Issue price: ÂŁ12 (where sold)
Issue No.150
UKLandlord The leading publication for the Private-Rented Sector
MAY/JUNE 2011
NLA Landlord Live show The leading property event of the year
E C N A FIN UE ISS
in this issue
Tips for buying properties at auction
What property insurance should landlords consider?
Guide to inheritance tax planning
How the new LHA direct payment rules work
EDITORIAL
UKLandlord
Welcome...
May/June 2011: Issue 150 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
In this special Finance issue of UK Landlord we assess the changes announced in the recent Budget by the Chancellor, George Osborne, that affect the property sector, notably changes to stamp duty land tax that are expected to attract greater investment in the private-rented sector (PRS).
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
As experienced landlords will know, it is essential to have a contingency plan in case things go wrong, and for landlords one aspect of this is deciding what
NLA CONTACTS Membership T: 020 7840 8937 (9am-5pm Mon-Fri) E: membership@landlords.org.uk
insurance cover is appropriate for their buy-to-let properties. This issue provides an overview of the types of cover to help landlords keep costs down while covering themselves against the hazards they face.
Media Enquiries: T: 020 7840 8906 (9am-5pm Mon-Fri) E: press@landlords.org.uk
The NLA continues to focus on the commercial needs of landlords as well as
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
on the technical information we need to run our businesses in compliance with best practice. This year the NLA is taking this a step further by taking a prominent role at the Property Professional Show at London’s Olympia (1011 May). NLA Landlord Live will occupy an entire floor where landlords can participate in live property auctions from all over the UK, seek advice from the NLA and other specialists and attend workshops on pressing topics for landlords. I hope to see some of you at the event and wish anyone bidding the best of luck, unless of course they are bidding against me! Best Regards,
Andy Stern Editor
Printed on paper from sustainable forests. Please pass this magazine on to another landlord and then recycle.
andy.stern@uklandlord.org.uk
Design and Artwork by Rubicon Marketing Ltd 0117 330 8370
INTRODUCING THE NLA BOARD
Executive Chairman David Salusbury
Director of Finance Patrick Jacobs
Director for Marketing Anthony Lock
Director of Operations Richard Price
UKLANDLORD MAy/JUNE 2011 01
02 UKLANDLORD MAy/JUNE 2011
CONTents
Inside this issue...
NLA
FEATURES
04 04 MESSAGE from the chairman
REFERENCE
08 FINANCE: WHAT THE BUDGET MEANS FOR LANDLORDS
Spring rings in the changes for NLA Executive Chairman David Salusbury who explains the NLA’s latest priorities and plans for changes to governance.
12 LANDLORD PROPERTY MANAGEMENT
12 BUYING & SELLING Auction prices for new-builds and the Conveyancing Quality Scheme.
10 FINANCE: PROPERTY INSURANCE COVER SHOULD LANDLORDS The NLA sets out to MPs the landlord’s case HAVE? for direct payment of LHA, and positive steps
12 Finance & tax Overview of the Budget.
Good news for anyone buying a portfolio of properties, small or large
06 NLA CAMPAIGNS
on HMO relicensing.
07 HOT OFF THE PRESS 28 NLA NEWS
32 LANDLORD DEVELOPMENT & NLA ACCREDITATION
Courses scheduled for 2011.
42 PUBLIC AFFAIRS
20
10
Scottish PRS update and the threat of EU energy targets on property owners
66 NLA MEMBER VIEWPOINT 68 LETTERS & EMAILS
22 DIRECT RENT PAYMENTS TO LANDLORDS
How the new LHA rules will work.
Fairhurst Accountants set out what to consider when planning your future.
26 STRAIGHT AND NARROW
What to know if you let to an ex-offender.
33 NLA LANDLORD LIVE SHOW Pullout programme: come to the London
Olympia on 10-11 May to meet property specialists and live property auctions.
34 PURCHASING A BUY-TO-LET PROPERTY AT AUCTION
37
24 FINANCE: EXPERT ADVICE IN INHERITANCE TAX PLANNING
REGIONS
A guide to the main areas of Insurance that meets the specific needs of landlords.
14 Planning NLA challenges Newcastle on HMOs and a fine for landlord who developed properties without planning permission. 16 Finding Tenants Long-term tenants in the South East and renting to ex-offenders. 18 HMOs Peterborough landlord fined for unlicensed HMO. 20 Landlord & Tenant NLA says an online register of landlords is unnecessary. 20 Local Housing Allowance Concern over Welfare Reform Bill. 21 Safety in your property Inspection hatches for gas flues and tighter asbestos rules
58 MORTGAGE MARKET ROUNDUP and house prices Analysis of trends and latest buy-to-let mortgage
Tips from Brendons Auctioneers and Seddons Solicitors to prepare you for the live auctions at NLA Landlord Live.
deals.
NLA SERVICES
37 REGIONAL NEWS 38 WALES FOCUS Regional investment information, with insights
from NLA Local Representatives.
40 EVENTS GUIDE
48
Landlord events across the country.
52 NLA RECOGNISED SUPPLIERS “Purchasers will need to be in a position to put down a 10 per cent deposit to exchange on the day, and to complete within 28 days.” Phillip Arnold, Brendons Auctioneers
55 NLA PARTNER NEWS 56 UPAD: reinventing Renting 57 SMITH WAKE & TOFIELDs: Legal property experts UKLANDLORD MAy/JUNE 2011 03
message from the EXECUTIVE chairman
May/June 2011
Spring rings in the changes David Salusbury, NLA Executive Chairman Chancellor George Osborne’s recent Budget announcements of concessions to Stamp Duty Land Tax on bulk purchases have been welcomed by landlords. Having lobbied hard on this issue, the NLA can take satisfaction from knowing that we must have played an important part in persuading the Government of the clear benefits that this change would bring about in terms of the private-rented sector’s ability to respond to increasing demands for affordable accommodation.
on behalf of private-rented sector landlords when on 24th March I appeared before the House of Commons Welfare Reform Bill Committee. An interesting feature of the session was that there was unanimity on this issue between Shelter, Crisis, the National Housing Federation and the NLA. Although I would not want to raise any unrealistic expectations, I would like to assure members that this issue is certainly not dead in the water.
The initial responses by Housing Minister Grant Shapps to our representations on renewal fees for HMO licences in England also seem encouraging. We are asking the Government to simplify the relicensing process to remove unnecessary red tape for landlords which we hope will also lead to reductions in the levels of fees imposed by local authorities.
Another issue taking centre stage is accreditation. We are putting together a strategy designed to persuade more local authorities than the twenty-five who have already recognised this that NLA Accreditation is the way forward for landlord self-regulation. The scheme is free to NLA members if completed online via the NLA Landlord Library. Alternatively, landlords can choose to attend courses run by the NLA.
Campaigns at national and local level We continue to press the Government to rethink its approach to allowing tenants to opt for direct payment of the rental element of their housing benefit. I had the opportunity to make this point
NLA Accreditation is also the way forward for local authorities as we charge no fee to participating local authorities. The end result should be good quality accommodation and better relationships between landlords and tenants.
04 UKLANDLORD MAy/JUNE 2011
We are continuing with our series of local campaigns to persuade local authorities in England not to proceed with their intentions to bring in Article Four directions relating to planning permission and shared housing. We don’t think use of these powers is likely to help the private-rented sector respond to the increasing demands that inevitably will be placed on it. In particular, the use of these powers is most likely to affect low-paid workers who share houses as an affordable housing option. As the Localism Bill makes its way through Parliamentary scrutiny, we’re reminded that it’s a main instrument of the Government policy for devolving responsibility and activity to the local level. This means that the focal point for landlords’ dealings with government is moving increasingly to the local authority level. Paradoxically, at the same time, more and more attention needs to be paid to Europe where topics such as green energy in residential property and consumer rights are moving at a frenetic pace.
Changes at Board level within the NLA It was with regret that we recently had to accept the resignation of Barry Markham as Director for the Regions. Barry put a great deal of effort into building up our regional network and, thanks to his efforts, we now have no fewer than forty-five NLA Representatives throughout the country. We are indebted to him for leaving us with a solid foundation which we can build on to further develop our presence in the regions. We wish Barry and Eileen well for the future. Moving forward, we are keen to modernise the governance of the NLA. We want to develop best practice so that we can function with a highperformance board that can focus on setting strategy, policies and priorities. As part of the process, there is a need to refresh and renew the Board. You may have noticed in the last edition of UK Landlord that we asked for expressions of interest from individuals wishing to become non-executive directors. I am pleased to
say that there has been an encouraging response, and we expect to make announcements soon. It is received wisdom that combining the roles of chairman and chief executive is not best practice. During our development and expansion, for good or ill these roles have fallen to me. Whilst some might say that this arrangement has been workable during our formative years, it is a situation that I feel is becoming increasingly difficult to manage and justify as the NLA expands. This is why in the last edition of UK Landlord we gave notice of our intention to recruit a full-time chief executive officer. I am also conscious that the process of change and renewal must in due course include my role as Chairman. Whilst I am content to continue serving for the time being – subject of course to colleagues’ wishes – after nearly ten years at the helm the time is not too far away when I shall conclude that my job is done and that it will be right to hand over the baton. To the extent that it is possible to look ahead, I envisage this
happening next year, probably soon after the 2012 AGM. With sound planning, such a timetable should allow me to play my part in helping to steer the NLA - and the Board - through the next stage of its development as the premier organization for landlords. It will also provide time for me to help the new CEO settle in and to help identify a successor for the chair whom we can all support. n
Read more online www.landlords.org.uk
UKLANDLORD MAy/JUNE 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. NLA Evidence to Welfare Reform committee Having reached the Committee Stage of its journey through the House of Commons, the Welfare Reform Bill was scrutinised by a committee of MPs in March – who invited the NLA to give evidence in Parliament on behalf of private-residential landlords. Joined by spokesmen from Shelter, Crisis and the National Housing Federation, NLA Executive Chairman David Salusbury explained to the Committee that landlords’ demands for direct payment of LHA are not rooted in personal greed or mistrust of their tenants but in the understanding that it forms an essential
part of many landlords’ businesses. He went on to demonstrate that the proposed cuts to LHA rates and their subsequent attachment to the Consumer Prices Index rate of inflation
– rather than the actual cost of providing housing – could have a severely detrimental impact on investment in the Private-Rented Sector affecting, not only future expansion, but also ongoing maintenance and property improvements which would be harmful to the sector as a whole. Supported by all four witnesses the Committee was forced to take note of the consensus of opinion surrounding the issue of direct payment. The NLA and wider industry awaits the results of the committee’s deliberations, in the confidence that we have at least made ourselves heard. n
HMO relicensing victory The NLA is happy to take some credit for a victory for HMO landlords faced with relicensing this year. In direct response to representations made by the NLA, Housing Minister, Grant Shapps (pictured) has confirmed that he is in favour of changes to secondary legislation simplifying the relicensing process. This will mean that, subject to the legal changes, the amount of information which landlords in England will be required to provide will be significantly reduced – recognising the fact that it was supplied during their
initial licence application. The Department for Communities and Local Government also intends to allow local authorities greater flexibility when issuing licences to enable them to prioritise new applicants over those who have previously been vetted. As the fees charged for HMO licensing are intended only to cover the cost of administering the process, these changes should allow mandatory licence fees to decrease accordingly for relicensing applications. n
To see more about the external affairs activities of the NLA, go to the Public Affairs section on page 42.
06 UKLANDLORD MAy/JUNE 2011
Hot off the Press!! Dane Svenson NLA Press Officer Local Housing Allowance cuts have finally arrived but landlords have also been given a surprise helping hand in the Budget while our campaign to save shared housing continues.
Housing Benefit cuts are here The Government’s cuts to Local Housing Allowance have started to kick in across the private-rented sector. The caps are now being enforced for all new tenancies and will apply to existing tenancies through transitional arrangements over nine months. Landlords best pay attention to the changes and keep in touch with their local authorities, or, as Inside Housing puts it “housing professionals who stop paying attention over the coming weeks will wake up to a shock.”
Bonus in the Budget for landlords The 2011 Budget included an unexpected windfall for landlords, with changes to the way stamp duty land tax is calculated on bulk property purchases. It’s something the NLA has been calling for and was a key plank of our Budget submission. If multiple properties are purchased, tax will now be calculated on the value of the average property, rather than the full bulk purchase price, which will lead to significant savings for landlords. The Times said it’s good news for tenants as well, “This should boost the number of properties to let and reduce rents.”
Shared housing at risk An increasing number of local authorities in England have declared war on shared housing, by seeking an Article 4 direction. The changes will limit the number of HMOs – homes shared by three or more unrelated tenants. The NLA is campaigning against the changes, as we believe it will have a massive impact on the supply of good quality, affordable accommodation. It will reduce the supply of housing for those on low incomes and students, while having a knock-on effect on local communities and businesses. And as The Independent on Sunday notes, it will also burden local authorities, “the administration will be disproportionate to the benefit and reduce the available resources in this time of austerity that are needed for tackling more pressing issues facing local communities.”
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UKLANDLORD MAy/JUNE 2011 07
Feature – FINANCE: THE BUDGET STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Budget to boost rental supply In his second Budget since taking office, Chancellor of the Exchequer George Osborne outlined a range of measures to stimulate the residential property market, and in particular the private-rented sector. The most eye-catching change is the plan to reform stamp duty land tax rules for bulk purchases of residential properties. Stamp duty on purchases of multiple residential properties is currently calculated using the aggregate value of the properties. Mr. Osborne said that in the future, stamp duty will be based on the mean value of the dwellings purchased, i.e. dividing the aggregate value by the number of residential properties. The NLA had campaigned hard for this change, pointing out to the Government the disproportionate level of stamp duty paid by landlords seeking to expand their portfolios in response to increasing demand for affordable accommodation in the private-rented sector. NLA Executive Chairman David Salusbury said “the stamp duty concessions on bulk purchases will encourage landlords to invest more in residential property, thus providing much needed housing in the private-rented sector.” As well as significantly reducing the tax bills for landlords expanding their property portfolios, the measure is expected to boost investment in buyto-let by large institutional buyers of property and pension funds. The Government hopes that the involvement of these large-scale players will help to increase supply in the private-rented market. Major financial institutions had also lobbied hard for a fall in transaction costs before allocating more cash to residential property. Aviva Investors has stated that it may now set up a £1bn fund to invest in property. And Mark Collins, Head of Residential at property investors, CB Richard Ellis, said “our research suggests that institutional investors have allocated around £7.5bn worth of funds towards residential property, so by removing what was a large disincentive we should see more of this money invested in the sector.” REITS revolution HMRC has also said that it will consult on plans to make it easier for property owners to convert properties from commercial to residential use, and
08 UKLANDLORD MAy/JUNE 2011
on how to reduce barriers to entry in Real Estate Investment Trusts (REITs). The Royal Institution of Chartered Surveyors (RICS) is confident that changes to REITs and stamp duty will help encourage large investors including pension funds into the sector. Simon Rubinsohn, chief economist at RICS, believes these could provide “a revolution in how rented homes are supplied.” “Changes to these systems will lead to more high quality properties which are a genuine alternative to owning a home,” he said. “The most recent RICS lettings market survey showed that rents are continuing to rise as there is a lack of homes available for rent. Increased investment as a result of changes to stamp duty and REITs will help increase the range and affordability of rental properties.” n
The stamp duty concessions on bulk purchases will encourage landlords to invest more in residential property, thus providing much needed housing in the private rented-sector. David Salusbury, Executive Chairman, NLA
What do you think? As well as making life easier for smaller portfolio landlords, the Budget will also encourage institutional investment in the PRS. Let us know what you think about how this could affect private landlords. Email editorial@uklandlord.org.uk
For more information about the key Budget 2011 highlights, see page 12.
