Issue price: ÂŁ12 (where sold)
Issue No.149
UKLandlord The leading publication for the Private-Rented Sector
MARCH/APRIL 2011
Prospects for getting a B2L mortgage in 2011 Exclusive interview with Paul Rockett of NLA Mortgages
in this issue
Buy-to-let investment in regeneration areas
Real impacts for Tenant landlords from referencing LHA cuts and HMO explained planning rules
Who is responsible for what when using an agent?
EDITORIAL
UKLandlord March/April 2011: Issue 149 ISSN 1741 8801 Publisher’s statement: Circulation 22,500 PUBLISHER The National Landlords Association 22-26 Albert Embankment, London SE1 7TJ Contact > Richard Price, Director of Operations E: richard.price@landlords.org.uk EDITORIAL Editor > Andy Stern E: andy.stern@uklandlord.org.uk Managing Editor > Louise Gale E: editorial@uklandlord.org.uk T: 020 8458 5100 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 2011. 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... There are promising signs of competition and a greater choice of buy-to-let mortgages during the year ahead. This is the view of Paul Rockett of NLA Mortgages who sets out his in-depth outlook for the buy-to-let mortgage market. If buy-to-let mortgages do become more economically viable, buy-to-let investors may well be interested in our article in this issue on buying residential property in areas earmarked for regeneration. By removing the option for an insurance-backed scheme in its latest proposal for tenancy deposit protection in Scotland, the Scottish Government is providing fewer options to Scottish landlords than are available to their English and Welsh counterparts. The NLA believes that politicians should concentrate on sorting out the mess of private-landlord registration in Scotland before committing to new regulation for tenancy deposits. We also hear in this issue from NLA Executive Chairman David Salusbury who sounds the alarm about the real consequences of the Coalition Government’s decision to devolve powers to local authorities in England when it comes to planning and houses in multiple occupation. Although the idea sounded workable, the reality is that this could well lead to a reduction in the supply of affordable housing in many cities. And, while recent research by the NLA shows that tenant demand continues to rise in the private-rented sector, the Government is expecting landlords to absorb the cuts it will make to Local Housing Allowance as part of its welfare reform. Again, something is not quite right here.... To end on some good news, the NLA Advice Line is piloting a late-night service on Monday evenings. 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 the Regions Barry Markham
UKLANDLORD MARCH/APRIL 2011 01
02 UKLANDLORD MARCH/APRIL 2011
CONTents
Inside this issue...
NLA
FEATURES
04 04 MESSAGE from the chairman
06
28
Courses scheduled for 2011.
Thinking of investing in an area earmarked for regeneration? Jackie Sadek of Regeneration UK looks at criteria for buy-to-let investments, and think twice before letting your property during the London 2012 Olympics.
16 Finance & Tax Santander’s free banking for NLA members. 18 Planning Saving affordable housing in Portsmouth. 18 Finding Tenants NLA Tenant Checks freezes its prices.
12 FUTURE PERSPECTIVES FOR THE BUY-TO-LET MORTGAGE MARKET
Find out about credit checks and risk assessment that landlords should follow before taking on a potential tenant.
18 Local Housing Allowance Government moves to allow direct payment of LHA
20 Landlord & Tenant The importance of settling claims with tenants in full and final settlement.
20 HMOs Heavy fines for landlords with low standard HMOs.
22 Safety in your property Overhaul of Building Regulations. 24 Social Housing A national crackdown on housing fraud.
40 USING AN AGENT
40 PUBLIC AFFAIRS
14 LANDLORD PROPERTY MANAGEMENT 08 INVEST-TO-LET IN LONDON 2012 AND OTHER REGENERATION 14 BUYING & SELLING SCHEMES Empty homes and commission fees on sales.
Paul Rocket of NLA Mortgages looks at NLA NEWS prospects for more availability and better Apply to become the NLA’s Chief Executive or deals for buy-to-let mortgages in 2011. one of the NLA’s non-executive directors, member feedback sessions and a new late 26 EXPERT OPINION ON TENANT night NLA Advice Line service. REFERENCING
32 LANDLORD DEVELOPMENT & NLA ACCREDITATION
55
40
NLA Executive Chairman David Salusbury on local authorities’ use of Article 4 Direction powers and recent Government concessions on Local Housing Allowance payments. NLA CAMPAIGNS New planning requirements for HMOs and why we disagree with Thanet on selective licensing.
07 HOT OFF THE PRESS
REFERENCE
Europe, Sale and Rent Back and new Scottish tenancy deposit rules.
64 LETTERS & EMAILS
Key tips from NLA Director Richard Price on selecting an agent and knowing who is responsible if things go wrong with the tenancy.
REGIONS
24 Maintenance & Repairs The switch to digital. 25 Sustainability EPC data: achievability of zero carbon targets.
55 MORTGAGE MARKET ROUNDUP and house prices
NLA SERVICES
33
48
33 REGIONAL NEWS Find out more about LHA cuts and HMO planning
requirements at the NLA’s local events, impacts of Manchester’s Article 4 Directions, and Scottish interest-free loans for energy efficiency.
46 NLA Advice Line
36 YORKSHIRE AND THE HUMBER FOCUS Regional investment information.
“Under the Big Society, the Coalition Government is embarked upon the biggest experiment we have ever seen in regeneration policy.”
50 NLA RECOGNISED SUPPLIERS
38 EVENTS GUIDE
Jackie Sadek, Chief Executive, UK Regeneration
62 NLA MEMBER VIEWPOINT
53 NLA PARTNER NEWS 54 HCR: Relocation Specialists
UKLANDLORD MARCH/APRIL 2011 03
message from the EXECUTIVE chairman
March/April 2011
Cause for concern: LHA cuts and Article 4 Directions David Salusbury, NLA Executive Chairman Although many landlords started off the year full of optimism, the grim reality of the damaging consequences for landlords from the planned LHA cuts is now setting in as well as how local authorities in England are using their new powers to reduce options for affordable housing through restrictions on shared housing. One of the single biggest issues on the NLA’s radar at the moment is the use by local authorities in England to bring in Article 4 Directions under last year’s order that amended the Town and Country Planning Act 1990. The rules, which are usually reserved for use in conservation areas, permit local authorities to require landlords to seek planning permission in any nominated area if there will be a change in the occupation of their rental property from a family to three or more unrelated people sharing the property. Many people – whether young professionals, key workers, students or low-income workers – tend to live in shared accommodation. The uncertainty that will be created from local planning application processes, as well as the time it takes and the hassle involved, is likely to deter many landlords from offering shared accommodation to
04 UKLANDLORD MARCH/APRIL 2011
rent in areas where these types of restrictions will take place. This could well lead to a dire shortage of affordable housing in these areas, which could have an adverse impact on local businesses and communities. A number of local authorities in large metropolitan areas such as Manchester, Newcastle, Portsmouth, Exeter and Bristol have already published their intention to bring in these restrictions. In the case of Manchester, landlords seeking to let properties in any part of the city which will be shared by three or more tenants will need to seek planning permission as from October of this year if the property was previously rented as a family home. The NLA believes that these local authorities should reconsider their approach which will have serious repercussions on the private-rented sector and the supply of housing in general. Local authorities should not confuse shared housing with the so-called ‘studentification’ issue of imbalanced communities. They need to be aware that using these powers will affect people like nurses or low-paid workers who share houses as an affordable housing option. We are entitled to expect a better standard of analysis from those
entrusted with powers in local government. I would urge all NLA members with properties in areas where local authorities plan to or have published their Article 4 Directions to make their concerns clear about this issue with their local MP and with their local councils. Our suggestion for doing this can be found on our website, www.landlords.org.uk/campaigns. The effect of LHA cuts and welfare reforms The Coalition Government faces enormous dilemmas over the next few months as LHA rates are cut and capped and it attempts to introduce further welfare reforms. Clearly, there is a large black hole of deficit that needs to be addressed. The Government has an ideological vision on Universal Credit that it is intending to pursue, however, if not implemented extremely carefully, the changes under consideration could disrupt the structure of the housing stock. We have received varied reactions from NLA members about the cuts to LHA. Most tell us they are grappling with three options: absorb the reductions in the rent they will be able to obtain if renting to tenants receiving LHA, avoid letting to Housing Benefit claimants, or leave the privaterented sector altogether.
In the lead up to the 2010 General Election, the soon-to-be Housing Minister, Grant Shapps, pledged to restore the right of tenants to request that Housing Benefit be paid directly to the landlord. Following some gentle reminders from the NLA and the industry as a whole, the Government has agreed that local authorities should have a tiny bit of greater discretion to allow direct payments – but at a cost. From April 2011, we understand that local authorities will have powers to make direct payment to landlords if doing so will help ‘secure or retain’ a tenancy. Reading between the lines the message is simple: if landlords want direct payment, they will have to cut rents to the prevailing LHA rate. Whilst the NLA recognises this as a step in the right direction and accepts that landlords should be prepared to be pragmatic, it is only a step and we have doubts that most landlords will be able to cut their rents and still cover their costs. It is important to look at the desired outcome, namely a balanced housing market, with a healthy private-rented sector
playing a key role, rather than allowing ideology to obstruct the desired outcome. But it is equally important to recognise that as businesses landlords cannot escape the bottom line. In the meantime, until any welfare reforms take effect in April 2011, the NLA is recommending that landlords who let their properties to tenants receiving LHA use the LHA Direct website (https:// lha-direct.voa.gov.uk) to find out exactly how the LHA changes will affect rents in their area. Finally, as the NLA grows and develops, best practice dictates that its governance must also evolve. The Institute of Directors published a new voluntary code in November 2010, ‘Corporate Governance Guidance and Principles for Unlisted Companies in the UK,’ which the NLA board has resolved to work with, where appropriate to an organisation such as ours. This, in part, is why the NLA is now seeking to appoint a Chief Executive and Non-Executive Director/s*, adverts for which appear in this issue on page 28. n
We are entitled to expect a better standard of analysis from those entrusted with powers in local government.
Read more online www.landlords.org.uk
*Non- executive directors co-opted onto the board are required to stand for election by the members at the following AGM.
UKLANDLORD MARCH/APRIL 2011 05
NLA CAMPAIGNS
STARTING UP
REGULATORY
PROPERTY
NEWS
SAFETY
FINANCE
Find out here about the NLA’s latest campaigns to encourage the Government to achieve a healthy private-rented sector. Planning for all, or planning for a fall? Following a year of political uncertainty, an historic election, and the reversal of a number of national policies, 2011 has got off to an altogether more local start. The Localism Bill in England is undergoing its parliamentary debate and local authorities are mulling over their options under the auspices of the ‘Big Society’. There is a very real threat on the horizon for landlords arising from the policy of devolving power from Whitehall to local arenas. Local authorities throughout England are considering the introduction of ‘Article Four
Directions’ to control the spread of shared housing in their catchment. An Article Four Direction effectively removes permission for a property to be changed from a family home to one which is occupied by a small group of unrelated sharers. A number of major metropolitan areas
including Manchester, Newcastle and Portsmouth are intent on removing consent for new small HMOs. The NLA believes that this has the potential to damage not only landlords’ businesses but also to have far wider consequences for local communities. n
Please visit the NLA website (www.landlords.org.uk) for up-to-date local campaigns and to get involved. If you have any information about other councils with similar plans in your area, please contact policy@landlords.org.uk
You can’t win them all... but we’ll keep trying The NLA has long argued that Thanet does not need a selective licensing scheme. Marion Money, NLA Local Representative for Kent, worked hard to convince Thanet of this based on the belief that licensing is an ineffective way of either improving property standards or reducing anti-social behaviour in the private-rented sector. Despite these efforts, significant local opposition and 44 per cent of those consulted saying they did not think that licensing was the right way to tackle Margate’s problems, the Council pressed on. From 21st April 2011 all landlords who are letting a room, a flat or a
house in the Cliftonville West or Margate Central wards will be required to gain a licence from the Council. Failure to do so could result in fines of up to £20,000. As this scheme now appears inevitable in Thanet, the NLA has decided it is best to focus its efforts on keeping the costs and paperwork to a minimum. The NLA has negotiated with Thanet to secure a number of discounts for landlords who make early applications. For more information please see page 34. n Marion Money, NLA Local Representative (Kent)
To see more about the external affairs activities of the NLA, go to the Public Affairs section on page 40.
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Hot off the Press!! Dane Svenson NLA Press Officer From a social media campaign to save housing in Portsmouth, tax tips in The Times and handy advice from our Chairman for landlords on BBC Radio 4, it’s been a busy two months in the media for the NLA.
Save housing in Portsmouth When Portsmouth City Council announced plans to curb the amount of shared housing in the city, we decided to fight back with a social media campaign urging landlords to write to their local MPs. The Daily Express reported our concerns that the changes are expected to severely limit the amount of shared housing in Portsmouth and, with that, the number of homes for low-income earners and students at the University of Portsmouth. Unfortunately, despite our objections, the Council voted to increase restrictions, claiming the high concentration of shared housing (which would include houses in multiple occupation) is burdening other residents with antisocial behaviour and noise.
Tax Tips from Marion Money Many landlords would have spent the month of January crunching numbers with their accountants to get their self-assessment tax returns in for the end of the month. This year HM Revenue and Customs will be taking extra care to process returns after six million people were found to be paying the wrong amount for the last two years. NLA Local Representative for Kent, Marion Money, gave her tax tips to The Times including how landlords can claim up to £1,500 tax back under the Landlords’ Energy Saving Allowance. It applies to tax paid on insulating and draft proofing rental properties to make them more energy efficient. The full £1,500 can be claimed back on each property a landlord owns and you can find out more from the NLA Landlord Library (www.landlords.org.uk/library).
Money Box Live NLA Executive Chairman David Salusbury was a special guest on BBC Radio 4 Money Box Live along with Marveen Smith, partner at Pain Smith Solicitors and John Gallagher, principal solicitor at Shelter. The experts gave their advice to landlords who phoned in with questions on everything ranging from tenancy deposit protection, dampness in properties, housing benefit cuts, agent renewal fees, gas safety inspections and troublesome tenants. Of course, if you’re a member of the NLA you can get tailored advice from our Advice Line team.
Want to know more...? • • • •
Fancy a read of the NLA blog? It’s all here: http://nlauk.wordpress.com Follow us on Twitter to read the latest NLA news and industry comment www.twitter.com/nationalandlord Become a fan of the NLA on facebook: http://tinyurl.com/yztxyd4 Drop us an email if you think there are issues that the NLA should be investigating: press@landlords.org.uk
Follow us at twitter.com/nationalandlord
UKLANDLORD MARCH/APRIL 2011 07
FEATURE REGENERATION OPPORTUNITIES STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
What opportunities do London 2012 and other regeneration schemes present landlords and buy-to-let investors? Whether it’s the likes of large football clubs such as Tottenham Hotspur and West Ham looking for a new stadium, or landlords looking to buy property at low prices in an area set to take off, the London 2012 Olympic project is focusing the attention of many on the opportunities and pitfalls that regeneration presents. UK Landlord examines how landlords can invest well in areas earmarked for regeneration across the UK in the next few years and looks at opportunities for buy-to-let investment and rentals in the particular case of London 2012. Buy-to-let opportunities from London 2012 The enormous public investments that have taken place in the east of London in preparation for the London 2012 Olympic and Paralympic Games have captured the interest of serious property investors over the last few years who hope to benefit from the increased prosperity the Olympics will bring to this area of regeneration. Jackie Sadek, founder and chief executive of UK Regeneration, an organisation which aims to support and represent people engaged in regeneration in the UK, believes there are still buy-
08 UKLANDLORD MARCH/APRIL 2011
to-let property investment opportunities in and around the London 2012 Olympic Village. “Rather than look to the obvious places such as Stratford or north Newham, we would point to the London Borough of Hackney as still being somewhat overlooked, particularly Hackney Wick,” Jackie advises. “In close proximity to the site (although this is not immediately obvious, due to current poor transport links), Hackney, with good housing stock and a proactive local authority, will definitely benefit from the ‘ripple effect’. In the longer term, the Royal Docks (South Newham) should be watched carefully; although the land ownership (over 80 per cent of the old Land Development Agency land holding is in the Royal Docks) is in the process of being sorted out, it needs to come forward at some point.” The arrival of Crossrail, due in 2017, should add momentum to the regeneration process.
