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Issue No.152
UKLandlord The leading publication for the Private-Rented Sector
Legal ce n a i l p Com cial Spe
Does your lettings business comply with the law?
in this issue
UKALA explained
SEPTEMBER/OCTOBER 2011
How criminal law can affect landlords
Investing in the West Midlands
Crisis and the PRS
EDITORIAL
UKLandlord September/October 2011: Issue 152 ISSN 1741 8801 Publisher’s statement: Circulation 22,500 PUBLISHER The National Landlords Association 22-26 Albert Embankment, London SE1 7TJ Contact > Richard Price, Director of Operations E: richard.price@landlords.org.uk EDITORIAL Editor > Andy Stern E: andy.stern@uklandlord.org.uk Managing Editor > Louise Gale E: editorial@uklandlord.org.uk T: 020 8458 5100 ADVERTISING & PRODUCTION For all enquiries and bookings: Advertising Manager > Steve Pearce E: advertising@uklandlord.org.uk T: 0117 330 8370 NLA CONTACTS Membership T: 020 7840 8937 (9am-5pm Mon-Fri) E: membership@landlords.org.uk Media Enquiries: T: 020 7840 8906 (9am-5pm Mon-Fri) E: press@landlords.org.uk General Enquiries and Correspondence with the NLA: 22-26 Albert Embankment, London SE1 7TJ T: 020 7840 8900 (office hours: 9am-5pm Mon-Fri) F: 0871 247 7535 E: info@landlords.org.uk www.landlords.org.uk Advice Line (members only): Telephone number available from Members Area of www.landlords.org.uk Registered as a magazine © The National Landlords Association 2011. All rights reserved. No part of this publication may be scanned, reproduced, stored in a retrieval system, or transmitted in part or whole in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without prior permission of the National Landlords Association. The description of a product or service in this publication does not constitute an endorsement by the National Landlords Association. The Publisher does not accept any responsibility for any claims made by advertisers. Written and oral advice from the National Landlords Association or contained in this publication is given in good faith but no responsibility whatsoever is accepted by the Association or its Officers for the accuracy of its advice, nor shall the Association be held liable for the consequence or reliance upon such advice. All the articles in this publication are for general information only and are not intended to be advice to any specific person. Readers are recommended to seek professional advice before taking or refraining from taking any action on the basis of the contents of any article in this publication. ISSN 1741 8801 Printed on paper from sustainable forests. Please pass this magazine on to another landlord and then recycle. Design and Artwork by Rubicon Marketing Ltd 0117 330 8370
Welcome... As Gas Safety awareness week kicks off in the second week of September, it is well worth checking that your rental properties comply with the various fire, gas and electrical safety rules. Legal compliance is a key theme for this issue of UK Landlord. We are grateful to the specialist professional practitioners who have set out, in a very practical way, just what to do and not to do at key stages in the life cycle of buy-to-let activities. If you are ever in doubt, contact the NLA – the Advice Line team continue to provide fantastic advice and the NLA Landlord Library also provides a wealth of useful information on many topics. NLA Executive Chairman David Salusbury and his team have been examining how local authorities are potentially incorrectly using their powers in certain areas such as selective licensing, as well as not helping landlords lawfully regain possession of their properties or pursue tenants who do not pay their rent. I hope local authorities reading this issue will take note and encourage their less enlightened colleagues in other local authorities to desist from antilandlord practices: the NLA is watching! Judging from our letters page in this issue, Capital Gains Tax reform is another pressing concern for NLA members. The NLA is working hard on this. It is calling for two specific changes to CGT which are set out on page 6, and we will no doubt cover the subject in a future issue of UK Landlord. Please also read the report by Leslie Morphy, Chief Executive of Crisis, who sets out an interesting new approach in the private-rented sector which aims to help over 1,500 single homeless people set up tenancies, with the support of organisations such as the NLA. Best Regards,
Andy Stern Editor andy.stern@uklandlord.org.uk
INTRODUCING THE NLA BOARD
Executive Chairman David Salusbury
Director of Finance & Administration Patrick Jacobs
Director of Operations Richard Price
Director (marketing) Anthony Lock
Director Carolyn Uphill
Director Tony Richard
UKLANDLORD september/october 2011 01
02 UKLANDLORD september/october 2011
CONTents
Inside this issue... NLA
04 MESSAGE from the chairman NLA Executive Chairman David Salusbury calls on local authorities to adopt a more positive approach towards landlords.
06 NLA CAMPAIGNS
Reforming Capital Gains Tax.
07 HOT OFF THE PRESS 29 NLA NEWS
Find out about the NLA 2011 Annual Conference, AGM and NLA Focus.
32 LANDLORD DEVELOPMENT & NLA ACCREDITATION
Courses scheduled for 2011.
41 THE UK ASSOCIATION OF LETTING AGENTS
FEATURES
04
Course dates for 2011.