UKLANDLORD MAy/JUNE 2011 09
FEATURE insurance for landlords STARTING UP
REGULATORY
PROPERTY
TENANCY
Peace of Mind The property and income of landlords are exposed to such a variety of risks that making provision to cover these risks is essential to all but the most foolhardy. Whilst the majority of landlords will have taken out building insurance, many people are still unaware of the specialist insurance policies that are available to meet the specific needs of landlords, and provide them with some much needed peace of mind. For example, an owner-occupier home insurance policy will appear, on the face of it, to give all of the protection that a landlord might need. However, a specialist landlord insurance policy should include cover for items such as loss of rent, or the cost of temporary accommodation for tenants if the property is not habitable, Property Owners Liability, theft of keys and the cost of replacement locks, and even storage of furniture after fire or water damage. More importantly, failure to inform an insurer that the property is let out will almost certainly invalidate the owner-occupier insurance policy in the event of a claim. After committing so much capital to buying a property, it makes little sense
10 UKLANDLORD MAy/JUNE 2011
that a simple oversight of failing to arrange the correct type of policy will leave a landlord’s investment and income seriously exposed. Buildings & Landlords Fixtures and Fittings When purchasing a property with a mortgage or loan, the lender will invariably insist upon the purchaser arranging appropriate insurance, but as it is not compulsory for property owners to insure their buildings this could be easily overlooked when buying without finance which can have catastrophic results. Buildings are the most important asset for landlords of privately rented properties to insure, and serious damage to the buildings can put considerable strain on any landlord’s finances. Most buildings insurance typically covers perils such as fire and explosions; storms and weather damage; flood damage; subsidence and structural failures; and burst or leaking pipes and other water apparatus.
SAFETY
FINANCE
NLA Property Insurance Based on its understanding of the special set of risks that landlords are exposed to, the NLA has launched its own tailor-made property insurance product, covering the risks that household insurance simply does not address. NLA Property Insurance comes in two versions – Standard and Superior. These support landlords by covering a variety of risks such as buildings and contents, loss of rent or alternative accommodation., loss of metered oil and water, theft, theft of keys (and installation of replacement locks), and liability. The Superior product also covers accidental damage to buildings, theft by tenants and/or guests as well as theft by violent and forcible entry, and malicious damage by tenants and/or guests up to a value of £25,000 per claim. NLA Members automatically qualify for a 15 percent discount to the standard premium, and the support of the NLA.
For a complete overview of NLA Property Insurance’s Standard and Superior covers, see www.landlords.org.uk/ propertyinsurance.
This insurance also usually covers damage to permanent fixtures, both inside and outside the property, such as kitchen and bathroom fittings, central heating, fences and outbuildings. However leaseholders of flats in buildings that are covered by a freeholder’s insurance policy need to check their policy carefully to ensure that they are aware of how much cover the policy provides for them. In most cases, freeholders are interested primarily in getting protection for the main structure of the building. Their insurance policies are not likely to include those fixtures, fittings and decorations which are the responsibility of the leaseholder such as kitchens, bathrooms and floor coverings, nor legal liability for injury or damage to the tenant or any other person lawfully invited onto the property. It is also important to note that the freeholder will not insure the cost of providing alternative accommodation to the tenant or loss of rent, which the landlord will have to cope with should the property be made uninhabitable, even if the event which caused it is insured by their policy. Contents Increasingly privately-rented premises are being let furnished and it is therefore important that the landlord, who will have to replace damaged items in the event of a claim, insures these contents appropriately. For landlords who own the building, e.g. a converted house or purpose built block of flats, the policy should also cover furnishings in the common parts of the premises. It is always a good idea for a landlord to ensure that their tenants make arrangements to purchase their own insurance. This will protect their personal contents as the landlords policy will
not extend to cover these items, or the tenants legal liability should they cause damage to a neighbouring property or cause injury to a Third Party. Property Owners Public Liability Whilst insuring the Buildings and Contents will protect a landlord financially, probably the greatest exposure from a legal point of view is Property Owners Public Liability Insurance. Landlords of leasehold properties often mistakenly believe that the freeholder’s liability cover will extend to protect them but this is not the case. As most landlords will be aware, their legal duty of care to their tenants is becoming more onerous and litigation against landlords is bound to increase as the economy suffers. Whilst many landlords are extremely conscientious, or use Agents to ensure that they meet these obligations, accidents can and do unfortunately happen. Without this cover in place a landlord could be left financially ruined, should a tenant be seriously injured (or worse) as a result of an incident at the property for which it was alleged that the landlord was liable. Rent protection The issue of the ability of tenants to pay their rent takes us onto an insurance policy that, in these difficult economic conditions, has become increasingly popular with landlords. Rent protection insurance can ensure that landlords do not lose out on thousands of pounds of lost income when a tenant loses their job or their income suddenly reduces. Subject to certain conditions being met, the policy will pay the rent owed as a result of a tenant’s failure to pay the
Landlords of leasehold properties often mistakenly believe that the freeholder’s liability cover will extend to protect them but this is not the case.
rent in full and on the due date shown in the tenancy agreement. NLA Rent Guarantee Insurance covers up to £2,500 per month for unpaid rental income (up to a maximum of £15,000 or six months’ rent).
For more information, see www.landlords.org.uk/rentguarantee
Tax investigation cover HM Revenue & Customs (HMRC) routinely check a proportion of tax returns to make sure they are correct. They may also decide to conduct an extensive examination of all areas of your tax affairs including an in-depth review of your tax return records. Apart from the obvious stress that this will cause, these enquiries will usually require the services of your accountant which can be costly. The NLA provides insurance for tax investigations as a FREE benefit to fully paid-up members who have no outstanding investigations pending. This insurance covers the cost of an HMRC investigation, which can last for up to a year, as well as covering fees charged by professional firms in preparing your accounts and assisting you with the investigation. n
To qualify for the free NLA cover for tax investigations, see www.landlords.org. uk/support-advice/taxation-investigation-insurance
UKLANDLORD MAy/june 2011 11
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
Finance & Tax On 23rd March, Chancellor George Osborne delivered his first Budget Statement since outlining his Government’s programme of cuts in last Autumn’s Comprehensive Spending Review (CSR). For Chris Norris, NLA Policy Manager: “All Budgets are significant, but against the backdrop of rising unemployment and creeping inflation, this year’s was always going to demand forensic examination.” Budget 2011 highlights • Corporation Tax to decrease 2 percent this year, followed by 1 per cent in each of the next 3 years. • Government to consult on merging the operation of Income Tax and National Insurance contributions. • Personal Income Tax allowance up to £8,105 from 2012. • The Capital Gains Tax annual exemption for 2011/12 will increase to £10,600. • The inheritance tax (IHT) threshold continues to be frozen at £325,000 until 5 April 2015 and there will be a 10 per cent IHT discount for taxpayers who leave at least 10 per cent of their estate to charity. • Abolition of 43 separate tax reliefs, including a doubling of the CGT relief available to entrepreneurs, which is to rise to £10 million from 6 April 2011. • 50 per cent tax rate to remain for the time being – but to be reviewed and considered a temporary measure. • £350m of business regulation to be scrapped. • No new regulation on firms with fewer than 10 staff for three years.
FHL within the special tax rules. The conditions which need to be satisfied in order for a property to qualify as a FHL are to become more stringent from 6 April 2012.”
• Business rate relief holiday for small firms extended for another year. • New planning rules to require planners to prioritise growth and jobs. • Fuel Duty to be cut by 1p per litre from 6pm Budget day and a ‘Fair Fuel Stabiliser’ to be introduced. Furnished holiday lets Roger Phillips of Fairhurst Accountants advises that the 2011 Budget also announced changes to the tax rules for Furnished Holiday Lettings (FHL). “The law will be changed by Finance Bill 2011 so that FHL in both the UK and European Economic Area (EEA) will be eligible as qualifying
Noteworthy for the property sector “Undoubtedly the biggest news for portfolio landlords is the longawaited, and long-called for by the NLA, reform of SDLT,” says Chris. “This will allow landlords to finally be able to make bulk purchases without the prospect of paying a disproportionate level of tax in return.” • Stamp Duty Land Tax (SDLT) to be calculated on the mean (average) property value of a portfolio purchase – no-longer on the full bulk purchase price. • Government-backed shared equity scheme (Firstbuy) to assist 10,000 first-time buyers onto the property ladder for new-build properties. • 10 per cent reduction in Inheritance Tax rate if 10 per cent or more is left to charity. • A consultation aimed at reducing barriers to investment in Real Estate Investment Trusts (REITS).n
For more information on the Budget and its potential implications for landlords visit the NLA website at: www.landlords.org.uk/news-campaigns
12 UKLANDLORD MAy/JUNE 2011
SAFETY
FINANCE
Buying & Selling Auction prices for new-build massively reduced Prices of new-build flats being sold in auction rooms have fallen considerably, with average reductions the highest seen in five years. The average reduction on newbuild properties sold at auction during 2010 was just under 50 per cent according to The Essential Information Group (EIG), which provides comprehensive statistics on the auction sector. Research by EIG compared auction property sale prices with Land Registry sale prices and discovered the average reduction has doubled since 2006. Scott Hendry, from the national lender Auction Finance Limited, said not enough investors are taking advantage of this. “I’ve seen flats worth £150,000 go for £40,000. Many investors I know will only buy flats and apartments as they know they are a wise choice from a yield point of view.”
Mr Hendry warned would-be buyers still need to do their research first and weigh everything up before buying. A new-build on the market at auction does not mean it is automatically going to be worth snapping up. In 2010 the residential sector saw a 5.2 per cent increase in lots offered at auction compared with the year before. n
???????????????????? ???????????????????? ???????????????????? ???????????????????? ???????????????????? ?????????????????? Neil McDonald, Director Housing Management, Homelessness and Support, CLG.
UKLANDLORD MAy/JUNE 2011 13
LANDLORD property management INFORMATION STARTING UP
REGULATORY
PROPERTY
Buying & Selling First law firms gain CQS accreditation
A new Law Society scheme has been set up to reinforce consistency of standards throughout the residential conveyancing process. The standards aim to reduce the risk of fraud and give consumers peace of mind when it comes to buying property. Four solicitors firms have already obtained the Law Society’s Conveyancing Quality Scheme (CQS) practice standard. Martin Elliott & Co Solicitors, Boys & Maughan, Hamers Solicitors LLP and PCM Solicitors LLP are the first to have obtained CQS status. These law practices underwent rigorous assessment by the Law Society in order to secure CQS status. Nigel Hoath, Managing Director of NLA Conveyancing, believes
“the introduction of the new scheme can only be good news for our conveyancing clients.” He told UK Landlord that “We are aware that a large number of the firms on our panel are already undertaking the process to achieve membership.” NLA Conveyancing clients can already choose their firm based on service ratings given by previous clients, and for Nigel, “the addition of the Conveyancing Quality Scheme will give additional reassurance that they are getting the best firm at the best price.” The scheme has also been welcomed by the Land Registry as a step in the right direction to recognising high standards in conveyancing. n
TENANCY
SAFETY
FINANCE
Valuer liable for incorrect advice to B2L purchaser New NLA Recognised Supplier Wake Smith & Tofields have alerted us to a High Court ruling that a valuer will be liable in negligence for incorrect advice given to a purchaser of a buy-tolet property and that such liability may cover rental as well as capital valuation. In the case of Scullion v Bank of Scotland Plc t/a Colleys, Colleys (part of the Halifax plc group), were found liable to compensate a purchaser who in 2002 agreed to buy a two-bedroomed flat in Cobham, Surrey. The surveyor at Colleys provided a valuation to the mortgage company who were to lend the purchase price to the buyer assessing the open market value of the flat at £353,000 and the rental it might achieve at £2,000pcm. After the purchaser
bought he was only able to let the flat for about one half of the monthly rental which Colleys had predicted and when he came to sell it in May 2006 it only made £270,000. The purchaser successfully sued to recover his losses from Colleys. n
The case reference is [2010] EWHC 572 and [2010] EWHC 2253. For more information, contact Wake Smith & Tofields (telephone 0114 266 6660 or see www.wake-smith.co.uk).
Planning NLA challenges Newcastle on HMOs The NLA is calling on landlords and tenants in Newcastle to oppose changes proposed by Newcastle City Council to require planning permission for all new Houses in Multiple Occupation (HMOs) – homes occupied by three or more unrelated people, sharing amenities such as kitchens and bathrooms. These new rules will make it extremely difficult for landlords to offer shared homes for rent and could severely limit affordable housing in the city. Landlords and tenants can register their concerns about these proposed new rules by joining the NLA’s web-based campaign which sends an e-letter to local MPs, calling on local MPs to abandon the regulations. Newcastle City Council is planning to bring in Article Four directions under last year’s order
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that amended the Town and Country Planning Act 1990. Under the rules landlords would have to seek planning permission if they want to use a property as a new HMO in nominated areas. If agreed, the changes would come into effect from November 2011. NLA Executive Chairman, David Salusbury, pointed out that “Like many other cities across the country, Newcastle has a lack of good-quality affordable housing. These latest proposals by the City Council will only reduce supply still further.” The NLA believes these changes would have a devastating effect on the amount of shared
housing available in the Newcastle area and could lead to a decline in the supply of good quality affordable accommodation on which young professionals, those on low incomes and students rely. Bruce Haagensen, local resident, landlord and the NLA’s Representative for Tyne and Wear said: “The extra red tape that Newcastle City Council wants to impose on landlords will make it extremely difficult for us to provide more homes for those who need them. With rising interest rates and government cuts to housing benefits, the last thing the people of Newcastle need is fewer affordable homes. n
To find out about this and proposals by other local authorities to use Article Four directions, go to www.landlords.org.uk/news-campaigns.
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Planning Demolition needs planning permission too The Court of Appeal has ruled that with immediate effect demolition of most buildings will now require specific planning permission or compliance with the pre-notification procedure that applies to residential houses. In what lawyers are hailing as a landmark decision, the Court said the existing direction which exempts most buildings from the need to seek planning permission for demolition could be in breach of EU rules on Environmental Impact Assessment. From now on, if there are significant environmental effects from a demolition, a full environmental impact assessment may be required.