Jackie says it remains to be seen whether the Mayoral Development Corporation that will be formed for the Olympics Legacy “is allowed to become a potent enabling body or whether it will be another organisation that just gets in the way.” Pitfalls from short-let Olympic rentals Unfortunately it is likely that in the run-up to the London 2012 Olympic and Paralympic Games we will see a regular supply of newspaper articles about the rich pickings homeowners can make by letting their homes for a few weeks in July and August 2012. While the high rents that may be achieved between 27th July and 12th August are certainly not to be sniffed at, landlords should beware of evicting good tenants simply to cash in for a couple of weeks after which they may well find
themselves without a tenant and possibly with a property that needs repairs and repainting after the end of Games festivities are over. NLA members with friends thinking of letting their homes should remind them that even if you let out your home for a few weeks, before moving back in, that makes you a landlord, with all the responsibilities, obligations and liabilities that entails. Chris Hellings of the NLA Advice Line advises that short-lets of this kind would come under the holiday lettings regulatory regime. Holiday Let Agreements are specifically excluded from the Housing Act 1988 so tenants have no security of tenure and must vacate the property at the end of the fixed term or if found to be in breach of the terms of the agreement. Legal form publishers Lawpack – who are part of the NLA’s Recognised Suppliers Scheme – make available a template Holiday Let Agreement which has been drafted by solicitors and is valid for use with most types of holiday let properties.
Luke Bennett is director of the SW Group, a lettings agency operating in and around the leafy Wimbledon area of south west London and a member of the UK Association of Letting Agents. From his experience with letting properties at the time of the annual Wimbledon tennis championships, Luke likens short-term letting of this nature to “a glorified hotel room”. He uses a holiday letting agreement and recommends “the rule of thumb measure on rental amounts charged is between 3 - 4 times the normal comparable monthly rent. Luke warns that “while the London Olympics next year can present a healthy bonus in cash flow during this period, anyone letting a property during this period should ensure a full independent inventory is completed beforehand and that enough deposit is taken to cover accidentals.” He also advises that “using a professional referencing company to check the tenants prior to moving in will highlight any ghosts in the closet of even the most polished fraudster.”
Jackie Sadek, Chief Executive, UK Regeneration
London 2012 facts and figures The London 2012 Olympic and Paralympic Games will involve an estimated: • 11,000 athletes in 300 events, with 5,000-6,000 coaches and officials, attended by 4,000-5,000 other members of the Olympic community. • Over 7,000 sponsors. • 20,000 newspaper, radio, TV, & internet journalists. • Over nine million tickets in total, and 500,000 spectators a day at events in and around London. • 63,000 operational personnel, of whom 47,000 will be volunteers as stewards, marshals, and drivers etc.
UKLANDLORD MARCH/APRIL 2011 09
FEATURE REGENERATION OPPORTUNITIES STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Regeneration across the UK For many landlord property investors, London 2012 is likely to be the spur that leads them to look for investment opportunities in other areas. As with all successful investments in residential property, the key is to know your area and its market well, and to do all the necessary research if you are looking at an area you are less familiar with. For Mark Garner of LettingZone,“the goal here is long-term capital growth with minimum voids so aim for tenants who will stay. The lower cost of the property could off-set the lower rents you will achieve in some areas.” Source: Cities Outlook 2011, Centre for Cities
Government policy in relation both to reducing the deficit and how public funds are spent is likely to be an important factor in how regeneration projects are conceived in the next five years. “Under the Big Society, the Coalition Government is embarked upon the biggest experiment we have ever seen in regeneration policy,” comments Jackie Sadek. “We know that what went before was hugely expensive and, frankly, didn’t always work. We are actively working in support of the Big Society as it is the best hope there is.” In keeping with its Big Society philosophy, the Government has steered regeneration policy away from ‘top-down’ initiatives towards a localist (‘bottom up’) approach. It recently opened bidding for its £1.4bn Regional Growth Fund and the successful bids (450 were made) will be announced shortly. To be eligible, the bids had to be from private sector-led partnerships and are likely to give a good indication of which regions’ business leaders want to play a role in increasing economic growth.
Jackie Sadek recommends that landlord investors looking to benefit from local regeneration plans would be well advised to take a close look at the bids that are successful, as well as those which are not successful but which look promising as “very often, people will find a way of carrying out their proposals even without (scarce) government grants.” Hot spots for public spending on infrastructure According to the Cities Outlook 2011 report of Centre for Cities, an independent research and policy institute whose mission is to improve the economic performance of UK cities, the pace of economic recovery in cities across the UK remains uneven. The report predicts that while in the longer term, cities such as Bristol, Edinburgh, Reading and York look “well positioned to support national growth by building on their diverse industrial base and high skills levels, the economies of cities like Liverpool, Newport and Swansea are vulnerable
to the forthcoming public sector cuts in the short-term because of their weaker private sector economies and their dependence on public sector employment.” Cities Outlook 2011 underlines the fact that public spending on infrastructure is vital for supporting future economic growth. Under the Coalition Government’s current plans, this type of expenditure is in for a squeeze over the next five years with net investment due to fall from 2.9 percent of GDP in 2010/11 to 1.3 percent in 2014/15. Despite this significant reduction, the Government has recognised the importance of infrastructure spending and in particular the need to invest in transport. In the Spending Review, the Department for Transport received a sympathetic settlement (with its budget reduced by 15 percent by 2014/15) and funding approved for key capital projects, such as Crossrail and upgrades to the Tyne and Wear Metro. n
Links For more information: UK Regeneration - www.ukregeneration.org.uk Cities Outlook 2011 Report - www.centreforcities.org
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UKLANDLORD MARCH/APRIL 2011 11
Feature – MORTGAGE MARKET PERSPECTIVES STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Perspectives on the buy-to-let mortgage market Since the credit crunch took hold, the buy-to-let mortgage market has looked a lot less welcoming than in the boom times. Many industry analysts consider the buy-to-let (B2L) mortgage nadir was reached in September 2009 when 95 per cent of the mortgage deals available at the peak of the market were withdrawn. With the market now showing signs of improvement in 2011, Paul Rockett of NLA Mortgages considers the current and future outlook for the B2L market. UK Landlord: How would you describe the current buy-to-let market?
Do you see more buy-to-let products being launched in the market in 2011?
Paul Rockett, NLA Mortgages: The buy-to-let mortgage market has definitely stabilised and shows positive signs of recovery. Although the market experienced steady growth throughout 2010, total lending levels for the year were still relatively low at around £10bn. It is expected that buy-to-let lending will continue to increase in 2011, perhaps reaching £12bn by the end of the year. During 2010 there was also an increase in the number of lenders and products in the buy-to-let market, resulting in more competition and better choice for landlords. It is likely that more lenders will enter the market in 2011, providing new product ranges and helping to further improve the buy-to-let mortgage market.
Paul Rockett: There will definitely be an improvement in the number of buy-to-let mortgage products available in 2011. It is almost certain that more lenders will enter the market, launching new product ranges for landlords. Some existing lenders have expressed an intention to increase their buy-to-let lending levels this year too and are likely to offer more products in order to achieve that goal.
What do landlords need to provide lenders nowadays in order to secure a deal? Paul Rockett: Since the credit crisis impacted the buy-to-let market in 2007, lenders have been more cautious in their approach to lending; criteria tightened and loan to values decreased so that landlords have to provide higher deposits. Rental income requirements are now more demanding, and most lenders require proof of deposit and proof of income. However, 2010 did see some improvement in this area, for example, there are now some 80 per cent Loan-To-Value products available and we may see further easing of criteria during 2011.
12 UKLANDLORD MARCH/APRIL 2011
Paul Rockett, NLA Mortgages
Do you foresee better deals than those that were offered during 2010? Paul Rockett: As new lenders enter the market and the number of products increases, there will be greater competition for buy-to-let business. Increased competition should result in more attractive deals being offered in 2011. Of course, the rate of inflation and its impact on interest rates will also determine the price of buy-to-let finance.
Should landlords consider remortgaging at present or are the deals on offer likely to be less good than the 2 per cent over base that many landlords’ deals have reverted to over the past couple of years? Paul Rockett: The weight of opinion is that there is likely to be a rise in interest rates during 2011. However, it is unclear as to how high
rates will go and when. Some economic experts have suggested that Bank of England Base Rate may reach 2 per cent by the end of the year and continue to rise in incremental steps during 2012. If this proves to be the case, some landlords with existing deals may benefit from remortgaging onto a fixed rate.
Will the heady days of the property boom return, along with cheap finance, and if so when?! Paul Rockett: As markets are cyclical it is inevitable that property prices will increase and cheaper finance will become available. However, it will probably be another 10 to 15 years before we experience another boom. n
For latest B2L mortgage deals, see Mortgage Market Roundup on page 55.
???????????????????? ???????????????????? ???????????????????? ???????????????????? ???????????????????? ?????????????????? Neil McDonald, Director Housing Management, Homelessness and Support, CLG.
UKLANDLORD MARCH/APRIL 2011 13
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. STARTING UP
REGULATORY
PROPERTY
TENANCY
Buying & Selling Restrictions to limit council powers over empty homes New rules are being introduced in England by the Communities Minister Eric Pickles which will make it more difficult for local authorities to seize houses that have been left empty for more than six months. The guidelines will restrict the use of Empty Dwelling Management Orders (EDMOs) which were introduced by the Labour Government in 2006. In future, local authorities will only be able to obtain an EDMO for empty properties that have become targets for vandals, squatters and other forms of anti-social behaviour. Councils can also seek EDMOs when properties have been standing empty for at least
two years, in which case owners will have to be given at least three months’ notice before one can be issued. It is hoped that this move, which is subject to consultation, will protect property owners at a time when the Government prepares to bring back into use many of the 300,000 properties in England
that have been empty for a long period of time. Mr Pickles said he was concerned that in the past councils had used the orders to take inappropriate action against homeowners including one local authority which tried to use the powers against a woman whilst she was caring for her injured daughter in France. n
Better returns from ‘Grade C’ stock? Savills, the property agent and consultancy, has forecast that demand for lower quality tenanted homes, which it defines as ‘C stock’ could provide buy-to-let investors with attractive returns. Savills argues that, with finance no longer readily available for lower income buyers to get a foot on the property ladder, and rents rising as a consequence, these properties will increasingly be bought by investors and sold on to other investors at prices based on the rental income they are able to generate. The forecast is based on a prediction that
14 UKLANDLORD MARCH/APRIL 2011
mainstream rents will rise by 7 per cent in 2011, by 6.5 per cent in 2012 and by 5.5 per cent in 2013, which Savills believes will increase the value of tenanted ‘Grade C’ properties if they are assessed by investors on the relatively high rental yields they offer, at around 7 per cent or more. NLA Executive Chairman David Salusbury advises investors to look carefully at the market they are considering and do their homework. “Someone contemplating investing in residential property would need to think it through very carefully and seriously,” he said. n
SAFETY
FINANCE
Impact of VAT increase on the property sector The increase in the standard rate of VAT from 17.5 per cent to 20 per cent that took effect as from 4th January 2011 is likely to adversely affect many of those involved in the property sector since it will apply not just to commercial rents but also to service charges paid by leaseholders to freeholders. It will also result in an increase in the VAT due on the purchase of freehold property or land.
The Law Society advises that “the changes will affect calculation of the net present value (NPV) of rent payable under a lease, where VAT is charged on the rent. In calculating VAT, the tax point for rental payments is either the date on which a VAT invoice is issued, or a payment is received, whichever is the earlier.” The NLA is campaigning for the VAT rate for renovations and home improvements to be reduced to the minimum allowable 5 per cent, which would remove many of the cost barriers to improving quality standards, help to modernise ageing housing stock and also remove much of the advantage traders currently operating in the ‘black market’ have over legitimate tradesman who charge the appropriate VAT. n
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Buying & Selling Beware agents’ terms The Property Ombudsman has decided an agent was in breach of The Property Ombudsman’s Code of Practice for not explaining in writing his commission fees for a property sale. The vendors had signed two agreements with the agent, the first providing for a percentage commission fee, and the second providing for a fixed commission fee. The sale of the property completed during the term of the second agreement to a buyer who had been introduced to the property during the term of the first agreement. The agent argued that he was contractually entitled to payment
of the percentage commission fee as the buyer had been introduced during the term of the first agency agreement. This was disputed by the sellers, who considered that the fixed fee was payable. The Property Ombudsman judged that under Paragraph 3h of the TPO Code of Practice, the agent had an obligation to fully explain his fees in writing, and that if the agent intended for the terms of the first agency agreement to apply to parties already introduced to the property, this should have been clearly stated in writing. Since the agent did not do this, the Ombudsman decided he was in breach of Paragraph
3h of the Code of Practice, and was not contractually entitled to payment of the percentage fee. The Ombudsman told the agent to withdraw the percentage commission fee invoice and issue the sellers with an invoice for the fixed fee. The case underlines the importance of getting clear
agreements in writing when dealing with agents so that no misunderstandings occur. Please note that The Property Ombudsman does not release the names of people involved in cases he adjudicates. n
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Finance & Tax Santander preferential business account for NLA members Santander Business Banking has launched its first Business Current Account specifically designed for the National Landlords Association. NLA members will be able to benefit from free day-to-day banking and a no-hassle switcher service. This is the first time Santander has launched a Business Current Account designed exclusively for an Affinity customer such as the NLA. The offering replaces the previous scheme provided by Alliance & Leicester (which has now become Banco Santander),
and is available, with preferential benefits, to NLA members. As an Affinity customer, you can benefit from free day-to-day banking transactions (within certain transactional limits), a reduced excess cash deposit charge of £0.45 for every £100 and account access via telephone, Post Office and Santander’s cash machine network. The account is available for businesses with a turnover of up to £1m. NLA members can open a Santander Business Current Account over the phone with the
support of a business advisor. Paula Ickinger of Santander said “Business customers should not be afraid of switching their account, as we have a dedicated switcher team to ensure the process is as smooth as possible.” Under Santander’s no-hassle switching service, it will transfer all the mandates and regular payments from an existing account with another bank and will also match any overdraft that is in place (depending on circumstances). n
For further information on the range of services available to landlords, visit the Santander Business Banking website at www.santander.co.uk/landlord or telephone 0800 068 6698 or email business.development@santander.co.uk
FSA bans five mortgage brokers The Financial Services Authority (FSA) has banned five mortgage intermediaries and fined one of them more than £100,000, bringing the total number of mortgage intermediaries banned since December 2006 to 101. Most of the individuals in these latest actions have been banned because they are not considered by the FSA to be fit and proper to work in regulated financial services through failings that led to mortgage fraud. One of the five banned was Mark Thorogood trading as Property Park Mortgages in
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North Wales, who was also fined £104,294. The FSA found that Thorogood had knowingly submitted fraudulent mortgage applications, including for himself and his wife, inflating his income from £22,950 to £120,000 and her income from £8,832 to £95,000. Margaret Cole, the FSA’s managing director of enforcement and financial crime, said: “Mortgage intermediaries must adhere to our rules to ensure that consumers are treated fairly and protected from excessive risk, and this reduces the possibility that lenders are exposed to
fraud. For those that don’t follow the rules the consequences are very serious. Not only might they receive a fine and a ban, but - by no longer being able to work in regulated services - they also face losing their livelihood.” The other brokers were: Darren Button formerly of Property Park Mortgages, Colwyn Bay, North Wales, Daniel Djaba trading as DPD Consultancy Services, London and Adeolu Adeosun, formerly of DPD Consultancy Services, London, and Waheed Hanif, trading as The Broker Group, Burton upon Trent. n
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Tenants to be considered in repossession actions
For newcomers to the buy-to-let market in England and Wales, a small reminder to double-check the terms of your mortgage agreement to be sure that your lender specifically consents to you letting your property. New rules have been introduced which will involve tenants to a greater extent in any mortgage repossession proceedings where a landlord has not been given consent to let their property by their lender and later faces repossession action. Under the new rules tenants will be able to attend the repossession court hearings for the first time and judges will be able to take their situation into account. The court will also be able to delay repossessions by up to two months to give the tenant more time to find a new home. The guidance which came into effect in October 2010 makes clear the rights these tenants have when their landlord faces repossession action, but also sets out the steps lenders must take. These changes come as part of the Mortgage Repossessions (Protection of Tenants etc) Act 2010. n
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Planning
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Finding Tenants
Planning permissions lowest in five years The number of planning approvals granted by local authorities for new houses went down in the latter half of 2010, according to figures from the Home Builders Federation. The New Housing Pipeline Report showed that the number of approvals given in England in the first quarter of last year was 40,453, which then dropped to 32,750 for the second quarter and
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31,553 for the third quarter. The figures show that the number of planning permissions has dropped significantly from 2007/08 levels, and are now at one of the lowest levels for the last five years. The impact of the drop may not be obvious for some time because there is typically a lag of three years between approvals and the completion of a new home. n
Price freeze on tenant checks NLA Tenant Checks has confirmed that it will not be raising the prices for its tenant referencing service in line with the VAT increase. To keep its costs down, the NLA’s tenant check service, NLA Tenant Checks, has reduced the unit price of all its products thus absorbing the rise in VAT.
