from previous landlords. Dogs Trust
Accepting Pets – the next steps If you have decided to accept or consider accepting tenants with pets in your property, here are a few simple steps to ensure that the tenancy runs as smoothly as possible. • Speak to any prospective tenants about their pet before you decide whether to accept it. Every pet is different and you should make your decision on a case-by-case basis. • Ask prospective tenants to supply you with a written reference for their pet from a previous landlord or veterinarian whenever possible. This will help you to ensure that the tenant is a responsible pet owner and the pet is well behaved. • If you own a leasehold property you should check that your lease allows pets in the property. You should also check your landlord insurance provisions.
• Once you have given permission for a tenant to keep a pet in your property, you should include a pet policy clause in your tenancy agreement that refers specifically to the keeping of pets. • If you are concerned about pets causing damage to the property or furnishings, you can ask for a higher deposit or a specific pet payment. Spick & Span says this non refundable payment is the most secure way to protect your property from damage by pets. It is used to cover the cost of professionally cleaning the property, including the carpets, soft furnishings and curtains, and ensures your property will be returned to you in the same condition as you let it. Visit www.letswithpets.org.uk for a comprehensive pet check list to help you assess if the pet and its owner are likely to leave your property in good condition at the end of tenancy.
Dog pictures kindly supplied by The Dog’s Trust
UKLANDLORD NOVEMBER/DECEMBER 2010 25
NLA NEWS
For the latest news visit: www.landlords.org.uk
NLA hosts PRS summit The NLA has hosted a Private Rented Sector Summit in London, bringing together 35 delegates representing landlords from across the UK, to discuss issues affecting the sector, with direct payment of Local Housing Allowance to landlords and greater local authority engagement arising as key topics of concern. The summit provided an opportunity for landlords to discuss challenges facing the private-rented sector and how organisations can better work together. Delegates came from a range of organisations including the
Residential Landlords Association, the Eastern Landlords Association and the Portsmouth and District Private Landlords Association. Commenting on the Summit, Barry Markham, NLA Director for Regions, said: “It was great to see representatives from multiple landlord associations get together to discuss issues affecting the sector. The summit was an excellent opportunity to hear from landlords across the country about issues affecting them and where they see the sector heading. Hopefully it will be the first of many.”
Barry Markham. NLA Director for Regions
UK Association of Letting Agents joins NLA
John Peartree. Chief Executive, UKALA
Members of UKALA, the UK Association of Letting Agents, which represents more than 500 letting agents, voted at their Annual General Meeting in October to establish professional links with the NLA. John Peartree, Chief Executive, UKALA, said: “We are delighted to join the UK’s largest landlord organisation and look forward to working with the NLA for a better private-rented sector.” UKALA members will now have access to a range of NLA services such as rent
guarantee insurance and tenant checks, and the NLA will assume responsibility for management of UKALA and provide advice and information to its member agents. The UKALA brand will remain and its board will be made up of an equal number of directors nominated by UKALA and the NLA. For more, see the Message from the Chairman on page 04.
Click on to the NLA’s new website Look out for the NLA’s new website. Its modern design and logical layout aim to help the ever-growing numbers of members to find information fast to support their business needs. Can we use your photos or videos? To ensure the website reflects the practical nature of being a landlord, the NLA is calling on its members to send in photos or videos which convey the nature of their business. If you are happy for these to be viewed by potentially millions of people, please email them to web@landlords.org.uk
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New NLA Website launches November 2010. See Focus e-newsletter for updates.
NATIONAL CONfERENCE 2010
NLA National Conference 2010 Landlords: We’re in Business Saturday 27 November 2010, Park Plaza Victoria, London (next to Victoria railway station) 10.45am start (follows the NLA Annual General Meeting). 5.00pm close. 5.00pm-6.00pm Conference Reception.
Landlords report increased confidence. No more red tape says Government. But what will the prospect of cuts and slow economic growth mean for landlords and tenants? Listen to and question industry experts. Join the debate about the threats and opportunities facing landlords in the current economic climate.
Conference highlights Keynote speakers and business panel Keynote speakers will discuss the market and analyse trends. You can make your opinion heard in our business panel debate. Topics to be debated include: • Opportunities and threats for the business of letting • How to maximise rental income
• Business models for successful renting • Avoiding the pitfalls
Exhibition and networking breaks Breakout sessions Discuss the practical side of letting with experts and other landlords during our interactive sessions. Delegates can pick and mix areas of interest: • Do your tenants need training? • Tax planning for landlords • Getting to grips with the planning system
• Leasehold versus Freehold • Practical Possession Proceedings • Making private renting the tenure of choice
Conference Reception Reflect on the issues of the day over drinks and make new contacts at the Conference Reception.
Delegate Rate Day Delegate Rate including Conference Reception
NLA member rate
Non-member rate
£95 inc VAT
£120 inc VAT
Please note these rates do not include accommodation.
Places are limited. Reserve your place today by calling 020 7840 8920 or emailing bookings@landlords.org.uk Full programme and booking details are available at: www.landlords.org.uk/conference
UKLANDLORD NOVEMBER/DECEMBER 2010 27
NLA LANDLORD DEvELOpmENT
For the latest news visit: www.landlords.org.uk
Portable Appliance Testing for Landlords This course is designed for landlords wishing to carry out safety checks on the electrical appliances they provide for their tenants. Testing equipment will be available for delegates to gain practical experience and the trainer can explain all that is necessary in the domestic situation.
Price: £150 (including VAT) for members and £175 (including VAT) for non-members. To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
New Courses To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
Possession One-day course on Possession, with practical workshops on filling in the forms and notices: Price: Members: £85 (inc VAT) Non-members: £110 (inc VAT) 2011 DATES
LOCATION
2010/11 DATES
LOCATION
Tues 22nd March
Manchester
Wednesday 17th November
Leeds
Tues 29th March
Brighton
Tuesday 7th December
Glasgow
Tues 12th April
London
Tuesday 7th December
London
Wed 18th May
Birmingham
Monday 31st January
London
Monday 7th February
Birmingham
Tuesday 15th March
London
Tuesday 22nd March
Manchester
Monday 28th March
Cardiff
Tuesday 5th April
London
Tuesday 19 April
Bristol
ALL TIMES: 9.00am for 9.30am start; 5.00pm finish
Landlord Foundation Courses The NLA runs one-day courses designed to help both new and experienced landlords to develop their professional skills. The course focuses on the main issues facing landlords, including: • finding tenants • setting up • managing and ending a tenancy • keeping records • repairing obligations The programme offers an excellent opportunity to network with other landlords and discuss face-to-face ideas, problems and possible solutions.
Price: Members £85 (including VAT), non-members £110 (including VAT) To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
2011 DATES
LOCATION
Wednesday 16th February
Manchester
Wednesday 23rd February
London
Wednesday 9th March
Brighton
Tuesday 10th May
Exeter
ALL TIMES: 9.00am for 9.30am start; 4.30pm finish
28 UKLANDLORD NOVEMBER/DECEMBER 2010
ALL TIMES: 9.00am start; 5.00pm finish
Local Housing Allowance & Deposits, Damages & Disputes Half-day course on Deposits, Damages and Disputes, incorporating Inventories and how to deal with disagreements: Price: Members: £40 (inc VAT) Non-members: £55 (inc VAT) Half-day course on Local Housing Allowance, what to be wary of and how the system can work for you: Price: Members: £40 (inc VAT) Non-members: £55 (inc VAT)
2011 DATES
LOCATION
Wed 30th March
Manchester
Wed 6th April
Brighton
Tues 12th April
London
Wed 18th May
Birmingham
ALL TIMES: 8.30am for 9.00am start - 12.30pm finish
All in a day’s work The 2 half-day courses on LHA and Deposits, Damages & Disputes can be followed on the same day.
REGIONALVIEW REGULAR LOCAL BUSINESS AND INVESTMENT NEWS
REGIONS
ISSUE THREE NOV/DEC 10
NEWS >>
Welcome BARRY MARKHAM Director for the Regions
With the significant changes to the levels of Local Housing Allowance payments, the NLA is stepping up its efforts to organise even more local and branch meetings so that landlords can come together to discuss and share information on how these changes will impact their business as landlords. If you can give your feedback at these meetings to the NLA local representative this will better equip us to represent the interests of the private-rented sector when we talk with central government and local authorities on this issue. We have recently recruited over a dozen new NLA local representatives so that we can be sure of our effectiveness throughout the country. These landlords work with our professional policy team to improve the local operating environment for landlords. In this issue, I want to introduce you to our dynamic London team. As you’ll see on pages 32-33, these landlords really have their fingers on the pulse for investment opportunities and risks in the current London market.