REFERENCE
20
08
08 DOES YOUR LETTINGS BUSINESS 15 LANDLORD PROPERTY MANAGEMENT COMPLY WITH THE LAW 15 BUYING & SELLING A practical guide to compliance issues Court of Appeal rules in favour of valuer.
affecting key stages in the buy-to-let life cycle. 08 CONVEYANCING: A LEGAL MINEFIELD 09 BEST PRACTICE FOR ASSURED SHORTHOLD TENANCIES 10 MAKE SURE YOU ARE GAS SAFE 12 INSURING (LEGALLY) AGAINST RISK 13 MINDING YOUR EPC OBLIGATIONS 14 Lawful Eviction
17 planning Planning rules to be simplified in England.
18 FINDING TENANTS Local authorities take up NLA accreditation.
20 Landlord & Tenant Making squatting illegal.
20 HMO Licensing Rent repayment order for failure to license.
22 Maintenance and repairs Changes to sewers and drains rules.
23 Safety in your property Certain BEKO fridges pose a fire risk.
looks at cooperation by the NLA in new schemes to help over 1,500 single homeless people set up tenancies.
26 Sustainability EPC changes for landlords delayed.
28 HELPING PEOPLE FIND A PLACE TO CALL HOME Leslie Morphy, Chief Executive, Crisis
51 40 PARTNERING THE UK 42 PUBLIC AFFAIRS ASSOCIATION OF LETTING AGENTS More options to combat residential ASB, the Raising standards in the PRS and providing 54 EU Mortgage Directive and questions raised over a single voice when addressing issues of Government liability for tenancy deposits.
68 LETTERS & EMAILS
concern to both landlords and letting agents.
my|deposits Students and deposit protection
MORTGAGE MARKET ROUNDUP Analysis of trends and latest buy-to-let mortgage deals.
56 HOUSE PRICES AND LETTINGS MARKET Latest market statistics and surveys on house NLA Director Richard Price on what landlords
44 Q&A: LANDLORDS AND CRIMINAL LAW
REGIONS
need to know about the criminal justice system.
prices and lettings market.
NLA SERVICES
33
46
33 REGIONAL NEWS New Head of Regions for the NLA. 34 EVENTS GUIDE Landlord events across the country. 36 WEST MIDLANDS FOCUS Regional investment information, with insights
from NLA Representatives.
46 NLA SERVICES “Landlords are being fobbed off with excuses for not doing anything to help them, with reasons given that are frequently specious, such as ‘data protection’.”
48 NLA RECOGNISED SUPPLIERS
David Salusbury, Executive Chairman, NLA
65 MAXIMISE YOUR MEMBERSHIP
52 GLIDE: BILLS MADE SIMPLE 64 NLA MEMBER VIEWPOINT
UKLANDLORD september/october 2011 03
message from the EXECUTIVE chairman
September/October 2011
A cautionary tale for local authorities David Salusbury, NLA Executive Chairman Members will be interested in the outcome of a recent judicial review of a selective licensing scheme. Manchester High Court quashed a selective licensing scheme introduced by Hyndburn Borough Council. The judge found that the local authority had not followed the guidance provided by Ministers under the Housing Act 2004. The guidance states that a local authority wishing to introduce a selective (or additional) licensing scheme must consult those within the area likely to be affected. They must also consult those surrounding the affected area. The consultation must clearly describe the problem in the area concerned, say why steps taken so far have failed to remedy the problem, and explain how a selective licensing scheme would resolve the problem. In this case, the local authority defended its failure to follow the procedures set out in the guidance as it considered the guidance, being guidance, was not mandatory. The judge held that the local authority was wrong in not following the guidance, and in particular, it should have specifically stated why it was not following the guidance. This judgement is of significance for the NLA as it will enable us to more effectively scrutinize procedures followed by local authorities seeking to introduce licensing schemes, and challenge them as necessary. Possession At the same time, we have been prompted to revisit the guidance from the Department for Communities and Local Government (DCLG) relating to homelessness. The Homelessness
04 UKLANDLORD september/october 2011
Code of Guidance for Local Authorities states that housing authorities should not adopt a general policy of accepting, or refusing to accept, applicants as homeless when they are served with a valid notice by their landlord but a court has not yet made an order for possession or issued a warrant of execution. This raises an interesting question. The guidance implies that it must be unreasonable for a local authority to take this approach in situations where the Section 21 Notice is valid (and they don’t need to a judge to determine that), and where it is clear that the landlord intends following through by seeking a court order as soon as the notice period expires. Local authorities seeking to delay the inevitable by encouraging tenants to stay put until the last moment are doing nothing to help the sector, nothing to help tenants (and indeed making life unnecessarily more stressful for them), and nothing to help themselves. Furthermore, their actions clog up the courts. In short, by not complying with government guidelines issued under the Housing Act 1996 they are open to the criticism that they are not acting in the public interest. We will take a renewed, close interest in this matter. Anti-landlord attitudes We are conscious that members are concerned by the lack of cooperation they receive from local government agencies when it comes to former tenants who have absconded owing money for rent arrears. Landlords are being fobbed off with excuses for not doing anything to help them, with reasons given that are frequently specious, such as ‘data protection’. How many of us think this