Portsmouth opts for Article 4 Directions Joining Newcastle, Manchester, Bournemouth, Exeter and Bristol, Portsmouth City Council is the latest council to opt for Article 4 designation of parts of the city so that it can control shared housing. The NLA launched an online Twitter, Facebook (‘Save Housing in Portsmouth’) campaign to highlight the impact the proposal will have on the
area. Ken Staunton, NLA Local Representative for Hampshire, warned that the new planning requirement for properties that will be used by three or more sharing tenants will “make it impossible for local landlords in Portsmouth to provide more homes for sharers, students and people on low incomes.” He added: “It will also have a terrible
effect on the whole community including local businesses that are already struggling and may lose vital customers as a result of these plans. People in Portsmouth, like everywhere else, need to be supported during these tough times and that includes ensuring affordable housing remains protected and local businesses are able to thrive.” n
Local Housing Allowance LHA direct in return for reducing rent? New rules due to come into effect in April will give landlords the option of receiving Local Housing Allowance direct, provided that they reduce the rent. The Coalition Government will introduce this proposal as part of New Housing Benefit Regulations aimed at encouraging more private landlords to accept tenants on housing benefit.
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Lord Freud, the Welfare Reform Minister commented: “We are looking for private landlords to respond to the need for lower rents and in return we are prepared to permit direct payments from the state.” The NLA believes the Government must recognise the real cost of providing homes to rent. “In many parts of the country landlords will not be in a financial position to
cover the shortfalls likely to result from cuts to LHA and housing benefits,” NLA Executive Chairman, David Salusbury responded. “We call on the Government to monitor these changes closely and take decisive action where the supply of this much-needed housing is adversely affected.” The Government is planning to delay capping LHA paid to existing recipients until January 2012, in order to lessen the severity of the cuts, but new recipients of LHA will have their allowances cut from April 2011, capping the maximum payment to tenants anywhere in the UK at £400 a week, and basing LHA calculations on the 30th percentile of local average rents, rather than the 50th as at present. n
The Basic Tenant Check provides information for landlords about potential tenants including a County Court Judgement search, bankruptcy and insolvency search and address history confirmation. The Full Tenant Check combines the results of the Basic Tenant Check with references obtained from the tenant’s employer (including income confirmation), references obtained from previous landlord (or letting agent), as well as confirmation of previous property ownership and bank account details. For NLA members, a basic check costs £8 and a full check costs £23 (subject to the landlord or tenant providing the necessary information). For non-members, a basic check costs £12 and a full check costs £28. n
To purchase a tenant check or to obtain further information, please visit: www.landlords.org.uk/ tenantchecks
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Landlord & Tenant
HMOs
Case highlights need for water-tight settlements
Heavy fines for landlords of poor standard HMOs
A tenant has been allowed to pursue a separate claim for disrepair against a landlord in spite of agreeing to a compromise settlement to move out of a rental property. The Court of Appeal case of Henley v Bloom was the culmination of a long history which started when the landlord, NLA member Shelley Bloom, took a possession claim to get Andrew Henley out of her property in Brighton. Mr Henley defended the case on the grounds that he was a Rent Act tenant. A compromise agreement was reached under which Mr Henley would move out and Mrs Bloom would pay him £16,000 plus his costs when he vacated the property. However, eighteen months after Mr Henley moved out, he registered a claim against Mrs Bloom alleging that she had failed to maintain the property. Mrs Bloom tried to block the case claiming that it was an abuse of process and that he should have made the claim when they
were in court for the possession case. Mr Henley received legal aid and even though his case was rejected by several courts, his lawyers took it to the Court of Appeal. After reviewing the evidence the Court of Appeal decided to allow Mr Henley to pursue his case. The court said that if Mrs Bloom had intended her payment to be in full and final settlement of any claim arising out of Mr Henley’s possession of the
property she should have written it into the compromise agreement. Mrs Bloom told UK Landlord that she now has to pay £80,000 in legal costs. Chris Hellings of the NLA Advice Line said “The lesson from this is that when settling claims with tenants make sure you bar all possibility of claims that they might bring from their occupation of your premises.” n
Landlord jailed for unlawfully evicting tenant A landlord has been jailed for three months after pleading guilty to unlawfully evicting a tenant from his property. Oxford City Council said in a statement on its website that landlord Kenston McIntosh evicted his tenant, Michael Hutchinson, without a court order. Oxford Crown Court was told that Mr Hutchinson had been paying rent in cash for the property since 2006 but when his circumstances changed he stopped working and applied for Housing Benefit. The court heard that Oxford City Council said they could only process a claim with
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proof from the landlord that Mr Hutchinson lived at the property. The court was told that Mr McIntosh refused to provide proof and asked Mr Hutchinson to leave the property. Oxford City Council wrote to the landlord informing him of Mr Hutchinson’s rights to remain in the property. In response to that letter Mr McIntosh served an invalid notice seeking possession on Mr Hutchinson. In March last year Mr McIntosh went to the property and forced Mr Hutchinson to leave. Councillor Joe McManners, board member for housing
at Oxford City Council, said: “There is a clear legal process for landlords to follow should they wish to evict a tenant. Mr McIntosh failed to follow that process in this case and has paid the price.” n
Two landlords of houses in multiple occupation have each received fines in separate incidents for keeping unsafe and badly maintained properties. One landlord in Reading, Millicent Okumo, was fined a total of £60,000. Magistrates heard that Ms Okumo’s tenants had to endure filthy and dangerous living conditions which included a leaking and collapsed ceiling, missing and broken windows, a defective fire alarm and a WC which did not work. After an investigation of the property in 2007 Reading Council made repeated attempts to get Ms Okumo to improve living conditions at the property but no improvements were made. Ms Okumo was found guilty of 12 separate offences under The Management of Houses in Multiple Occupation (England) Regulations 2006 and section 11 of the Housing Act 2004. Reading Magistrates handed Ms Okumo the maximum £5,000 fine for each offence and awarded Reading Council costs of £2,667. HMO breach costs Slough landlord £5,000 Landlord Balal Khan, who rented out a five-bedroom property to four unrelated people in Slough was fined more than £5,000 for running an unsafe and badly maintained property. An inspection by Slough Borough Council found inadequate safety measures in the property and failure to maintain common parts, fixtures, fittings and appliances. Mr Khan was found guilty of failing to comply with five regulations under the Management of Houses in Multiple Occupation Regulations 2006. He was fined £3,500, and had to pay Slough Borough Council’s costs of £1,765. n
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Making your Property Safe Overhaul of Building Regulations
Communities Minister Andrew Stunell plans to revamp the system of building regulation in England to cut the regulatory burden on builders so it becomes easier and cheaper to comply with the rules. Mr Stunell’s proposals follow a consultation with industry experts who were asked to identify the changes that really needed to be made, either to the technical standards themselves or the regime more generally to secure compliance. Mr Stunell wants to introduce new regulations relating to the conservation of fuel and power which would also deliver the necessary next steps towards zero carbon buildings as well as considering how they may support wider retrofit policies. It is likely any review will examine how Building Regulations
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might be used to ensure suitable toilet and changing facilities are offered for people with multiple and profound disabilities in new developments, as well as looking at the role of Building Regulations to help improve the security of new homes. The Minister also reiterated the Government’s determination to manage this process through a “one-in, one-out” approach to regulation, ensuring that the cost of any new regulations is offset by regulatory savings of at least the same value. In response to concerns raised by many in the building industry, the Minister also plans to evaluate how the Building Regulations relating to electrical safety can be changed to lower the costs of compliance.n
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Preventing hot water scalds Researchers at the University of Nottingham have shown that a simple, cost-effective device fitted to the water pipes in bathrooms could ensure greater safety for tenants and prevent tragic accidents in rented accommodation. According to the study, every year over 400 children are hospitalised after being scalded by bath water. Out of those youngsters around two or three of them will sustain burns so severe it will cost them their lives. Older people and people with mobility problems or disabilities are also at risk because they are less able to get out of the bath of hot water quickly. Anti-scald devices called Thermostatic Mixer Valves (TMVs) limit the temperature of water that comes out of bath taps. In November 2010 the National Institute for Health and Clinical Excellence recommended that baths in all social housing, particularly in households with children under five years old, should be fitted with a TMV in order to prevent bath water scalds. As from April 2010, the Building Regulations for England
and Wales were changed to specify that in new properties and conversions, baths should be fitted with devices such as TMVs. Similar legislation already existed in Scotland. TMVs are hidden from view behind the bath panel and do not affect the hot water supply to the rest of the house. The University of Nottingham-led research study explored the effectiveness of TMVs in over 100 homes in Glasgow. The TMVs were set to 45oC and the researchers surveyed families before the TMV was fitted, and then at three and twelve months after. The study found that after the TMVs had been fitted, the bath hot water temperature was at a safer level than before, and the water was still hot enough for an adult to enjoy a bath. n
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Social Housing National crackdown on housing fraud Housing Minister Grant Shapps has launched a new national crackdown on tenants who unlawfully sublet their council or housing association properties. As part of the crackdown the 51 councils doing the most to tackle the problem would receive a share of £19 million to bolster their efforts which could include dedicated housing officers to investigate allegations, and tenancy audits to ensure the
lawful tenants are living in the property. Mr Shapps also said he would support councils across the country with a dedicated national action team based at the Chartered Institute of Housing which would be available to offer practical support and advice to local authorities looking to tackle tenancy fraud in their area. At least 50,000 social homes are being unlawfully occupied in England, according
to the Communities and Local Government Department. The department estimates the number of unlawfully occupied properties ranges from one in 100 in some parts of the country to more than one in 20 in some inner London boroughs. The Government says the crackdown is part of a wider Government effort to ensure council homes go to those who need them most. n
Grant Shapps, Housing Minister
Maintenance & Repairs Sky says many private-rented homes not ready for digital While the UK’s digital switchover is now very much underway, with many regions such as the West Country, Wales and Granada already switched, and the remainder to follow by 2012, recent research
by Sky shows that a substantial number of private apartment blocks are still not fully digitally ready. Sky Communal TV Solutions believes many private landlords are still unclear about what to do to prepare
their properties, concerned about costs and would like a single point of contact who can manage the process. Sky is a member of the NLA Recognised Supplier scheme and is offering a shared dish system, which is suitable for private apartment blocks, and is designed to help landlords make the switchover with minimum hassle and at a competitive price. In many cases Sky is offering substantial subsidies, depending on the complexity of the installation and cabling work, to make the costs more
manageable. Shared Dish delivers digital satellite TV signals to flats in a block from a single discreet rooftop dish, so residents do not need their own mini dishes. Cables are run directly from the Shared Dish to the set-top boxes in the flats of Sky subscribers. Sky also offers an Integrated Reception System (IRS), which is a “platform-neutral” solution, offering huge flexibility and choice. It works by distributing signals to multiple flats from a single multi-purpose reception unit. n
For more info visit www.sky.com/managers or call 08442 410 331 for a free estimate from the Sky Switchover Team.
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Sustainability
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Report says 2016 target unrealistic
Move to make EPC data more publicly available The Department for Communities and Local Government has issued proposals to make publicly available the data contained in Energy Performance Certificates, Display Energy Certificates and Air Conditioning Reports, all of which are designed to tackle climate change by reducing the amount of carbon produced by buildings. The data made available will comprise the address of the building to which the Energy Performance Certificate, Display Energy Certificate or Air Conditioning Report relates, the energy efficiency rating for that building, the recommended measures to improve the energy performance of the building, details of the energy assessor and (in due
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course, and subject to Parliamentary Approval of the relevant legislation) whether any Green Deal finance has been borrowed to improve the property. In England and Wales, an EPC must be produced whenever a building is sold, constructed or let. The Energy Performance Certificate shows the energy efficiency of a property and includes recommendations on how it can be improved. CLG believes making the data publicly available, “subject to rules on careful handling”, will increase knowledge about energy efficiency and encourage property owners to promote energy efficiency in their buildings. n
The requirement for all newbuild homes to be built to a zero carbon standard by 2016 is beginning to look distinctly unrealistic, according to the Green Homes 2010 report by Knight Frank. The concept was introduced by the former Labour Government in ‘Building a Greener Future’ and, despite a range of new policy objectives, the new Coalition Government has stuck by the 2016 target. The report suggests that while new home developers are willing to engage with the new requirements there is a lack of clarity from the Government about what zero carbon means.
The report says that a move to zero carbon is likely to have a big impact on the cost of building new homes. The report’s author Liam Bailey, head of residential research at Knight Frank, says: “The shift to zero carbon has huge implications for housing market affordability, land market economics and politics.” According to the research the new targets could increase costs for building new homes by 22 per cent which could have a big knock-on impact. The report also raises concerns about budget cuts and the change to the planning regulation. n
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Expert Opinion on tenant referencing What are the risks of letting out your property without carrying out pretenancy checks? David Watkins of NLA Tenant Check talks about credit checks and risk assessment that landlords should follow before taking on a potential tenant. UK Landlord: Why should landlords vet potential tenants? David Watkins, NLA Tenant Check: In-depth background checking on prospective tenants can help landlords avoid expensive and timeconsuming situations such as late or missing rent payments, fraudulent applications, damage to their property and even complaints from neighbours regarding anti-social behaviour. We regularly detect false employment details and obtain negative references from current and previous landlords. It is almost certain that these tenancies would have become problematic had they been allowed to proceed.
UKL: Exactly what checks should a landlord do and why? David Watkins: What we do at NLA Tenant Check is to provide a complete report as to each applicant’s standing and creditworthiness which will include verification of employment and salary information, which is always obtained in writing from the employer or accountant. This enables us to provide an affordability calculation with confidence that the verified income is genuine. It is also important to confirm that this income will continue throughout the duration of the tenancy so, for employed applicants, we look to confirm that their employment is permanent or that the contract length is sufficient. We carry out credit checks on every applicant, making sure they do not have a negative credit history record. We start by searching the addresses provided by the tenant on their application form and very often we locate additional addresses where the applicant has previously resided. All of these addresses are
then checked for any County Court Judgments or Insolvency information. After all, a negative credit history is an indicator of a high risk tenant. We’ll also take into account other financial commitments, like loans and credit card balances. Enquiries are made with the applicant’s current letting agent/landlord to establish that the current tenancy agreement has been conducted in a satisfactory manner and that the tenant has met all of their obligations of the tenancy agreement.