Preventative home safety tips from the South West A partnership approach by local experts from the private-rented sector could increase safety in private-rented accommodation. The NLA is a member of the South West Home and Leisure Safety Council, and Lesley Dove, the NLA’s local representative in Wessex, has recently been appointed its Deputy Chair. The Council is a regional alliance of experts in preventing accidents (including trading standards officers, health service representatives and fire officers) which meets regularly to share best practice. Many of the issues touch on the private-rented sector. Fire safety “There are simple ways of achieving peace of mind that you are doing the right thing to ensure safety in your rental property,” advises Lesley. Many Fire Services will visit tenanted properties to do a fire safety check if a tenant (rather than the landlord) requests the visit. This may result in free carbon monoxide alarms and/or smoke alarms being fitted. It should certainly result in the development of a safe escape plan. Lesley is advised by Fire Service representatives that landlords who fit fire alarms (without electrical back up) could be responsible for a fire if they do not maintain the alarm, for example, by testing and servicing
it regularly. “Ensure that your tenants are fully aware of how to maintain the smoke alarms, preferably by having them sign a declaration to that effect, or encourage them to fit their own, or contact the Fire Service to do so,” she recommends. “It is worth considering fitting a mains-operated fire alarm for older properties. It is best practice to have fire blankets in kitchens. Above all, make sure you review and assess the safety risks for each of your rental properties.” NLA members can download for free the NLA’s Fire Safety Log Book which is useful for these purposes. Stair gates Stair gates that are of poor quality or illfitted can result in injury to children. They are also not suitable for children over 24 months, which creates difficulties if there are a number of small children of different ages. For these reasons, Lesley recommends it is not advisable for landlords to provide or fit stair gates in rented accommodation. “You can of course allow a tenant to use one, but it is a piece of furniture for which you can accept no responsibility for how it is used or injuries resulting from it,” she says.
Coordinated planning between the NLA and three local authority partners in West Kent resulted recently in an extremely successful landlord event. We have a packed programme of more local landlord events across the country over the next few months (see pages 30-31) and I look forward to meeting you at some of these events. Barry.Markham@landlords.org.uk
For more information:
UKLANDLORD UKLANDLORDNOVEMBER/DECEMBER SEPTEMBER/OCTOBER 2010 29
LANDLORDEVENTSGUIDE 2010 Please note this is a listing of pre-planned events. Additional events will be added to UK Landlord and the website throughout the year. Agenda topics are normally finalised and published on www.landlords.org.uk/ events about 4 weeks in advance of meetings. Reminder emails will also be sent to members in relevant areas so please do check with our member team (020 7840 8937) that we have your current email address.
REGION
Other event
DATE
EVENT
Thu 11 Nov
NLA & Welwyn-Hatfield District East of England
Campus West, The Campus, Welwyn Garden City,
6.00pm for
Council Landlords meeting
Hertfordshire, AL8 6BX
6.30pm start
Tue 16 Nov
NLA Weymouth Branch meeting South West
LOCATION
NLA event
Weymouth Working Mens Club, 1 Mitchell Street, Weymouth,
7.00pm
Dorset DT4 8BT
for 7.30pm start
Heatons Sports Club, Green Lane, Heaton Moor,
6.30pm
Wed 17 Nov
Stockport Metropolitan
Borough Landlords Forum
Stockport, SK4 2NF Lewisham Civic Suite, Catford SE6 4RU
North West
TIME
Fri 19 Nov
NLA and the South East London London
Housing Partnership South
East London Landlords Day
Mon 22 Nov
Harrogate District Landlords
Trade Fair
Tue 23 Nov
Gravesend and Dartford Private South East
Council Chamber, Gravesham Borough Council, Civic Centre,
4.45pm
Sector Landlords Forum
Windmill Street, Gravesend, Kent, DA12 1AU
to 7.15pm
Wed 24 Nov
North Warwickshire Borough
North Warwickshire Borough Council,The Council House,
12.00pm
Council Landlords Forum
South Street, Atherstone CV9 1DE
to 2.00pm
Thu 25 Nov
NLA Dorset Branch Meeting
South West
Borough of Poole, Civic Centre, Poole, BH15 2RU
7.30pm
Sat 27 Nov
NLA Conference
London
Park Plaza Victoria, near Victoria Station, Central London
10.45am start
North West
West Midlands
Conyngham Hall, Knaresborough, North Yorskhire, HG5 9AY
2.00pm to 5.30pm
10.30am to 3.00pm
to 5.00pm
Tue 30 Nov
Ramada Hotel, Fenland Suite, Ramada Peterborough, Thorpe
6.30pm start
Meadows, Peterborough, Cambs, PE3 6GA Tel: 01733 564240
to 8.30pm
Tue 30 Nov
SWALEC Staduim, Sophia Close, just off Cathedral Road,
5.45pm
NLA Peterborough Branch
NLA Cardiff Branch Meeting
East of England
Wales
Cardiff CF11 9XR
Wed 1 Dec
NLA Eastbourne & Wealden
Lansdowne Hotel, King Edward’s Parade (Eastbourne Seafront)
6.30pm
Branch Meeting
East Sussex BN214EE
to 9.00pm
Wed 1 Dec
NLA Glasgow Landlords
Touchbase Business Centre, Premier Inn, 187 George
Meeting
Thu 2 Dec
NLA Worthing Branch Meeting South East
South East
Scotland
Street, Glasgow, G11YU
7.30pm
Field Place, The Barn, The Boulevard, Worthing, West
check website
Sussex, BN13 1NP Tel: 01903244034
for details
Tue 7 Dec
The Londesborough Hotel, 3 Market Place, Town Centre,
check website
Selby, YO8 4NS
for details
Tue 7 Dec
NLA Brighton Branch Meeting
South East
Hilton Brighton Metropole, Kings Road, East Sussex, BN1 2FU
6.30pm to 9.00pm
Tue 7 Dec
NLA Cumbria Branch Meeting
North West
University of Cumbria, Fusehill Street, Carlisle, Cumbria CA1 2HH 7.00pm
Thurs 9 Dec
NLA Hastings & Rother
South East
The Manor Barn, Bexhill-on-sea, East Sussex, TN40 2HA
Branch Meeting
to 1.00pm
Thurs 9 Dec
NLA and North Tyneside Forum North East
6.00pm
NLA Selby Branch Meeting
Yorkshire & The Humber
The Riverside Centre, The Nightingale Room, Minton Lane,
North Shields, NE29 6DQ
Tue 14 Dec
Novotel Newcastle, Ponteland Road, Newcastle Upon Tyne, NE3 3HZ
NLA North East Branch Meeting North East
9.30am
6.30pm for
7.00pm start
Wed 15 Dec
5.30pm
Newport Landlords Forum
Wales
30 UKLANDLORD NOVEMBER/DECEMBER 2010
Newport Civic Centre, Committee Room 7, Newport, South Wales, NP20 4UR
LANDLORDEVENTSGUIDE 2011 DATE
EVENT
REGION
LOCATION
TIME
Mon 10 Jan
NLA Northampton Branch
East Midlands
Northampton Rugby Club, Weedon Road, Northampton NN5 5BG
6.00pm
Meeting
for 6.30pm start
Tue 11 Jan
NLA Teesside Branch Meeting North East
The Blue Bell Hotel, Acklam, Middlesbrough, TS5 7HL
7.30pm
Tue 11 Jan
NLA Fife Branch Meeting
Scotland
check website for details
South East
Abbey Hill Golf Centre (Main Building), Monks Way, Two Mile Ash, 6.00pm
Mon 17 Jan
NLA Milton Keynes Branch
Meeting
Tue 18 Jan
NLA Weymouth Branch
for 6.30pm start
Milton Keynes, MK8 8AA Weymouth Working Mens Club, 1 Mitchell Street, Weymouth,
7.00pm
Meeting
Dorset DT4 8BT
for 7.30pm start
Thu 20 Jan
NLA London Members
Brunel Museum, Railway Avenue, Rotherhithe,
7.00pm to
Meeting
London SE16 4LF
8.30pm
Wed 26 Jan
NLA Wessex (Bath) Branch
South West
Lansdown Golf Club, Lansdown, Bath BA1 9BT
2.00pm
Meeting
Wed 26 Jan
NLA Reading Landlords
South East
Best Western Reading Moat House, Loddon Suite, Mill Lane,
6.30pm
Meeting
Thu 27 Jan
NLA Swindon Branch Meeting South West
South West
London
Sindlesham, Nr Wokingham, Berkshire, RG41 5DF Campanile Swindon, Delta Business Park, Great Western Way,
7.00pm
Swindon SN5 7XG Tel: 01793 514 777
Wed 2 Feb
NLA Wessex (Bristol) Branch
South West
BAWA, 589 Southmead Road, Filton, Bristol, BS34 7RG
7.00pm
Meeting
Tue 28 Feb
NLA Shropshire Branch
West Midlands
Shire Hall, Council Chamber, Abbey Foregate,
6.00pm
Meeting in partnership with
Shropshire Council
Tue 8 Mar
NLA North East Branch
Meeting
Tue 8 Mar
NLA Brighton Branch Meeting
Tue 8 Mar
NLA Teesside Branch Meeting North East
Tue 15 Mar
NLA Weymouth Branch
Meeting
Wed 13 Apr
NLA Reading Landlords
Best Western Reading Moat House, Loddon Suite, Mill Lane,
6.30pm
Meeting
Sindlesham, Nr Wokingham, Berkshire, RG41 5DF
Tue 10 May
NLA Teesside Branch Meeting North East
The Blue Bell Hotel, Acklam, Middlesbrough, TS5 7HL
7.30pm
North East
South East
South West
South East
Shrewsbury, SY2 6ND
Novotel Newcastle, Ponteland Road, Kenton, NE3 3HZ
6.30pm for 7.00pm start
check the website for more details The Blue Bell Hotel, Acklam, Middlesbrough, TS5 7HL
7.30pm
Weymouth Working Mens Club, 1 Mitchell Street, Weymouth,
7.00pm for
Dorset DT4 8BT
7.30pm start
Tue 17 May
NLA Weymouth Branch
Weymouth Working Mens Club, 1 Mitchell Street, Weymouth,
7.00pm for
Meeting
Dorset DT4 8BT
7.30pm start
Tue 7 Jun
NLA Brighton Branch Meeting
South East
check the website for more details
Mon 4 Jul
NLA Shropshire Branch
West Midlands
Shire Hall, Council Chamber, Abbey Foregate, Shrewsbury,
Meeting in partnership with
Shropshire Council
Wed 6 Jul
NLA Reading Landlords
Meeting
Sindlesham, Nr Wokingham, Berkshire, RG41 5DF
Tue 12 Jul
NLA Teesside Branch Meeting North East
The Blue Bell Hotel, Acklam, Middlesbrough, TS5 7HL
7.30pm
Weymouth Working Mens Club, 1 Mitchell Street, Weymouth,
7.30pm
Dorset DT4 8BT
7.30pm start
South West
South East
Tue 19 Jul
NLA Weymouth Branch
Meeting
South West
6.00pm
SY2 6ND
Best Western Reading Moat House, Loddon Suite, Mill Lane,
6.30pm
For an up-to-date list visit: www.landlords.org.uk/events UKLANDLORD NOVEMBER/DECEMBER 2010 31
LONDON FOCUS >> 16
KEY
7 6
2 1
8 4
3 34
10 19
22
12
18 5
25
23
17
20
21
11
9
14
26
24
13
28 15
33 32
31
27
30
29
1. Hillingdon 2. Harrow 3. Ealing 4. Brent 5. Wandsworth 34. Hounslow 6. Barnet 7. Enfield 8. Harringay 9. Walton Forest 10. Camden 11. Islington 12. Tower Hamlets 13. Southwark 14. Lambeth 15. Lewisham 16. City of London
VACANT BOROUGHS 28. Greenwich 29. Bexley 30. Bromley
MaryAnn Pearce, Regional Representative for London Responsible for developing relationships with local authorities and organising events for members in Camden, Islington, City of London, Lambeth, Southwark, Lewisham, and Tower Hamlets. Most recently she has been working with the South East London Housing Partnership to organise a meeting in Catford for residential landlords and property investors with properties in South East London on 19th November. As Regional Representative, Maryann also supports other London Representatives to ensure that NLA has an even spread of events throughout London. “We make sure our members are kept up to date with local housing strategies as well as national legislation and investment opportunities, and we invite a range of experts in the field to give specialist advice at the meetings.”