might be an anti-landlord attitude in disguise? Again, we will be looking into this problem. A positive note Ending on a positive note, I would like to extend a warm welcome to Ken Staunton who joins the NLA executive team as our new Head of Regions. Many of you already know Ken, who has been our Representative in the Hampshire area for a while now. His wealth of knowledge as a landlord and NLA representative, together with his wide experience as a senior manager in industry, make him well placed to develop this important role for the NLA. Finally, communication between the NLA team and members is of the upmost importance. We are always readdressing the ways in which we best communicate as an organisation to ensure that you make full use of the range of benefits NLA membership provides you. If you do not receive our fortnightly ‘Focus’ newsletter, or information on regional events or discounted services, it may well be the case that our records need updating with your current email address. To ensure that you don’t miss out, please send us your most recent email address, along with your full name and membership number, to focus@landlords.org.uk with ‘Subscribe’ as the subject line. You will automatically start receiving ‘Focus’, the NLA’s new and improved members newsletter from September. For more information on this, turn to page 31. n
Read more online www.landlords.org.uk
UKLANDLORD september/october 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. Capital Gains Tax (CGT) – very much a priority The Letters’ pages of the last few issues of this magazine have been replete with members voicing their concerns about the tax treatment of their properties upon disposal. i.e. how much Capital Gains Tax (CGT) landlords are forced to pay when they sell all or part of their portfolio. The NLA works across a lot of issues on behalf of its members, some of which are very high profile, some of which the majority of the work goes on quietly behind the scenes, but all are important because they impact upon landlords’ ability to operate successfully for both landlord and tenant. Issues of tax are particularly important, because unlike some other matters, the work of Her Majesty’s Revenue and Customs (HMRC) affects every landlord in the UK. However it can be very difficult to influence policy in relation to fiscal matters – not least because the vast majority of tax rules are set for the financial year by the Chancellor during the Budget every Spring. Although this issue takes on a high profile once a year, the NLA’s Public Affairs team works on tackling these concerns all year around in order to engineer change come Budget time. Although the changes which occurred this year may not have seemed like a great victory, the NLA was successful in preventing the introduction of a 40 percent rate of CGT once planned by the Government. Thanks in no small part to more than 3,000 landlords who joined the
NLA’s campaign on the matter and showed their MP what damage such an increase would have on their livelihood. Given the economic backdrop it will be difficult to build on this and achieve all that we want in the run-up to next year’s Budget, but we are making a very strong case for CGT reform on behalf of all landlords. We agree that levying 28 percent tax on any gains, irrespective of the time an asset has been held, or what the gains are to be used for, is disproportionately high and needs to be changed. Therefore we are calling for two significant changes to tax law:
- Introduce measures which recognise the difference between speculation and investment by reducing CGT liability in relation to the time an asset is held. i.e. a diminishing rate of CGT or taper relief system; and - Extend business ‘roll-over’ relief to residential property held as part of a lettings portfolio to allow landlords to release and reinvest capital for the benefit of their business. n
To see more about the external affairs activities of the NLA, go to the Public Affairs section on page 42. 06 UKLANDLORD september/october 2011
Hot off the Press!! Dane Svenson NLA Press Officer Do you get on well with your tenants? It appears most landlords do – we found in our recent member survey that almost all landlords have a good relationship with their tenants. Meanwhile, buy-to-let mortgages are back in vogue and landlords are getting set for the Olympics.
Return of buy-to-let, but be cautious
Buy-to-let mortgages are back, with landlords taking advantage of new loans on offer from lenders. With high rental returns and low interest rates, many are seeing it as the perfect opportunity to expand their portfolio. The Times stated “Buy-to-let investors are flooding back to the housing market to capitalise on the struggles of first-time buyers to get on the property ladder.” But while it might be all good news for landlords, the NLA issued words of caution to avoid a repeat of unsustainable portfolios and is advising landlords to establish a good buy-to-let business plan. With one in five households expected to rent privately by 2016, we need a stable and sustainable private-rented sector.”
Letting during the Olympics
With the Olympics now under a year away, many people are looking to take advantage of the extra demand for accommodation and let their properties short-term. It’s not just London landlords who will benefit – Olympic events are being held around the UK. But the Financial Times warns “renting out your home can be much more difficult than it initially seems.” We issued a list of top tips for letting your property during the Games. You’ll need permission from your mortgage provider and you’ll need appropriate insurance. Also, make sure the accommodation you’re offering is of high standard and properly furnished. Because it’s a short let, use a contract for Holiday Let or Licence.