UKL: Do landlords have to tell the tenant you are doing a tenant check on them? David Watkins: You must always have the written consent of a tenant or guarantor before ordering a check on them. Our experience tells us that where an individual does not consent or is not willing to provide sufficient information, then in the majority of cases there is usually a reason for this. Generally speaking, if people are genuine they won’t make a fuss. We carry out these checks as a matter of course and our priority is to ensure that we look after our landlords’ best interests. Because of the service we offer, we are confident that very few bad tenants get through our thorough vetting service.
are checking the details of the person that is standing in front of you and to make sure that a valid tenancy agreement is in place before handing over the keys. I know it sounds basic but some of the stories we hear of could have been avoided by landlords following this simple advice! The NLA also offers a very competitive Rent Guarantee Insurance policy to safeguard your rental income. This is available for landlords when tenants have passed our full tenant check. Probably a good piece of advice I can give is to go with your gut instinct, to some extent. Tenant checking should compliment your own decision-making process, so make sure that you feel comfortable with your tenants and are able to communicate with them. n
UKL: In addition to tenant checks, what else can landlords do to make sure they pick the right tenants? David Watkins: We always recommend that landlords see original photo ID, such as a driving licence or passport, to make sure that you
For more information, see www.landlords.org.uk/tenantchecks and www.landlords.org.uk/rentguarantee
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David Watkins, Referencing Coordinator, NLA Tenant Check
A negative credit history is an indicator of a high risk tenant.
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National Landlords Association: Appointment of Chief Executive As part of its continuing development as the leading representative body for private landlords in the UK, the NLA wishes to appoint a chief executive officer. A director-level appointment, the position will be full-time and based in the NLA offices in central London.
Reporting to the Board of the NLA through the Chairman of the Board, the person appointed will be responsible for the delivery of the strategy and policy determined by the Board. With responsibility for some 35 full-time staff plus around 40 part-time representatives throughout the UK, the person appointed will have excellent management, communications, and administrative skills. A good understanding of budgetary management and accounts is essential. With excellent presentational skills, the person appointed must be able to represent the NLA at all levels and be competent in public speaking. Experience in dealing with government and media is essential, and an understanding of the private-rented sector would be helpful. The person appointed is expected to take up their duties in the summer of 2011. The remuneration package will be commensurate with a position at this level. Initial expressions of interest should be directed no later than 25th March 2011 by email to hr@landlords.org.uk, from whom an information pack and an application form can be obtained.
National Landlords Association: Appointment of Non-Executive Director/s As part of its continuing development as the leading representative body for private landlords in the UK, the NLA is seeking expressions of interest from individuals interested in becoming non-executive directors.
Duties will include attendance at board meetings (up to eight per year), possible co-option to sub committees, and attendance at major events. Non-executive directors will be expected to remain abreast of legislation and issues affecting the private-rented sector and to commit around eighteen days per year to NLA business. They must have rational, independent and swift decision-making ability. Commercial experience at director-level in a multi-million pound turnover services company would be helpful. They must have a working knowledge of relevant company law, corporate governance as well as the Combined Code. They will have sound presentation skills, experience (and preferably training) in dealing with live and recorded media (radio, press, television). The remuneration package will be commensurate with a position at this level.
In the first instance, please email hr@landlords.org.uk with your CV, put ‘NED’ in the Subject Bar and explain what you might offer to the NLA in this role.
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NLA to host National HMO Network Conference 2011 The National HMO Network Conference is aimed at anyone who owns or works with Houses in Multiple Occupation (HMOs) in England and Wales. It offers a unique opportunity for landlords to meet with Environmental Health Officers and policy makers from around the country and share concerns, expertise and
discuss new ways of working together. This year’s event will look at lessons learned five years after the introduction of HMO licensing and the Housing Health and Safety Rating System (HHSRS), and explore what’s in store for the future. There will also be a series of
workshops on themes including how to tackle rogue operators, and promoting successful partnership working between local authorities and landlords. The NLA is pleased to host the National HMO Network Conference 2011, which will take place in London this summer. For more information and to sign up
for an email reminder when the program is published, visit the NLA website at www.landlords. org.uk/events. n
Tips to ensure you receive NLA Focus and event notifications Check we have your current email address You can check this when you are logged into the members only section of our website, or you can ask us to update your details by emailing membership@landlords.org.uk or calling 020 7840 8900. Check your e-mail software Put all our email addresses listed below in your
‘safe sender’ list. Hotmail & Gmail users, add our e-mail to your address book and you will always get the email. Your anti-spam software Anti-spam software – if you have anti spam software running on your machine such as Norton or Spam Assassin, add all the email addresses listed below and our
Our email addresses: National.Landlords.Association@cmp.dotmailer.co.uk
Late night NLA Advice Line service Due to the ever increasing use of our telephone Advice Line, we will be trialing a Late Night Advice Line on Mondays, commencing Monday 7th March 2011. This will extend the Advice Line service on Mondays until 7:00pm (except Bank Holidays). The Advice Line service is for NLA Members only. For the telephone number of the Advice Line, see the Members Area of www.landlords.org.uk or telephone 020 7840 8900 n
info@nlanews.org.uk
domain landlords.org.uk to the safe sender list. Your IT Department or ISP (internet service provider) If you are still struggling, the chances are your IT department or your ISP is blocking our email before it even gets near your machine. Please advise us, your ISP and IT department to allow emails to come through from all our addresses. n
nlaservices@nlanews.org.uk
Pancake run The NLA supported the annual charity Pancake Day Race by members of Parliament. The race is run on Shrove Tuesday by members of the House of Lords and Commons, all tossing pancakes as they run, in support of the work of Rehab in the UK and its efforts to help people with brain injury return to work and the community. n
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NLA Landlord Live Show at London Olympia in May Do you want to attend live property auctions? Get specialist advice on running your buy-to-let business? Find out more about key finance, marketing, political and practical information to make your business of being a landlord a success? If the answer is ‘yes’ to any of these, make sure you register as soon as possible for the NLA Landlord Live Show. NLA Landlord Live will occupy an entire floor at the upcoming Property Professional Show at the London Olympia on 10 and 11 May 2011. The event will give landlords a unique opportunity to attend live property auctions, seek advice from the NLA and specialist property suppliers and participate in workshops on pressing topics for landlords.
Live property auctions NLA Landlord Live’s dedicated floor will house live property auctions, conducted by Brendons Auctioneers. Brendons aim to sell 100 properties over the space during the course of the two-day event, and there will be two auction sessions scheduled each day. For
Speakers and workshops
more information about the properties on auction, see www. brendonsauctioneers.co.uk.
Experts will talk at workshops about how to address current hot topics for landlords. Many of the sessions will include time for questions and answers.
The next issue of UK Landlord will set out key tips for buying properties at auction for buy-tolet purposes.
Meet the experts Landlords who want to find out more about the NLA and its wide range of member services can meet with NLA staff and NLA specialist suppliers covering finance, conveyancing, tenant referencing, insurance, inventories, EPCs and legal
documents. A section of the NLA’s show will be divided off so that NLA members can meet and talk with the NLA’s Board Directors who will be at the event. If you would like to schedule a meeting, please indicate this when you register
for the show so that a session can be allocated. The UK Association of Letting Agents (UKALA) will also be on hand to talk to landlords about their approach to lettings.
For a full list of speakers and workshops, see www.ppslive.co.uk.
Property Professional Show Awards 2011 This London Olympia show is set to be the largest professional property event in the UK in 2011. To coincide with the event, a gala event will take place on 10 May 2011 to give awards for individuals, companies and organisations who play a leading role in the residential property sector. Categories include Best Landlord Supplier, Young Letting Agent of the Year, Best Online
Property Portal, Best New Estate and Letting Management Solution and Best Conveyancing Technology. In the two weeks leading up to the PPS Awards, nominees for each award will need to present their achievements in London before a ‘Dragons Den’ style panel of industry professionals who would commission work in
There will also be speakers during the course of the NLA’s show giving practical tips and up-to-date information about topics such as wealth management for landlords in the privaterented sector and how to stand out in the market place when looking for new tenants.
this area. An NLA representative will participate as one of the twenty panel judges. Short films of these interviews will be shown at the gala awards event. All profits from registration and participation in the PPS Awards will be donated to Centre Point, the charity that provides emergency accommodation and support for homeless young people in London. n
Places at the NLA Landlord Live Show are limited so make sure you pre-register as soon as possible. For more information, see the events section of the NLA’s website, www.landlords.org.uk/events
30 UKLANDLORD MARCH/APRIL 2011
nla news STARTING UP
For the latest news visit: www.landlords.org.uk REGULATORY
PROPERTY
NEWS
SAFETY
FINANCE
Help us to help you! Are you passionate about the private-rented sector?
• Utilise your skills and experience to help shape professionalism across the industry.
Would you like to influence the future direction of NLA?
What will you gain? • Hear about developments in the private-rented sector • An opportunity to influence NLA member services and policy • A chance to get your voice heard and make a difference • Gain CPD hours which count towards NLA Accreditation
The NLA is calling on landlord members to come forward and join our Representative Member Group. The aim of the Group is to give landlords an opportunity to tell us what you think about the private-rented sector today and influence the NLA’s lobbying priorities and the range of services we offer. What will it involve? • Participate in one event during 2011 • Discuss your views and opinions with a variety of passionate individuals • An option for ongoing consultation through membership of the NLA Survey Panel
If you are interested in getting involved and would like to find out more, please contact Meurig Lloyd, Member Services Manager, by emailing meurig.lloyd@landlords.org.uk. n
Representative Member Group Events in 2011 Group members will be invited to participate in one of the following events: England Thursday 31 March - Birmingham Thursday 7 April - London Wednesday 6 July -Sheffield Scotland Tuesday 23 August Wales Thursday 13 October
Book your place for the NLA Landlord Live Event The Property Event of 2011 FREE to attend
For more information see editorial opposite or visit: www.landlord.org.uk/events
10th & 11th May 2011 OLYMPIA - LONDON
UKLANDLORD MARCH/APRIL 2011 31
nla landlord development
For the latest news visit: www.landlords.org.uk
Specialist Courses
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
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
2011 DATES
LOCATION
Tues 22nd March
Manchester
Tuesday 15th March
London
Wed 23rd March
Brighton
Tuesday 22nd March
Manchester
Tues 12th April
London
Monday 28th March
Cardiff
Wed 18th May
Birmingham
Tuesday 5th April
London
Tuesday 19th April
Bristol
Tuesday 11th May
Newcastle
Tuesday 31st May
Brighton
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: • • • • •
To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
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
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. 2011 DATES
LOCATION
Wednesday 9th March
Brighton
Wednesday 16th March
Manchester
Thursday 14th April
Nottingham
Tuesday 10th May
Exeter
ALL TIMES: 9.00am for 9.30am start; 4.30pm finish
32 UKLANDLORD MARCH/APRIL 2011
ALL TIMES: 8.30 for a 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 20th April
Manchester
Wed 27th April
London
Wed 18th May
Birmingham
Wed 25th May
Birmingham
ALL TIMES: 1.30 for a 2pm start; 5.30pm 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.
REGIONS news STARTING UP
Regular Local Business and Investment News REGULATORY
Welcome..
PROPERTY
TENANCY
SAFETY
FINANCE
Article Four Directions threaten affordable accommodation in Manchester Some local councils are using new devolved powers in planning to re-shape the housing structure in their areas. NLA Local Representative for Manchester, Carolyn Uphill, describes how this will affect affordable housing, in particular, in Manchester’s student community.
BARRY MARKHAM Director for the Regions
If, like me, you are concerned about the imminent cuts to Local Housing Allowance, local authorities using new powers to require landlords to apply for planning permission if properties are going to be used for shared housing or selective licensing in your area, please come to one of our local meetings. You will be able to find out about the latest developments and how to address these issues as well as meet like-minded landlords. Our programme of local landlord events across the country is set out on pages 38-39. In this section, we have some useful information on investing in Yorkshire and the Humber prepared by the team of NLA Local Representatives operating in this region. Looking forward to meeting you at our local meetings. n
Manchester City Council has effectively declared war on landlords providing student accommodation,” according to Carolyn. By taking Article Four Direction powers throughout the entire City Council area, Manchester’s proposed strategy is to refuse planning permission for any further shared housing in any area of the city where there is already more than 10 per cent shared housing. These powers come into force in October 2011. “This will prevent the development of more shared housing for students or young professionals, leaving those who are newly graduated but are unable to afford mortgages, high and dry,” Carolyn told UK Landlord. It will also reduce the choices of
affordable housing available to low-paid workers. Manchester housing market “It is highly unrealistic to believe that some 30,000 students can all be moved into university or private halls of residence. It is equally unlikely that students will want to spend their entire university career in such halls when part of the ‘rites of passage’ of being at university is in living with a group of your friends, in a house of your own. Society benefits from their learning to take some responsibility and manage the bills. Owner-occupiers in prime student areas are also likely to be less than pleased when they discover that their properties
are not as valuable to buyto-let investors who want to transform a property into student accommodation. Manchester published its proposed Core Strategy in early February 2011. Landlords with properties in Manchester should contact the NLA to find out how to make their views heard. n
Carolyn Uphill, Manchester Local Representative
For more information about the NLA’s campaign work on shared housing across England visit www.landlords.org.uk/news-campaigns/campaigns/latest or email carolyn.uphill@landlords.org.uk if you have properties in Manchester.
Barry can be contacted at: barry.markham@landlords.org.uk
UKLANDLORD MARCH/APRIL 2011 33
REGIONS news
Regional and Branch News
STARTING UP
REGULATORY
PROPERTY
TENANCY
Interest-free loans for energy efficiency in Scotland Landlords in Scotland may be interested in a Scottish Government-funded scheme to replace old and inefficient technology as well as install energy efficiency measures, by providing interest-free business loans up to £100,000. There are no set up charges and the investment can be set against capital allowances.
A range of measures are eligible for funding, including improved lighting, heating and electricity controls, boiler replacements, building and pipe work insulation as well as solar photovoltaics, wind, and hydroelectric. In order to qualify, your business must be based in Scotland, have been trading at
least 12 months, have a turnover not exceeding 50 million (approximately £42m) and/or a balance sheet total not exceeding £ 43 million (approximately £36m), and agree that repayments will be made within 4 years for energy efficiency-only measures and within 8 years for renewable energy technology installations. n
For more information about the scheme call the Energy Saving Scotland advice network on 0800 512 012 and ask to speak to a business advisor.