17. City of Westminster 18. Kensington & Chelsea 19. Hammersmith & Fulham 20. Richmond upon Thames 21. Hounslow 22. Kingston upon Thames 23. Hackney 24. Newham 25. Redbridge 26. Barking & Dagenham 27. Havering
31. Croydon 32. Sutton 33. Merton
EuGin Song, Local Representative Responsible for developing relationships with local authorities and organising events for members in Hammersmith & Fulham, Kensington & Chelsea, Kingston, Richmond and Westminster) Portfolio: 20 properties from Westminster to Slough Day job: Landlord, letting agent and NLA Local Representative. Special Features: Many non-resident landlords; local authorities house landlord meetings because of high rates for venues.
Day job: NLA Regional Representative, landlord, runs a property service company, and a country fitness business.
Trends to note: Keep an eye out for how the upcoming austerity measures, particularly caps on LHA will affect rents in areas such as Kensington & Chelsea. Discussions about merging departments in this council with Westminster and Hammersmith could include social housing departments. Some of these West London councils are talking about moving tenants out of the borough or out of London and this could affect a significant number of tenancies.
Trends to note: “What is happening with the proposed cuts to Local Housing Allowance is really worrying for London landlords and council tenants,” MaryAnn warns. “London rents are inevitably higher than in many parts of the country because of the high property prices and woefully little competition in the buy-tolet mortgage market.”
Local investment opportunities: West London is still a good area for buy-to-let investment. Current interest rates mean the numbers stack up to returns of around 6-7 per cent. Rents are likely to rise across all residential markets over the next two years, particularly in transport zones 4 and 5. Studios and 1-bed flats seem a surer bet than 3-bed flats.
Contact: Maryann.Pearce@landlords.org.uk if you have suggestions for meetings in her area.
Contact: Eugin.Song@landlords.org.uk if you have suggestions for meetings in his area.
Portfolio: 8 properties, mostly within 2 miles of Dulwich
32 UKLANDLORD NOVEMBER/DECEMBER 2010
Yvonne Baisden, Local Representative Responsible for developing relationships with local authorities and organising events for members in Brent, Ealing, Harrow, Hillingdon, Hounslow and Wandsworth. Portfolio: properties in Ealing and Brent, mostly to professional tenants. Also ‘mothers’ a property: an HMO with 5 student boys aged 17-21 owned by friends abroad. Day job: Landlord, runs a contract cleaning company and NLA Local Representative. Ambition: “To make sure fellow landlords in my area are up-to-date with practical and legal information. Many people I meet are not aware of the tenancy deposit protection rules or of the deals you can get by being a member of the NLA.” Local investment opportunities: The rental market in these areas is strong and buoyant, with good returns. Properties rarely stay vacant. Studios and 1-bedroom flats rent well. Trends to note: Steer clear of 3-bedroom houses for the moment – there seems to be an oversupply on the market, probably due to accidental landlords in the area. LHA tenants may become scarce in current climate of Housing Benefit cuts.
Contact: Yvonne.Baisden@landlords.org.uk if you have suggestions about meetings in her area.
Philip McGriskin, Local Representative Responsible for developing relationships with local authorities and organising events for members in Barnet, Enfield, Haringey, and Waltham Forest Portfolio: properties in Kensington, Enfield and Cambridge. Day job: Runs a construction company and NLA Local Representative. Local investment opportunities: Barnet and Enfield are affluent London boroughs, with higher priced properties so margins may not be as great for investment here. My rents have been rising steadily but not drastically in Enfield although I rarely have any voids. Waltham Forest may benefit from the Olympic effect and so far property prices are not as overpriced as for example has happened in Stratford. Trends to note: Landlords investing in some of these areas are understandably cautious as property prices are high (even at auction) and returns can be minimal
Contact: Philip.McGriskin@landlords.org.uk if you have suggestions about meetings in his area.
Richard Blanco, Local Representative Responsible for developing relationships with local authorities and organising events for members in Barking & Dagenham, Hackney, Havering, Newham and Redbridge. Portfolio: properties in Hackney, Newham, Waltham Forest, Lewisham and Nottinghamshire. Day job: Theatre, Training/ Facilitation/Consultancy and property (NLA Local Representative and landlord developer). Local investment opportunities: Now is a great time to buy at auction. Investors are still keen to buy around the Stratford Olympic development area, but beware of a saturation of the lettings market. Hackney and Dalston have become fashionable and rents have rocketed in these areas. Outer East London is one of the few parts of London where you can still buy houses below the all-important £250,000 stamp duty threshold, but you have to take a punt on whether there will be a ripple effect from the Olympics to areas of Newham and boroughs such as Waltham Forest and Redbridge. Some boroughs such as Waltham Forest have been very active with renovation grants of up to £10,000 to bring properties back into use. Trends to note: Recent changes in migration, particularly the Polish and other Eastern European communities many of whom have migrated back to their country of origin. Meetings: Following the success of his first meeting in Rotherhithe for East & South East London NLA members, at the quirky Brunel Museum, Richard is planning another meeting for January and a meeting in Hackney before Christmas.
Contact: Richard.Blanco@landlords.org.uk if you have suggestions about meetings in his area.
South East London Landlords Day Friday 19 November 2010; 2pm – 5.30pm Lewisham Civic Suite, Catford SE6 4RU Programme will include expert speakers on the South East London housing market, policy developments including Local Housing Allowance, and letting to vulnerable households. Entry FREE. For more information, contact Maryann.Pearce@landlords.org.uk
NLA RECRUITMENT >> We are looking for a south London based landlord who would like to work with our professional policy team, and the other London Representatives to make sense of the local operating environment for landlords, and, where necessary, help us to make a difference to it. This will involve organising, running and chairing meetings for members, encouraging landlords to join us, meetings with local authority personnel, public speaking, and occasional media work. An hourly rate of £16.87 is paid for up to 30 flexible hours per month, on a self-employed basis. Both daytime and evening hours could be required, so other commitments need to be flexible. For full information and how to apply: www.landlords.org.uk/ aboutus/workforus.htm UKLANDLORD NOVEMBER/DECEMBER 2010 33
NLA ACCREDITATION >> As well as providing its own accreditation scheme for its members (which can be done online or via attendance based events), the NLA also recognises and supports all other
forms of development-based accreditation such as the London Landlord Accreditation scheme (LLAS). NLA London Regional Representative MaryAnn Pearce sits on the LLAS steering group committee to offer the landlords’ perspective on the scheme. The NLA’s Landlord Library is recognised by LLAS as a great way for landlords to continue their professional development in their own time. Free to all NLA members, the NLA Landlord Library removes the hurdles of time and cost that many landlords face in keeping their development up-to-date. The library provides you
with your own unique Continuing Professional Development record that can be downloaded and e-mailed direct to the LLAS offices in Camden to demonstrate your professional development. Any modules that you complete on the library are automatically recorded onto this record. You can also manually add your attendance at landlord events such as NLA branch meetings. To access the library or find out more about NLA Landlord Accreditation, simply visit the NLA website www.landlords.org.uk.
MORE NEWS >>
Another award for green landlord scheme At the recent Bournemouth Landlords Conference 2010, the landlords involved from the start of the now national award-winning scheme for Bigger Steps, Smaller Footprints were recognised for their contributions in supporting the scheme managed by the Dorset Energy Advice Centre. The project has insulated 7,500 dwellings for 750 local landlords
and made savings in CO2 emissions of over 8,000 tonnes per year. One of the original landlords who participated in this scheme is NLA Board Director Richard Price, who in his personal capacity as a landlord, had cavity wall insulation installed in his properties in the area when the project was originally launched in 2004.