Property developers will need to factor in additional time for building projects to include the planning permission or pre-notification process. n
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Landlord fined for redeveloping houses without permission A landlord has been ordered to pay more than £30,000 in fines and costs after redeveloping three houses in Watford without planning permission. Pervez Acktar pleaded guilty to three charges of unauthorised change of use at Watford Magistrates Court who heard how he continually breached planning laws and ignored enforcement notices. The charges related to a single family home split into two flats; and two properties which had each been converted into five flats. Watford Borough Council’s planning department said that
anyone thinking of carrying out works to their property should speak with the council and get planning permission first, rather than going ahead and trying to seek retrospective permission. n
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Finding Tenants One of the main tools prescribed by the Scottish Housing Act 2003 to eliminate homelessness is for councils to treat all homeless applicants as priority need. However, to date, only two of Scotland’s 32 councils (Angus and Stirling) do so. According to Shelter, this could be due to a lack of implementing measures to achieve the targets set out in the Act. Some local authorities also attribute the problem to a lack of housing stock to meet the large number of homeless applications. Homeless applicants up in England and Wales New figures for England and Wales show that homeless applicants were up 15 per cent on the same quarter last year. Communities and Local Government figures released in March show more than 10,870 applicants were considered to
be homeless during October to December 2010. The data also shows that the number of households in temporary accommodation at the end of 2010 was 10 per cent lower than the same time last year, at 48,010. The number of households in bed and breakfast accommodation was up from 1,880 in December 2009 to 2,310 in December 2010, 5 per cent higher. The data coincides with a survey of 1,500 UK homeowners, which suggested one in four people who own their own homes may be financially unprepared for the increased costs of any rise in interest rates. A quarter of people in the survey carried out by Shelter believed current interest rates are either higher, the same than they have been in the past, or did not know what they were. n
Property Ombudsman calls for regulation of letting agents The Property Ombudsman, Christopher Hamer, has taken the opportunity in his 2010 Annual Report to renew his call for more control over the actions of residential lettings agents. The report states that the number of lettings offices voluntarily covered by the Ombudsman’s scheme climbed to almost 8,000 by the end of 2010 but there is concern that agents who do not sign up to and adhere by the standards in the TPO Code of Practice can continue to operate, potentially to customer detriment. “Many agents conduct their business by following the TPO Code of Practice but there are still too many who are operating without that commitment to
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standards and without any external controls over what they do with client money,” says Mr Hamer. The report says that the Code of Practice represents a comprehensive set of standards by which firms conduct their business. “Knowing a firm is complying with those standards will give consumers confidence that they are dealing with an organisation which has a committed approach to customer service and that best practice is being treated as a priority by agents,” adds Mr Hamer. From this summer, the TPO Lettings Code of Practice will include a requirement for lettings agencies to hold a separately designated client account to
FINANCE
Long term-tenants in the South East
Scottish homelessness figures rise There is mounting concern in Scotland that the ambitious commitment to bring an end to unintentional homelessness by 2012 may not be achievable. Latest figures from the Scottish Government show that the number of applications for homelessness assistance increased between April and September 2010 by more than 200 applications compared to the same period in 2009. The figures also show a six per cent increase in people being housed in temporary accommodation, including a 14 per cent rise in families with children. Housing charity Shelter has warned that the number of people presenting as homeless could rise as the effects of government cuts, job losses and welfare reforms start to bite. Alison Watson of Shelter said: “This is only a small increase, but we are concerned it is the beginning of an upward trend.”
SAFETY
protect money the agencies receive. Currently there is no compulsion for letting agents to join an Ombudsman scheme. The report indicates that the number of cases relating to sales and lettings referred to TPO was 40 per cent higher than expected and despite a significantly reduced number of housing transactions the excess has been purely down to the number of sales disputes received. The largest single cause of complaint was communication failure between the agent and consumer (214) followed by complaints handling by agents (163) and sales details / advertising / marketing (138). n
Landlords looking for long-term tenants in the South East may be interested in contacting Amicus Horizon, a registered social landlord. Avenue, which is part of Amicus Horizon, offers long-term leasing solutions to private landlords and works with various local authorities in South East London, Kent and East Sussex providing alternative solutions to their housing needs. Avenue’s various schemes and tailored services include a Housing Association Leasing Scheme, a Market Rented Scheme, Income Collection and Housing Management services. The benefits to landlords of using Avenue’s full management services are guaranteed rent for the duration of the lease, no rent loss, guaranteed vacant possession, a 24-hour repair service, tenancy sustainability and guarantees against tenant damage. Avenue does not charge any management or commission fees, nor tenant finder or renewal fees. Discounts are offered to landlords on heating maintenance contracts, building insurance covers and organizing repairs at properties. There are no legal costs or court fees to pay and Avenue deals with any ASB issues and serving tenant notices. n
For more information visit www.avenuelettings.co.uk
UKLANDLORD MAy/JUNE 2011 17
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Finding Tenants
HMOs
A second chance
Peterborough landlord fined for failing to provide information
For landlords willing to give a second chance to people who have taken a wrong turn in life, taking on prison leavers and ex-offenders as tenants can be an emotionally rewarding experience, as well as an alternative source of new tenants. St Giles Trust, a registered charity, has developed a successful project in London, working with landlords and lettings agents in the private-rented sector to help people to resettle and rebuild their lives. With the right kind of support, prison leavers and ex-offenders can make good tenants, says Joy Wylie, who runs the Private Rental
Sector Project at St Giles Trust, as they welcome the stability after frequently experiencing trauma and chaos in their lives. “Most of our clients are just very grateful to have somewhere to live, and simply want to keep their heads down and get on with their lives.” St Giles Trust vets prospective tenants to make sure they are
suitable for a private rented tenancy. Although it does not provide a management service, it acts as a single point of contact in the initial stages of the tenancy and supports the tenant. St Giles Trust is always looking for accommodation in which to house their clients. n
If you are a landlord or lettings agent who is interested in finding out more, contact Joy Wylie on 020 7703 7000, mobile 07976 781750 or email joy.wylie@stgilestrust.org.uk
Selective Licensing Leeds intent on selective licensing One of the highest fines to date has been given to a Leeds landlord for failing to comply with Leeds City Council selective licensing scheme. After failing to obtain licences for four of his properties in Cross Green and East End Park which have been assigned for selective licensing, Martin Horsfall was fined over £20,000 by Leeds Magistrates for failing to license each property. He had been given numerous
opportunities and warnings dating back from October 2009 – when Selective Licensing came into force – to license his properties and had failed to do so. Leeds City Councillor Peter Gruen said: “It would have cost the equivalent of just £2 per week, per house or £525 for five years per house to obtain the licences.” The City Council has successfully prosecuted a number of landlords
recently for not complying with the scheme which requires all owners of private-rented property to have a licence in order to let their properties. Schemes like the one in Leeds were introduced by the Housing Act 2004 to tackle the high number of empty properties in an area and anti-social behaviour to improve living conditions for residents. n
Tenants targeted by illegal ‘scraping’ sites Prospective tenants are being targeted by illegal lettings websites and conned out of thousands of pounds, according to the Association of Residential Letting Agents (ARLA). Using a process known as ‘scraping’, foreign criminals have been using copies of websites of
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UK lettings agencies to convince people to hand over deposits. The websites are said to look highly professional and use industry logos to persuade tenants of their legitimacy. The illegal sites essentially hijack the appearance of a letting agent’s website and offer access to properties and
rental opportunities. ARLA says it has had numerous reports from its member agents who have noted an increase in the trend of website scraping in the past six months as well as an upsurge of fraud from companies posting on the website Gumtree. n
A landlord has been ordered to pay almost one thousand pounds in fines and costs after failing to provide information requested by council officers in Peterborough who were carrying out an investigation into an unlicensed house in multiple occupation (HMO). Zulkaider Manir of Limetree Avenue, Peterborough, pleaded guilty to failing to provide information required under section 235 of the Housing Act 2004 at Peterborough Magistrates Court in February. The court heard that the city council’s housing team had visited a property owned by Mr Manir and suspected that it was being used as an unlicensed HMO. A notice was served on Mr Manir, giving him 14 days to provide information and documentation regarding the property but he failed to do so. The council introduced an additional HMO licensing scheme covering a number of areas of Peterborough in 2009. Under the scheme, which is in place for five years, all HMOs in the designated areas must be licensed if they consist of two or more storeys and are occupied by three or more people living in two or more households. n
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More concern over Welfare Reform Bill
experience while renting. Recognising the need for accountability in the private-rented sector, the NLA believes that landlord accreditation programs, such as that run by the NLA, will play a key role in raising professional standards amongst
landlords and enable tenants to identify the better landlords. David Salusbury underlined that the NLA envisages local authorities using their existing powers to play the main role in tackling rogue landlords. n
whether you already have a consent to discharge, in which case the Environment Agency can either automatically register the septic tank with exempt status or with a new environmental permit, providing the original conditions of registration have been maintained. Landlords who are selling or buying a property with a septic tank should be aware that information
about the septic tank must be given to any new owner relating to the discharge and the conditions that must be met, along with any maintenance records. Septic tanks in Scotland have had to be registered with the Scottish Environment Protection Agency since 2006.n
Sustainability Septic tank deadline If you own any properties in England or Wales which currently have a domestic septic tank, you have until 1st January 2012 to register it with the Environment Agency, according to new regulations. New systems will also be subject to registration and must be constructed and installed in accordance with current British Standards. It is worth checking
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Local Housing Allowance
NLA says online register not necessary The NLA has warned that an online register of landlords could drive rogue landlords under the radar. Responding to calls from a consumer watchdog which has appealed for the establishment of a landlords’ ratings website, NLA Executive Chairman David Salusbury, said that while the NLA condemns the small minority of bad landlords who seek to exploit their tenants, “an online register would not be an effective way of raising standards in the private-rented sector.” Communities and Local Government figures from 2007 to 2008 show the vast majority of landlords offered a professional service with nearly 80 per cent of tenants reporting a positive
SAFETY
New research by the Chartered Institute of Housing (CIH) and Shelter has found that plans to change the way housing benefit is calculated will price low-income households out of a third of local authority areas in England and push them away from areas with higher employment. The CIH says the move, which is planned for 2013, will break the link between the housing support people receive and the housing costs they pay. It says that over time, where rents rise faster than the Consumer Prices Index this will mean housing benefit will cover less and less of the housing costs people face. The Chartered Institute of Housing is urging the Coalition Government to revisit some important aspects of the proposals for welfare reform which, it says, remain unsustainable. Chief Executive of the CIH, Sarah Webb said: “We need welfare changes that help get our economy growing again, not changes that will entrench unemployment and dependency further.” n
For further information visit www.environment-agency.gov.uk.
Greens call for more energy efficiency The Leader of the Green Party, Caroline Lucas MP is calling for new rules to make it illegal to let properties with an energy efficiency rating of less than E, and for a mandatory register of private landlords who comply with the law. Speaking at a
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housing conference in Brighton recently, Ms Lucas is reported to have raised concerns about standards of energy efficiency and warmth in private-rented properties. She highlighted the fact that some tenants in her constituency live in cold, damp,
and unhealthy homes. She also cast doubt on the ability of the Green Deal, the Government’s voluntary home energy efficiency programme, to tackle some of the worst insulated private-rented homes in the country. n
Sarah Webb, Chief Executive CIH
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Making your Property Safe Inspection hatches for gas flues Landlords and homeowners have until 31st December 2012 to make sure that an inspection hatch is fitted in any property where a gas flue is sited in a wall or ceiling void. The Health and Safety Executive (HSE) has issued a Safety Notice advising of the change, in response to the issues caused when boilers are located away from external walls, and flues are
likely then to run through wall or ceiling voids, often making it difficult of impossible to check that the flue has been installed correctly or whether it is still in good condition. Where there is a faulty flue in combination with a boiler that is not working properly, dangerous levels of carbon monoxide could be released into the living accommodation, hence
the concern of the HSE that inspection of flues is made viable. n
Health and Safety Executive
Gas safety checks A landlord in Doncaster has been fined £400 and ordered to pay £1,000 in costs for putting a tenant at risk by failing to have a gas safety check carried out at the property. Doncaster Magistrates heard that Michael J Smith failed to maintain gas appliances and pipework or get them safetychecked within 12 months at his rental property, and did not give his tenant the necessary Landlord’s gas safety record. Mr Smith ignored an Improvement Notice requiring him to get the safety check done which was served on him by the Health & Safety Executive (HSE). His tenant told the HSE that a Landlord’s gas safety record had not been provided and no one
had come to the property to carry out any servicing or work on the gas appliances. When HSE had no response from Mr Smith to its request for a copy of the gas record, it brought in a Gas Safe registered engineer to examine the gas system and identified five ‘at risk’ defects. Mr Smith pleaded guilty to three breaches of the Gas Safety Regulations and an offence of non-compliance with the Improvement Notice. n
UK told to tighten asbestos laws by EC The European Commission has told the UK to amend its regulations on asbestos at work because the current rules do not comply fully with EU legislation. The Commission wants the UK to change provisions in its legislation that exempt some maintenance and repair activities from the application of the EU Directive 2009/148/EC on the protection of workers from asbestos.
The Commission says the UK legislation focuses on the measurement of exposure to asbestos but not enough on how the material can be affected by the work involved. The Directive deals with both exposure and the material. The UK now has two months to bring its legislation into line with EU law, or risk the matter being referred to the EU’s Court of Justice. n Sarah Webb, Chief Executive CIH
UKLANDLORD MAy/JUNE 2011 21
FEATURE HOUSING BENEFIT TENANTS STARTING UP
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Direct Housing Benefit payments to landlords: how the new rules will work As from 1 April 2011, new rules came into force allowing local authorities the discretion to make rent payments direct to landlords where they consider this will assist tenants in securing or retaining a tenancy. In this article, with the expert help of Bill Irvine of HB Advice & Advocacy, we look at how these rules will affect landlords who currently have tenants in receipt of Local Housing Allowance. The Department for Work and Pensions has issued guidance to local authorities on how to implement the new Housing Benefit (Amendment) Regulations 2010. These new rules came into force in April and aim to broaden the situations where local authorities can chose to deviate from the so-called ‘default position’ requiring them to pay Local Housing Allowance (LHA) to tenants so that landlords can be paid rent directly. The new ‘safeguard’ provision A new discretion has been given to local authorities to pay benefits directly to landlords where this will assist tenants in securing or retaining a tenancy. According to the DWP, for a tenancy to be secured or retained “it is implicit that the rent should be affordable to the tenant.”
April 2011 when changes to LHA rates take effect. “Ministers are effectively pinning their hopes on landlords accepting a rental reduction for the ‘safeguard’ of receiving payment direct. It remains to be seen whether this will effectively work in practice. Much, I suppose, will depend on where in the UK the tenancy is, and the extent to which reduced LHA levels compare with current levels of ‘market rents’,” according to Bill Irvine. Changes to LHA rates will mean that some tenants will have a new shortfall between their Housing Benefit entitlement and their contractual rent. The civil servants anticipate “some tenants may need to move, and others will negotiate with their landlords for a reduction in the rent to a level which the tenant can afford.” The circular also encourages local authorities to be pro-active in getting landlords to agree to reduce contractual rents in return for the benefit of being paid the rents directly.
This additional discretion is intended to be a temporary provision, although it is likely to remain in place until longer-term decisions about direct payments are made in the context of Universal Credit. For Bill Irvine of HB Advice and Advocacy, the Government’s plans are “very ambitious, and, could, if implemented, involve the scrapping of HB as we know it. To achieve its objectives the Government must overcome inter-departmental battles for control and create integrated IT systems that are capable of capturing all the complex components of an array of different benefit types. In my view, this could take many years to develop and when they’re eventually (if ever) introduced, will likely be phased in over a number of years.”
Tenants currently renting and in receipt of LHA will normally have up to nine months from the anniversary of their claim on or after 1 April 2011 to give them time to make alternative arrangements if necessary.