Good landlord – tenant relations
The NLA’s recent quarterly survey of landlords asked them to rate their relations with their tenants – and an overwhelming majority said they got on very well. 96 per cent of landlords said they had very good or good relations, while just three per cent described the dealings as adequate and only one per cent said relations were poor. These are statistics that all NLA members should be proud of.
Want to know more...? • • • •
Fancy a read of the NLA blog? It’s all here: http://nlauk.wordpress.com Follow us on Twitter to read the latest NLA news and industry comment www.twitter.com/nationalandlord Become a fan of the NLA on facebook: http://tinyurl.com/yztxyd4 Drop us an email if you think there are issues that the NLA should be investigating: press@landlords.org.uk Follow us at twitter.com/nationalandlord
UKLANDLORD september/october 2011 07
Feature – Does your lettings business comply with the law? STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Does your lettings business comply with the law? It’s always useful to double check you are running your lettings operations on the right side of the law. The NLA provides its members with expert advice, information and forms to help landlords at every stage of the buyto-let cycle. Much of this information is available to members on www.landlords. org.uk, via the NLA Landlord Library (www.landlords.org.uk/library), and
you can also talk through your specific problems with the NLA Advice Line. UK Landlord has asked some expert professional practitioners for their top tips on how landlords can make sure they comply with the raft of legislation that applies to the private-rented sector.
The emphasis in the following articles is a practical approach to the basics on buying property, letting it out and ending the tenancy lawfully. We also include information on property insurance, Energy Performance Certificates and safety in your rental property.
Conveyancing: a legal minefield By Alan Young, NLA Conveyancing The legal side of buying and selling rental property can add extra complications for potential or existing landlords. Using an experienced conveyancer is essential to ensure that full compliance with all the regulatory requirements is achieved. There are fundamental differences in procedure relating to the Conveyancing process for buy-tolet properties which, if not followed, can create legal difficulties and cause costly time delays. It is therefore essential that landlords seek proper legal advice before proceeding with any proposed sale or purchase. Here is a summary of some of the key things to consider for buying and selling buy-to-let property in England and Wales: • When purchasing, the title deeds should be checked to ensure that there are no conditions in them which would prevent the house from being let out. It would be unusual for there to be any condition which would prevent the property being let for occupation by a single family, however, it is more likely that there may be a title condition preventing multiple occupancy. • Where possible, the tenancy should be set up on a Assured Shorthold Tenancy basis and it is important that all necessary notices are served
at the appropriate time. • The landlord needs to ensure that the mortgage they are receiving is an appropriate buy-to-let product. • The landlord is required to ensure that all services comply with Health and Safety Regulations. • If a property is a House in Multiple Occupation (HMO), the person managing the property MAY need to obtain a licence from the Environmental Health Department of the appropriate authority. The property owner may also need to apply for planning permission from the Planning Department. • Where landlords are proposing to sell their Freehold interest to a third party, they must ensure that – subject to certain exceptions – they first offer to sell their interest to existing leaseholders. • When proposing the sale of the freehold interest, landlords must ensure that they follow the statutory notice provisions. Landlords must
allow the proper period of notice to expire. Landlords who fail to do so could find any sale to a third party open to challenge by existing leaseholders and could face a situation where a land tribunal nullifies a sale in breach of the statutory provisions. The third party who is left with nothing may sue the landlord for the return of any sums paid for the Freehold interest. n
The team of experienced conveyancers at NLA Conveyancing have considerable experience and are available to give advice to NLA members – For more information, see www.landlordslorg.uk/conveyancing
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Best practice for Assured Shorthold Tenancies By Nick Lambert, partner at Wake Smith LLP Solicitors
Whilst most landlords these days use standard off the peg Assured Shorthold Tenancy Agreements, few take the trouble to read the agreement thoroughly or alter it so as to suit their own purposes. If this sounds like you, consider the following: Before you start • Always consider whether or not to ask for a guarantor. Most landlords these days are content to rely on a deposit as security. However, consider asking for a guarantor if the tenant has a low or unreliable income or the tenant has only recently moved to this country or you have not been able to take up any references from a previous landlord. If you do insist on a guarantor then the Assured Shorthold Tenancy Agreement must contain the relevant clauses giving the guarantor primary liability for the tenant’s covenants from the outset. • If the property being let is subject to a mortgage, it is vital that you obtain the mortgage lender’s permission before letting the property and scrupulously follow your mortgage lender’s requirements which might involve serving a special form of notice on your tenant. • If there is going to be more than one tenant then you should consider whether each tenant is to have an individual Assured Shorthold Tenancy for their own room and a right to use the shared parts of the property or whether all of the tenants are going to be joint tenants of the whole property on a single Assured Shorthold Tenancy. The latter is nearly always preferable because all are jointly and severally liable for all of the obligations under the Tenancy Agreement including payment of the rent. • Consider whether you are going to allow your tenant to keep pets. The Office of Fair Trading Guidance on unfair provisions in residential tenancy agreements says that it might be unfair to impose a prohibition on keeping pets. It is better practice to have a clause in the Agreement that pets should not be kept without prior written consent of the landlord, such consent not to be unreasonably withheld. • Always consider drawing up a detailed inventory in order to prove the condition of the property at the start of the tenancy. If you are going to use an inventory make sure it is accurate and detailed and make sure it is attached to the tenancy agreement and signed by all parties.