Calling all Luton landlords! As part of the Luton Foyer drop-in centre, the Bedfordshire John Howard Society is looking to forge closer links with private residential landlords in the Luton and Dunstable areas. The centre specialises in providing access to homes to a wide range of local people from a variety of backgrounds who need help with their housing. James Fraser, NLA Local Representative, told UK Landlord that “The good news is that the charity works very closely with
both landlords and tenants to provide a smooth and efficient solution to housing problems that can be beneficial to both landlord and tenant.” The charity is keen to work with, and include, any landlord who might be willing to assist them in their search for quality local housing. He says they can “usually get any benefits paid direct to the landlord from the outset, thus avoiding one of the biggest problems landlords traditionally have with housing LHA tenants.”n
James Fraser, NLA Local Representative
For further information, please contact either Vanessa Kinnaird-Harris or Chief Executive Hilary Mills-Williams on tel: 01582 401366 or see www.lutonfoyer.org.uk
Good start for NLA Sheffield NLA Sheffield launched its new NLA branch with its first landlord meeting at the end of January. According to NLA Local Representative Shona Davison, “the turnout alone made it clear that there is demand for a branch in Sheffield. The hotel staff had to keep bringing in more chairs as almost 100 landlords turned up.” Shona believes the agenda may well have contributed to the success. Landlords were
34 UKLANDLORD MARCH/APRIL 2011
keen to find out about the upcoming changes to Local Housing Allowance which the representative from Sheffield City Council spoke about. “Those landlords who are keeping themselves well informed will be the most able to react to any future challenges these changes will bring,” she told UK Landlord. The current buy-to-let mortgage market was also a topic, along with a talk about
eviction and the Human Rights Act. The event proved to be a great opportunity for landlords to network, even for landlords who would not normally attend this type of event. Shona is hopeful that the new NLA Sheffield branch will help landlords increase their knowledge. “This, in turn, will benefit both landlords and tenants, and contribute to improving housing standards in Sheffield,” she said. n
SAFETY
FINANCE
Selective licensing in Thanet Since Thanet District Council has now decided to introduce selective licensing in certain areas of Cliftonville West and Margate Central, the NLA has been able to negotiate certain discounts in fees for landlords. These will be available to landlords who make early applications and those landlords who are accredited with the NLA will also have access to the discount with Thanet. The landlord will either need to have attended a training course during the process of accreditation or will need to attend a training course during the subsequent twelve months following the granting of any licence. Qualifying courses will need to be of at least four hours duration and of suitable content. This provision will be included as a condition in the licence where a discount has been given. For more information, see www.thanet.gov.uk /housing/ selective_licencing_scheme.aspx
Empty homes in Wrexham Wrexham County Borough Council continues to develop new tools to further its 5-year strategy launched in 2007 to reduce the number of long-term empty private sector properties so that they contribute to the local housing supply. The number of known long-term empty properties in the area has fallen from 543 to 135. The Council now publishes regular detailed guidance to owners of empty properties. This covers what to consider when getting building works done to empty properties, and sources for financial assistance if the property is in a conservation area or has some historical relevance, as well as energy efficiency grants. For more information, see www.wrexham.gov.uk/housing.
UKLANDLORD JANUARY/FEBRUARY 2011 29
REGIONAL FOCUS STARTING UP
Yorkshire and the Humber REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Key Statistics for Yorkshire and the Humber Population (2009): 5.3 million Unemployment rate (Oct 2010): 8.8 % Average house price (December 2010): £124,168 Detached (December 2010): £207,029 Semi-detached (December 2010): £112,463 Terrace (December 2010): £79,428 Flat (December 2010): £111,594 Average weekly rent (2008): £89
16
Average weekly rent, 2-bed property (2008): £78.89 Further education: There is a wide selection of further education institutions across Yorkshire and the Humber including nine universities, with large concentrations of students in York, Sheffield, Leeds and Hull. Long-term privately owned empty homes (April 2010): 33,423 (1.7 per cent of total private homes)
Sources: Land Registry of England and Wales, Office for National Statistics, Housing Strategy Statistical Appendix, Hometrack, Halifax/Lloyds, National Housing Federation and Survey of English Housing (2008).
15
17 2 1
3 6
5
4 8
NLA REPRESENTATION 1. 2. 3. 4. 5. 6.
Leeds York Bradford Huddersfield Wakefield Halifax
7. Doncaster 8. Barnsley 9. Selby 10. Rotherham 11. Sheffield 12. Hull
11
7 10
13. Scunthorpe 14. Grimsby/ Cleethorpes 15. Scarborough 16. Whitby 17. Bridlington
Carl Agar, Local Representative Responsible for developing relationships with local authorities and organising events for NLA members in Barnsley, Doncaster, Rotherham and Selby. Portfolio: I manage a large portfolio of properties around the South Yorkshire region. This is a blend of my own property portfolio and properties that I manage on behalf of other landlords.
Local investment opportunities: Doncaster, Barnsley, Rotherham and Selby offer a significant number of low-cost investments that will provide a high rental yield. Local authorities in these areas are pushing to improve standards in the private residential sector and, where possible, they are looking to introduce some form of landlord accreditation.
Contact: carl.agar@landlords.org.uk if you have suggestions for meetings in his area.
Lynda Bowen, Local Representative Responsible for developing relationships with local authorities and organising member events in Hull, Scunthorpe, Grimsby. Portfolio: A small portfolio of modern, two and three-bedroom homes in the area, plus a couple of renovation projects, including a house in Ireland.
Local investment opportunities: Hull University continues to attract a steady supply of students. The north and south banks of the Humber have high proportions of social housing, and there is a considerable amount of housing regeneration, particularly around Hull. There is strong demand for private rented mid-price property in good condition, with parking and a garden on the south bank.
Contact: lynda.bowen@landlords.org.uk if you have suggestions for meetings in her area.
36 UKLANDLORD MARCH/APRIL 2011
12
9 13
14
REGIONAL FOCUS STARTING UP
Yorkshire and the Humber REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Jackie Smith, Local Representative Responsible for developing relationships with local authorities and organising member events in Scarborough, Bridlington and Whitby. Portfolio: Six properties (house and flats) in Scarborough and a property in Germany where I used to work for the Ministry of Defence and Navy, Army and Air Force Institutes.
Meetings: Recently manned a stand at the Landlord Forum organised by Scarborough Borough Council and provided advice and guidance to the many landlords and letting agents who attended.
Contact: jacqueline.smith@landlords.org.uk if you have suggestions about meetings in her area.
Shona Davison, Local Representative Responsible for developing relationships with local authorities and organising events for members in Sheffield. Portfolio: Mixture of flats and houses, mainly in Sheffield. Looking to buy and develop more in the Sheffield area over the next few years.
Local investment opportunities: One-bed properties are likely to become less popular with tenants given the likely changes to LHA single room rate. The same change will mean single rooms will show increased demand, so this may make investing in HMOs more appealing.
Contact: shona.davison@landlords.org.uk if you have suggestions about meetings in Sheffield.
Chris Bryan, Local Representative Responsible for developing relationships with local authorities and organising events for members in Sheffield. Portfolio: 55 properties, of which 90 per cent are less than five years old, including some I have built myself. I rent to a complete spectrum of tenants, which have ranged from doctors to an armed robber!
Local investment opportunities: Rents are stable in Sheffield. As in other parts of the country, there are plenty of investment opportunities for landlords at the moment as property prices are not rising too dramatically and there is a strong demand for accommodation in the private-rented sector.
Contact: chris.bryan@landlords.org.uk if you have suggestions for meetings in his area.
Mike Troke, Local Representative Responsible for developing relationships with local authorities and increasing local involvement of the NLA by developing branches and organising information and networking events for members in Leeds and York. Portfolio: I have five properties, houses and flats, located in East Sussex and North & West Yorkshire.
Local investment opportunities: Leeds and York are major centres for the PRS with large private and public sector employers, a concentration of universities and economies which are well placed to lead recovery in the future. Leeds City Region is one of only two forerunner city regions in the country and will benefit from future infrastructure and economic investment.
Contact: mike.troke@landlords.org.uk if you have suggestions for meetings in his area.
Fiaz Rashid, Local Representative Responsible for developing relationships with local authorities and organising member events in Bradford, Huddersfield, Wakefield, Halifax. Networking in the region: I am working to develop member
branches in Bradford, Kirklees, Wakefield and Calderdale. I also hope to develop excellent networks with all stakeholders with an interest in increasing the professionalism of landlords in the region.
Contact: fiaz.rashid@landlords.org.uk if you have suggestions for meetings in his area.
UKLANDLORD MARCH/APRIL 2011 37
EVENTS GUIDE
March-May 2011
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 membership team (020 7840 8937) that we have your current email address. To receive email notifications of NLA events please ensure we have your up-to-date email address recorded and that you have added Non NLA event National.Landlords.Association@cmp.dotmailer.co.uk to your safe senders list and/or address book.
DATE
EVENT
Tue 8 Mar
NLA North East Branch Meeting North East
Tue 8 Mar NLA Brighton Branch Meeting
REGION
LOCATION
TIME
Novotel Newcastle, Ponteland Road, Kenton NE3 3HZ
6.30pm to 9.00pm
Hilton Brighton Metropole, Osborne Room, Kings Road,
6.30pm to
East Sussex BN1 2FU
9.00pm
Tue 8 Mar NLA Teesside Branch Meeting North East
The Blue Bell Hotel, Acklam, Middlesbrough TS5 7HL
7.30pm
Tue 8 Mar NLA Fife Branch Meeting
Scotland
The Gilvenbank Hotel, Huntsman Road, Glenrothes, Fife KY7 6NT
7.00pm
Tue 8 Mar
Wrexham County Borough
West Midlands
Catherine Finch Centre, Glyndwr University, Wrexham
1.30pm to
Council Landlord & Tenant Fair
LL11 2AW
6.00pm
Tue 8 Mar NLA and Mid Devon District
South East
Tiverton Town Football Club, Bolham Road, Tiverton EX16 6SG
6.00pm for 6.30
Council Branch Meeting
Tel: 01884 252 397
start to 8.30pm
Wed 9 Mar NLA Eastbourne & Wealden
Lansdowne Hotel, King Edward’s Parade
6.30pm
South West
South East
Branch Meeting
(Eastbourne Seafront), East Sussex BN21 4EE
Thu 10 Mar NLA Bridgend Branch Meeting Wales
Bridgend Rugby Stadium, Tondu Road, Bridgend CF31 4JE
6.00pm
Tel: 01656 838281
to 7.30pm
Thu 10 Mar NLA and Birmingham City
Birmingham City University, City North Campus, Birmingham,
3.00pm
West Midlands B42 2SU
to 6.00pm
Civic Centre, Committee Room 6, High Street, Uxbridge,
6.00pm
Middlesex UB8 1UW
to 9.00pm
Holiday Inn High Wycombe, Carrington Suite, M40 Junction 4,
7.00pm to
Handy Cross, High Wycombe, Bucks HP11 1TL
9.30pm
Council Chamber, Oaklands, Haywards Heath, West Sussex
6.00pm
Thu 10 Mar NLA and Hillingdon Borough
West Midlands
University Landlords Meeting London
Council Landlords Meeting
Thu 10 Mar NLA Launch of High Wycombe South East
Branch Meeting
Mon 14 Mar
Mid Sussex District Council
Private Landlord Forum
Tue 15 Mar NLA Weymouth Branch
South West
Meeting
Tue 15 Mar NLA Peterborough
South East
East of England
Branch Meeting
RH16 1SS Weymouth Working Men’s Club, 1 Mitchell Street, Weymouth,
7.00pm for
Dorset DT4 8BT
7.30pm start
Ramada Hotel, Thorpe Meadows, Peterborough, Cambridgeshire 6.30pm PE3 6GA, Tel: 01733 564240
Wed 16 Mar NLA Worthing Branch Meeting South East
Field Place, The Barn, The Boulevard, Worthing, West Sussex
7.30pm to
BN13 1NP Tel: 01903 244034
9.30pm
Thu 17 Mar
Dartford and Gravesham
Dartford Borough Council, Home Gardens, Dartford,
5.15pm
Landlords Forum
Kent DA1 1DR
for 5.30pm start
Hunsbury Hill Centre, Harksome Hill, Danes Camp Way,
6.00pm for
Mon 21 Mar NLA Northampton
South East
East Midlands
Branch Meeting
Northampton NN4 9QX
6.30pm start
Wed 23 Mar
West Dorset Landlords Seminar South West
Collition Club, Dorset Room, Dorchester DT1 1XJ
5.30pm start
The Manor Barn, Bexhill-on-sea, East Sussex TN40 2HA
9.30am to 1.00pm
Thu 24 Mar NLA Hastings & Rother
South East
Branch Meeting
Thu 24 Mar NLA in conjunction with
South East
Canterbury Student Housing
Landlords Information Evening
Thu 24 Mar NLA Dorset Branch Meeting
South West
Canterbury University, Darwin Conference Suite,
5.30pm for 6.00pm
Darwin College, Darwin Road, Canterbury CT2 7NY
start to 9.00pm
Borough of Poole, Civic Centre, Poole BH15 2RU
7.30pm
Thu 24 Mar
NLA and West London Council’s London
Kensington Council, Small Hall, The Town Hall,
6.00pm for 6.30pm
LHA Landlords Meeting
Hornton Street, London W8 7NX
start to 8.45pm
Sat 26 Mar
Medway Landlords Training Day South East
38 UKLANDLORD MARCH/APRIL 2011
Medway Council Offices, Gun Wharf, Dock Road,
9.45am to 3.00pm,
Chatham ME4 4TR
lunch provided
EVENTS GUIDE DATE
March-May 2011
EVENT
Mon 28 Mar NLA Milton Keynes
LOCATION
TIME
South East
Abbey Hill Golf Centre (Main Building), Monks Way,
6.00pm for
Two Mile Ash, Milton Keynes MK8 8AA
6.30pm start
Rudyard Hotel, Function room, 271 Wellington Road North,
6.00pm for 6.30pm
Heaton Chapel, Stockport SK4 5BP
start to 8.30pm
Apex International Hotel, Sydney Room, 31-35 Grassmarket,
7.30pm
Branch Meeting
Mon 28 Mar NLA Manchester
REGION
North West
Branch Meeting
Tue 29 Mar NLA Edinburgh
Scotland
Branch Meeting
Wed 30 Mar
Medway Landlords
Training Day
South East
Edinburgh EH1 2HS Tel: 0131 300 3456 Medway Council Offices, Gun Wharf, Dock Road,
9.45am to 3.00pm
Chatham ME4 4TR
lunch provided
Tue 5 Apr NLA Cumbria Branch Meeting
North West
University of Cumbria, Fusehill Street, Cumbria CA1 2HH
7.00pm
Tue 5 Apr
Dover and Shepway
South East
Dover District Council, White Cliffs Business Park,
4.00pm to
Landlords Forum
Whitfield CT16 1DA
6.30pm
Sheffield Park Hotel, Chesterfield Road South, Sheffield,
6.30pm to
South Yorkshire S8 8BW
9.30pm
Best Western Reading Moat House, Loddon Suite, Mill Lane,
7.30pm
Mon 11 Apr NLA Sheffield Landlords
Yorkshire and the Humber
Meeting
Wed 13 Apr NLA Reading Branch Meeting
South East
Sindlesham, Nr Wokingham, Berkshire RG41 5DF
Wed 4 May NLA Wessex (Bath)
South West
Lansdown Golf Club, Lansdown, Bath BA1 9BT
2.00pm
East Midlands
The Arkwright Centre, Hardwick Drive, Arkwright Town,
2.00pm
Chesterfield, Derbyshire S44 5BS Tel: 01246 204884
to 4.00pm
Tue 10 May NLA Teesside Branch Meeting North East
The Blue Bell Hotel, Acklam, Middlesbrough TS5 7HL
7.30pm
Wed 11 May NLA Wessex (Bristol)
BAWA, 589 Southmead Road, Filton, Bristol BS34 7RG
7.00pm
Council House, Solihull, West Midlands B91 3QS
5.00pm to
Branch Meeting
Mon 9 May NLA Chesterfield
Branch Meeting
South West
Branch Meeting
Thu 12 May NLA and Solihull Metropolitan West Midlands
Borough Council Landlords
Meeting
Tue 17 May
NLA Weymouth Branch Meeting South West
8.00pm
Weymouth Working Men’s Club, 1 Mitchell Street, Weymouth,
7.00pm for
Dorset DT4 8BT
7.30pm start
Tue 17 May
London Borough of Sutton’s
London Borough of Sutton, Civic Offices, Meeting Room 5,
4.00pm
Landlord Forum
St Nicholas Way, Sutton SM1 1EA
to 9.00pm
Westgate, Clifford Suite, Long Eaton NG10 1EF
7.00pm for
Thu 19 May NLA Nottingham and Derby
London
East Midlands
Branch Meeting
7.30pm start
Mon 23 May
West Kent Landlords Forum
Tunbridge Wells Borough Council, Town Hall, Royal Tunbridge
4.30pm to
Wells, Kent TN1 1RS
7.30pm
The Queen Hotel and Spa, Meyrick Road,
7.00pm for
Bournemouth BH1 3DL
7.30pm start
South East
Thu 26 May NLA Dorset Branch Meeting
South West
For an up-to-date list visit: www.landlords.org.uk/events
UKLANDLORD MARCH/APRIL 2011 39
PUBLIC AFFAIRS
Public Affairs Diary Chris Norris, NLA Policy Manager STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Local rules for local people With 2011 in full swing, we now have a feel for the themes that are likely to dominate the year ahead. The early front-runners for ‘issue of the year’ appear to be Localism and Cuts. In Parliament, work on the Localism Bill is on course, and the Welfare Reform Bill is now out and outlines the long-term future of benefits and tax credits. In advance of the Welfare Reform Bill’s introduction, efforts were directed at interim measures to avoid huge losses and a mass exodus of landlords from the LHA sector. Recent legislation has gone a small way towards assuaging fears by providing local authorities greater discretion in making direct payments to landlords where “the relevant authority considers that it will assist the claimant in securing or retaining a tenancy.” Reading between the lines this seems to be an invitation to landlords to drop rents in return for a return to direct payments. However, this is hardly a solution to the imminent shortfall in rent that the LHA cuts is likely to lead to in many parts of the country. The NLA is working with the industry and the Department for Work and Pensions to lessen
the potential for damage. NLA Executive Chairman, David Salusbury, was invited to meet Lord Freud, who is responsible for the Government’s welfare reform agenda, to discuss options. The Localism Bill is currently working its way through Parliament, but there is a more pressing issue tied to the localism agenda. Local authorities throughout England seem to be favouring a planningbased approach to limiting shared housing – despite the increasing need for affordable accommodation. See our Campaign section on page 6 for more details. Also in Westminster, the Energy Bill is weaving its way through