Impact on tenancies The DWP states it is introducing this new discretion “to exert a downward pressure on rents” for recipients of Housing Benefit after
Applying for direct payments Requests can come from the tenants, landlords, welfare advice organisations and housing advice officers or the homelessness prevention
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The safeguard will also apply to tenants seeking new tenancies who might not otherwise be able to secure a property with a rent which is affordable. Local authorities are being instructed to check the rent has been reduced (as with existing tenancies, evidence will be required) and is affordable to the tenant or that the letting would not have been made without direct payments and the rent charged is affordable.
team. If a tenant is not happy about the rent being paid directly to the landlord, the local authority has the final say, taking into account the best interests of the tenant. The normal considerations on whether the landlord is a fit and proper person apply. The local authority will need to see evidence of a genuine reduction in rent for existing tenancies. This can be in the form of a written agreement from the landlord to vary the rent or, if the tenancy has been renewed, it is at a lower rent than in the previous tenancy agreement. Remember, this is a discretion rather than an obligation. The DWP circular advises local authorities that if they are aware that a landlord has routinely let to HB tenants at affordable rents without direct payments, “it would be reasonable to expect that they would continue to take on new tenants without direct payments. It is not the intention that the safeguard be used to make payment to the landlord as a matter of routine.” What is an affordable rent? The discretion can only be applied if the rent is at a level which is affordable to the tenant,
and DWP’s approach to affordability may prove unrealistic. DWP believes an affordable rent will be the LHA rate which applies to the tenant and on which their maximum rent determination is based is. However, Shelter states that over 50 per cent of LHA tenants already have shortfalls in the Housing Benefit received and the rent. Bill Irvine advises landlords wishing to make use of the provisions to “remain vigilant and be willing to challenge ‘delinquent’ councils who refuse such applications to First-tier tribunals if necessary. Make sure you read the circular in its entirety as it includes much more detail and some interesting case studies which could well be cited to support applications and later appeals.” n
Key changes to LHA As from 1 April, the following changes to LHA are now in force: - Removal of the five-bedroom LHA rate so that the maximum level is for a four -bedroom property. -
Introduction of absolute caps so that LHA weekly rates cannot exceed £250 for a one-bedroom property; £290 for a two-bedroom property; £340 for a three-bedroom property; £400 for a four-bedroom property.
- Setting LHA rates at the 30th percentile of rents in each Broad Rental Market Area rather than the median. - Shared room rate will be extended to single people aged 25-35 (as from January 2012).
Circular HB/CTB A4/2011: http://www.dwp.gov.uk/docs/a4-2011.pdf www.hbadvice.co.uk
When rent is paid directly to landlords Local authorities must make direct rent payments to landlords where: - the payments are being made to the landlord from other income-related benefit to clear arrears; or - the tenant is in arrears equivalent to eight weeks with rent. Local authorities also have the discretion to make direct rent payments to landlords where local authorities consider that: - the tenant is likely to have difficulty in relation to the management of his or her financial affairs. For example, this may be due to drug dependency or because of a serious medical condition such as Alzheimer’s disease; - it is improbable that the tenant will pay his or her rent, for example, based on past experience of the tenant absconding with the rent payment; - the tenant has previously had payments made to the landlord due to arrears; - and, the new discretion is where this will assist tenants in securing or retaining a tenancy.
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FEATURE: FINANCE PLANNING FOR YOUR FUTURE STARTING UP
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Expert Opinion on Inheritance Tax Planning Roger Phillips of Fairhurst Accountants, an NLA Recognised Supplier, sets out key tips for landlords when considering effective inheritance tax planning. UK Landlord: How are buy-to-let properties treated when passed on by a parent to their spouse or children? Roger Phillips: Although the Capital Gains Tax (CGT) exemption remains available on transfers between spouses, such an exemption does not remain available where transfers are made to children. In fact, where a parent gives an asset such as a property to a “connected person” (such as one of their children), they are deemed to be selling that asset for its market value for CGT purposes and tax liabilities can arise without any funds to pay them. It is therefore important that advice is sought before undertaking any such transactions. For Inheritance Tax (IHT) purposes, a gift of a property to another is likely to be a “potentially exempt transfer” and the donor must then survive a period of seven years from the date of the gift before it can fall out of their estate. There is much anti-avoidance legislation aimed at preventing schemes to avoid IHT.
UKL: Are there any Inheritance Tax reliefs that apply to buy-to-let property portfolios? Roger Phillips: Furnished Holiday Lets (FHLs) qualify for a number of tax reliefs, such as loss reliefs, capital allowances and CGT reliefs. Depending on the involvement of the investor with the business, it may be the case that a FHL could qualify for IHT reliefs. IHT reliefs may be available where shares are held in trading companies or holding companies of trading groups. It may be possible for some property to be held in such companies, however there will become a point at which the company is no longer treated as “trading” and as such, reliefs may no longer be available. The Chancellor’s 2011 Budget introduced some stringent changes to the tests which are applied in determining whether a property can qualify as an FHL.
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UKL: What are the key areas that a will should cover to ensure that as little tax as possible will be payable by beneficiaries on B2L property? Roger Phillips: The primary purpose of drawing up a will is to ensure the testator’s wishes are dealt with on the winding up of their estate – i.e. that assets pass in accordance with the deceased’s wishes. As part of that process, an individual may wish to think about tax and the most efficient way of passing those assets down the generations. Each case needs to be considered on its own merits but for example the will should consider the relative incomes of the beneficiaries in order that the income can, if desired, be passed to the individual who will pay least tax on it. Consideration should also be given to leaving assets to grandchildren rather than children (possibly via a trust). Finally for beneficiaries who are higher rate taxpayers some advantage may be obtained from locating the properties within a company thus sheltering the income until needed.
UKL: How do trusts shelter property from IHT? Roger Phillips: A trust is a means of separating legal and beneficial ownership. Trusts are a useful way of holding property outside an individual’s estate whilst still allowing the retention of some degree of control. Most new trusts (i.e. those established after 22 March 2006) are so called “relevant property trusts.” Settling property on such trusts may be one way to transfer assets out of somebody’s estate, however trusts are not entirely exempt from IHT. Charges may arise on the initial settlement of the property on the trust as well as possible charges to IHT on transfer of the property out of the trusts in addition to charges every ten years of up to 6 per cent of the value of the assets held within the trust on the day before the trust’s ten
Roger Phillips, Fairhurst Accountants
year anniversary. Trusts are also subject to other taxes, such as CGT at 28 per cent and income tax at up to 50 per cent.
UKL: Do pilot trusts continue to play a role in mitigating tax liabilities? Roger Phillips: Pilot trusts may continue to have some use in IHT planning. These trusts are set up with a relatively small amount of money during an individual’s lifetime. The trusts can then receive assets during the lifetime of the settlor, or via a deceased’s will. Depending on when they are set up, the trusts may benefit from their own nil rate band which can potentially reduce IHT payable on 10 year charges.
UKL: Are there any IHT advantages in setting up a limited company to hold properties? Roger Phillips: Where property is held by a company and that company is part of a trading group, there are a number of tax advantages which may be available to the shareholders of the company, such as CGT and IHT reliefs.
UKL: In what circumstances should property investors consider Close Trading Companies?
UKL: What are the key points to note about spouse transfers in relation to IHT?
Roger Phillips:A close company is one which is controlled by five or fewer participators (being broadly, shareholders). Generally speaking this would mean that five or fewer persons together have more than 50 per cent of the voting rights of the company. A company is also “close” if it is controlled by participators who are directors (without any limitation on the number). A company which only holds property is likely to be treated as a property investment company (or perhaps in some circumstances a property dealing company) rather than a trading company. The tax advantages outlined above are available to trading companies, or holding companies of trading groups. Caution is required when a close company lets a property to a person connected with the company as this can result in the company’s rental profits being charged to tax at the full rate of corporation tax as “close investment holding company” status may then follow.
Roger Phillips: There is an exemption from IHT for transfers made between spouses – however, there is a limit of £55,000 where the spouse receiving the property is not domiciled in the UK.
UKL: What should landlords with properties abroad consider? Roger Phillips: It is extremely important to bear in mind not only UK tax and legal implications of holding property abroad, but the laws of the jurisdiction in which the property is held.
Although the Capital Gains Tax (CGT) exemption remains available on transfers between spouses, such an exemption does not remain available where transfers are made to children.” Roger Phillips, Fairhurst Accountants.
For more information, contact Fairhurst Accountants by telephone on 01942 241103 or email Roger at rjp@fairhurstaccountants.com.
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FEATURE: Finding new tenants ex-offenders STARTING UP
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Straight and narrow It’s not an easy decision to take on ex-offenders as tenants. Wendy Taylor, former accommodation officer for the National Probation Service in Dorset for eighteen years, talks about her positive experiences in building trust between landlords and ex-offender tenants. UK Landlord: What kind of accommodation would be suitable for ex-offenders? Wendy Taylor: The private-rented sector is not for everyone. It is good to have a range of accommodation available for ex-offenders. Some people would not be able to manage in the private sector and would be best suited to a hostel or housing with a higher level of support. As an accommodation officer, I had to be very selective with where we placed our clients – otherwise I wouldn’t have slept at night. Initially landlords were wary of taking in ex-offenders but as trust became established they were quite willing to work with me. People coming out of prison are very vulnerable, and finding good quality accommodation helps them with their self-esteem. If their housing is settled, then there is a better chance that their lives will be less chaotic.
UKL: What reassurances exist for landlords when taking on exoffenders? Wendy Taylor: The point is that if a landlord puts an advert in the newspaper, they have no idea who will respond to the advert and no knowledge of that person. As a Probation Service accommodation officer, I always made landlords aware of the offence that the ex-offender committed and the nature of the circumstances. This would be with the permission of the ex-offender. The landlords I worked with took on exoffenders in the same way they did with every tenant: they managed the risk. While taking on an ex-offender as a tenant may represent a higher risk, it can be reduced to an acceptable level if there is the support of an accommodation officer not just prior to, but
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during the tenancy. Accommodation officers need to be honest and straightforward with landlords, to remain in regular contact and, if things do go wrong, to be there to work with them in a practical and constructive way. So, if one of my clients was renting from a landlord and there were problems with the tenant, I would visit the tenant and landlord and try to sort out the problem. This was usually with the help and support of the relevant Probation Officer.
UKL: How would you describe your relationship with tenants? Wendy Taylor: An accommodation officer’s relationship with an ex-offender lasts as long as the probation order is in place. The accommodation officer has no power to evict. We can only offer support to the tenant and landlord for the length of the order, but in a successful placement the tenant would stay on in the accommodation well after their probation order had finished.
UKL: Do landlords meet ex-offenders before taking them on as tenants? Wendy Taylor: Yes, of course! I would from time to time take landlords with me to prison to meet their prospective tenant, and I would always meet landlords before placing any ex-offenders with them.
UKL: How would you describe your relationship with landlords? Wendy Taylor: The role of an accommodation officer is to find good quality accommodation for ex-offenders, which is why they need to build up a network of reliable landlords with good standard accommodation. Sometimes courts would give offenders a chance not to go to prison if the probation service could get an accommodation officer to find accommodation.
Wendy Taylor, Former Accommodation Officer
I was often asked to find accommodation within a few hours and could only have done this as a result of working with trusted landlords to whom I remain very grateful. It’s very important to remain in regular contact with the landlord. I learned this from experience. One of the landladies I worked with mentioned that she was a bit puzzled as to why her lodger would go out at 3 a.m. some nights, wearing a balaclava and carrying a gym bag full of tools. She only mentioned this after he was arrested for stealing jewellery. I told her it might have been an idea to let me know about her concerns a little earlier on...!
UKL: What do you think of the privaterented sector? Wendy Taylor: I believe it is worth raising the profile of the private-rented sector and to nurture a network of landlords in this sector who can provide the good quality accommodation and stability for ex-offenders. I used to organise regular lunchtime workshops to explain the nature of housing ex-offenders and even skittles evenings for local landlords and housing benefit officers. I founded the Weymouth Housing Forum so that we could establish a more joined up approach to working together with housing
associations and Registered Social Landlords, local authorities and the private-rented sector. I always enjoyed working with the private landlords and building trust and a good rapport with them. If one is honest and supportive, landlords will work side by side with you. There was something very rewarding in seeing a good tenancy established and a previous chaotic lifestyle turned around due to a good standard of accommodation and the stability that provides.
UKL: If renting to an ex-offender what does a landlord need to do that is different to a normal tenancy? Wendy Taylor: If you let to an ex-offender, you need to tell your insurer and landlords will need to be CRB checked.
UKL: Have you had any bad experiences with your client exoffenders? Wendy Taylor: Not really bad, but fairly dramatic! I had a call from a landlord to tell me one of my client tenants had just been involved in a shooting incident, one client who was unfairly accused of stealing chickens from the local supermarket, and I’ve driven a convicted rapist to be interviewed by a landlord. There was another occasion when I was asked to interview a young woman who was totally irate, frustrated and desperate to get settled. I was struggling to assist her with accommodation for a number of reasons. At the end of a long and difficult day, I drove her to one of the female landlords I worked with whose calming presence was a tonic for us all. n
I would always meet landlords before placing any ex-offenders with them.
UKLANDLORD MAy/JUNE 2011 27
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NLA and CML show the way The NLA and the Council of Mortgage Lenders (CML) are developing a platform to guide novice landlords in developing their buy-to-let portfolios. The twenty-first century’s first global recession differed from many earlier economic downturns. It differed for a variety of reasons, not least the international nature of the financial system and the changing nature of the world economy, but it also differed because of the role placed by financial liquidity and the availability of credit. In the private-rented sector the most obvious feature of this ‘credit crunch’ was the lack of available credit and, where products did exist, the cost of accessing that finance. Unsurprisingly, landlords and the CML’s lenders felt this pain disproportionately and are still suffering through what we hope will be a steady (if slow) recovery. Challenges for newcomers These tough times have led to a great deal of focus on two types of
landlord in particular: • ‘accidental’ or ‘reluctant’ landlords who have found themselves letting property as a result of an inability, or unwillingness to sell a home. • relatively inexperienced landlords who bought towards the height of the boom and are perhaps not as well positions. What these diverse groups of landlords have in common is that they are fairly recent entrants to a market in which it has become increasing more difficult to succeed. The challenge facing all landlords at the moment, but is perhaps more pressing for these beleaguered novices, is the need to present their portfolios as viable ongoing concerns with a future. Particularly when facing the prospect of refinancing, re-letting or disposing
of assets. This is why the NLA and CML have decided to join forces and develop a platform designed to share our collective experience and support new landlords unsure of the best way to finance their portfolio, attract tenants or even write plan their next steps for investing in residential property. Chris Norris, commenting on the project: “If we are to learn from the challenging environment currently facing the PRS it is imperative that
the industry takes the initiative and acts proactively to support new landlords to work effectively, responsibly and professionally. The NLA is delighted to be leading this new project and working so closely with Council of Mortgage Lenders. We hope that the success of this facility will demonstrate to Government and industry that the letting industry is a professional sector, capable future growth and prosperity without outside intervention.” n
Sharing best practice and local expertise As part of its drive to ensure best practice and professional development for the landlord community, the NLA recently brought together its regional and local representatives to discuss and share ideas on regional topics and support for members at the local level. The NLA’s regional and local representatives are the eyes and ears of the landlord community, and represent NLA member landlords in their area. They are the main point of contact for local authorities as well as local press and devote time working to ensure a fair operating environment for local members.
They are also responsible for organising local meetings for members, and attracting new members. “The annual reps meeting allows our representatives the opportunity to spend quality time together, sharing experiences from their work in local areas, while directors and staff listen, so we can provide
the necessary support and tools for their work in the future,” said Sally Thorn, NLA Regions Coordinator. “Many of our representatives have years of corporate experience as well as their experience as a landlord. When we get all 45 representatives from around the UK into one room its amazing what we can all learn – and use to improve our service to members.” Tackling policy implementation The meeting consisted of a series of round-table discussions, presentations and workshops by the NLA representatives, NLA staff and directors.