West Kent Landlords An effective partnership approach by the NLA with three West Kent local authorities has resulted in a successful landlords evening forum. The model for cooperation between the NLA and Tonbridge & Malling, Tunbridge Wells and Sevenoaks was based on detailed planning and sharing resources between a very focused team. Marion Money, NLA Kent Local Representative (pictured left) explains that the alliance, known as the West Kent Landlords Partnership, identified that the meeting should aim to attract new faces and be of particular interest to landlords who regularly attend landlord meetings in the area. Marion sourced speakers to talk on the role of the Valuation Office Agency and LHA, a private landlord’s investment strategy, as well as a firm of lawyers and NLA Mortgages. NLA Chairman David Salusbury and Marion talked about the role of the NLA in supporting and promoting the interests of PRS landlords. Workloads were shared out equally on the project in different ways, whether it was organising the venue, media and publicity, or sponsorship of the event. Each Local Authority had a nominated person to work on the project, and they all fielded additional staff to help on the night. The event was well publicised with coordinated press releases on different themes which were picked up by local and national media. As well as NLA publicity, each local authority publicised the event on the front pages of their websites.
34 UKLANDLORD NOVEMBER/DECEMBER 2010
“Over 150 attendees came to this event and the atmosphere was buzzing” Marion Money
NLA member viewpoints
Dave & Abi Knight, three-year members
It was the access to specialist and competitively priced buildings insurance that initially got me interested in joining the NLA back in 2002. We remember meeting David Salusbury at one of the property investor shows later that year, and being impressed by the kind of quality professional support
Landlord Views: Dave & Abi Knight that was available. The NLA stand stood out like an oasis of good independent, practical support in an atmosphere, at the time, that was pretty confusing to those like us, who were new to the industry. The most rewarding aspect of being a landlord is getting a sense of achievement in providing an essential service to people, and developing skills, both practical and intellectual to maximise returns on our property portfolio. The NLA has helped us a lot to achieve this. We enjoy being our own boss, managing our own time and investments to achieve a balance in life that supports our family and outside interests. We came into the industry from a banking/ finance, HR background (Dave) and Abi was an interior designer. We use this experience to help us grow and develop the property portfolio. We have a portfolio of approximately 30 properties. We let mostly to young people, students and those who are making their first steps on the property ladder. We are experiencing good demand for our
properties now. We tend not to use agents. We like to have direct contact with our tenants from the start. Obtaining competitive finance is the most challenging aspect of growing and sustaining our portfolio. We have reached a balance in our portfolio now and have no plans to increase at the moment. We are busy enough (sometimes too busy) but have enough time for living the life we enjoy. The benefit of committing to a three-year membership is that you have the continuing support of an extremely professional set of experienced advisors available to you at any time. It provides us with confidence. We may not call the NLA for several months. Knowing they are there to support us and represent the landlord’s position at senior levels in government means a lot to us. A three year (or more) commitment helps the NLA do this with more confidence. We are in this industry for the longer term and feel a longer term commitment to the NLA is consistent with this.
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
36 UKLANDLORD NOVEMBER/DECEMBER 2010
Who can join under this Package?
}
Individual landlords (including spouse/ partner)
UKLANDLORD NOVEMBER/DECEMBER 2010 37
pUBLIC AffAIRs
Diary of a Policy Manager With Chris Norris NLA Policy Manager Welcome to the NLA’s new window into the often misunderstood world of public affairs. For the uninitiated, ‘public affairs’ is a catchall term for all of the activity involved in trying to influence decision makers. Depending on the issue, and the goal in mind, this can mean anything from meeting with government ministers, to forging links with other organisations or even conducting research to help support our arguments and shape public policy. The NLA takes its role as a representative for private landlords very seriously. The last couple of months have been active for its team of public affairs professionals. Traditionally a hectic time, September and October witness the veritable carnival that is Party Conference Season and the return of Parliament from its summer recess. Party conferences are a great opportunity for the NLA to represent landlords’ interests to local and national politicians who would not normally be so accessible, or so willing to discuss important issues. It is also offers a rare chance to catch
policy makers off-guard without their civil service advisors to hand ready to steer conversations away from issues which may not fit their immediate agendas. Speaking at an NLA event during the Conservative Party Conference, the Rt. Hon. Grant Shapps praised the efforts of the NLA for “their continued efforts to raise standards in the private rented sector and their contribution to raising awareness of tenants’ rights and responsibilities.” Back in Westminster, the NLA must be doing something right as Housing Minister Grant Shapps, when giving evidence to an influential select committee, made reference to his belief that working with the NLA and others is a viable alternative to further regulation. Even traditional left-winger Jon Cruddas, Labour MP for Dagenham and Rainham,
speaking at a Westminster Hall debate on ‘unscrupulous landlords’ supported the NLA’s campaign against arbitrary cuts to LHA payments. Locally, all eyes are on Milton Keynes at the moment as the council is challenging the muchawaited reform of HMO planning regulations. Welcomed by most of the industry, one of the Government’s first forays into housing policy was to amend the recent changes to HMO planning regulations in order to allow development of new shared housing. Milton Keynes Council does not agree with this change and has launched a judicial review of the revised legislation. The NLA supported the Government’s approach to this issue and will monitor the progress of this legal challenge with interest.
HMO Licensing in Oxford Oxford City Council is once again making headlines, thanks to its pursuit of discretionary licensing for its entire area. Avid readers of UK Landlord will recall that the saga of landlord licensing in Oxford began not long after such licensing schemes became a possibility in 2006. Having been unable to obtain authorisation from Central Government for a city wide scheme in 2008 the council is now able to proceed thanks to a pre-election law change removing the need to apply to the Department for Communities and Local Government (CLG). Oxford City Council is arguing that an annual licensing system is the most appropriate way to deal with issues of antisocial behaviour. The NLA
38 UKLANDLORD NOVEMBER/DECEMBER 2010
believes that discretionary licensing should only be used in a targeted fashion, where all other measures to tackle perceived problems have failed. From 25 October 2010 properties let to three or more unrelated sharers, forming two or more households will be required to obtain an HMO licence under Oxford’s additional licensing scheme. However, at the time of writing the NLA is working with CLG, the city council, local landlords and other interested stakeholders to challenge Oxford’s policy. Legal representations have been made and we understand that the Council are planning to meet to discuss new recommendations as a result – watch this space!
UKLANDLORD NOVEMBER/DECEMBER 2010 39
pUBLIC AffAIRs
Why should I care about planning? Traditionally of interest only for those considering building work, planning permission has been a hot topic of conversation for landlords in 2010. Only a few weeks before the General Election, former Secretary of State for Communities and Local Government (CLG) John Denham introduced a new planning use class specifically for smaller HMOs in England. Prior to April 2010 all private-rented accommodation fell into one of two categories so-far-as the planning system is concerned. All private-residential properties, irrespective of tenure, which housed up to six unrelated people were classed as use class C3, known as a dwelling house. Larger HMOs occupied by six or more unrelated individuals fell outside of this category and required permission to change to a classification outside of the standard use classes, known as ‘sui generis’. However, Mr Denham’s new use class C4 was designed specifically for smaller HMOs housing three to six unrelated individuals, forming two or more households. This relatively minor change to legislation, enacted with no parliamentary debate, classified a huge quantity of rented property as HMOs. Crucially, this would mean that any landlord wishing to let a new property, or one which had previously housed a single household, to a small number of sharers could only do so with the permission of the local planning department. Fortunately, having listened to the NLA’s concerns, the incoming ministerial team at CLG launched their own consultation in the summer. Following this consultation the Housing Minister announced his intention to make the transition from dwelling house to HMO a ‘permitted development’, therefore removing the requirement for planning permission from 1 October 2010. Problem solved then? For most landlords, yes. This most recent change should mean the end to a very confusing time for landlords and many planners alike. However, those local authorities which welcomed the change will have the option to pursue an ‘Article 4 Direction’. Article 4 Directions are more commonly used in conservation areas and allow the removal of planning consent in a specific area. In respect of HMOs a local authority will be able to implement an Article 4 to require landlords to apply for planning permission, but will require authorisation from Central Government and could be liable to pay compensation to those affected if they fail to provide a minimum of 12 months’ notice. The majority of local authorities are unlikely to consider the use of an Article 4 Direction to be necessary or cost effective. However, landlords in those areas affected may need to apply for planning permission where a material change has taken place. Fortunately, unlike most other applications, there should be no fee attached to planning applications where consent would have existed were it not for the existence of an Article 4 Direction.
40 UKLANDLORD NOVEMBER/DECEMBER 2010
Scottish Private-Rented Sector Bill Rules affecting landlord registration, HMO legislation and the tenancy regime are all in store following the publication in October of the new Scottish Private Rented Sector Bill. NLA Public Affairs Officer Vincenzo Rampulla reports that landlord registration legislation will be amended in a number of ways. This includes expanding the criteria of the fit and proper test, requiring registration numbers to be placed in property adverts, providing public access to information on applications, and requiring the Private Rented Housing Panel (PRHP) to pass information on landlords to local authorities so that their registration status can be checked. Scottish law on Houses in Multiple Occupation will be changed to enable Ministers to expand the scope of HMO licensing to other multi-occupancy properties. The requirement for a local authority to issue a statement of reasons for every HMO licensing
decision is now intended to be removed, and local authorities will be given powers to refuse HMO applications on the basis of breach of planning control. It is proposed that the tenancy regime in Scotland will require landlords to issue specified information to new tenants, and that the process for servicing when a landlord seeks possession will be simplified. The new regime will allow appeal to the PRHP to gain access to properties for the purpose of meeting Repairing Standard duties. Vincenzo told UK Landlord: “Many of the proposals in the Bill have been endorsed by the Scottish Government’s Private Rented Sector Strategy Group. However, there are some additions (the removal of the local authority requirement to provide a statement of reasons for every HMO application) which were not previously known as under consideration.”