Parliament at the moment. During debate, members of the House of Lords proposed that tenants should be allowed to demand energy efficiency improvements as soon as the Green Deal first comes into existence, probably next year. The amendment was withdrawn as the Government believes, in line with NLA briefings, that landlords should be given the opportunity to act purely on the incentive and that the Green Deal should not be seen as a legislative sledgehammer. Minister of State, Greg Barker MP, said “These powers will only be used if we do not see voluntary improvements.” This is an important opportunity for landlords to demonstrate to regulators that there is no need for
additional regulation of the private rented sector – showing that landlords are capable of making improvements without the threat of punitive measures. North of the Border the issue of the day is tenancy deposit protection (TDP). Unlike their English and Welsh counterparts, landlords letting property in Scotland are not currently required to protect tenancy deposits. However, this looks likely to change with the publication of the Draft Tenancy Deposit Schemes (Scotland) Regulation 2011 which outlines plans for a specific Scottish mandatory TDP product. n
Regulators review SRB again Just when you thought sale and rent back (SRB) was a dead issue for the regulators, HM Treasury makes another announcement. The Financial Services Authority believes that, despite the introduction of regulation, many SRB transactions are taking place outside of the regime. It has therefore asked the Treasury to look again at the existing regulatory regime covering property investors who provide SRB products. The Treasury has announced its intention to tighten the rules governing what constitutes conducting an SRB business. By amending the ‘byway-of-business’ test the Government intends to capture all relevant transactions, therefore removing confusion and preventing bad practice. n
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For more information on the announced changes please visit the HM Treasury website at: www.hm-treasury.gov.uk/fin_sector_mortgages_enhancing_consumer_protection.htm
UKLANDLORD MARCH/APRIL 2011 41
PUBLIC AFFAIRS STARTING UP
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European Parliament set to exclude property contracts from general EU consumer rules The European Parliament has taken its first step to assert that property and all property rights cannot have the same contractual obligations or be treated in the same way as other goods or services. After two years of debate and with almost 2,000 amendments in play, the European Parliament’s lead committee dealing with a new proposed Directive on Consumer Rights has rejected the European Commission’s original proposal that EU consumer legislation should apply to all goods and services. Members of the European Parliament examining this topic believe that EU consumer legislation should not apply to conveyancing contracts or rental agreements. This position is supported by most EU member states. The committee’s
proposed solution also allows Member States to maintain higher standards for the scope and length of liability periods for building materials.The International Union of Property Owners, UIPI, has welcomed this development. Emmanuelle Causse of UIPI told UK Landlord: “By excluding all kinds of property-related contracts from EU rules relating to off-premises contracts, this will remove the risk of complicating rental contracts which could introduce greater insecurity on the rental market without really creating higher protection for tenants.” It is hoped that the text adopted by the European Parliament’s lead committee, the Internal Market and Consumer Protection Committee, will be formally endorsed by the entire Parliament in March. If this is possible, it is likely to serve as
the main working document in the next part of the EU legislative process. EU funding for UIPI’s energy advice role The International Union of Property Owners (UIPI) has secured funding over the next two years to provide advice to property owners in Europe about improving the energy efficiency of their properties. As a member of UIPI, the NLA and six other national landlord associations from across Europe will be actively involved in developing training and service packages to ensure that national landlord associations provide direct and transparent information to their members on the costeffective technical measures and financing mechanisms available to property owners to improve
the energy efficiency of their rental properties. This is the first time EU funding has been made available in this area. The UIPI represents 25 national landlord associations and convinced the EU that clear information needs to be communicated to property owners in Europe on the need to introduce greater energy efficiency in their buildings. The funding comes under the EU’s Training for Rebuilding Europe (TRAINREBUILD) project and is financed through the European Agency for Competitiveness and Innovation’s Intelligent Energy Europe programme. n
Legal advice for properties abroad If you have properties abroad and are experiencing legal problems there relating to real estate, the NLA’s membership of the UIPI means you can benefit from PLAN, which offers real estate legal advice across Europe. For more information, see www.uipi.com
Tenancy Deposit Protection imminent in Scotland The Scottish Government has published its draft Tenancy Deposit Schemes (Scotland) Regulations 2011. No potential provider of tenancy deposit protection (TDP) has been made public. The legislation outlines the following: • Provisions are only made for a custodial scheme, which removes the option available in England and Wales for landlords to retain deposits for the duration of the tenancy, having protected the deposit with an insurance-backed scheme. • The scheme, or schemes, must be free for landlords and tenants to access.
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• Dispute resolution must be provided at no cost to landlord or tenant. • Landlords will have 30 days to protect a newly received deposit and notify the tenant. There also appears to be another major difference between this draft legislation and the Housing Act 2004, which introduced the provisions in England and Wales. Within nine months of a scheme becoming operational in Scotland it appears that landlords will be required to protect all existing, relevant, tenancy deposits. “Given the Scottish Government’s inability to implement and appropriately enforce private-
landlord registration, the NLA is at a loss to understand why they should further extend themselves by embarking on a scheme of the magnitude of TDP,” said Vincenzo Rampulla. While the NLA recognises the professionalising impact that TDP has had south of the border in relation to bringing tenancies to a close in an orderly fashion, the NLA believes that politicians should concentrate on sorting out the mess of registration before committing to new regulation. The NLA argues that it would be grossly unfair to provide fewer options to Scottish landlords than are available to their English and Welsh counterparts, and landlords
should be able to choose between custodial and insurance-backed options. n
Vincenzo Rampulla, NLA Public Affairs officer
UKLANDLORD MARCH/APRIL 2011 43
Q&A WITH RICHARD PRICE
What should landlords know about using letting and managing agents? NLA Director of Operations Richard Price sets out key pointers in this area. STARTING UP
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Q: What are the advantages of using an agent?
Q: What should I check when choosing an agent?
Q: If things do go wrong, who’s responsible?
Richard Price: There are many good reasons to use an agent to find tenants and manage your property portfolio, particularly if you live abroad or far from the property. Finding tenants and dealing with any problems once the tenant has moved in can be a time-consuming business.
RP: It’s worth getting word of mouth recommendations from other landlords in the area – contact one of our local representatives who may be able to tell you when the next local landlord event will take place.
RP: As with most business relationships nowadays, if you enter into any agreement with an agent, you need to agree a written contract which sets out the level of service the agent is offering and their agreed fees. Before you sign anything, read the entire contract, including the small print like the agent’s published terms of trading, and if in doubt, run it past a lawyer. You need to ensure there is a clause which allows for the contract to be terminated for any reason, including that the landlord wishes to take over management of the property.
It helps to have someone who can act as an intermediary if things go wrong or become difficult between a landlord and tenant. Often an agent will have a basic knowledge of legal requirements and will be able deal with difficult situations on a landlord’s behalf.
Q: What are the different types of services that agents offer? RP: Broadly, there are three different packages that agents usually offer. If you opt for letting only, agents will market the property, advise on rent levels, find a tenant, complete reference checks and provide a tenancy agreement. The agent usually charges either a one-off fee (often one month’s rent) or a percentage of the annual rent. The agent may also charge an administration fee. Under a letting and rent collection option, the agent finds the tenant and collects the rent throughout the tenancy. However, it is the landlord who responds to repairs and would be responsible for getting possession at the end of the tenancy if necessary. The agent will usually charge either a one-off fee followed by a percentage of the rent collected or a straightforward percentage of the annual rent agreed in advance (often around 11-12 percent). When landlords choose full management, the agent performs all of the tasks involved in the packages above, and is also responsible for managing the tenancy. Agents will usually expect a one-off fee followed by a subsequent monthly management charge, or agree in advance a fee based on a percentage of the annual rent (often around 15 percent). Whatever arrangement is arrived at, it is essential to clearly agree with the agent what is required and the fees and charges that will apply. Then ensure the terms are set out in an agreement signed by both the agent and you.
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Check how long the agent has been in business, whether they are incorporated as a company, how many premises they manage, what training their staff have received, and whether they are a member of a professional or trade organisation such as: • • • • •
The UK Association of Letting Agents (UKALA) The National Approved Lettings Scheme (NALS) The National Federation of Property Professionals (NFOPP) or its member bodies such as the Association of Residential Letting Agents (ARLA) and the National Association of Estate Agents (NAEA) Royal Institute of Chartered Surveyors (RICS) The Housing Ombudsman Service (HOS)
The agent should have their own published terms of trading, and these should include full details of their fee structures, what they will charge as extras, how they select tenants, their referencing process, procedures for transferring rental receipts, dealing with repairs and for property inspections. A full checklist is on the NLA Landlord Library site. If you are a landlord in Scotland, one thing to note is that if you use an agent to manage properties in Scotland, you and the agent must both be registered under the provisions of the Anti-Social Behaviour (Scotland) Act.
If a landlord uses an agent, actions carried out by the agent on the landlord’s behalf are treated in law as if they had been done by the landlord. This means that landlords are bound by any agreement made by their agent on their behalf with the tenant. For this reason, it’s important to give clear instructions, wherever possible, supported in writing. For example, if an agent is fully managing a property and fails to carry out a statutory duty (like an annual gas inspection) the landlord will be held liable as well. A landlord will ultimately be liable to the tenant for the return of a deposit if the agent goes bankrupt. When it comes to an agent’s liability, if an agent has acted properly and in accordance with the agreement with the landlord, an agent will not be liable for a contract entered into on behalf of the landlord. However, if the agent has acted contrary to instructions (for example, allowing pets where the landlord specifically said ‘no pets’), it is likely that the agent will be liable to the landlord for any losses which may flow from this. An agent may be held personally liable to the tenant if he/she has not told the tenant that they are acting on behalf of the landlord and the tenant believes the agent to be the landlord. The agent is also liable in respect of claims for the damage deposit money where the agent has held this as ‘stakeholder’.
For detailed information about this topic, please visit the NLA Landlord Library at www.landlords.org.uk/library
Q&A WITH RICHARD PRICE Q: In light of the Foxtons case what’s a fair management fee to be charged by agents?
sign claim forms for possession proceedings even if they hold power of attorney. These can only be signed by litigants or their solicitors.
Richard Price: The judgment in the Foxtons case did not rule against any fees – including renewals fees – but said fees must be made very clear in the agreement. So, when it comes to paying management fees to agents for renewals or commissions on repairs, the key thing is to check the fine detail in the contract that you sign. You may be able to negotiate with an agent to get these costs reduced or taken out of the contract.
It is usually best for landlords to deal with any court proceedings that may arise or at least be closely involved as the landlord is potentially liable to the other party if the claim is not successful. n
Q: Can the agent legally serve eviction notices and possession proceedings. Richard Price: Agents can serve possession and other notices on behalf of their landlords. Equally, a notice to quit by a tenant given to an agent will normally be considered validly served.
Before you sign anything, read the entire contract, including the small print like the agent’s public terms of trading, and if in doubt, run it past a lawyer.
Although they can deal with the notice element of recovering possession, agents should not initiate legal proceedings on behalf of landlords without their knowledge. Also, agents are not entitled to
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NLA SERVICES
visit: www.landlords.org.uk
NLA Advice Line The NLA Advice Line has been set up to provide members with practical guidance and offer reassurance on the numerous issues that can affect landlords throughout the UK.
STARTING UP
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As with most things there is generally more than one answer. Our advisors may give you several options to help resolve your issue; it is for you to choose which one you are most comfortable with. For example, some people relish their day in court, while others would never dream of going down this route except as a last resort. The NLA Advice Line is now staffed by up to 13 advisors. We generally have six working each day on a rota system from 9am to 5pm Monday to Friday. We will be extending our Advice Line to 7pm every Monday, starting from 7th March 2011. We currently receive up to 750 calls per week, dealing with 35,000 queries alone in the last 12 months! Our team is made up entirely of landlords who will have experienced similar problems to those you are facing; they will also have expertise in other fields related to Housing, Landlord & Tenant Law, as well as having undertaken various levels of relevant professional training. Please note, however, that the guidance they provide is not legal advice, and you are always recommended to seek professional advice before taking or refraining from any action. Common Issues The vast majority of calls relate to obtaining possession of property. This can be extremely stressful for a landlord. It is therefore very important to follow a strict procedure to ensure that possession may be gained as
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quickly as possible. Our advisors can talk you through the procedure, guide you to complete the relevant forms and give you the required information to complete a correct service of the relevant notices.
will ring you back. If possible, avoid calling on Mondays as it is always the busiest day of the week. However, you can always try to contact us up until 7pm every Monday, starting from 7th March 2011.
It is most important that you ring us as soon as a problem develops; in many cases this could mean you regaining your property much earlier than if you left the problem to continue unchecked.
Help us to help you The solution to an issue very much depends on the landlord’s individual situation. Please have your membership number, tenancy agreement and any relevant information to hand when you call. n
Non-payment of rent is another common issue; here again, it is imperative that you give us a call as soon as things start to go wrong. The sooner the problem is tackled, the sooner you can sort it out and the less money you will lose. It is not unusual for us to receive calls from landlords who are owed over 12 months rent! Their tenants are usually ‘smart talkers’ and have convinced them that things will be OK next month once the bank has got things sorted out... This can go on month after month and, before you know it, you are owed a large amount of money. Call us as soon as possible as there may be several options open to you. We will call you back! The NLA Advice Line flow of work varies considerably throughout the day, generally becoming very busy over the lunch time period and again from 3:30 till 5:00pm. If during these times you cannot get through to an advisor, please leave your phone number and membership number and we
Contacting the NLA Advice Line Only NLA members are entitled to use the services of the NLA Advice Line. The telephone number of the Advice Line is available to all members who log in their member details in the top right hand corner of the NLA website, www.landlords. org.uk, and click on Support &Advice> Telephone Advice Line. Alternatively, you can telephone the main NLA switch board during office hours on 020 7840 8900.
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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 is a free online buy-to-let mortgage search facility for all private landlords enabling you to source from a highly competitive range of buy-to-let mortgage schemes that are researched and updated daily.
Buying or selling a property is widely regarded as a very stressful time and finding a reliable law firm to look after your property purchase or sale is high on your list of priorities. Using our online quotation system you can select a law firm based on your most important criteria – price, distance or recommendation.