To find out who your Local Representatives are, click on your nearest branches using the map on: www.landlords.org.uk/in-my-area
28 UKLANDLORD MAy/JUNE 2011
There were in-depth sessions on policy developments and workshops on addressing major local topics such as Article Four Directions, licensing schemes and Local Housing Allowance changes. Over the two-day period, the event incorporated skills training in areas such as chairing meetings, giving presentations and media work. There were also useful brainstorming sessions on the different ways the NLA can further support its members at the local level. n
UKLANDLORD MAy/JUNE 2011 29
nla news STARTING UP
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Launch of NLA Manchester The inaugural Manchester branch meeting was very well attended by landlords from the Manchester area. Carolyn Uphill, the NLA local representative for Stockport, said she was pleased to see so many people taking their role as landlords seriously. Among the topics discussed were concerns over changes to Local Housing Allowance rates, proposed new planning controls for shared housing in Manchester and an overview on the buy-to-let market. Private-sector landlords play a vital role in the housing infrastructure in Manchester and came to the meeting to find out how the NLA represents landlords and provides them with up-todate information. n
30 UKLANDLORD MAy/JUNE 2011
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UKLANDLORD MAy/JUNE 2011 31
nla landlord development
For the latest news visit: www.landlords.org.uk
Portable Appliance Testing for Landlords This course is designed for landlords wishing to carry out safety checks on the electrical appliances they provide for their tenants. Testing equipment will be available for delegates to gain practical experience and the trainer can explain all that is necessary in the domestic situation.
Price: £150 (including VAT) for members and £175 (including VAT) for non-members. To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
2011 DATES
LOCATION
Tuesday 11th May Tuesday 31st May Tuesday 14th June Tuesday 5th July Wednesday 10th Aug Wednesday 24th Aug Tuesday 6th Sep Monday 12th Sep Tuesday 20th Sep Monday 17th Oct Wednesday 19th Oct Tuesday 25th Oct Tuesday 1st Nov Tuesday 15th November Tuesday 13th Dec
Newcastle Brighton London London London Cardiff Newcastle London Manchester Bristol Brighton London Birmingham London London
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: • • • • •
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
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
Wed 18th May
Birmingham
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 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.
The programme offers an excellent opportunity to network with other landlords and discuss face-to-face ideas, problems and possible solutions. 2011 DATES
LOCATION
Tuesday 10th May
Exeter
ALL TIMES: 9.00am for 9.30am start; 4.30pm finish
32 UKLANDLORD MAy/JUNE 2011
Specialist Courses
For the latest news visit: www.landlords.org.uk
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NLA Landlord Live Show at London Olympia in May 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 and participate in seminars and workshops on pressing topics for landlords. Visit the NLA’s stand to meet with the NLA, including experts from the NLA Advice Line, and find out from the NLA’s local representatives what is going on in your area. You can also get expert advice from many of the NLA’s specialised products and professional services suppliers who will be present during the Show, including NLA Mortgages, NLA EPCs, NLA Property Insurance, NLA Inventories and NLA Rent Guarantee Insurance.
Programme of Events
Tuesday 10th May 2011
09:00 Show opens 09:45 10:00 10:15 10:30 10:45 Brendons Auctions 11:00 11:15 11:30 11:45 12:00 10:45 – 12:15 (90min) 12:15 12:30 How to stand out in a competitive market 12:45 Mary Latham, NLA Trainer and landlord 13:00 12:30 – 13:15 (45min) 13:15 13:30 Successful property investment in today’s market 13:45 Richard Bowser, Editor, Property Investor News 14:00 13:30 – 14:15 (45min) 14:15 14:30 Brendons Auctions 14:45 15:00 15:15 15:30 15:45 14:30 – 16:00 (90min) 16:00 16:15 Changes to Local Housing Allowance: What it means for landlords 16:30 Gary Trent, Valuation Office Agency Marion Money, NLA Trainer and landlord 16:45 16:15 – 17:00 (45min) 17:00 Show closes
LIVE AUCTIONS
LIVE AUCTIONS
Wednesday 11th May 2011 Show opens How to stand out in a competitive market Mary Latham, NLA Trainer and landlord 09:45 – 10:30 (45min) Brendons Auctions
LIVE AUCTIONS 10:45 – 12:15 (90min) How to find a good tenant Paul Shamplina, Director, Landlord Action 12:30 – 13:15 (45min) Creative ways of investing in property Rick Walton, landlord and property investor 13:30 – 14:15 (45min) Brendons Auctions
LIVE AUCTIONS 14:30 – 16:00 (90min)
Show closes
nla LANDLORD LIVE SHOW www.landlords.org.uk/events/nla-landlord-live
UKLANDLORD MAy/JUNE 2011 33
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Going, Going... On 10th and 11th May, the NLA will team up with specialist property auctioneers Brendons for a live auction of properties from all over the UK at the Property Professional Show at London’s Olympia.
How to buy properties at NLA Landlord Live
Established in 1936, Brendons Auctioneers has built up its West London practice which now successfully sells properties throughout the UK. Phillip Arnold of Brendons explains how the auction process will work for landlords who are interested in buying properties at the NLA Landlord Live Show.
UKLandlord: How many properties will be up for auction at NLA Landlord Live? Brendons: We are aiming to offer between 60 – 100 lots over the two days.
UKL: What types of properties will you be selling and where? Brendons: We will be offering a variety of residential and commercial investments, land with planning permission and ground rent investments, predominately in London but also in other parts of the UK.
UKL: Where can landlords view the information before the event? Brendons: They will be able to view some properties on the NLA website, on our website www.brendonsauctioneers.co.uk, on Rightmove, once the catalogue has been released, and on the Essential Information Group website www.eigroup.co.uk.
UKL: How will landlords bid for properties at NLA Landlord Live? Brendons: We do not require registration in order to bid at our auction. Individuals will need to make themselves visible to
the auctioneer if they wish to bid by clearly raising their hand. It is the auction team’s responsibility to ensure that all bidders are seen and “spotters” will be in the room to assist the auctioneer. The auctioneer will control the bidding process and will determine the level at which increments are made.
UKL: What kind of finance should landlords have in place before the auction? Brendons: They should ensure that they have finance available prior to bidding on a property. They will need to be in a position to put down a 10 per cent deposit to exchange on the day, and to complete within 28 days. Auction Finance and NLA Mortgages will be on hand to assist on the day and can be contacted beforehand to assist with financing any properties. No properties can be sold without seeing proof of identification or proof of address. This will either be a passport or photocard driving licence plus a utility bill. No cash will be accepted as a deposit, only personal cheques, company cheques or bankers drafts.
UKL: What legal advice should landlords take before the auction? Brendons: All legal packs for the properties will be available for download from our website prior to auction. We would advise any newcomer to purchasing at auction to run through these documents with a solicitor prior to bidding on a lot. If a legal pack is not available prior to auction then the property cannot be offered and will be withdrawn.
that day onwards. Insurance companies will be on hand to assist with this.
UKL: What happens once a purchaser has given the highest bid? Brendons: The auctioneer will announce the highest bid three times to allow anyone else to come in. After three times the gavel will come down and the individual has then legally purchased the property. They will then be taken to the Contracts Desk where they will be asked to sign a Sales Memorandum and to leave their 10 per cent deposit along with a Buyers Fee of £300 + VAT. Solicitors’ details will also be required. Once signed, the purchaser will receive a copy of the Sales Memorandum and the legal pack to take away. They will then need to notify their solicitor of the purchase and to take steps to insure the property. The funds will be placed in a client’s holding account until cleared and will then be forwarded to the vendor’s solicitor ready for completion. Letters confirming the sale will be sent out from Brendons Auctioneers to the vendor, the vendor’s solicitor, to the buyer and to the buyer’s solicitors no later than 48 hours after the auction date. n
UKL: At what stage does a purchaser need to insure a property? Brendons: Purchasers need to insure the property if they are the successful bidder from
For more information on how to buy at auction, see www. brendonsauctioneers.co.uk/guide.html
NLA Property Insurance will have a stand at NLA Landlord Live and can offer insurance to purchases at the auctions.
34 UKLANDLORD MAy/JUNE 2011
nla LANDLORD LIVE SHOW www.landlords.org.uk/events/nla-landlord-live
nla LANDLORD LIVE SHOW PULLOUT STARTING UP
REGULATORY
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Legal tips for buying buy-to-let property at auctions By Seddons Solicitors While buying at an auction affords the buyer a degree of transparency, certainty and control that is not always available in a private transaction, there are several pitfalls that the buyer must be aware of. Before the auction • It is important that you do not solely rely on the guide prices published in the sale catalogue. These prices are often subject to change and a couple of days before the auction you should check with the auctioneer directly whether an Addendum has been published which will detail any last minute price adjustments. •
Carry out your own physical assessment of the property in good time before the auction. It is advisable to instruct a surveyor to conduct a formal survey and valuation.
•
Instruct a solicitor to examine Title to the property. The legal sales pack should include all the relevant searches, any replies to enquiries as well as any leasehold documents.
•
Read and understand the Royal Institution of Chartered Surveyors Common Auction Conditions (used by the large majority of auction houses): www.rics.org.
• Check the Notice to Bidders and any Special Conditions of Sale for any extra fees that
might be payable. There are often provisions included for the buyer to pay the seller’s solicitors fees as a percentage of the price. Buyers will have been deemed to have read and accepted these terms and conditions.
•
If the property you are purchasing is tenanted, you should check what kind of tenancy is in place, and if time permits, carry out a thorough investigation of the tenant, obtaining character references, credit checks and an up to date statement of account of rental payments.
If your bid is accepted… Once your bid has been accepted and the hammer has fallen, contracts will have been deemed to have been exchanged and you are legally bound to the transaction. If you subsequently do not complete the transaction your deposit will not be recoverable, and you may be pursued for the full sale price. •
If you are buying the freehold of a block of flats, you should ensure that the seller has served a valid Notice (under section 5b of the Landlord &Tenant Act 1987) on the lessees, offering them a right of first refusal to buy the freehold. If thishas not been done, there is a risk
that a group of lessees could seek to get the freehold from you at the price you paid. This could jeopardise your investment plans. •
Ensure that you check the position in regard to rents and service charge arrears and identify who is responsible for paying and collecting these sums.
• You should always check the terms of the lease particularly, any renewal and rent review provisions. n Disclaimer: The above is only a summary and is no substitute for taking legal advice on buying property at an auction.
For further information, please contact John Midgley (pictured) or Andrew Jacobs at Seddons on 020 7725 8032. Seddons is an NLA Recognised Supplier.
nla LANDLORD LIVE SHOW www.landlords.org.uk/events/nla-landlord-live
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For the latest news visit: www.landlords.org.uk
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NLA Landlord Live Show floorplan
Book your place for the NLA Landlord Live Event The Property Event of 2011 FREE to attend
For more information see pages 33-36 or visit: www.landlords.org.uk/events
36 UKLANDLORD MAy/JUNE 2011
10th & 11th May 2011 OLYMPIA - LONDON
nla LANDLORD LIVE SHOW www.landlords.org.uk/events/nla-landlord-live
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Regular Local Business and Investment News REGULATORY
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Welsh AMs call for PRS public relations A new report from the National Assembly for Wales has recommended that the Welsh Government should actively seek to promote a positive public image of the private rented sector as a tenure of choice in Wales and develop a specific strategy for making the most of the private rented sector in Wales. The report by the Communities and Culture Committee looks at all aspects of the private rented sector in Wales, and sets out ten recommendations for the Welsh Government. Committee Chair, Sandy Mewies Assembly Member, said: “Despite not being an area that has drawn an awful lot of attention, the private-rented sector is one that plays a critical role
in meeting the housing need in Wales.” Welsh letting agents The recommendations were announced at TAI 2011, Wales’ largest housing event, where NLA Representative for Wales Lee Cecil chaired a plenary on the privaterented sector. As well as calling for the Welsh Government to introduce statutory regulation of all letting agencies in Wales, the committee suggested that research be carried out into “the potential effectiveness and feasibility of a mandatory licensing or registration scheme for all managers of private rented sector accommodation (including landlords) in Wales.
Lee Cecil (left) at TAI 2011 Carolyn Uphill, Manchester Local Representative
Other recommendations call on support for local authorities to improve the strategic co-ordination of their different departments’ engagement with the private rented sector. The cross-party group of Assembly Members also recommended that the Welsh
Government should set up a fund so that local authorities can lend to landlords to bring empty properties back into use, with loans conditional on, for example, the housing brought back into use for the socially vulnerable. n
Welsh thumbs up for NLA Accreditation All 22 local authorities in Wales can now use the NLA’s accreditation scheme for landlords. The Welsh Assembly Government has confirmed that it will recognise the NLA Accreditation Scheme as an appropriate scheme for all local authorities in Wales to use to promote the supply of good quality accommodation in the private-rented sector. From now on, the 22 Welsh
local authorities can take advantage of the NLA’s scheme which is free to participating local authorities and to NLA members who follow the online Foundation Course on the NLA’s Landlord Library. Landlords in Wales can also attend in person a fee-paying one-day course run either by Landlord
Accreditation Wales or the NLA. The NLA will work in partnership with Landlord Accreditation Wales (LAW). Landlords who become accredited under the national NLA Accreditation scheme can be passported on to the LAW scheme, and vice versa. The mutual passport facility will be particularly beneficial for landlords with properties outside of Wales. Setting the pace The NLA is now in touch with other local authorities in the UK who are interested in using
NLA Accreditation. Siobhan Cannon (pictured), Local Government & Accreditation Officer at the NLA, explained to UK Landlord: “As well as providing knowledge and information to private-rented sector landlords about their roles and responsibilities, the scheme aims to foster better relationships between landlords and tenants. It is based on the NLA’s core foundations of landlord development, its code of practice and also incorporates a complaints process.” n
For more information about accreditation in Wales, please visit the welsh area of the NLA website www.landlords.org.uk or contact siobhan.cannon@landlords.org.uk.
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REGIONAL FOCUS STARTING UP
Wales Investment Focus REGULATORY
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Political overview: Wales The Welsh Assembly Government is the devolved government for Wales. It sets the national priorities, strategic context and overall level of funding for services. Local councils in Wales deliver these services on a local level within the agreed national strategy. With a budget of more than £14bn, WAG is currently responsible for 20 broad policy areas, including housing, social services and local government. About £4bn a year is given by the Welsh Assembly Government to the 22 local government authorities in Wales. Significant change is now afoot since 3rd March when the
Welsh voted to increase the lawmaking powers of the National Assembly for Wales. In the future, the Assembly will be able to pass laws without first having to gain the consent of Westminster. How these new powers will be applied will depend to a certain extent on the outcome of the elections to the National Assembly for Wales on 5th May. n
Labour and Plaid Cymru work as the ruling coalition government in the National Assembly for Wales. The Welsh Assembly parties are currently headed by: Labour:
Carwyn Jones, Wales’ First Minister
Plaid Cymru:
Ieuan Wyn Jones, Deputy First Minister
and Minister for Economy and Transport
Conservatives:
Nicholas Bourne, AM
Liberal Democrats:
Kirsty Williams, AM
Key Statistics for Wales Population (2009): 2,999,300 Unemployment rate (Jan 2011): 8.7 % Average house price (Jan 2011): £116,217 Detached (Jan 2011): £177,691 Semi-detached (Jan 2011): £105,901 Terrace (Jan 2011): £78,410 Flat (Jan 2011): £91,258
Proportion of private-rented property (2010): 14%
19 15 17
Average monthly rent, 2-bed property (March 2011): £512
16 14
Long-term privately owned empty homes (June 2009): 26,407 (empty for more than six months)
18
Sources: Welsh Assembly Government (www.statswales.wales.gov.uk), Land Registry, Rentright.co.uk, Shelter Cymru
NLA REPRESENTATION 1. 2. 3. 4. 5. 6. 7. 8. 9.