• When a building is to be let, landlords are now required to provide any prospective tenant with a valid energy performance certificate and recommendation report free of charge at the earliest opportunity. Things to include • Section 48 of the Landlord & Tenant Act 1987 requires a landlord to supply their tenant with an address in England and Wales for service of notices. Insert such a clause in the Agreement. • If the rent is paid weekly the landlord must provide the tenant with a rent book. The rent book must include the prescribed information set out in sections 4 and 5 of the Landlord and Tenant Act 1985. • Consider the amount you want to ask for as a deposit. Commonly that will either be 1 or 2 month’s rent. Since 6 April 2007 deposits have to be protected in one of the government approved Tenancy Deposit Schemes. Some Schemes prescribe wording that has to be included in your Assured Shorthold Tenancy Agreement. You should check with your deposit scheme provider. • If your standard Assured Shorthold Tenancy Agreement does not include a clause setting out what happens if the tenant leaves possessions in the property at the end of the term then such a clause should be inserted.
Check with your solicitor for expert legal advice if you’re unsure on what to include and to make sure your Tenancy Agreement covers what you think it ought to. n
And, what to exclude • The landlord’s repairing obligations contained in Section 11 of the Landlord and Tenant Act 1985 cannot be excluded and so your Tenancy Agreement must not try and make your tenants responsible to mend things that are down to you, for example the central heating system, gas fires and roof. • Any clause that requires rent to be paid without any deductions or set off is probably not advisable in the light of the Office of Fair Trading Guidance. • Any term that requires your tenant to pay your legal costs on an indemnity basis is likely to be objectionable having regard to the current Office of Fair Trading Guidance, as is a forfeiture clause that fails to make it clear
For more information, please contact Nick Lambert at Wake Smith LLP on 0114 266 66660 or email nick.lambert@wake-smith.com
that you have to obtain a Court Order before evicting your tenant.
Scottish landlords This article is about ASTs in England and Wales only. Landlords with properties in Scotland are advised to consult the NLA Landlord Library (www.landlords.org.uk/library) for specific information relating to Scotland.
Wake Smith are members of the NLA Recognised Supplier Scheme - see page 48 for more about this Scheme.
The views expressed in this article are those of Wake Smith. For advice from the NLA, please visit the NLA website or call the Advice Line.
UKLANDLORD september/october 2011 09
Feature – Does your lettings business comply with the law?
Is your rental property Gas Safe? To coincide with Gas Safety Awareness week in September, the following information focuses on gas safety. When it comes to health and safety in a rental property, compliance with the law on fire safety, gas and electrical safety is more than just a matter of ticking boxes – it can be a life saver. The NLA Landlord Library sets out useful and essential information for landlords on these topics (and much more!) to ensure that you comply with the law and best practice. Gas safety is one of the most important issues that a landlord will have to understand. The Gas Safety Regulations make it mandatory that gas appliances must be maintained in a safe condition at all times. A landlord or agent may not contract out of their obligations under the Regulations by including a clause in the tenancy agreement. In August 2008, the HSE awarded the contract to run the new gas installer registration scheme from 1 April 2009 to Capita Group which launched the Gas Safe Register which focuses solely on improving consumer gas safety. Landlords should note: • Using a gas installer who is not registered is illegal and could be dangerous as there is no guarantee of the installer’s competence. All Gas Safe registered installers must carry a Gas Safe ID card, so you should always ask to see it before any installer begins work on your gas appliances. • In terms of gas appliances, the law is clear: portable or mobile gas appliances should not be supplied or be allowed to be used. A gas appliance installed in a bathroom or a shower room must be a room-sealed appliance. This means the air intake to and
10 UKLANDLORD september/october 2011
exhaust from the appliance is with the outside atmosphere, not within the room. And a gas fire, other space heater or a gas water heater of more than 14-kilowatt heat output must be a room-sealed appliance, if installed in a room used or intended to be used as sleeping accommodation. • The legislation also establishes landlords’ duties. A landlord must ensure a gas safety check has been carried out on each appliance and flue within the 12 month period before any tenancy commences, and a Gas Safe registered installer must take remedial action (or disconnect) any appliance that fails a safety check. Landlords must also give a copy of the safety check record or certificate to any new tenant before they move in or to an existing tenant(s) within 28 days, keep a record of the safety check made on each appliance for two years, and ensure that gas appliances, fittings, and flues are maintained in a safe condition. • It is also important that tenants are made aware of the location of the emergency shut off valve to their accommodation and how it is operated. • There are no specific regulations for Carbon Monoxide, but it is the landlord’s responsibility to make sure that any such appliances provided are safe and working properly. Landlords should look out for stains, soot or discolouring around a gas fire or at the top of a water heater, and a yellow or orange flame on a gas fire or water heater. By far the most effective indication of a combustion problem would be the activation of a properly installed Carbon Monoxide detector. n
Penalties for non-compliance A breach of the Gas Safety Regulations is a criminal offence enforced by the Health & Safety Executive (HSE).