• • • •
Best in market products researched daily Cashback for NLA members Find schemes that fit your expected rental income Free helpdesk for information and support
• Highly competitive quotes • No legal fee if your sale does not complete • Strict service standards to ensure a high quality service • Keep up-to-date with your case with 24/7 online case tracking • NLA Members receive £100 cash back upon case completion
Cashback for all NLA Members* on successful mortgage completion
£100 cashback for NLA Members*
Get the right mortgage for you online at
on successful conveyancing completion Register now to quote and compare online at
www.landlords.org.uk/mortgages
www.landlords.org.uk/conveyancing
NLA Tenant Checks
Don’t take a risk with tenants! 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 to find out if they: • • • •
Have been made bankrupt or are insolvent Are NOT who they claim to be Are NOT employed and/or earning what they claim Have experienced problems with previous landlords/ letting agents
• • • •
A choice of Basic or Full Tenant Reference Checks Simple online application process Instant results displayed on screen with a Basic Check Affordability assessment provided with a Full Tenant Check
NLA Members pay just £8 for a Basic Tenant Check and £23 for a Full Tenant Check* Be in the know and purchase today at
www.landlords.org.uk/tenantcheck
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NLA EPCs
NLA Property Insurance
Reliable and professional service from fully qualified Assessors
Specialist insurance for landlords
An EPC is required whenever a building in the social or private rental sectors is let to a new tenant. NLA EPCs offers nationwide coverage with Assessors you can trust.
• • • •
Fully accredited Assessors Completely compliant EPCs Simple online booking Dedicated helpline to answer any of your questions
Your rental property is a huge investment and protecting it is paramount. Whether you have a single property or a portfolio, we have a policy for you. Our flexible policies offer some of the widest cover for landlords and buy-to-let owners including: • • • •
Competitive premiums Accidental damage to buildings (superior only) Public Liability Cover provided during un-occupancy (subject to terms & conditions)
NLA Members save £10 per EPC From £64 inc VAT*
15% Discount for NLA Members*
Register and purchase online at
View the policies and register online at
www.landlords.org.uk/epcs
www.landlords.org.uk/propertyinsurance
NLA Inventories
Protect your property Inventories are a crucial part of any letting agreement. The Tenancy 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 Select the right report for you
Significant savings for NLA Members. From £88 for an unfurnished, one bedroom property* See a sample report and book online at
www.landlords.org.uk/inventories Not available in Scotland and Northern Ireland
NLA Rent Guarantee Insurance
NLA Online Store
Save yourself £ thousands and months of worry
Access to a range of landlord resources
You can’t protect your tenants from becoming unemployed but you can protect your rental income from being affected too! NLA Rent Guarantee Insurance can help save you thousands of pounds and months of worry.
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.
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• • • • • •
Professional, reputable and transparent 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
NLA Members save over £10. From £58.30 for 6 months cover* Protect yourself - register and purchase online at
www.landlords.org.uk/rentguarantee
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
Take a look at the products, courses and publications available today at
www.landlords.org.uk/shop Publications and some courses not available in Scotland and Northern Ireland
*Prices correct at time of print. Prices include VAT. Prices subject to change. Terms and Conditions apply.
UKLANDLORD MARCH/APRIL 2011 49
NLA RECOGNISED SUPPLIERs
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
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Look for the Partner or Recognised Supplier Logo What is the Recognised Supplier Scheme? The RSS is an opportunity for reputable businesses to promote their products /services to landlords. Why does the NLA have it? There are many businesses selling products and services to landlords. The NLA RSS has been introduced 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. NLA 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, an
assessment of the products and services being sold, 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 NLA’s 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 PARTNER
my|deposits Tel: 0844 980 0290 Fax: 0845 634 3403 info@mydeposits.co.uk www.mydeposits.co.uk
my|deposits is a government-authorised deposit protection scheme that enables landlords to keep hold of deposits for the duration of the tenancy. Our scheme strikes a fair balance between landlord and tenant and offers freedom and flexibility of being able to retain control of the deposit. my|deposits provides an evidence-based dispute resolution service 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.
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Arden Credit Management Tel 0845 849 4147 nlasupport@nlarentarrears.org.uk www.nlarentarrears.org.uk Arden Credit Management is an on-line facility that allows NLA members to instruct our rent recovery team to collect outstanding rental amounts from your tenant(s). 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). This service is exclusive to NLA members only.
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.
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.
Genyo Tel 020 8340 6419 info@genyo.co.uk www.genyo.co.uk Landlords can earn extra money by installing solar panels and receiving a guaranteed return with the Government’s Microgeneration Feed-in Tariff. GenYO uses group purchasing to bring property owners lower prices with carefully vetted installers. Our services provide a low cost high quality solution whether you’ve got 1 property or 100’s. NLA members can claim discounts.
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.
HCR Tel 01256 313758 info@ll@hcr.co.uk www.hcr.co.uk HCR is the UK’s largest independent relocation specialist. Renting over 6,700 properties from private landlords throughout the UK, demand for our services continues to grow and we wish to work with Private Landlords who have properties that are suitable for our clients. Benefits to landlords include: Guaranteed Rent, Professional Occupants with 28 Months average tenancy. No charge unless we can bring your property onto our landlord scheme. NLA members can benefit from a 10% discount off their registration fee. Landlord Action Tel 0333 240 9770 enquiries@landlordaction.co.uk www.landlordaction.co.uk Landlord Action is the first UK-based organisation helping landlords and agents deal with their problem tenants. Founded in 1999 as the first ever fixed-fee tenant eviction specialist, they have acted in nearly 20,000 problem tenant cases and are considered the authority in this field. They run a free advice line to help landlords understand the process of eviction and give general advice about dealing with problem tenants. NLA members are entitled to a £20 discount on their eviction services. Home & Landlord Response Tel 0844 472 9880 customercare@landlordresponse.co.uk www.landlordresponse.co.uk Home & 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.
Loft Interiors Tel 0800 157 7322 Fax 0800 157 7323 info@loft-interiors.co.uk www.loft-interiors.co.uk LOFT Interiors provide landlords their agents and developers with a “onestop furnishing solution”. With over 30 years experience LOFT Interiors are the North West’s leading furniture supplier. We provide immediate, cost effective, furnishing solutions specialising in furniture packages, contract furniture, interior design, domestic appliances, laminate flooring and carpets, window blinds and property maintenance. LOFT Interiors are proud to offer all NLA members a 5% discount.
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NLA RECOGNISED SUPPLIERS
For an up-to-date list visit: www.landlords.org.uk
Property Owners Directory Tel 020 7722 4334 Fax 020 7722 5335 info@propertyownersdirectory.com www.propertyownersdirectory.com POD is the UK’s leading online recommended tradesmen and property services directory. NLA members are entitled to a 15% discount for a site listing, and can claim a £20 cashback for recommending reliable tradesmen who sign up for a paid listing.
Property Portfolio Software Tel 01925 398 599 enquiries@propertyportfoliosoftware.co.uk www.propertyportfoliosoftware.co.uk Property Portfolio Software provides solutions to help landlords get better organised when managing multiple properties. Our software solutions are designed by landlords for landlords and are guaranteed to save you time, money and effort in running all aspects of your property business. NLA members can claim a 15% discount.
Santander Tel 0800 068 6698 business.development@santander.co.uk www.santander.co.uk/landlord Santander Affinity Business Current Account As a member of the National Landlord Association you can benefit from free day-to-day banking transactions as long as you stay within the monthly transaction limits. For full product details visit www.santander.co.uk/landlord The account can be accessed and managed online, over the telephone, or deposit by post or at any Post Office® branch. To find out more or apply just call 0800 068 6698 and tell the advisor that you’re a member of NLA. Seddons Solicitors Tel 020 7725 8000 enquiries@seddons.co.uk www.seddons.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.
Sky Communal Solutions Tel: 0844 241 0331 no-reply@skyhomes.co.uk www.sky.com/managers Sky Communal Solutions (part of BSkyB group) equips private blocks of flats with high-quality digital TV. Our communal TV solutions are Shared Dish and Integrated Reception System (IRS). They will give all your residents a wide range of great digital TV options. For a free estimate, visit www.sky.com/managers. Spareroom.co.uk Tel: 0845 644 4029 landlords@spareroom.co.uk www.spareroom.co.uk/landlords SpareRoom.co.uk is the UK’s No.1 Flatshare website with over 1/2 million visitors per month. Whether you’re targeting students or professionals, there’s nowhere better to advertise your rooms to rent and whole properties suitable for sharing. NLA members receive one week’s free advertising for up to 10 adverts.
Spick & Span Commercial Services Tel: 023 8060 2299 info@cleaningforlandlords.co.uk www.cleaningforlandlords.co.uk Spick & Span Commercial Services provide end of tenancy cleaning to landlords and letting agents across the UK. We can cover any number of properties within your portfolio whilst keeping superior quality of service. We have been in business for over 20 years and tailor our services to individual needs.
Upad Tel: 0333 240 1220 info@upad.co.uk www.upad.co.uk Need to find your perfect tenant? Upad advertises your property on the biggest UK lettings sites, including Rightmove, Zoopla and FindaProperty. We have a range of professional services for landlords, including inventories, rent collection and full management. NLA members save 20% (£55.20, normally £69) on property advertising.
How to join the Recognised Supplier Scheme
If you use a company or supplier who would be interested in joining the scheme please email: recognisedsupplier@landlords.org.uk or phone Christian Kent on 020 7840 8917 for details.
52 UKLANDLORD MARCH/APRIL 2011
NLA PARTNER NEWS STARTING UP REGULATORY PROPERTY NEWS NLA Property Insurance: Tailor-Made for Landlords
SAFETY
FINANCE
More letting agents taking out protection The tenancy deposit scheme, my|deposits, registered a sharp increase in the number of protections taken out by letting agents over the last year. The figures show that letting agents bought 65 per cent more deposit protections last year compared to figures for 2009. Each agent purchased an average of 46.3 protections last year, compared to an average 28.2 protections in 2007 when my|deposits first started. Individual landlords took out nearly half of all protections during that time at 49 per cent. Eddie Hooker, Chief Executive, mydeposits.co.uk, said: “Agents are turning to my|deposits because they see the benefits of being able to control the deposit during the
tenancy on behalf of their landlords and because of our simple, transparent fee structure.” “The number of agents on our books has more than doubled since we launched in 2007, while individual landlord members have increased seven-fold,” he added. Hitting the million mark Since mandatory protection of tenancy deposits was introduced in England and Wales, my|deposits popularity among landlords and letting agents has grown steadily and the one millionth deposit was protected under its scheme at the end of last year. The deposit was purchased by UNITE, the UK’s largest student accommodation provider who was one of the first organisations to join the
UNITE’s Shane Spiers and Sean Hooker of my|deposits
my|deposits scheme. To celebrate, my|deposits.co.uk donated £1,000 to UNITE’s favourite charity, Students in Free Enterprise, which helps university students develop outreach projects in their communities and become business leaders.
my|deposits.co.uk now protects an average 30,000 deposits on behalf of landlords every month. It is the only tenancy deposit protection scheme designed specifically for landlords and letting agents that want to control the deposit. n
For more information, see www.mydeposits.co.uk
UKLANDLORD MARCH/APRIL 2011 53
NLA RECOGNISED SUPPLIER PROFILE
HCR Group
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. STARTING UP
REGULATORY
TENANCY
NEWS
SAFETY
FINANCE
HCR: relocation specialists for professionals and their families
HCR is the UK’s largest independent relocation specialist and a leading provider of rental accommodation for professionals and their families. Andrew Smith, Operations Director, HCR Group
Established in 1982, HCR has a long and fruitful history of working with landlords in the privaterented sector. As a consequence, it now relies on a steady stream of ‘by word of mouth’ referrals for the 6500 plus domestic properties it has arranged to be let. Such is the demand on HCR for wellpresented and well-maintained properties across the UK, HCR has joined the NLA’s Recognised Supplier Scheme to increase the percentage of private-rented sector landlords in its portfolio.
and the peace of mind that comes with a quality occupant who, on average, will occupy your property for 28 months has to be an opportunity worth exploring. Dealings with landlords HCR Group houses corporate tenants using a well-established corporate tenancy agreement with all the advantages of support from move in assistance to dilapidations management. “Whilst we are not a managing agent, as an open and honest business we apply ARLA (the Association of Residential Letting Agents) guidelines throughout our operations to ensure that we are transparent and fair in our dealings with both landlords and our clients,” Andrew told UK Landlord. Here’s a summary of what you can expect from dealing with HCR:
A safe, tried and tested solution for landlords While it may seem relatively easy to secure high rents in the current market, it is worth factoring in the quality of your tenant when considering your options for finding new tenants and their ability to continue to pay their rent during these uncertain economic times. This is where HCR comes in as an option for NLA members to consider. “We will make no bones about trying to reach a competitive market rent,” says Andrew Smith of HCR Group, “but the benefits of surety of payment
54 UKLANDLORD MARCH/APRIL 2011
• • • • • • •
Corporate tenant with guaranteed payments for the duration of the tenancy Quality occupants who are diligent and professional 28 months’ average tenancy Production of tenancy and renewal documentation Guaranteed attendance at Move-In and Move- Out by HCR representatives Low registration fees NLA members will ONLY be charged if there is a tenancy with HCR
• • • • •
Fair and equitable damages policy working to ARLA guidelines Guaranteed payment of agreed damages or deficiencies at the end of the occupancy Partnership with a professional company HCR client has access to a 24/7 Emergency Property Helpline A dedicated HCR Maintenance Team to manage all property requests
HCR would also be delighted to hear from landlords who manage their properties themselves and who are looking to benefit from lower fees, guaranteed rental payments and the likelihood of a long term let. The added bonus is that you will not be charged any fee unless we can bring your property onto our landlord scheme. HCR will offer NLA members a 10 per cent discount on their registration fee. n
For more information see: www.hcr.co.uk or call 01256 313758
MORTGAGE MARKET ROUNDUP STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Opportunities ahead for would-be investors Latest figures compiled by NLA Mortgages for the last quarter of 2010 highlighted some positive signs in the buy-to-let mortgage market. The figures, which show a significant increase in the average loan size being obtained by landlords throughout 2010, will come as a relief to many after a difficult period. The statistics suggest that the largest increase occurred during the fourth quarter, up 10 per cent on the previous quarter. NLA Mortgages attributes the availability of some higher loanto-value products to this rise, along with the re-emergence of Paragon Mortgages for the purchase or remortgage of HMO properties, which tend to be larger and therefore more expensive than the average buy-to-let property, driving up the average loan size. Lenders offer new deals Kensington Mortgages (owned by Investec) announced in February 2011 that it will now lend up to 85 per cent loan-to-value on buy-to-let mortgages. This could spell good news for investors who think now is the right time
to gear up or who do not have the cash for a higher deposit. However, beware that the terms on offer are fairly restrictive. For example, there is a requirement for a minimum yield of 6.1 per cent. Gareth Lowman of Savills Private Finance notes that despite talk about new lenders entering the buy-to-let market, there has not been much change in reality. He says traditional lenders including Godiva and
Platform started the year with re-launches to bring in business, with both improvements in pricing and criteria. Gareth believes this could be a good time for landlord investors: “With first-time buyers still unable to access affordable mortgage finance and with property prices continuing to fall, this represents a potential opportunity for investors – a particularly attractive one given that yields are rising. n
Best sellers The most popular products for NLA Mortgages in January were: • 4.80 per cent 2-year tracker, up to 75% LTV (loan-to-value), with 2.25% fee • 4.80 per cent 2-year fixed, up to 75% LTV, with 2.5% fee • 4.99 per cent 5-year fixed, up to 50% LTV, free valuation up to £700 for purchases and remortgages and free legals on remortgages only.