Monmouthshire County Council Torfaen County Borough Council Blaenau Gwent County Borough Council Caerphilly County Borough Council Cardiff Council Vale of Glamorgan Council Rhondda Cynon Taf County Borough Council Neath Port Talbot County Borough Council Carmarthenshire County Council
10. Newport City Council 11. Merthyr Tydfil County Borough Council 12. Bridgend County Borough Council 13. Swansea City and Borough Council 14. Wrexham County Borough Council 15. Flintshire County Council 16. Denbighshire County Council 17. Conwy County Borough Council 18. Gwynedd County Council 19. Isle of Anglesey County Council
9 11 13
8
4
7 12 6
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Lee Cecil, NLA Wales Representative Responsible for developing relationships with the Welsh Assembly Government (WAG), National Assembly for Wales and local authorities throughout Wales. Lee also sits on a number of strategic housing groups, including as Chair of WAG’s Private Rented Sector Delivery Team.
Portfolio: Two-and three-bedroom properties and also into developing land, including a £6m gross development value project of 49 apartments. Local investment opportunities: As there is devolution in Wales, this could bring radical new vehicles for private-sector investment.
Contact: Lee.Cecil@landlords.org.uk if you have suggestions for meetings in Wales.
Julie Woolfenden, NLA Local Representative (North Wales) Responsible for developing relationships with local authorities in North Wales (of Anglesey, Gwynedd, Conwy, Denbighshire, Flintshire & Wrexham). Local investment opportunities: Issues surrounding affordable housing continue to dominate North Wales. If you are looking to invest in North Wales, be prepared to engage with the local council as there is plenty of scope for growth. All local authorities in North Wales are eager to work with the PRS because housing is in short supply.
Developments to note: Rhyl, which has a large number of Victorian HMO properties, is part of the N.Wales Coast Strategic Regeneration Area. A ten-year master plan is being drawn up and funding from the Welsh Assembly Government will enable many improvements to be made to some of its worst areas. Local events: Wrexham and Denbighshire each held successful Housing Fayres in March where landlords and tenants came for advice and to listen to presentations on a wide variety of topics. Gwynedd will host its annual Housing Conference later this year, usually in September.
Contact: Julie.Woolfenden@landlords.org.uk if you have suggestions for meetings in this area.
Vince Botham, NLA Local Representative (South Wales) Responsible for developing relationships with South Wales’ seven local authorities, from Newport to Swansea. I am responsible for five local authority landlord meetings on behalf of the NLA two of which are Branch meetings. Portfolio: A mixture of HMOs, houses, and apartments in South Wales.
Local investment opportunities: I rarely have voids. I have one house let to LHA tenants and I am certainly rethinking whether to stay in this market. Beware of investing in city centre apartments as the service charges are escalating beyond belief and the returns are not fantastic. HMOs in good areas in the bigger Welsh towns such as Swansea and Cardiff can produce returns of 15 per cent.
Contact: Vince.Botham@landlords.org.uk if you have suggestions for meetings in Wales.
Trends to note: There is high unemployment in South Wales, and as a result, many are concerned about the changes to LHA rules.
NLA Welsh branch news
Joined up thinking in Denbighshire
The NLA Vale of Glamorgan branch officially opened in March as a channel to engage with all landlords in this area to promote and raise standards, according to Lee Cecil. Julie Woolfenden also reports that Conwy and Denbighshire local authorities are both exploring the possibilities of setting up a branch in partnership with the NLA. n
Denbighshire County Council has been piloting a number of innovative approaches to reducing homelessness. A recent 12-month pilot project in the county aimed to prevent homelessness by taking a broader approach to the issues surrounding homelessness, such as education, training and employment. By applying a more holistic approach to
housing, the Council was able to provide a wide range of advice and support for training, job opportunities and benefits. Local landlords interested in finding out more should contact Stephen Convill, Denbighshire’s Senior Homelessness & Allocations Officer on stephen.convill@ denbighshire.gov.uk n
UKLANDLORD MAy/JUNE 2011 39
EVENTS GUIDE
May-July 2011
For an up-to-date list visit: www.landlords.org.uk/events
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.
REGION
LOCATION
TIME
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
Tue 10 May NLA Fife Branch Meeting
Scotland
The Gilvenbank Hotel, Huntsman Road, Glenrothes, Fife KY7 6NT 7.00pm
Tue 10 May Colchester Landlords Day
East of England
Moot Hall, High Street, Colchester, Essex CO1 1FR
10.00am to 4.00pm
Wed 11 May NLA Wessex (Bristol) Branch
South West
BAWA, 589 Southmead Road, Filton, Bristol BS34 7RG
7.00pm
Council House, Solihull, West Midlands B91 3QS
5.00pm
DATE
EVENT
Wed 4 May NLA Wessex (Bath) Branch
Meeting
Mon 9 May NLA Chesterfield Branch
Meeting
Meeting
Thu 12 May NLA and Solihull Metropolitan West Midlands
Borough Council Landlords
Meeting
Thu 12 May
Launch of Doncaster Landlord Yorkshire and the Humber
Carr House Centre, Danum Road, Doncaster DN4 5HF
Forum in partnership with
the NLA
Thu 12 May
Launch of NLA Copeland
Branch Meeting
Tue 17 May NLA Weymouth Branch
North West
to 8.00pm
5.30pm to 8.30pm
The Copeland Centre, Bainbridge Room, Catherine Street,
5.00pm
Whitehaven CA28 7SJ
to 7.00pm
Weymouth Working Mens Club, 1 Mitchell Street, Weymouth,
7.00pm for
Meeting
Dorset DT4 8BT
7.30pm start
Tue 17 May
London Borough of Sutton
London Borough of Sutton, Civic Offices, Meeting Room 1,
5.30pm
Landlord Forum
St Nicholas Way, Sutton SM1 1EA
to 8.30pm
Westgate, Clifford Suite, Long Eaton NG10 1EF
7.00pm
Thu 19 May NLA Nottingham and Derby
South West
London
East Midlands
Branch Meeting
Mon 23 May
West Kent Landlords Forum
for 7.30pm start
Tunbridge Wells Borough Council, Town Hall, Royal Tunbridge
4.30pm
Wells, Kent TN1 1RS
to 7.30pm
Tue 24 May NLA and Thanet District
Portland Hall, Portland Centre, St Peter’s Church Hall, Hopeville 5.00pm
South East
South East
Council Landlords Forum
Avenue, Broadstairs CT10 2TR
to 9.00pm
Wed 25 May
Launch Meeting NLA Bolton
Britannia Bolton Hotel, Beaumont Suite, Beaumont Road,
6.30pm
Branch
Bolton BL3 4TA
8.30pm
Best Western Reading Moat House, Loddon Suite, Mill Lane,
7.30pm
Thu 26 May NLA Reading Landlords
North West
South East
Meeting
Thu 26 May NLA Dorset Branch Meeting
Sindlesham, Nr Wokingham, Berkshire RG41 5DF The Queen Hotel and Spa, Meyrick Road, Bournemouth
7.00pm for
BH1 3DL
7.30pm start
Wed 1 Jun NLA Glasgow Landlords
Touchbase Business Centre, Premier Inn, 187 George Street,
7.30pm
South East
Meeting
Wed 1 Jun NLA and Edmund Cude
Scotland
Meeting
Wed 1 Jun NLA Southampton Branch
South West
London
Seminar
Tue 7 Jun NLA Brighton Branch Meeting
Glasgow, G1 1YU Holiday Inn Southampton, Avon Suite, Herbert Walker Avenue,
6.45pm for 7.00pm
Southampton SO15 1HJ Tel: 0871 942 9073
start to 9.00pm
Institute of Directors, The Burton Room, 116 Pall Mall,
7.30pm
London SW1Y 5ED Hilton Brighton Metropole, Osborne Room, Kings Road,
6.30pm
East Sussex BN1 2FU
to 9.00pm
Tue 7 Jun NLA Cumbria Branch Meeting
University of Cumbria, Fusehill Street, Cumbria CA1 2HH
7.00pm
40 UKLANDLORD MAy/JUNE 2011
South East
North West
EVENTS GUIDE DATE
May-July 2011
EVENT
Wed 8 Jun NLA Eastbourne & Wealden
For an up-to-date list visit: www.landlords.org.uk/events
REGION
LOCATION
South East
Lansdowne Hotel, King Edward’s Parade (Eastbourne Seafront), 6.30pm
Branch Meeting
Wed 8 Jun NLA Norwich Landlord Forum
TIME
East Sussex BN21 4EE Caistor Hall Hotel, Caistor Street, Edmund, Norwich,
6.30pm for
Norfolk NR14 8QN
7.00pm start
Fri 10 Jun NLA Hastings & Rother
Bannatyne’s Hotel, Health Club and Spa, Garden Room,
6.30pm
Beauport Park, Battle Road, Nr Battle, East Sussex TN38 8EA
to 9.30pm
Civic Centre, Middlesex Suite, High Street, Uxbridge,
4.00pm
Middlesex UB8 1UW
to 8.00pm
Tue 21 Jun NLA Bridgend Branch Meeting Wales
Bridgend Rugby Stadium, Tondu Road, Bridgend CF31 4JE
6.00pm
Tel: 01656 838281
to 7.30pm
Tue 21 Jun
Apex International Hotel, Sydney Room, 31-35 Grassmarket,
7.30pm
East of England
South East
Branch Meeting
Tue 14 Jun NLA and Hillingdon Borough
London
Council Landlords Fair
NLA Edinburgh Branch Meeting Scotland
Thu 23 Jun NLA Manchester Branch
North West
Edinburgh EH1 2HS Tel: 01313 003456 The Toby Carvery (formerly the Rudyard Hotel), Function Room, 6.00pm for 6.30pm
Meeting
271 Wellington Road North, Heaton Chapel, Stockport SK4 5BP
start to 8.30pm
Mon 27 Jun
NLA Shropshire Branch Meeting West Midlands
Shire Hall, Council Chamber, Abbey Foregate, Shrewsbury
5.30pm for
in partnership with Shropshire
SY2 6ND
6.00pm start
Mercure Southgate Hotel, Southernhay East, Exeter EX1 1QF
6.00pm for 6.30pm
Council Wed 29 Jun NLA Exeter Branch Meeting
South West
start to 8.30pm
Tue 5 Jul NLA Swansea Branch Meeting Wales
Liberty Stadium, Landore, Swansea SA1 2FA
6.00pm to 7.30pm
Tue 5 Jul NLA Fife Branch Meeting
Scotland
The Gilvenbank Hotel, Huntsman Road, Glenrothes, Fife KY7 6NT 7.00pm
Wed 6 Jul NLA Reading Branch Meeting
South East
Best Western Reading Moat House, Loddon Suite, Mill Lane,
7.00pm for
Sindlesham, Nr Wokingham, Berkshire RG41 5DF
7.30pm start
Tue 12 Jul NLA Teesside Branch Meeting North East
The Blue Bell Hotel, Acklam, Middlesbrough TS5 7HL
7.30pm
Tue 12 Jul NLA Lincoln Branch Meeting
Lincoln Golf Centre, Moor Lane, Thorpe On The Hill, Lincoln
6.30pm
LN6 9BW
to 8.30pm
Mon 18 Jul NLA Sheffield Branch Meeting Yorkshire and the Humber
Sheffield Park Hotel, Chesterfield Road South, Sheffield,
6.30pm
South Yorkshire S8 8BW
to 9.30pm
The Tramways, Wells BA5 2HN
6.00pm to
East Midlands
STOP PRESS. EXTRA DATES! Wed 11 May
NLA in partnership with Mendip South West
District Council Landlords
Meeting
Tue 24 May
Branch Launch NLA Ealing
Wed 25 May NLA Portsmouth Landlords
South East
Holiday Inn, Pembroke Road, Portsmouth, PO1 2TA.
7.00pm to 9.00pm
South East
Guildford Borough Council, Millmead, Guildford, Surrey, GU2 4BB 7.00pm to 9.00pm
South East
Holiday Inn, Herbert Walker Ave. Southampton, SO15 1HJ
7.00pm to 9.00pm
South East
Chichester University, College Lane, Chichester, PO19 6PE
7.00pm to 9.00pm
South East
To be confirmed. Check the NLA Web site.
7.00pm to 9.00pm
Meeting
Wed 8 June NLA North Hampshire
6.00pm to 8.30pm
Meeting
Thurs 2 June NLA Chichester Landlords
The Bridge Hotel, Western Avenue, Greenford, UB6 8ST
Meeting
Wed 1 June NLA Southampton Landlords
London
Meeting
Thurs 26 May NLA Guildford Landlords
8.00pm
Landlords Meeting
Tue 21 June
Branch Launch NLA
Wandsworth
London
check NLA website for details
UKLANDLORD MAy/JUNE 2011 41
PUBLIC AFFAIRS
Public Affairs Diary Chris Norris, NLA Policy Manager STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Landlords views at the heart of decision making In Westminster and Whitehall, Spring is usually dominated by the prospect of the Budget Statement and elections of one variety or another. In this respect 2011 is certainly no different, although it is arguable that the elections and Budget in question are a little more relevant than is often the case. While the country is still reeling from the effects of its deepest post-war recession George Osborne’s second Budget provided a spectacle – which many portfolio landlords will have found a welcome distraction from imminent welfare cuts. Meanwhile on the election front, campaigning is well underway for 337 local government elections and all 297 devolved national seats in Scotland, Wales and Northern Ireland to be contested on 5 May. Aside from these perennial set pieces, work continues at pace across local and central government and the NLA continues to ensure that landlords’ views and
needs are considered at the heart of the decision making process. In Whitehall the NLA Policy Team is working with the Department for Communities and Local Government, MPs and stakeholders to make sure that amendments to the Localism Bill concerning tenancy deposit protection rules (currently being debated in the House of Commons) improve existing processes without disadvantaging landlords or add unnecessary confusion to the existing system.
Concurrently, the NLA was also invited to give evidence to the parliamentary committee considering the Welfare Reform Bill in the House of Commons. Providing evidence at the committee hearing, NLA Executive Chairman David Salusbury, explained the difficulties that landlords face housing potentially vulnerable individuals in receipt of Local Housing Allowance and the pitfalls presented by the incoming legislation. North of the Border, mystery
still shrouds potential providers of tenancy deposit protection but the Private Rented Housing (Scotland) Bill is on course to receive Royal Assent shortly. In Cardiff, the NLA joined leading lights of Welsh housing policy at ‘Tai 2011’ the three-day housing conference to discuss the issues of the day with stakeholders including, First Minister Carwyn Jones AM and economist Will Hutton. n
Speaking about the Bill, Scottish Housing Minister Alex Neill said: “This Government recognises the increasing importance of the private-rented sector in the current challenging economic climate.
That demand is likely to increase because of pressures on the sector due to the UK Government’s ill-thought plans for housing benefit and welfare reform…. I want to support and encourage good, honest landlords who provide much needed high quality accommodation whilst getting tough on the unscrupulous players. I am particularly pleased at the consensual view in Parliament that this Bill will meet that aim.” The implications of this Bill are strengthening of the landlord
registration system by giving local authorities additional powers to tackle bad practice and to penalise rogue operators. It will also aim to improve both tenants’ and landlords’ awareness of their rights and responsibilities. Landlords operating illegally will face a £50,000 fine and a ban on letting properties for up to five years. There will also be a crackdown on unscrupulous agents charging extortionate, unlawful premiums. n
Scottish PRS update The Private Rented Housing (Scotland) Bill passed its third stage of parliamentary scrutiny unopposed in March and looks set to become law before the Parliamentary elections on 5th May.