Alternative forms of fuel heating in your rental property? It is equally important to carry out safety checks if you have alternative forms of heating such as liquid and solid fuel heating and flues. See the safety section in NLA Landlord Library for more information.
For more information, see www.GasSafeRegister.co.uk and the NLA Landlord Library www.landlords.org.uk/library To purchase safety equipment for your properties, including carbon monoxide detectors, go to www.landlords.org.uk/shop
Feature – Does your lettings business comply with the law?
Insuring (legally) against risk By Steve Barnes, Broking Manager, NLA Property Insurance
Insurance is an essential mechanism for transferring risk. Landlords can now insure their property and their business against an increasingly wide range of risks. Property insurance is of course fundamental – and if a claim is to succeed, so is compliance with all the terms and conditions of your insurer’s policy. An insurer will usually only settle a claim on property insurance if it can be proved that the property owner has complied with legal regulations designed to protect the asset from various hazards. If a property is damaged by fire, and it is not in compliance with basic fire or health and safety regulations, there is a good possibility that an insurance claim will fail. The main points where landlords should be especially careful when contracting property insurance include:
• The landlord also has an important duty to notify insurers of any material facts. What is a ‘material fact’? Some examples of material facts that insurers must be notified of include the following: • Before the start of any conversions, extensions or other structural work that may change the building in any way or render it non-tenantable for any period of time • Any increases to the rebuilding cost of the property • Any changes to tenant types
• Landlords must comply with all local authority regulations or statutory conditions regarding the business. These include relevant rules relating to gas safety, electrical safety, fire safety and safety of buildings.
• The main mistake made by landlords when contracting property insurance is what is known as ‘underinsurance.’ This is the fairly common but very avoidable situation in which the cost of rebuilding a property, at the time of loss or damage, is more than the sum for which the landlord has insured it. Should this occur any claims settlement could be reduced or the claim could even be rejected.
• Landlords must also take reasonable steps to prevent damage or accidents occurring and keep the building in a good state of repair.
Steve Barnes, Broking Manager
• If a landlord is underinsured then their insurers will only pay a proportion of the claim. For example, if the landlord’s sum insured only covers 50 per cent of the cost of rebuilding the property, the insurer will only pay 50 per cent of the cost of repair or replacement. • As with all insurance policies, property insurance will contain specific terms and conditions. Landlords must read their policy wording carefully to ensure they understand the cover included. Many policies will vary between different providers and will have different levels of cover. If in doubt, it’s always best to speak to your insurance broker or insurer, to understand fully the risks that the policy covers. n
For more information, please go to www.landlords.org.uk/propertyinsurance
12 UKLANDLORD september/october 2011
Feature – Does your lettings business comply with the law?
Minding your EPC obligations By Louise Sturman-Morrlle, Energy & Valuation Panel Manager, NLA EPCs
Since they were introduced in 2007, Energy Performance Certificates (EPCs) have received criticism from both landlords and tenants. A relatively new obligation on landlords, the regulatory framework for EPCs continues to evolve, but compliance with the law should be straightforward. As most readers will know, an EPC is required by law when a building is built, sold or put up for rent. EPCs carry ratings that compare the current energy efficiency and carbon dioxide emissions with potential figures that your home could achieve. Potential figures are calculated by estimating what the energy efficiency and carbon dioxide emissions would be if energy saving measures were put in place. EPCs also provide a detailed recommendation report showing what you could do to help reduce the amount of energy you use and your carbon dioxide emissions. The legal obligations for landlords in respect of EPCs relate above all to the role of the Domestic Energy Assessor (DEA).