Making the most of the PRS in Wales The NLA is preparing its submission to the National Assembly for Wales’s Communities and Culture Committee which is holding an inquiry into the private rented sector in Wales. The Committee is due to consider whether the private rented sector can be used more effectively to ease pressure on social housing waiting lists and provide accommodation for those unable to buy a home. It also aims to identify strategic changes that could raise standards within the sector, as well as examine the perceived barriers
preventing access to the private rented sector such as affordability and security of tenure and identify any potential for reform. Recent statistics indicate that 11 per cent of households in Wales live in privately rented accommodation. The Committee has framed its inquiry in the context of how to make the most of the private-rented sector so that it can become an effective tenure of choice. It will also examine the potential for more empty homes to be brought back into occupation as rented accommodation.
>>>STOP PRESS>>>STOP PRESS>>> >>>STOP PRESS>>>STOP PRESS>>> Milton Keynes Council has launched a judicial review of the Government’s decision to amend the General Permitted Development Order. It is seeking an immediate injunction against the change. Landlords letting under the C4 use class may wish to seek a certificate of lawful use from the relevant planning authority in order to legally record the status.
PUBLIC AFFAIRS
News from Brussels Emmanuelle Causse from the Brussels office of the International Union of Property Owners (UIPI) outlines the legislative and political developments under way in Brussels that could impact on the PRS. Energy efficiency tops EU agenda Following the recent adoption of the Recast Directive on Energy Efficiency in Buildings, to be shortly transposed into national legislation, EU decision-makers are now turning their attention to preparations for a new EU Energy Strategy for the next decade and a new Energy Efficiency Action Plan which will undoubtedly influence future legislative and political developments in the field. The European Commission and a majority of MEPs want to introduce ambitious energy-saving, binding targets to the construction sector that will be implemented at national level. There are even some ideas to require compulsory national minimum energy targets for refurbishments and for a percentage of each national building stock to be retrofitted. UIPI is vigorously opposing the introduction of specific targets for the building sector, advocating instead the adoption of additional
incentives and mechanisms that could help individual property owners to better face the upcoming financial constraints of efficient building retrofitting, including the introduction of a reduced VAT rate for this purpose. Consumer rights, construction and rental contracts Contracts relating to construction and refurbishments as well as rental contracts may well be affected by recent moves to improve consumer protection and cross-border commercial activities. An initial proposal suggested product liability should last for a period of two years. UIPI argued that this was nonsense in relation to construction materials where national guaranties are much longer and such a short period would contradict the purpose of the legislation. At this stage of the legislative process, UIPI’s arguments seem
to have been taken into consideration and, according to the current draft proposal, Member States are still free to keep longer guarantee periods. In relation to rental contracts, the introduction of a right of withdrawal is being proposed in relation to business-to-consumer contracts signed outside of professional premises. In the case where a contract is signed between an individual and a professional landlord or an estate agent outside professional premises, the potential tenant would have a 14-day period to change his/her mind. Such a provision would certainly create insecurity in the real estate market and impact the PRS. We are actively lobbying to defend our position. While this type of measure might make sense for door-todoor sales, in the rental sector however, where off-premises contracts are usual for practical reasons, this type of protection is inappropriate.
UKLANDLORD NOVEMBER/DECEMBER 2010 41
NLA RECOGNIsED sUppLIER
visit: www.landlords.org.uk
Suppliers You Can Trust Contact Christian Kent for more information about the Recognised Supplier Scheme email: recognisedsupplier@landlords.org.uk or phone Christian Kent on: 020 7840 8917
Look for the Partner or Recognised Supplier Logo What is the Recognised Supplier Scheme? The RSS is a membership scheme that allows reputable business to promote their products /services to landlords using the Recognised Supplier Scheme logo as a symbol of excellence. Why does the NLA have it? To help landlords narrow their search when choosing a reputable supplier. The scheme gives a landlord greater confidence when choosing a supplier for their day-to-day business needs. Recognised Suppliers meet a number of key requirements before being accepted on to the scheme. These due diligence measures mean that we do the hard work so you don’t have to! What does the NLA do to check those taking part are reputable and offer quality services? We undertake a series of checks before approving a supplier. These include checking financial stability,
getting references from landlords who have used the service before, and then referring the application to our decision-making panel. A majority decision determines acceptance on to the scheme. How is the RSS managed? The scheme is managed by Christian Kent who is the main point of contact for all supplier related queries. Christian is responsible for bringing new suppliers on board the scheme and managing the day to day relationship with suppliers once they have joined. Once a supplier is approved we regularly assess how many landlords are using the services and deal with any issues that arise. Christian provides regular reporting and ongoing support throughout the relationship term. Members can also contact Christian for any queries about a supplier or if they would like to recommend a supplier they use to join the Scheme so that fellow members can benefit from the service.
How does the RSS benefit NLA members? Members can search the supplier directory online and in UK Landlord with the confidence that each applicant has met a series of key requirements before being accepted on the Scheme. Discounts and special offers from an array of different suppliers are available to NLA members.
For the Scheme application pack, please visit the NLA website:
www.landlords.org.uk
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. 42 UKLANDLORD NOVEMBER/DECEMBER 2010
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.
NLA RECOGNISED SUPPLIERS
For an up-to-date list visit: www.landlords.org.uk
ASA Fire Systems Tel: 020 8575 1801 info@asafiresystems.co.uk www.asafiresystems.co.uk Established in 1983, we specialise in the undertaking of all works pertaining to the fire upgrade of domestic and HMO properties to include the installation and servicing of fire alarms and emergency lighting. We also supply and install fire doors and undertake any building works to achieve the required fire rating standards in properties. British Gas Tel 0800 980 4302 MTTPAYGE@britishgas.co.uk www.britishgas.co.uk/multitenancy British Gas can help you to manage your property portfolio by providing a dedicated account manager. We can ensure tenancy changes are managed more efficiently and provide discounts on our maintenance and repair range, as well as energy efficiency advice. The service is offered to NLA members completely free of charge.
Bump The Agent claude@bumptheagent.com www.bumptheagent.com www.bumptheagent.com is a national database of private landlord student accommodation. The purpose of www.bumptheagent.com is to put students directly in touch with private landlords so that both parties can avoid tenant finding fees charged by letting agents. List your property and reach thousands of students looking for accommodation.
EnviroVent Ltd Tel 0845 2727 807 info@envirovent.com www.envirovent.com Our systems are designed to eliminate streaming windows, condensation and mould whilst protecting your investment. We manufacture the world’s most innovative, eco-friendly ventilation solutions saving local authorities, landlords, specifiers & developers vast amounts of money in maintenance and disrepair problems. To help achieve the Decent Homes Standard, EnviroVent offers substantial discounts to NLA members.
Fairhurst Tel 01942 241103 Fax 01942 825689 webenquires@fairhurstaccountants.com www.fairhurstaccountants.com We offer a range of tax services covering both self assessment tax reporting and planning (personal and corporate) in respect of all relevant taxes, providing you with a competitive edge. We are also able to provide a comprehensive range of business and financial planning services to meet your needs.
Hallmark Tel 0800 458 1523 Fax 01652 601401 enquiries@hallmarkcorporate.com www.hallmarkcorporate.com We are the UK’s leading utilities management partner for the lettings industry. Hallmark is an established, well respected company who work in association with The Scottish and Southern Energy Group (Southern Electric, Scottish Hydro, SWALEC, Atlantic Electric & Gas) providing products and services that offer benefits and savings to Landlords and Tenants.
Landlord Action Tel 0845 881 0011 enquiries@landlordaction.co.uk www.landlordaction.co.uk LANDLORD ACTION was set up 9 years ago by two landlords frustrated with solicitors charging fat fees for eviction. We offer fixed fees to landlords in eviction, with a free advice line. We are the market leaders in fixed fee eviction and have successfully evicted over 17,000 tenants. Also we have appeared on BBC 1’s War at the Door, and ITV’s Tenants from Hell. NLA members can claim a £15 discount on instruction. Landlord Response Tel 0844 472 9880 customercare@landlordresponse.co.uk www.landlordresponse.co.uk Landlord Response are true specialists dealing with gas, electric and plumbing requirements for landlords. A unique service to cover property breakdowns and avoid unexpected repair bills, as well as issuing your annual Landlord’s Gas Safety Certificate. Keep your property safe and compliant for as little as 50p per day. NLA members can benefit from a 10% discount off all packages.
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 (except Commercial Leases). LettingZone Tel 01622 720072 Fax 01622 726175 enquiries@lettingzone.com www.lettingzone.com LettingZone ‘The UK’s Premier Landlord Letting Portal’. Let your property on Rightmove, Findaproperty, Primelocation, Gumtree, Zoopla, Globrix and over 100 other leading letting sites from only £49 + VAT until let, by using our promoted UK Tenant Find Service. Also Full Management Service available from only £60 + VAT per month.
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.