42 UKLANDLORD MAy/JUNE 2011
UKLANDLORD MAy/JUNE 2011 43
PUBLIC AFFAIRS STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Binding energy targets hang over national governments The International Union of Property Owners (UIPI) has given a cautious welcome to a new European Union energy efficiency action plan that sets out ways to reach the EU’s 20 per cent energy saving target and realise its vision of a resource-efficient and low carbon economy by 2050. UIPI warns that although the plan stops short of imposing binding efficiency targets, it includes some worrying clauses for property owners. As a result of maintaining regular contact on this topic
with the European Commission which drafted the action plan, the Commission did not make its 20 per cent target binding. Instead it introduced a two-stage approach where member states will first get a chance to come up with their own targets and programmes. The EU will review those plans in 2013 and will step in if these fail to reach the 20 per cent target. The UIPI is calling on its national landlord body members to get in touch with their governments to make sure
they are not disproportionately targeted in national programmes. In another positive development, the EU has decided not to set targets for the number of buildings the construction sector has to renovate every year. “Such obligations would not have resulted in property owners embracing the energy efficiency agenda. Instead it would have caused resentment and hostility,” said UIPI, which had argued against the plan. Who pays? The European Commission also said it would come up with proposals to tackle the classic ‘split incentives’ dilemma – where owners and tenants are each reluctant to pay for energyefficiency measures because the benefits are split between them. UIPI, which has published a paper on the issue, said the Commission’s interest was a “positive development”. However
UIPI has raised concerns at the action plan’s suggestion that “market incentives and price signals [needed] to be intensified through energy and carbon taxes.” The UIPI will oppose any measure to increase energy taxes that would hit the budgets of European property owners. UIPI expressed caution about the action plan’s reference to legislative obligations relating to smart metering systems as the language was unclear on whether it was intended to be property owners or energy companies who would pay for the new equipment: “It should not become an additional unbearable cost for owners,” said UIPI. 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
EU in right direction on consumer rights Although an updated version of the EU’s Consumer Rights Directive was approved by the European Parliament in late March, Members of the European Parliament (MEPs) postponed adopting a final position on the new law to buy themselves more time to reach agreement with member states on the most controversial issues. The International Union of Property Owners (UIPI), in which the NLA plays an active role, welcomed the Parliament’s vote: “This vote demonstrates that MEPs have understood that immovable property and all rights linked to it cannot fall under the same 44 UKLANDLORD MAy/JUNE 2011
contractual obligations as any other goods or services.” The Parliament’s amendment, which is also supported by EU ministers, allows member states to maintain higher standards for the scope and length of the liability periods for buildings materials. By excluding all kinds of immovable property-related contracts from the obligations related to off-premises contracts, as UIPI has been requesting for some time, the amendment ensures that EU consumer rights regulation will not as feared result in complicated rental contracts and introduce higher insecurity on
the rental market without creating higher protection for tenants. According to the UIPI, splits
along party lines suggest that further battles lie ahead before the legislation becomes law. n
UKLANDLORD MAy/JUNE 2011 45
Q&A WITH RICHARD PRICE
The importance of record-keeping Key tips from NLA Director of Operations Richard Price. STARTING UP
REGULATORY
Q: Why is it important to keep proper records? Richard Price: By law you need to keep some records and it can be very useful to keep others. Sufficient accounting records to explain the entries on your Self-Assessment Tax Return or records of gas safety inspections are compulsory, whilst a running log of telephone calls and visits regarding each tenancy can prove very helpful later, once memories have faded. Maintaining proper records helps landlords stay on top of their property business, and will also make it easier for accountants if you use one, to complete your Return thereby saving you money on accountancy fees. If you happen to be one of the unfortunate cases selected for an enquiry by HM Revenue & Customs (HMRC), then good records should help them to bring it to a speedy conclusion.
Q: How long should I keep the records for? RP: Where records are not compulsory, it makes sense to keep them for the full duration of the tenancy, and then maybe a year afterwards. You need to keep your records for five years from the last date for submission of your Self-Assessment Tax Return. For example, for the year to 5th April 2009, the last date for submission of your return is 31st January 2010 and the records must be kept until 31st January 2015. Completion statements for purchase and sale of properties should be kept for six years from the end of the tax year in which the property is sold in case HMRC enquires into the capital gains. Gas safety records must be kept for a minimum of two years but many landlords choose to retain for longer.
PROPERTY
TENANCY
hand as it adds up for you as you go along, and helps you assess the profitability of each property. There are specialist software packages for landlords which can be useful if you have more than a few properties. It is advisable to also keep a separate page for each property showing individual receipts and payments, the total for which can be transferred to your summary spreadsheet.
Q: Do I need a separate bank account for every property I own? RP: You don’t need a separate account for each property but you should keep a separate bank current account for your lettings business. This means that if you are selected for an enquiry by HMRC, you can show them this account rather than your private account statements.
Q: What happens if HMRC has an enquiry? RP: It’s worth noting that NLA landlord members benefit from free tax investigation insurance cover subject to eligibility criteria. HMRC selects some returns for enquiry every year. Those with obvious mistakes or something that doesn’t look right are targeted as well as some picked at random. There are two types of enquiry - aspect and full. An aspect enquiry concerns just one figure
SAFETY
FINANCE
or source of income and can usually be resolved quickly by letter. In a full enquiry they look at all of your records for the year under enquiry and there is usually a meeting with an inspector. It may be advisable to be represented by an accountant to enable you to get the relevant points across. There is an enquiry window of one year from the last date for submission of your return of one year from the date it is received if it is submitted late. Once the window has closed, they cannot open an enquiry into that year unless they can show that you have not disclosed something or in cases of wilful fraud or deception.
Q: What penalties are there for inaccuracies on tax returns? RP: The Finance Act 2007 introduced a new penalty regime which came into effect from April 2009. The levels of penalty will vary according to how ‘deliberate’ an inaccuracy is. The penalty is a percentage of the additional tax that is due or was under-declared, and you will still have to pay the additional tax and, in some cases, interest as well. The highest penalties are for those cases involving concealment of information or evidence. However, if you can prove that you have taken proper and reasonable care in preparing your tax returns, the taxman may consider any error an innocent one and charge no penalty at all. Good record-keeping is therefore very important. n
Q: What do I need to include in my records? RP: Your records need to show the dates and amounts of all of your receipts. It is important to keep tenant deposits and meter receipts separate from rents. You also need to keep details of the dates and amounts of all items of allowable expenditure and capital payments. All of the invoices to support the amounts paid should be kept in a separate file. A simple way to keep accounting records is on an excel spreadsheet. A spreadsheet will save you a lot of time compared with writing up books by
46 UKLANDLORD MAy/JUNE 2011
For more information: • NLA Landlord Library: www.landlords.org.uk/library/financial/record-keeping • Free tax investigation insurance cover: www.landlords.org.uk/support-advice/taxation-investigation-insurance • HMRC: www.hmrc.gov.uk/manuals/chmanual
Q&A WITH RICHARD PRICE Records at a glance
4 Sunnyside Road
3 River Way
14 Meadow Lane
12 Church Street
Total
Receipts Rents Tenant deposits Meter receipts Payments Council Tax Gas Electric Repairs Insurance Net inflow/outflow Capital introduced Drawings Bank balance carried forward
You don’t need a separate account for each property but you should keep a separate bank current account for your lettings business.
UKLANDLORD MAy/JUNE 2011 47
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
REGULATORY
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, and until 7pm every Monday. 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 quickly as possible. Our advisors can talk you
48 UKLANDLORD MAy/JUNE 2011
PROPERTY
TENANCY
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. 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. 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 will ring you back. If possible, avoid calling
SAFETY
FINANCE
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. 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
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.
UKLANDLORD MAy/JUNE 2011 49
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
Exclusive deals and no broker fees
Fed up with your solicitor? NLA conveyancing is different
NLA Mortgages provides 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. • No broker fees • Access to exclusive offers • Instant quotes online • Find schemes that fit your expected rental income • Telephone helpdesk for information and support • Cashback available for NLA Members
We’ve all heard stories of the nightmare conveyancer that can’t be contacted when you need them or the ‘additional’ costs that seem to mount up along the way.
NLA Conveyancing removes these worries for you:
• Highly competitive quotes that include all disbursements • Online case tracking 24/7 • No legal fee if your sale does not complete • Strict service standards to ensure a high quality service
Cashback for all NLA Members*
£100 cashback for NLA Members*
on successful mortgage completion Get the right mortgage for you online at
www.landlords.org.uk/mortgages
on successful conveyancing completion Register now to quote and compare online at
www.landlords.org.uk/conveyancing
NLA Tenant Checks
Don’t take a risk with tenants!
If your tenant…. • Has falsely claimed to live at a previous address • Has two County Court judgments in their name • Doesn’t work for the company they claim to work for • They are in fact unemployed Would you still allow this person to rent your property?
NLA Tenant Check will help you find out if your tenant: • Has been made bankrupt or are insolvent • Is NOT who they claim to be • Is NOT employed and/or earning the amount they claim to be earning • Has experienced problems with previous landlords/letting agents
We can even give you our assessment of their ability to afford the rent with a full tenant check.
NLA Members save up to £5 per Tenant Check Be in the know and purchase today at
www.landlords.org.uk/tenantcheck
50 UKLANDLORD MAy/JUNE 2011
NLA EPCs
NLA Property Insurance
Is your EPC legal and valid?
Don’t be let down by your Insurance!
Don’t be led by the belief that all Energy Performance Certificates (EPCs) are the same. Don’t waste your money on something that isn’t worth the paper it’s written on and may not even be legal. NLA EPCs only uses fully qualified, accredited Energy Assessors meaning your EPC is 100% reliable. NLA EPCs offers nationwide EPC coverage with Domestic Energy Assessors that you can trust.
With so many insurance products available from so many providers, finding the right policy can be difficult. NLA Property Insurance offers landlords two policies to choose from, Superior or Standard, giving you flexibility over the cover included and the price.
• Fully accredited assessors • Fast non-invasive assessments • Completely compliant EPCs • Dedicated helpline to answer your questions
NLA Members save £10 per EPC Register and purchase online at
www.landlords.org.uk/epcs
• Highly Competitive premiums • Accidental damage to buildings (superior only) • Public Liability • Alternative accommodation or loss of rent (subject to terms & conditions)
15% Discount for NLA Members*
View the policies and register online at
www.landlords.org.uk/propertyinsurance
NLA Inventories
Are you protecting your property? They are not mandatory, they are time consuming (if done correctly) and tenants rarely ask for them so what’s the point of an Inventory?
Choose NLA Inventories:
An Inventory records the condition of a landlords property and possessions at a fixed point in time (beginning of a tenancy, end of tenancy or even mid term). It’s designed to protect both parties. Should a tenancy end in dispute over the deposit adjudicators will review all evidence available (inventory, check in, check out) before reaching a conclusion.
• For peace of mind for you and your tenant
• To safeguard your property
• To ensure you have a secure basis for claims against a tenant’s deposit • So negotiations on the deposit can be dealt with quickly and easily
See a sample report and book online at
www.landlords.org.uk/inventories
Discounts for NLA Members
Not available in Scotland and Northern Ireland
NLA Rent Guarantee Insurance
NLA Online Shop
Is your rental income at risk?
Access to a range of landlord resources
Through no fault of their own, your tenant may find themselves experiencing financial difficulties. NLA Rent Guarantee Insurance protects your rent should your tenant(s) default on their rental payments. There are two policy options – 6 and 12 months. With 12 months equivalent to just £1.73 per week for NLA members it’s hard to justify NOT having a safeguard in place!
The NLA Online Shop gives you access to a range of landlords resources. You can book courses, order pre printed tenancy agreements, purchase fire safety and portable appliance testing equipment; as well as tenant information packs and folders.
• Professional and reputable cover • 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 per policy. Protect yourself - register and purchase online at www.landlords.org.uk/rentguarantee
• Printed tenancy agreements • Promotional support • Publications • Electrical testing equipment • Fire safety equipment
Discounts for NLA Members
Open to Landlords 24 Hours a day 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 MAy/JUNE 2011 51
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
STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
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.
52 UKLANDLORD MAy/JUNE 2011
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. 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.
Lloyds TSB Commercial Please get in touch with your local specialist via the website: www.lloydstsb.co.uk/property Lloyds TSB Commercial has established a team of specialists who provide financial expertise, support and services to small and medium-sized enterprises with an annual turnover of up to £15m operating in the property sector. For further information on our services or to contact us, visit www.lloydstsb.co.uk/property.
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.
UKLANDLORD MAy/JUNE 2011 53
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.
Wake Smith & Tofields Solicitors Tel: 0114 266 6660 (Ask for Nick Lambert) landlords@wake-smith.com www.wake-smith.com Wake Smith & Tofields has a dedicated legal team that provides a comprehensive range of services to landlords and their agents. From assisting with buying property and managing portfolios of properties, to dealing with landlord and tenant disputes and any contentious issues concerning property, our team provide all the legal help and advice you need. NLA members will receive a 10% discount off fees.
54 UKLANDLORD MAy/JUNE 2011
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.
NLA PARTNER NEWS STARTING UP REGULATORY PROPERTY NEWS NLA Property Insurance: Tailor-Made for Landlords
SAFETY
FINANCE
Landlords control £1bn worth of deposits with my|deposits The tenancy deposit scheme, my|deposits, has reached the significant milestone of protecting over £1bn worth of deposits. The scheme made the announcement on the eve of the fourth anniversary of tenancy deposit protection in England and Wales. my|deposits.co.uk now protects an average 30,000 deposits on behalf of landlords every month and is the only tenancy deposit protection scheme specifically designed for landlords wanting to manage the deposit themselves and deal directly with their tenant. “my|deposits has gone from strength to strength since we launched over four years ago, firmly expelling the myth that landlords and agents can’t be
trusted with holding client money,” said Eddie Hooker, Chief Executive, mydeposits.co.uk. “We have adequately protected deposits for more than one million tenancies across England and Wales, valued at more than £1 billion and counting.” It comes after a successful winter sale, which saw 3,100 landlords join my|deposits for the reduced rate of £10. Looking North With news that the Scottish parliament has recently passed legislation paving the way for deposit protection for tenants, my|deposits is hoping its scheme and approach will be embraced by landlords and agents in Scotland. The new Scottish law aims to ensure tenants’ deposits are held
safely by a third party and returned at the end of the tenancy. Any dispute over the amount returned
would be resolved through an alternative dispute resolution process. n
For more information, see www.mydeposits.co.uk
UKLANDLORD MAy/JUNE 2011 55
NLA RECOGNISED SUPPLIER PROFILE
Upad
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
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NEWS
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Upad: re-inventing renting Upad is much more than just another website – it does everything you would expect from a full service lettings agency, as well as advertising properties nationwide on 950 UK lettings sites, including Rightmove, FindaProperty, Zoopla and Globrix. James Davis, CEO, UPAD
In the three years since CEO James Davis started up the company, Upad has grown from four parttimers working off laptops in a living room into a rapidly expanding business with 15 full time employees. It is now the largest online lettings agent in the UK, with 20,000 registered landlords, dealing with around 15,000 tenant enquiries per month, and has just joined the NLA’s Recognised Supplier Scheme.
effectively, and help tenants find their new home with the minimum of hassle. Upad says it goes the extra mile to assist landlords in advertising their properties in the best way possible, including providing help with writing a description and getting the photos right. The company has even written an e-book which is designed to help landlords on all aspects of managing their property portfolios. Free copies can be downloaded from http://www.Upad.co.uk/ free-rental-property-ebook
It’s normally £69 to advertise a property with Upad – but NLA members get a 20 per cent discount, bringing the price down to £55.20. Those prices include VAT, and they’re one-off fees until the property is let. There’s nothing more to pay when you find a tenant, and no fees are charged to tenants.