While there are some instances where sampling is permitted, landlords should take care if they are receiving an EPC from a sampling technique when they have ordered an EPC for a single property. • Once landlords have a correct certificate in their possession, their next obligation is to provide a copy of the EPC to prospective tenants, at the earliest opportunity. The landlord must make an EPC available free of charge. • It should be noted that across the UK, all EPCs, for both Sale and Rental, are valid for the same period and provide the same information - in essence they can be used for either purpose. An EPC is valid for ten years. n
In particular: • Landlords need to ensure that the DEA is a member of an accreditation scheme. Accreditation schemes make sure that domestic energy assessors have the right skills and are able to carry out the survey to agreed standards. • They must also make sure that the Report Reference Number for the certificate (RRN), when retrieved from the central register, is for the correct property. Directgov has a web page where you can enter the 24-digit RRN, at https://www.epcregister.com/epcadviser.html. • The certificate must have the correct DEA details. Property elements such as heating systems and glazing must be described accurately and correctly. • Landlords should keep an eye out for an illegal practice that is known in the trade as ‘sampling’ or ‘multiple certification.’ This is when a DEA uses the average outputs for a large number of properties to assign certificates. For example, a DEA may only actually look at 18 out of 50 properties on a list, and then take an average and use that for the remaining 32. Landlords need to be very wary of this, as there can be major differences between apparently similar properties: for example, if some of the batch are solid brick and others are cavity, or if some are mid-floor flats and others are detached houses.
EPCs and HMOs If the property has shared essential facilities and individual tenancy agreements then an EPC does not need to be provided, unless the property is sold or let as a whole dwelling, or it is converted into self contained flats. If the property is completely composed of self contained flats or the property is let to as group of sharers with one tenancy agreement they do need EPCs. If the property is a mixture of shared and self contained units, only the wholly self contained units need an EPC.
Louise Sturman-Morrlle
Penalties for non-compliance • It makes financial sense to comply closely with the regulations on EPCs. Breach of the law can result in a £200 fine per dwelling across England and Wales and £500 in Scotland. • Apart from the greater fines that can be incurred in Scotland, laws regulating EPCs are fairly similar across all UK jurisdictions.
For more information, see www.landlords.org.uk/epcs
UKLANDLORD september/october 2011 13
Feature – Does your lettings business comply with the law?
Lawful eviction By Paul Shamplina, Landlord Action The following sets out some of the key areas that landlords need to bear in mind if considering regaining possession of their property to ensure they comply with the law. It is always worth giving your tenant a chance. If they are making an attempt to pay off any arrears, for example, it may be worth sticking with the tenant instead of seeking possession, including legal action. Have all rules and regulations been complied with? Check, for example, the HMO, Tenancy Deposit Scheme and even other safety regulations such as gas compliance. If you have not complied with these regulations, in some cases, any eviction notices served may be invalid. Avoid confrontation and altercations. One of the key advantages about using a company like Landlord Action to carry out eviction proceedings is that we are a neutral party. Our focus is purely on evicting the tenant on behalf of the landlord. Many landlords who do the process themselves often get emotionally involved and become confrontational with their tenant. We have seen this lead to harassment claims against the landlord which always have the effect of complicating the original eviction proceedings. Key tips to bear in mind in relation to regaining possession • If a tenant is denying access to the landlord to inspect and fix any particular aspect of the property (for example, the boiler, which falls under gas safety requirements), a landlord must be able to demonstrate that they took all reasonable steps to attempt to resolve the issue. If they can clearly demonstrate this, they will not be liable for any of the negative effects. This highlights the need to thoroughly document all tenant communications (include date, time, method of communication, any confirmation of delivery, attempts by alternative means of communication, etc). • The landlord’s duty to protect other tenants. Although the landlord is not directly responsible for the actions of a problem tenant (assuming the landlord has done no wrong), he does have the responsibility to ensure that there is a safe environment for his other tenants. In shared accommodation, one bad tenant can have a rotting effect on all of the tenants, which can lead to conflicts between the tenants. A good landlord will ensure that he acts quickly to avoid other tenants feeling any negative fallout effects. • Bad record keeping and credit control. If an eviction ever got to a court stage, a landlord may be required to present evidence. Landlords with poor record keeping and credit control will find this difficult. There are software solutions
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available to landlords that can help the process of managing and maintaining various information, for example, communications, etc; schedule of rent payments; schedules of complaints (including date, time, and by whom, police reports, etc); • Thinking ‘it is not my problem’. If your tenant has expressed difficulty in paying their rent because, say, they have lost their job, then good landlords will help them to apply for housing benefit. This serves two purposes: firstly, it ensures that the tenant has some income that they can pay to the landlord to cover rent; and secondly, it demonstrates that the landlord is fulfilling his duty towards his tenants – which is something that is looked upon highly at a court stage. • Evicting tenants without a court order. There is a process to follow and the landlords who do not follow it can be punished by fine and possible custodial sentence in the worst possible case scenarios. The days of ‘getting the heavies around’ are long gone. Tenants can receive very good advice from a medley of different organisations such as CAB, Shelter and even local authorities. They are attuned to their rights and will take action against landlords if they feel that their rights are being infringed. Illegal evictions are one of the most severe forms of violating tenants’ rights and should never be a consideration under any circumstances. Similarly, a landlord entering the property without the tenant’s consent is a definite no-no. Usually, landlords’ rights of access are stipulated within the tenancy agreement. However, if the tenant is refusing to allow access, the landlord cannot ignore this and access the property. This could be deemed as harassment. Additionally, removing fixtures, fittings (for example, windows and doors from the property), cutting off utilities and so on are not permitted. n Scottish landlords Although essentially the documents to evict a tenant perform the same purposes (i.e. a notice to quit and a notice for breach of tenancy), they go by different names. There are also subtle differences in the process between the two sets of laws. For more information about eviction in Scotland, check out the NLA Landlord Library (www.landlords.org.uk/library).