UKLANDLORD NOVEMBER/DECEMBER 2010 43
NLA RECOGNIsED sUppLIERs
For an up-to-date list visit: www.landlords.org.uk
Seddons Solicitors Tel 020 7725 8000 enquiries@seddons.co.uk www.seddons.co.uk
Spick & Span Commercial Services Tel: 023 8060 2299 info@cleaningforlandlords.co.uk www.cleaningforlandlords.co.uk
Our specialist Property Dispute Resolution team advises landlords on all tenancy problems including rent arrears, squatters and the recovery of possession. Also commercial and residential property practice with teams for secured lending, commercial contracts and employment issues. Seddons 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.
Spick & Span Commercial Services provide end of tenancy cleaning to landlords and letting agents across the UK. We can cover any number of properties within your portfolio whilst keeping superior quality of service. We have been in business for over 20 years and tailor our services to individual needs.
Sky Communal Solutions Tel: 0844 241 0331 no-reply@skyhomes.co.uk www.sky.com/managers
How to join the Recognised Supplier Scheme
Sky Communal Solutions (part of BSkyB group) equips private blocks of flats with high-quality digital TV. Our communal TV solutions are Shared Dish and Integrated Reception System (IRS). They will meet all your digital TV needs, get blocks ready for the digital switchover, and give residents great viewing options.
SpareRoom.co.uk Tel: 0845 644 4029 landlords@spareroom.co.uk www.spareroom.co.uk/landlords SpareRoom.co.uk is the UK’s No.1 Flatshare website with over 1/2 million visitors per month. Whether you’re targeting students or professionals, there’s nowhere better to advertise your rooms to rent and whole properties suitable for sharing. NLA members receive one week’s free advertising for up to 10 adverts.
44 UKLANDLORD NOVEMBER/DECEMBER 2010
The Recognised Supplier Scheme allows reputable business to promote their products /services to landlords using the Recognised Supplier Scheme logo as a symbol of excellence.
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 PARTNER NEWS
my|deposits nominated for dispute resolution award mydeposits.co.uk has been nominated as a finalist in the prestigious Centre for Effective Dispute Resolution (CEDR) Awards for Excellence for helping resolve disputes over deposits between landlords and tenants under its tenancy deposit protection scheme. The tenancy deposit protection organisation jointly owned by the NLA and Hamilton Fraser insurance, has been nominated as a finalist in the prestigious Centre for Effective Dispute Resolution (CEDR) Awards for Excellence. my|deposits has protected more than 500,000 tenancy deposits, allowing landlords to hold the money during the tenancy instead of placing it into a custodial scheme. As part of its free resolution service, it has helped resolve more than 11,000 disputes. Two thirds of disagreements end up being settled between the landlord and tenant without proceeding to formal dispute resolution. The award nomination recognises not just the adjudication stage but also the case
management processes which have been developed by my|deposits from scratch. The initiatives launched by my|deposits during the past three years include an interactive online dispute management system which has helped to dramatically reduce the amount of time it takes to resolve a dispute by nearly a quarter. “This means landlords and tenants
are getting closure to their disputes far more quickly than using the court process – definitely a cause to celebrate,” said my|deposits’ Chief Executive Eddie Hooker. For more information about my|deposits and tenancy deposits, visit www. mydeposits.co.uk or call 0844 980 0290.
UKLANDLORD NOVEMBER/DECEMBER 2010 45
NLA sERvICEs
We have a range of carefully selected NLA products and services for busy landlords. Finding the right supplier can be a challenge, especially when there are so many vying for your business. We offer you professional services that can easily be purchased online and each offers dedicated support to answer any queries or questions you may have. NLA services offer discounts, rewards and other privileges for NLA members, including FREE services.
NLA Mortgages
NLA Conveyancing
Best of market mortgages sourced for you
Find the right law firm for you
NLA Mortgages provides a free online mortgage search facility for all private landlords enabling you to source a highly competitive range of buy-to-let mortgage schemes that are researched on a daily basis.
Looking for the right solicitor can be a challenge as it’s so difficult to compare the services in the marketplace at any given time. Our online system enables you to research and compare prices immediately and without the need to make any phone calls. Compare and choose froma range of solicitors by:
• • • •
Research the buy-to-let market yourself Find schemes that fit your expected rental income Cashback available for NLA Members Free support and information helpdesk
Cashback for all NLA members for NLA members on every successful mortgage completion*.
• • • • •
Price Distance from the property Distance from your home address Recommendation Free helpdesk
£100 cash back for NLA members on every successful property completion.*
Get the right mortgage for you online at
Register now to quote & compare 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 £62 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.*
Register and purchase online at
Register and purchase today to ‘be in the know’ about your tenants at
www.landlords.org.uk/EPCs
www.landlords.org.uk/tenantcheck
46 UKLANDLORD NOVEMBER/DECEMBER 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.
From £73 for an unfurnished,one bedroom property.* See a sample report and book an interview by registering online at
www.landlords.org.uk/inventories
NLA Rent Guarantee Insurance • 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 Protect yourself - register and purchase online at
Not available for Scotland and Northern Ireland
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
• • •
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
www.landlords.org.uk/rentarrears
Access NLA Forms at
Stage 2,3,4 not available for Scotland and Northern Ireland
www.landlords.org.uk/forms
NLA Landlord Library
NLA Online Store
All the assistance you need in the format of your choice
Access to a range of landlord resources
Regularly updated, it covers over 40 subjects, including: • • • • •
Regulatory Regime: civil and criminal law Property: licensing, HMOs, energy efficiency Tenancy: tenancy types, rent, tenancy deposits Safety: Housing Health & Safety Rating System Finance: tax, record-keeping, mortgages
FREE to NLA Members
Use the NLA Online Store to book courses, order pre-printed tenancy agreements, purchase fire safety and portable appliance testing equipment, as well as tenant information packs and folders. The Online Store is open to all landlords 24hrs a day. • Fire Extinguishers and Blankets • Smoke Alarms • 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
Not available for Northern Ireland
Publications and some courses not available for Scotland and Northern Ireland
*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 NOVEMBER/DECEMBER 2010 47
NLA RECOGNIsED sUppLIER pROfILE
Spick & Span
To further its core objective to raise standards in the privaterented sector, the NLA vets companies that it considers professional and offer good value for money to its members under its Recognised Supplier Scheme
Spick & Span: Cleaning services for landlords Spick & Span offers high-quality cleaning services to landlords across the country while maintaining personal attention to every customer. Sandy Unwin, Managing Director
With its motto “large enough to cope, small enough to care”, Spick & Span works with landlords to maximise the return on their investments by ensuring that rental properties are presented as ‘top quality’. “Our minimum standards will surpass the requirements of the most exacting of tenants,” says Sandy Unwin, Managing Director at Spick & Span.
General cleaning services... and more As well as providing elite general cleaning services in order to prepare properties for new tenants, we can also offer additional specialised cleaning services. Oven Cleaning Spick & Span offer a professional oven cleaning service, which will leave the appliances sparkling. Carpet Cleaning Whether the carpets simply need a freshen up or a deep shampoo, Spick & Span can assess and advise on the best and most efficient way to give your carpets a new lease of life. “prolonging your investment and enhancing your rooms.”
Spick & Span attributes its success to its highly trained staff and site inspection managers who review and monitor the work for a consistently high quality of service delivery. “Where we differ from other cleaning companies is the added personal care and attention to every aspect of the job,” says Sandy. “We thrive on having close relationships with landlords and regularly attend NLA networking meetings to gain feedback on our services and keep abreast of landlords’ individual requirements.” Formed in 1990, the company is fully insured and accredited by social services, and offers a comprehensive range of cleaning services.
48 UKLANDLORD NOVEMBER/DECEMBER 2010
Damage reports As an extra service, Spick & Span can provide on-site damage reports for Landlords or agencies. One of the company’s supervisors will then contact the landlord directly and rectify any issues as required. By resolving such issues promptly Spick & Span save not only the landlord’s time but also any potential call out charges from other contractors. Welcome Packs Spick & Span is happy to offer additional services such as replacing bin liners, making up beds, leaving tea, coffee, fresh milk and bread as an added welcome touch for the tenants. The welcome pack can be constructed to the landlord’s specification and branded with their company name if applicable, thus ensuring a positive moving in atmosphere.
Key collection Spick & Span offers a key collection and drop off service which ensures quick and easy access to the property. Discounts for NLA members Spick & Span’s service is designed to cause the least amount of stress and disruption to all parties involved, guaranteeing a smooth and positive atmosphere for the landlords business at extremely competitive prices. However, Spick & Span offers all NLA members a reduced rate. E-mail info@CleaningForLandlords.co.uk and ask for a property information form, making sure that you tick the NLA member’s box to ensure that you enjoy your NLA discount.