NLA Mortgages announces new rates February 2011 saw the launch by NLA Mortgages of a new range of fixed and variable interest rates which are specifically tailored to the needs of landlords. The mortgages offer competitive rates for landlords keen to raise capital to expand their portfolio or raise capital for refurbishments. Variable rates start from 4.49 per cent + Bank of England Base
Rate and provide up to 75 per cent loan-to-value, while fixed rates start from 5.79 per cent. Both types of mortgages have £0 completion fee and offer free valuation and free legals on remortgages. For those worried about interest rates going up, the rate can be fixed at 5.59 per cent for 4 years, providing up to 70 per cent loan-to-value. n
For rate details or to make an application, visit the NLA Mortgages website now: www.landlords.org.uk/mortgages
UKLANDLORD MARCH/APRIL 2011 55
HOUSE PRICES AND LETTINGS SURVEYS STARTING UP
REGULATORY
PROPERTY
TENANCY
House Prices Mixed opinion on house prices House price indices at a glance Index Month Price movement Average house price (England & Wales) CLG
December +0.5 per cent
£208,148
Land Registry
December -0.2 per cent
£163,814
Halifax
December -1.3 per cent
£162,435
Nationwide
December +0.4 per cent
£162,763
LSL Acadametrics December -0.2 per cent
£222,827
The latest house price index from Communities and Local Government (CLG) records that prices increased by 3.8 per cent over 2010, and rose by 0.5 per cent in the last month of the year. Average house prices were still 0.4 per cent lower over the quarter to December 2010, which compares with a rise of 0.2 per cent for the previous the quarter ending September 2010 (seasonally adjusted). The main house price index sources showed a mixed picture for December 2010, with most suggesting a slight drop in prices and some indicating a slight rise. The Halifax says that prices have fallen by 1.6 per cent since the beginning of 2010 but emphasises that the decline is less than falls seen in the second half of 2008. “Looking forward, we expect limited movement in house prices during 2011 but with the risks on the downside,” said Halifax housing economist Martin Ellis. “Current signs that homeowners are becoming more reluctant to sell would, if continued, help reverse the imbalance between buyers and sellers. Nonetheless, uncertainty about the economy, weak earnings growth and higher taxes could put some downward
56 UKLANDLORD MARCH/APRIL 2011
pressure on demand.” According to the Halifax, the average house price is now £162,435. • Nationwide’s latest figures show that house prices remained essentially unchanged for 2010. According to Nationwide, the three month-on-three month rate of change, which is a better indicator of recent trends as it smoothes out the monthly volatility of house prices, rose from -1.3 per cent in November to -1.0 per cent in December and was still consistent with modestly declining house prices. For 2010 as a whole, house prices posted an unremarkable gain of 0.4 per cent, as most of the price increases from the first half of the year were reversed during the second half. The essentially flat outcome for the full year was in line with expectations. LSL Acadametrics house price index indicates that over the 12 months from January to December 2010, house price growth stood at 2.0 per cent compared to 5.3 per cent in 2009. This is attributed to widening regional disparities and the continuing decline in the number of transactions, falling in December 2010 by 5 per cent.
UK trends Annual average house prices rose in England (4.1per cent), Scotland (1.8 per cent) and Wales (4.3 per cent) but were lower in Northern Ireland (-16.1 per cent), according to CLG. In England, the largest increase in annual average house prices in 2010 was in London (6.9 per cent), and the smallest was in the West Midlands (3.0 per cent) The North East saw the largest annual fall (-3.8 per cent). n
SAFETY
FINANCE
Auction sales similar between December 2009 and 2010 Latest data from RAPID (Residential Auction Property Investment Data), which is compiled jointly by auctioneer Allsop and the Essential Information Group (EIG), shows relative stability in auction sales. December 2010 data was very similar to December 2009, albeit with an overall sale rate of 69.3 per cent (December 2009, 70.1 per cent). The number of lots sold was down 1.9 per cent and the total raised down 10.7 per cent. The yearly comparisons are more promising, with a 5.8 per cent increase in the number of lots offered and amount raised down just 3.5 per cent. The residential sector saw a 5.2 per cent increase in lots offered and a 1.7 per cent decline in the amount raised (whereas the commercial sector offered 8.6 per cent more lots though the amount raised slipped 6.9 per cent). n
Regional house price indices 12-month percentage change for the latest month
Source DCLG
LETTINGS SURVEY STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Tenant demand continues to rise Demand for private-rented property bucked the usual Christmas pattern and continued its upward trend in the last quarter of 2010, according to new statistics from the NLA’s
quarterly Landlord Survey. The figures showed that demand was up by 20 per cent compared to the same period for the previous year.
Tenant Demand in 2010 Q1 2010 25.4 13.9 36.2 24.5
Q2 2010 28.1 9.6 35.8 26.5
Q3 2010 38.1 6.7 32.5 22.6
Q4 2010 42.7 5.5 29.7 22.1
Source for all graphics: NLA Survey Q4 2010
Percentage of Landlords
Increased Decreased No Change Unsure
Voids slightly reduced The results showed that about 36 per cent of landlords said they had experienced void periods over the previous three months. The figures showed that about
45
15 per cent said the void period lasted for two months and 10 per cent said they were still looking for a tenant. n
Tenant Demand
40 35 30 25 20 15 10 5 0 Q1 2010
Q2 2010
Q3 2010
Q4 2010
For more information visit: www.landlords.org.uk Increased
UKLANDLORD MARCH/APRIL 2011 57
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
Regions Director for the Regions Regions Coordinator Regions Support Officer
Barry Markham Sally Thorn Lyra Haldane
Communications Director for the Regions Public Relations Manager
Barry Markham Elizabeth Bananuka
Policy Manager Public Affairs Officer
Chris Norris Vincenzo Rampulla
Policy Officer
David Cox
Press Officer
Dane Svenson
Editor UK Landlord
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 Website Executive
Claire Mansell Andrew Cieciala
Marketing Executive Membership
Sai Mehta
Operations Director of Operations
Richard Price
Landlord Development Manager
Alison Perkins
Member Services Manager
Meurig Lloyd
Operations Manager Operations Support Officer Local Government & Accreditation Officer
Dave Offord Charlotte Clements Siobhan Cannon
Telephone Advisers Chris Hellings, John Coyne, David Mclean, Tesh Rai, Jilly Westcombe-Evans, Gordon Brierley, Jackie Taylor, James Fraser, Alan Jakeway, 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
Executive Assistant
Steven Powers
Systems Head of Systems
Richard Marston
Subs renewals/queries/change of address: Tel: 020 7840 8937 E: membership@landlords.org.uk To purchase Tenancy Agreements: Tel: 020 7840 8900 or www.landlords.org.uk/shop 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
58 UKLANDLORD MARCH/APRIL 2011
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 (Mid-Devon & Exeter) Claire Heale Local Representative (Cornwall & Plymouth) Vacant Local Representative (Taunton & Yeovil) Jane Smith Local Representative (Dorset) Steve Bartlett 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 Local Representative (Leeds, York) Mike Troke Local Representative (Bradford, Huddersfield, Wakefield, Halifax) Fiaz Rashid Northern Ireland Northern Ireland Representative Connor McCann Scotland Scotland Representative (Glasgow) David Kendall Local Representative (Dundee & Fife) Gerry McDougal Local Representative (Edinburgh) Tristan Compton Local Representative (Aberdeen) Lorraine Young Wales Wales Representative Lee Cecil Local Representative (North Wales) Julie Woolfenden Local Representative (South Wales) Vince Botham
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 MARCH/APRIL 2011 59
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
FIRE SAFETY
LEGAL SERVICES
PROFESSIONAL LANDLORD SERVICES
LANDLORD PORTAL
PEST CONTROL
COSTS: TRADE ADVERTISING 3 issues Black Colour
- -
£200 £260
Prices per single unit 3cm x 6cm
60 UKLANDLORD MARCH/APRIL 2011
6 issues Black Colour
- -
£380 £495
products and SERVICES directory LANDLORD SOFTWARE
LETTING AGENTS
MAINTENANCE
LETTINGS
PLUMBING, HEATING & GAS
For all advert enquires please contact Steve Pearce or Sandra Zealand at advertising@uklandlord.org.uk or on tel: 0117 330 8370
Help cut your re-decoration costs WTM (Insuladd) has brought a product to the UK decorator market that will help landlords cut their re-decoration costs and tenants save money on their fuel bills whilst reducing their carbon footprint. Developed in the USA along with NASA InsuladdÂŽ is a powdered additive that is mixed with ANY off the shelf paint. It is made of microscopic ceramic spheres which have a vacuum at their centre. These form a barrier between the warmed
humid room and the cold walls and ceiling. Heat is reflected back into the living space and since the surface temperature of the wall is slightly higher it greatly reduces or eliminates condensation. Condensation being a major contributor to wall and ceiling damage and the formation of mould and mildew. Mould and mildew can have a negative effect on tenants well-being. The cost of Insuladd is only as few pence per sq ft. Its as easy as two coats of paint.
Insulating Paint Additive. RRP ÂŁ20.41 per pouch Tel 01457 764015 email sales@wtm-insuladd.co.uk
www.wtm-insuladd.co.uk
UKLANDLORD MARCH/APRIL 2011 61
nla member viewpoints STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Landlord views: Julia Horton “I have 14 properties most of which are in the Selby area of North Yorkshire. The majority of them are two and three-bedroom terraced houses. When I first started as a landlady I was working as a head teacher in an inner-city school. I have since retired and spend my time running my properties. The skills and financial awareness gained from being a head teacher have stood me in good stead. As a successful head teacher and a landlady I have experienced the onslaught of unnecessary government legislation which creates a mass of paperwork and complexity.
I joined the NLA because I felt I needed more support and information than I had been getting. Government legislation was coming thick and fast and letting was becoming more complex. I needed good solid advice, an online service I could rely on with experienced people at the hub that I could communicate with and obtain a same-day response. I do not use letting agents because I prefer to conduct the whole process myself. For this reason, I have set up my own property rental website (www.selbyhouserentals.co.uk). I find that the advice given by councils to tenants not to vacate their
property at the end of a tenancy and wait for eviction is worrying. For me the most rewarding aspect of being a landlord has been seeing my property portfolio grow and gaining a good reputation for providing quality properties at fair prices within my area.” n
Julia Horton, five-year member
Multi-year membership fees Landlord Membership of the NLA
Price
Savings
Indivdual 1 year Individual 3 year Individual 5 year
£80* £195 £320
£63 £98
*plus joining fee of £18 (pay by direct debit and save £10)
Who can join under this package
}
Indivdual landlords (including spouse/ partner)
Why landlords join the NLA If you are a landlord and not yet a member of the NLA, read on! The private-rented sector is governed by over 50 Acts of Parliament. With this heavy regulatory burden, it is now more important than ever that you understand your legal responsibilities as a landlord. Here’s how membership of the NLA will help you. Telephone Advice One of the unique benefits that NLA membership offers is access to the expert advice of the NLA Telephone advice line. Our team of landlord experts are able to respond to your questions with succinct and practical advice. Landlord information resource Core to the NLA membership package is a comprehensive range of information sources for landlords to support your everyday business needs and future planning. Included in the membership package is unlimited access to the NLA website which is regularly updated with guidance for landlords and the latest developments affecting the private-rented sector. You can use the website to download free forms such as the NLA’s Assured Shorthold Tenancy agreement and access the NLA Landlord Library and follow the
62 UKLANDLORD MARCH/APRIL 2011
NLA Accreditation courses online. Every new NLA member receives a printed copy of our Landlord Development Manual which benchmarks good practice on the many issues facing landlords. Discounts on NLA Services One of the most important aspects of being an NLA member is the free tax investigation insurance. This represents a saving of anything up to £300. Apart from the financial savings involved, it gives you peace of mind should you become the focus of a tax investigation by HMRC. NLA members are entitled to discounted rates on membership and protection of their tenancy deposits with my|deposits. Through the NLA Recognised Supplier Scheme, NLA members can take advantage of a wide range of
commercial services for landlords at discounted rates. Become part of the landlord community! Any landlord with private rental property in the UK can join the NLA, regardless of their portfolio size. The NLA is now the largest landlord body in the UK, and has a team of policy experts to lobby at local, national and EU level to promote the best interests of landlords. By joining the NLA, you can add your voice to
support our campaigns and also meet other landlords at our local and national events and become part of the growing landlord community in the UK. n Key benefits for Landlords include: • Telephone Advice Line • Online Landlord Library and Accreditation • Courses and Meetings • A range of free and discounted products and services including cash-back opportunities
nla APPLICATION FORM
or Join Online: www.landlords.org.uk
UKLANDLORD MARCH/APRIL 2011 63
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 authorities ‘playing’ the eviction system Paul Murtagh wonders why local authorities tell tenants in rent arrears not to move out until they are physically evicted (Letters, Issue 147). The reason is that homeless tenants presenting themselves to any local authority’s homeless section may be refused re-housing if they are deemed to have left a previous property “voluntarily”. See Part VII of the Housing Act 1996 (as amended by the Homelessness Act 2002). A very rough deal for private landlords; no fun either for vulnerable tenants hit by adversity. Russell Cavanagh (ex-housing law adviser) My story is similar to Paul Murtagh’s (UKL Nov/Dec 2010) but with Bexley Council. My tenant, who was not on benefits, fell into arrears due to ill-health and the consequent lack of income. He approached the council for support but was advised that this couldn’t (wouldn’t?) be provided until he was homeless. He was told to wait until I had not only obtained judgement against him but also had a bailiff appointed to evict him. This took many months during which time I received no rent. Eventually he left on the day that the bailiff turned up.
The council brazenly ‘played the system’ and effectively used me to subsidise its social obligation to its resident. I complained of its action to the Local Authority Ombudsman but was told that the council owed me no duty of care so the case was dismissed. Society has to decide whether it wants local authorities to support residents when they fall on hard times and, if so it shouldn’t require private landlords to subsidise them. Bob Bown, Petts Wood Properties
Editor’s note: While we cannot comment on the specifics of this case, it is worth noting Government guidance which states a Local Authority should accept somebody as homeless if properly served with notice where grounds are mandatory. Tenants who have experienced unexpected hardship may be eligible to claim Local Housing Allowance to cover the full amount of rent due under the 13-week Protection Rule. See the NLA Landlord Library for more information – www.landlords.org.uk
Court of Appeal gets it right on tenancy deposits
e
Boiler tips I have had a few combination boilers installed as a replacement of old system boilers in my different properties. My comments are as follows: 1. It is very important to have a ‘clean’ system, so power flushing is a must. 2. Where possible, replace old radiators with new ones. 3. A magna clean would be useful. 4. The system should also be protected with Inhibitor, to preclude electrolysis taking place between different metals used in pipes, valves, radiators, taps and boller components etc. In a few cases, I had problems, even after power flushing. When a heat-exchanger gets clogged, it is impossible to clean and would have to be replaced. This is quite expensive. In general, system boilers can give good service for 20-25 years. With Combi boilers, one would be lucky to have a working life of 10 years. There is also a problem of having no water storage. Some people decide to keep the cold water tank to feed the cold water taps and W.C. Khalid Asmi In response to the letter (January/February 2010, Issue 148) by CJ Smith of Cheltenham on the cost of installation of a combi boiler, in replacement of a standard system. I am a self-employed electrician and have been a landlord for nineteen years. I would like to make the following observations whilst wearing both my self-employed hat and my landlord hat: • It makes sense to price parts before getting quotes. • Get at least three quotes but don’t necessarily take the cheapest quote. Important factors are suitability, recommendations and portfolio of previous work, etc. • Take a look inside the contractor’s work van; this is how he will treat your property/installation. From my point of view, as long as you are not a vulnerable person, you are as open to any price as if you were shopping for your weekly food, a car or a house. A contractor will negotiate the best price up and you should negotiate the best price down to a mutually acceptable cost. Andy Birch, Hampshire
The Atkinsons’ holier-than-thou attitude to tenancy deposits does landlords no favours (Letters, Issue 148). It is amazingly easy to miss the 14-day deadline for registering a tenancy deposit. I have missed a deadline when students placed deposit money into my account when I was on holiday and they did not tell me they were doing so, and others have transferred a deposit without a reference. I have also had a family crisis when my business came to a virtual standstill for a few days and I simply forgot to protect one deposit. Responsible landlords should not have to fork out thousands of pounds as a ‘punishment’. Mr C. David
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. The Editor reserves the right to amend and shorten any letters or emails received for publication.
64 UKLANDLORD MARCH/APRIL 2011