Upad says its landlords receive on average 20 enquiries per property. Sites that it advertises on include Rightmove, FindaProperty, Globrix, Prime Location and Zoopla, as well as local lettings web sites. Upad also refreshes landlords’ listings on Gumtree twice a day, keeping them at the top of the search results.
More than just a website The company’s operations centre deals with the initial enquiries, then passes tenants on to the landlord who will show them the property and sign them up. Upad says it’s a great way to let a property fast without having to pay huge commissions. In an industry that’s unfortunately notorious for its lack of customer service, Upad has made a big commitment to providing a professional service to landlords and tenants. Its in-house customer service team works from 8am to 7pm, and from 9am to 4pm on Saturdays, to help landlords advertise their properties
Landlord services As well as its core service of property advertising, Upad can also take care of all the paperwork associated with the start of the tenancy. Its Tenancy Sign-Up service includes tenant referencing, preparation of an AST agreement, registering deposits, tenancy renewals and terminations, for a one-off fee of £175 + VAT for sign-ups (£75 + VAT for renewals). Once the tenancy sign-up is done, Upad can also manage properties on an ongoing basis. From £60 + VAT per month, the firm looks after registering utilities and Council Tax in tenants’ names,
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safety inspections, planned and emergency maintenance, as well as collecting rent and dealing with any arrears. The company also offers a range of other services including rent collection, property viewings and valuation. n
Upad goes the extra mile to assist landlords in advertising their properties in the best way possible, including providing help with writing a description and getting the photos right.
For more information see: www.upad.co.uk or call 0333 240 1220
NLA RECOGNISED SUPPLIER PROFILE
Wake Smith & Tofields
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
Wake Smith & Tofields: legal property experts
Wake Smith & Tofields is one of the most respected law firms in the North of England and is recommended in The Legal 500 for its particular expertise in the field of property litigation. Nick Lambert, Partner, Litigation & Dispute Resolution
Wake Smith & Tofields provides a comprehensive range of services to landlords; from assisting with buying property and managing portfolios of properties, to dealing with landlord and tenant disputes and property litigation. The firm has now joined the NLA’s Recognised Supplier Scheme and will reduce its usual hourly rates of its lawyers by 15 per cent for NLA members. An experienced pilot in property disputes Property law in England and Wales is such a rapidly changing area that landlords caught up in a legal dispute increasingly need specialist legal advice. Wake Smith & Tofields is a law firm with dedicated specialists, who can provide pro-active advice and act within tight deadlines.
Wake Smith & Tofields. “Whether it’s problems with an over-zealous Local Authority, a difficult tenant (or tenant’s representative) or an awkward lender, we can assist.” Wake Smith & Tofields also has extensive experience in looking after the interests of those involved in the management of apartments, for example, the freeholder and management company/managing agents. “We regularly advise on disputes about service charges including the process of obtaining a determination from the Leasehold Valuation Tribunal. We are also frequently asked to advise on service charge arrears cases including the ultimate sanction of forfeiture.” Buy-to-let transactions are of course a core part of the work of the firm’s Residential Property team who are all familiar with addressing and resolving issues that commonly arise in order to secure a successful transaction at a competitive fee.
deposit in the way in which the law requires. “The lesson to be learned for landlords is that, as soon as you realise you have failed to comply with a requirement to protect the deposit, whether inadvertently or not, get on and take the necessary steps. It might not be too late,” Nick advises. Meanwhile, the Courts have also have decided that a valuer will be liable in negligence for incorrect advice given to a purchaser of a buy-to-let property, and that such liability may cover rental as well as capital valuation. Nick recommends that “buy-to-let landlords who find that the capital or rental valuation of their property is not as advised when they bought or re-mortgaged might therefore find it worthwhile to take legal advice as to whether they can recover their losses from the mortgage valuer.” For a more detailed coverage by Wake Smith & Tofields of the Colleys case, see page 14.n
Advice on new case law Wake Smith & Tofields closely tracks property litigation cases in the courts and takes a proactive approach to informing its landlord clients of the potential implications of these cases. “Our specialist Property Litigation team has a wealth of experience in dealing with most of the issues commonly faced by private-sector residential landlords,” explains Nick Lambert of
A recent Court of Appeal decision (see UK Landlord issue148 January/February 2011) will provide welcome relief to any landlords who may have forgotten to handle a tenant’s
To contact Wake Smith & Tofields, see www.wake-smith.co.uk or call 0114 266 6660
UKLANDLORD MAy/JUNE 2011 57
MORTGAGE MARKET ROUNDUP STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Mortgage market continues to improve Latest figures published by the Council of Mortgage Lenders (CML) show continued growth in the buy-to-let mortgage market, which (while unspectacular) will be seen by most observers as another step in the right direction. The CML’s figures for buy-to-let (BTL) in the last quarter of 2010 showed an increase in terms of lending volume and value, rises of 6 and 7 per cent respectively. Compared to 2010, that represents growth of 22 per cent and 10 per cent, although this is from a low base. This trend for BTL looks to continue throughout 2011. In February, Kensington Mortgages offered the first 85 percent loan-to-value (LTV) product available in the marketplace for over two years, and Paragon
Mortgages launched a limited edition range of products aimed at the wider market, including firsttime landlords. The popular Paragon rates were available until the middle of March. NLA Mortgages has recently been successful in negotiating exclusive and marketleading products with a number of lenders, for example Hinckley and Rugby Building Society and Leeds Building Society. New lenders entering the market in 2011 Gareth Lowman of Savills Private Finance believes that lenders, as well as investors, see BTL as an area of growth in 2011. “Santander and Yorkshire BS have already stated their intent to enter the market and now Metro Bank has
announced plans to follow suit later this year,” Gareth told UK Landlord. “This, along with the likes of a resurgent Paragon, an ever-competitive BM Solutions and TMW makes good reading for those looking to finance an investment property.” In terms of the types of mortgage attracting B2L investors, Paul Rockett, Managing Director of NLA Mortgages, says that “variable rates are still proving popular because they often require a lower rental income; however there is a growing interest in fixed rates as speculation about the imminent rise of the Bank of England Base Rate continues.” At NLA Mortgages, 51 per cent of buy-to-let applications received since the beginning of the year have been for fixed rates.
Best sellers NLA Mortgages’ best selling products in March were: • 3.99 per cent 2-year discount with Hinckley and Rugby Building Society up to 75 per cent LTV with £2499 arrangement fee. • 4.80 per cent 2-year tracker with Paragon Mortgages up to 75 per cent LTV with 2.25 per cent arrangement fee. • 4.95 per cent 2-year discount with Leeds Building Society up to 70 per cent LTV with no arrangement fee. • 5.19 per cent 2-year fixed with Paragon Mortgages (limited edition) up to 75 per cent LTV with a 2 per cent arrangement fee (no longer available).
For rate details or to make an application, visit the NLA Mortgages website now: www.landlords.org.uk/mortgages
For rate details or to make an application, visit the NLA Mortgages website now: www.landlords.org.uk/mortgages
58 UKLANDLORD MAy/JUNE 2011
HOUSE PRICES AND LETTINGS SURVEYS STARTING UP
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House Prices
Index Month Price movement Average house price (England & Wales) CLG
January
-1.4
£208,552
Land Registry
February
-1.7
£162,215
Halifax
March
+0.1
£162,912
Nationwide
March
+0.5
£164,751
LSL Acadametrics March
-0.1
£222,146
The latest house price index from Communities and Local Government (CLG) records that prices fell by 1.4 per cent in January 2011 and by 0.4 per cent in the quarter to January 2011. This compares with a decrease of 0.2 per cent for the quarter ending October 2010 (seasonally adjusted). The mix-adjusted average house price in the UK stood at £ 208,552 in January 2011 (not seasonally adjusted). The main house price index sources showed house prices falling or rising slightly during the first quarter of 2011, with the continued exception of London and the South East where prices are still rising. • The Land Registry reported that prices fell by 1.4 per cent in February, which marked an annual price fall of 1.7 per cent. According to the Land Registry, the average house price is now £162,215. • The Halifax house price index reported that house prices rose by 0.1 per cent in March, but fell by 0.6 per cent in the first quarter of 2011. “The overall decrease in prices in the first quarter of 2011 compared with the previous quarter was a little lower than
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the quarterly falls recorded in the third and fourth quarters of 2010,” said Halifax housing economist Martin Ellis. “The recent increase in employment, particularly those in full-time jobs, may have been an important factor supporting the market. Our forecast remains for a 2 per cent decrease in house prices in 2011 as a whole. Uncertainty over the general economic outlook and individual financial circumstances are likely to constrain housing demand, resulting in some modest downward pressure on prices.” The average house price is now £162,912. • House prices rose by 0.5 per cent in March, according to Nationwide. This brought house prices up just 0.1 per cent higher than they were one year ago, and the price of an average house now stands at £164,751 according to the lender. The 3-month on 3-month rate of change – a smoother indicator of the near term price trend – saw prices rise 0.6 per cent. “The outlook remains uncertain, but all things considered, this is unlikely to mark the beginning of a strong upturn in prices,” commented Nationwide’s Chief Economist Robert Gardner. “With the economic recovery expected
FINANCE
Spring growth for sales at auctions
Mixed opinion on house prices House price indices at a glance
SAFETY
to remain sluggish, the most likely outcome is that the property market will follow suit, with low transaction levels and prices moving sideways or modestly lower through 2011.” • House prices in England and Wales fell by 0.1 per cent in March, according to the LSL Acadametrics house price index, with the average price of a home in England & Wales £222,146. The annual rate of growth is now at zero, coming back from a negative rate of growth of – 0.5 per cent in February.
Data compiled by RAPID (Residential Auction Property Investment Data) show there was positive growth in terms of lots offered, lots sold and amount raised for both the residential and commercial sectors when comparing February 2011 with February 2010. Month on month figures show the number of lots rising by 6.5 per cent in the residential sector, while the amount raised was up by 1.4 per cent. Sales during the quarter from December 2010 to February 2011 show that 69.2 per cent of lots were sold raising over £500m, compared to the 71.3 per cent that were sold from December 2009 to February 2010, raising more than £503m. n
Regional house price indices 12-month percentage change for the latest month
Source DCLG
LETTINGS SURVEY STARTING UP
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Sharp increase in households renting privately New statistics show that the number of households renting privately has risen by 1.3 million since 2001. Figures from the English Housing Survey Report, which is published by the Department for Communities and Local Government, show that there
were 3.4m households renting privately between 2009 and 2010 – up from 2.1m in 2001. The report highlights a decrease in the number of owner-occupied households from a high of 14.8m in 2005 and 2006 to 14.5m in 2009-10. In 2009-10, social renters
paid on average £75 per week in rent compared to private renters who paid an average per week of £153. Around 62 per cent of social renters received Housing Benefit compared to 24 per cent of private renters. The report shows that the energy efficiency of the housing
stock continued to improve, with the average energy rating increasing from 42 to 53 between 1996 and 2009. Both the private-rented and social sectors improved more than the owner-occupied sector. n
For more information visit: www.landlords.org.uk
UKLANDLORD MAy/JUNE 2011 61
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
Communications Media Relations Manager
Vacant
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
IT Consultant
Simon Jessop
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
62 UKLANDLORD MAy/JUNE 2011
Regions Regions Coordinator Regions Support Officer
Sally Thorn Lyra Haldane
England East of England Regional Representative Lynsey Sweales Local Representative (Bedfordshire, Cambridgeshire, Essex & Hertfordshire) James Fraser Local Representative (Norfolk & Suffolk) Graham Walker East Midlands Local Representative (Derbyshire & Nottinghamshire) Christine Darvill Local Representative (Northamptonshire) John Socha Local Representative (Lincolnshire & 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 Local Representative Lucy Regan 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 Local Representative (Wolverhampton & Coventry) Simon Trueman Local Representative (South Staffordshire) Mandy Bygrave 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
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 MAy/JUNE 2011 63
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
LANDLORD PORTAL
PROFESSIONAL LANDLORD SERVICES
PEST CONTROL
PROPERTY MAINTENANCE
COSTS: TRADE ADVERTISING 3 issues Black Colour
- -
£200 £260
Prices per single unit 3cm x 6cm
64 UKLANDLORD MAy/JUNE 2011
6 issues Black Colour
- -
£380 £495
products and SERVICES directory LANDLORD SOFTWARE
LETTING AGENTS
MAINTENANCE
LETTINGS
PLUMBING, HEATING & GAS
EPCs
Promote your products and services to over 30,000 landlords and Property Investors 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. For all advert enquires please contact Steve Pearce at advertising@uklandlord.org.uk or on tel: 0117 330 8370
PROPERTY FOR SALE London SE15 • • • •
6 bedroom Semi-detached house Untenanted £599,995 OVNO Tesh Rai - 07956920323 or 0207 693 1168 buythishouse@tiscali.co.uk
Large semi-detached Victorian house. OS parking 6/7 cars. Possible conversion into large HMO self-contained bed-sits or B&B; planning permission one bed L N NA TIO self-contained flat Viewing highly recommended. I F UC D email buythishouse@tiscali.co.uk for detailed information. E R
Property For Sale Adverts can be booked for as little as £40 (£50 for non-members). For more details visit: www.landlords.org.uk/propertyforsale or call 0117 330 8370
UKLANDLORD MAy/JUNE 2011 65
nla member viewpoints STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Landlord views: Lee Nankervis “I run my buy-to-let business with my wife, Anna. We have 25 properties at the moment and hope to double that over the next couple of years. The properties – mostly mid and end terraces with some semi-detached houses – are mainly in the Stoke on Trent and Manchester areas. Most of our tenants receive Housing Benefit. There are lots of rewarding aspects as it has given us the opportunity to help change people’s lives. Some tenants just need to be shown a bit of kindness, others need a chance. This year we have rented to our first homeless chap. My advice is that it’s better to have
someone living in a house than have it empty with the risks associated with that (damage, fire, squatting etc). As long as it covers the mortgage and insurance and leaves a little profit, does it really matter? It’s rented, bills are covered and you own the bricks and mortar. The benefits of being a 5-year NLA member are that we belong to an organisation completely dedicated to our profession and as such know the laws and legislation that go along with it. The website has a wealth of information and forms and the NLA’s telephone helpline has been completely invaluable to us,
particularly in the last two years with the intricacies of issuing Section 8 and 21 notices correctly. The advisers are always clear, concise and non judgemental – brilliant! The NLA is more than an information service, it is peace of mind.” n
Lee Nankervis, 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 valuable 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
66 UKLANDLORD MAy/JUNE 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 MAy/JUNE 2011 67
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.
e
LHA rules and direct payments My rental properties are in Nottingham (majority on housing benefit) and I live in Staines. My main problems are the lack of support given to landlords from the local council (Nottinghamshire) as well as the system of paying the rent direct to tenants. As a result, we have consistently lost over ÂŁ15k every year since 2008 due to this policy. This has a counter effect: it means we cannot afford to help pay for costs of repairs for our existing tenants or refurbishment at the end of tenancies. I feel that most tenants and
council staff have an assumption that all landlords are very rich and that we choose not to support our tenants. We have built up 22 properties over 12 years and it had been ok until our tenants received
payments direct. My fear is that it will get worse as tenants decide who to pay and who not to in the current climate. Ultimately I feel that my efforts over the years are going to be lost completely as I
foresee interest rates rising in 2012 (we are interest-only with poor capital gain if any) which will see the end of my portfolio and me going bankrupt. Br Alex Jamieson
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.
68 UKLANDLORD MAy/JUNE 2011