For more details, see www.cleaningforlandlords.co.uk
UKLANDLORD NOVEMBER/DECEMBER 2010 49
MORTGAGE MARKET ROUNDUP Mortgage picture improving gradually Whilst mortgage deals available continue to look unappetizing compared to those before the crash, landlords will at least be cheered by a generally improving market and the return of specialist mortgage lenders, providing them with a greater range of financing options. CML figures released for the second quarter of this year showed signs that the buy-to-let mortgage market is improving, with approvals up 13 per cent on the previous quarter and 15 per cent on the same period last year. “The buy-to-let market has now stabilised and there are early signs that the market is beginning to pick up, both with new lenders entering the market and established lenders like Paragon re-entering the market,” comments Paul Rockett, Managing Director of NLA Mortgages. “This can only be good news for landlords as more funding will drive greater competition and ultimately a wider choice of buy-to-let mortgages.” New deals Paragon’s new range of products is aimed primarily at professional landlords. It includes
50 UKLANDLORD NOVEMBER/DECEMBER 2010
both tracker and fixed rates available for purchases and remortgages, for example: • 5.30 per cent fixed rate for 2 years up to 65 per cent LTV with a 2.5 per cent fee • 4.80 per cent tracker for 2 years up to 75 per cent LTV with a 2.25 per cent fee Paragon’s lending criteria includes offering mortgages to limited companies, on HMOs, on up to 20 units in a block and also provides some flexible remortgaging options. Paul adds “It also offers aggregate lending up to £5 million, and as many lenders have restricted portfolio sizes, these products should be attractive to established landlords looking to expand their portfolios.” “Paragon’s timing could not have been better,” according to Gareth Lowman of Savills Private Finance. “They, along with other new entrants such as Aldermore and Precise, will look to bridge the lending gap created by the Lloyds Banking Group announcement that is has restricted its aggregate lending to landlords.”
Best sellers NLA Mortgages’ best selling products in October were: • 4.80 per cent 2 year tracker up to 75 per cent LTV with a 2.25 per cent fee • 5.49 per cent 3 year fixed up to 80 per cent LTV with a 3 per cent fee • 4.35 per cent 1 year tracker up to 75 per cent LTV with 3 per cent fee Savills Private Finance top deals at the moment include: • 4.79 per cent fixed until 31st December 2012 with a fee of £1,499. Loans are capped at max 70 per cent (£500k) but loans up to £1m may be possible by negotiation. • 3.38 per cent over base for term, from the Bank of China. Available up to 65 per cent LTV (£1m maximum loan). The fee varies between £1,495 and £2,595 depending on the loan size. Redemption penalties only apply within the first 12 months following completion.
UKLANDLORD NOVEMBER/DECEMBER 2010 51
HOUsE pRICEs AND LETTINGs sURvEys
House Prices House prices rising only slightly, according to most indices The latest house price index from Communities and Local Government (CLG)
• House prices in England and Wales rose by 0.2 per cent in September,
records that prices rose by 0.7 per cent between July and August 2010 and
according to the LSL Acadametrics house price index, with the average
rose by 0.8 per cent in the quarter to August 2010. This compares with a rise
price of a home in England & Wales £223,965. At this level, LSL Acadametrics
of 1.7 per cent for the quarter ending May 2010 (seasonally adjusted). The
believes it is down £7,863, or 3.5 per cent, from its peak in February 2008 of
mix-adjusted average house price in the UK stood at £ 213,116 in August
£231,828. The annual rate of growth at 7 per cent reflects past price changes
2010 (not seasonally adjusted).
rather than activity in more recent months and the report predicts that “as
The main house price index sources gave a mixed picture for house prices in August and September, with most suggesting a slight rise in prices
earlier months drop out from the annual calculations, we will see the annual rate of growth continue to fall over the remainder of the year.”
in September while Halifax recorded a drop in prices of 3.6 per cent. UK trends • The Land Registry reported that prices went down by 0.2 per cent in
Annual average house prices rose in England (9.3 per cent), Scotland (0.4
September, which marked an annual price rise of 5.2 per cent. According to
per cent) and Wales (9.0 per cent) but fell in Northern Ireland (-18.8 per
the Land Registry, the average house price is now £166,769.
cent), according to CLG. The UK average house price rose by 8.3 per cent in the year to August 2010, compared with a rise of 8.4 per cent in the year to
• The Halifax house price index reported that house prices fell by 3.6 per
July. Average house prices rose in all UK countries except Northern Ireland in
cent in September. Halifax emphasises however that prices fell by a modest
the year to August 2010. All regions saw increases in average house prices
0.3 per cent between the first and second quarters of 2010 and that, by
over the year to August, the largest being in London (12.4 per cent) and the
comparison, the quarterly rate of decline was consistently in excess of -5
smallest in Yorkshire and the Humber (3.8 per cent). Average mix-adjusted
per cent throughout the second half of 2008. “It is therefore far too early to
house prices in August were £220,709 in England, £168,276 in Scotland,
conclude that September’s monthly 3.6 per cent fall is the beginning of a
£150,617 in Northern Ireland and £156,821 in Wales. London remains the
sustained period of declining house prices,” said Halifax housing economist
English region with the highest average house price (£339,851). The North
Martin Ellis. Halifax points out that the low interest rate environment has
East was the lowest at £140,720.
reduced the burden of servicing mortgage debt. Typical mortgage payments for a new borrower have fallen from a peak of 48 per cent of average disposable earnings in mid 2007 to 30 per cent in mid 2010. This key measure of affordability is at a better level than the long-term average over the past 25 years (37 per cent) and is an important factor supporting housing demand. The average house price is now £163,294. • House prices rose slightly by 0.1 per cent in September, according to Nationwide. This brought annual house price inflation down from 3.9 per cent in August to 3.1 per cent in September, and the price of an average house to £166,757. The 3 month on 3 month rate of change – a smoother indicator of the near term price trend – fell from 0.0 per cent in August to -0.9 per cent in September. This is the first drop in the 3-month rate of change since May 2009. Commenting on the figures, Nationwide’s Chief Economist Martin Gahbauer said: “Although the three month rate of change has turned negative, at this stage it is not pointing to a significant pace of decline in property values. During the 2008 downturn in house prices, the three month rate of change dropped as low as -5.5 per cent, well below the current level of -0.9 per cent. Nonetheless, buyers appear to have a slightly better hand than sellers at the moment, as the market continues to absorb the recent increase in property for sale.”
52 UKLANDLORD NOVEMBER/DECEMBER 2010
Regional house price indices 12-month percentage change for the latest month
Source DCLG
UKLANDLORD NOVEMBER/DECEMBER 2010 53
HOUsE pRICEs AND LETTINGs sURvEys
Lettings Surveys Tenant demand is increasing Recently released results of the NLA’s UK-wide landlord survey covering the second quarter of 2010 indicated a growth in perceived tenant demand.
Q1 2010 (%)
Q2 2010 (%)
Increased
25.4
28.1
Decreased
13.9
9.6
No Change
36.2
35.8
Unsure
24.5
26.5 Source NLA Survey 2010
Voids slightly reduced Longer duration voids appear to be falling, according to the NLA’s survey, although 42 per cent of landlords still claim to have experienced at least one void period in the last three months. Meanwhile incidence of arrears remains relatively stable, with 21 per cent saying they had experienced rent arrears in the last 3 months compared to 24.5 per cent in Q1 2010. 43.5 per cent of landlords are currently experiencing arrears. However, the average amount of outstanding rent due to arrears has dropped relative to Q1 2010,
54 UKLANDLORD NOVEMBER/DECEMBER 2010
from £977.64 in Q1 2010 to £799.97 in Q2 2010. On average LHA tenants were shown to be most likely to fall behind with their rent. According to the NLA’s survey panel, on average 12 percent of tenancies experience arrears to some extent. In comparison 79 percent of tenancies involving LHA recipients experience rent arrears. Respondents told the NLA that on average they had lost £534.68 in respect of LHA tenants in the last three months alone.
Tenant demand pushes rents up The number of properties available to rent in the UK lettings market stayed fairly stable throughout the summer, according to a quarterly review recently published by Winkworth estate agency. Compared to the same period in 2009, however, there remains a significant shortage of stock. The number of properties available between June and August was 47 per cent down on the same period last year. According to the report, a mixture of university students, first jobbers and other professionals looking for rented accommodation in major towns and cities has caused registrations to rise 13 per cent between May and August. Year-on year tenant numbers are also up. Compared to June, July and August 2009, the number of tenants registering interest in rental property has risen 14 per cent. The report notes that this increase in demand and shortage of stock has led to a year-onyear rent price increase of 5 per cent which is broadly in line with inflation. This continued supply and demand pressure is expected to push average rents up further in the coming months.
the national LANDLORDS ASSOCIATION 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.
President
Geoffrey Cutting
Executive Chairman
David Salusbury
Head of External Relations
Director for Regions
Barry Markham Elizabeth Bananuka
Policy Manager Public Affairs Officer
Chris Norris Vincenzo Rampulla
Policy Officer
David Cox
Press Officer
Dane Svenson
Editor NLA Publications
Andy Stern
Managing Editor UK Landlord
Louise Gale
Marketing & Sales Head of Marketing & Sales
Paul Berwick
Marketing Executive
Christian Kent
Marketing Manager
James Acreman
Affinity Marketing Manager Marketing Assistant
Claire Mansell Tasha Hettiarachchi
Website Executive
Andrew Cieciala
Operations Director of Operations
Richard Price
Landlord Development Manager
Alison Perkins
Member Services Manager
Meurig Lloyd
Operations Manager Operations Support Officer
Barry Markham Sally Thorn Lyra Haldane
Simon Gordon
Communications Public Relations Manager
Regions Director for Regions Regions Coordinator Regions Support Officer
Dave Offord Charlotte Clements
Local Government & Accreditation Officer
Siobhan Cannon
Telephone Advisers Chris Hellings, John Coyne, David Mclean, Tesh Rai, Jilly Westcombe-Evans, Gordon Brierley, Jackie Taylor, James Fraser, Alan Jakeway, Pinday Wright, Catherine Behdad, Sally Blunt, Stephanie Traynor, Paul Gosal. Finance & Membership Administration Director of Finance and Company Secretary
Patrick Jacobs
Membership Manager
Pauline Wilson
Membership Administrator
Dean Johnson
Membership Administrator
Vicky Little
Membership Administrator
Shabana Khan
Accounts Manager
Ian Wilcox
Book-keeper
Janet McCarthy
HR Executive
Christine Williams
Systems Head of Systems
Richard Marston
Subs renewals/queries/change of address Tel: 020 7840 8937 E: membership@landlords.org.uk
England East of England Regional Representative Lynsey Sweales Local Representative (Bedfordshire, Cambridgeshire, Essex & Hertfordshire) James Fraser Local Representative (Norfolk & Suffolk) Graham Walker East Midlands Local Representative (Derbyshire & Nottinghamshire) Christine Darvill Local Representative (Northamptonshire) John Socha Local Representative (Lincolnshire & Rutland) Paul Collins Local Representative (Leicestershire) Christine Fernandes London Regional Representative Maryann Pearce Local Representative EuGin Song Local Representative Richard Blanco Local Representative Yvonne Baisden Local Representative Philip McGriskin North East Regional Representative Johnny Lighten Local Representative (Tyne & Wear) Bruce Haagensen North West Regional Representative Tom Reynolds Local Representative Carolyn Uphill Local Representative Mark Barrett Local Representative Garry Heil South East Local Representative (Kent) Marion Money Local Representative (Berkshire, Buckinghamshire & Oxfordshire) David Kybett Local Representative (East Sussex) Tony Richard Local Representative (West Sussex) Susan Bryer Local Representative (Hampshire) Ken Staunton South West Local Representative (Wessex) Lesley Dove Local Representative (Dorset) Steve Bartlett Local Representative (Mid-Devon & Exeter) Claire Heale Local Representative (Cornwall & Plymouth) Paul Hicks Local Representative (Taunton & Yeovil) Jane Smith West Midlands Local Representative (Staffordshire, Warwickshire & West Midlands) Mary Latham Local Representative (Shropshire & North Wales) Julie Woolfenden Yorkshire and the Humber Local Representative (Doncaster, Rotherham, Barnsley, Selby) Carl Agar Local Representative (Hull, Scunthorpe, Grimsby) Lynda Bowen Local Representative (Scarborough, Whitby, Bridlington) Jackie Smith Local Representative (Sheffield) Shona Davison Local Representative (Sheffield) Chris Bryan Northern Ireland Northern Ireland Representative
Connor McCann
Scotland Scotland Representative (Glasgow) Local Representative (Dundee & Fife) Local Representative (Edinburgh) Local Representative (Aberdeen)
David Kendall Gerry McDougal Tristan Compton Lorraine Young
Wales Wales Representative Local Representative (North Wales) Local Representative (South Wales)
Lee Cecil Julie Woolfenden Vince Botham
To purchase Tenancy Agreements Tel: 020 7840 8900 General Correspondence: 22-26 Albert Embankment, London SE1 7TJ Tel: 020 7840 8900 Fax: 0871 247 7535 E: info@landlords.org.uk www.landlords.org.uk
56 UKLANDLORD NOVEMBER/DECEMBER 2010
Please Note: All NLA representatives can be emailed by using their name and standard NLA email/derivative. e.g: Lee Cecil: lee.cecil@landlords.org.uk
UKLANDLORD NOVEMBER/DECEMBER 2010 57
products and SERVICES directory Products and Sevices Directory - adverts are booked in units or multiples of units. Each single unit measures 3cm x 1 column (6cm) wide. Prices are given per unit, as a total cost for the full schedule booked. See below. For all advert enquires please contact Steve Pearce at advertising@uklandlord.org.uk or on tel: 0117 330 8370
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LEGAL SERVICES
EPCs
LANDLORD PORTAL
COSTS: TRADE ADVERTISING 3 issues Black - £200 Colour - £260 6 issues Black - £380 Colour - £495 Prices per single unit 3cm x 6cm
NLA National Conference 2010 – Saturday 27 November 2010 at Park Plaza Victoria London, near Victoria Station, Central London For details and to register your interest please visit: www.landlords.org.uk/conference
58 UKLANDLORD NOVEMBER/DECEMBER 2010
products and SERVICES directory LANDLORD SOFTWARE
LETTINGS
GAS SAFETY
BUILDING
BEDS
FURNITURE
Profits Down the pan. Cut water bills, eliminate maintenance. See video on www.interflush.co.uk
PROPERTY FOR SALE London SE15
London
Postcode
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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
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UKLANDLORD NOVEMBER/DECEMBER 2010 59
LETTERS & EMAILS Letters to UK Landlord are welcome and should be sent by email to editorial@uklandlord.org.uk or by post to The Editor, UK Landlord Magazine, 22-26 Albert Embankment, London SE1 7TJ. Local authority housing benefit tenants and repossessions My business spans two Local Authority areas, Birmingham City Council and Solihull Borough Council. I am becoming more and more aware of council officials at both Housing Departments advising their ‘clients’ that if they do not pay their rent and fall into arrears and despite ignoring notices from landlords – notwithstanding the fact that they are receiving benefits – that they are to ignore requests from their landlords and not to move out until they are physically evicted. This is just moving the problem from the Local Authority and passing it back to the landlord who has to go through the painful and costly process of eviction of the tenants and the re-possession of their property. Surely it cannot be right or just for the Local Authority to tell their clients to behave in this way and I feel very frustrated and annoyed that this practice is being allowed. Is this the behaviour to be expected of new Government local authority officials? I wonder whether other landlords in these areas or others are having similar problems. Paul Murtagh, Baker Properties
e
Fair wear and tear I was very interested to read the article ‘What is Fair Wear and Tear?’ (UKL Sept/Oct 2010) However, what I would be interested in is how much deduction can be charged in percentage terms. If the microwave is rusty because the tenants haven’t wiped up their spills, then I charge them for a new microwave. If they break something, that, too, is easy. However what I find difficult is something like the following scenario: I once had an iron burn mark on a new carpet. The whole carpet wasn’t ruined but the tenant had obviously been ironing on the floor (ironing board had been provided!) and had put the iron down on the carpet whilst it was still hot and it melted the carpet. Does one charge 30 per cent of the replacement value if the carpet is new? 100 per cent? Or if the carpet is not new but still in good condition, 50 per cent? Some guidance on these sort of matters would be really helpful. Alexandra Dembitz
Unreliable boilers The case for local authorities The letter of Mr Muir made interesting reading. Until recently there to use their powers were plenty of good cast iron boilers about from the post-war years, Back in 2006 my life was turned upside down by a tenant who decided to sue me under the ‘houses in disrepair’ protocol through a solicitor. My first step was to contact my local strategic housing officer for advice. He stood by me throughout this unpleasant episode which lasted until January 2009. Although there was no validity to the tenant’s disrepair claim, I ended up (on the advice of a very experienced solicitor) giving my tenant an out of court settlement of £1,500 instead of being faced with at least a £10,000 legal bill. I would never have been able to recoup this from my tenant due to her financial position as a declared bankrupt. The tenant went to a no-win, no-fee solicitor who subsequently bailed out and left the tenant to muddle through by herself, and what a muddle it became. Had I been in the wrong and she had gone down the correct channel by going to the council’s strategic housing department this could have been averted. If the
property were in disrepair the officer would have written to me and I could have done two things: If I were a bad landlord I could have chosen to ignore any letters and not do the repairs therefore leaving the council to take me to court to require me to do the repairs, pay all the court fees, a council fine and compensate the tenant. Or, being a good landlord wanting to keep my properties in good repair, having received such a letter I would most certainly have done any repairs that were noted without any hesitation. I would appreciate it if Mr Gunby (UKL 146 Letters) thinks carefully before making flippant comments on this topic and suggest he should realise that David Salusbury’s article did make sense. If local authorities do their job, expenses would not be incurred by good landlords and rogue landlords would be punished where it hurts – in their pockets. Mrs Jill Thompson
For more letters to the editor, please go to the UK Landlord section of the NLA website.
now mainly squeezed out by lack of parts and the rhetoric of exuberant modernists. To some extent there are still some advantages with running a system boiler. One has the immersion heater back up for hot water. An electric fire can be used where immediate heat is required. Condensate boilers have only been a legal requirement for five years (except where flueing or drainage problems prevail) so it is a little early to assess the durability of parts. However, with pumps around £100, fans around £150, heat exchanges £300, replacement of two or even one major part does not render repair economic. Circuit boards are another irritating expense, but certain firms offer a reasonable repair service. One should consider the guarantee offered on a new boiler. Peter Hart Andy Muir has every reason to be concerned (UKL Sept/Oct 2010) about the poor reliability of modern boilers. Ever since the old balanced flue boiler was superseded by the fanned flue boiler, its modern condensing variants and combination boilers, reliability has plummeted. There is a huge mark up on the prices of modern boilers and their spare parts, compared to other mass-produced products. Any financial gains in boiler efficiency are likely to be offset by frequent breakdown costs. Combination boilers do have certain installation cost and space-saving advantages. However, when they fail, both heating and hot water services are usually lost. With a conventional boiler and separate hot water cylinder however, the immersion heater will provide hot water back-up. We are installing a new kitchen and have had to take out the 30-year old floor-standing Potterton Kingfisher which has never broken down. With the new top brand boiler replacing it, I am resigned to the high probability of a breakdown every 3 or 4 years. So much for progress. Just keep your wallet open Mr Muir! Bill Parish
The letters on this page express the views of those who wrote them and the NLA cannot take responsibility for their accuracy or for the views expressed. 60 UKLANDLORD NOVEMBER/DECEMBER 2010