Penalties for non-compliance These can vary from fines to custodial sentences, depending on the type and severity of offences. You should note the following: • Illegal evictions carry prison time in bad cases, along with a fine of up to £20,000. • Harassment can be both a criminal and civil offence. Tenants can take out an injunction and, invariably, it complicates the eviction process. Criminal proceedings can be brought about by a local authority and civil proceedings can be brought about by the tenant directly. This also has the effect of being another additional cost for the landlord. • It has been well documented that failure to protect the tenant’s deposit can lead to a fine of up to three times the deposit amount. NOTE: judges are becoming familiar with landlords’ attempts to not protect the deposits by calling them ‘rent in advance’. The problem is that we have seen judges rule that ‘rent in advance’ is actually a deposit and must be protected in the proper way. • In terms of safety, the punishments can be quite severe. For example, if you did not fully perform your landlord duties to ensure that gas appliances were safe and subsequently the tenant dies, landlords can be liable for manslaughter. • Non-compliance for other regulations such as HMO licences can result in fines and also, lack of compliance may render eviction notices invalid.
For more information, telephone Landlord Action on 0333 240 9770 or the NLA Advice Line (see Member information on the NLA website). Landlord Action are members of the NLA Recognised Supplier Scheme - see page 48 for more about this Scheme. The views expressed in this article are those of Landlord Action. For advice from the NLA, please visit the NLA website or call the Advice Line.
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
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Buying & Selling
Court rules against buy-to-let investor, for valuer
Landlords in expansion mode In the second quarter of 2011 a larger proportion of landlords have increased the size of their property portfolio as opposed to reducing it, according to the Q2 2011 Landlords Panel study from BDRC Continental, undertaken in partnership with the NLA. Landlords are slightly more likely to agree that ‘being a landlord has become harder recently’ (+3 per cent on Q1), and slightly less likely to ‘feel positive about being a landlord’ (-2 per cent), but overall, it’s a pretty stable situation in terms of attitudes. Portfolio size is extremely discriminating in terms of profitability, three quarters (73 per cent) of the ‘largest’ landlords make a profitable full time living from their letting activity, contrasting to 1 in 6 at the smallest
end of the market. Few are in a loss making position, but a sizeable minority is in a ‘break even’ position, possibly ‘at risk’ should they experience negative events such as voids, arrears and BTL mortgage re-pricing.
There is a cautious air of optimism; while 9 per cent have acquired more properties in the last 3 months, 12 per cent plan to in the next 3 months, and one in five (21 per cent) in the next year. n
Students generating high yields According to research from buy-to-let specialists Paragon, it is students and young singles that are currently generating the highest yields for landlords. Independent research by the BDRC Continental Landlords Panel found that students generated an average yield of 6.45 per cent, whilst young singles generated 6.22 per cent. Retired people are also high up the table (6.16 per cent), followed by white collar/professional workers and executive or company lets (both 6.13 per cent). At the other end of the scale, non-housing allowance benefit claimants generate the lowest yields at 5.78 per cent, followed by young couples and manual workers (5.94 per cent). The average yield across the market is 6.2 per cent, according to Paragon.
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Nigel Terrington, Paragon Group Chief Executive, said “student yields typically outperform the wider market because they are let on a per room basis, which can generate higher rental income. On the downside, they tend to require a higher degree of maintenance, so landlords have to factor that cost into their overall business models.” Elsewhere, the research shows that the number of properties in a landlord’s portfolio has little bearing on its overall yield. For example, landlords with one property generated the same average yield as those with over 20 properties (6.2 per cent), whilst those with between two and four properties in a portfolio generated a yield of 6.5 per cent. n
For more information about student average weekly rents, see story on page 58 in Lettings Survey.
In a landmark judgement for the buy-to-let sector, the Court of Appeal has overturned a High Court judgement that found that the valuer, Colleys, had been negligent in a valuation for a buy-to-let buyer. The Court ruled that because the borrower was a buy-to-let investor, the valuer did not have a duty of care to the borrower in a transaction. According to RICS, the Royal Institution of Chartered Surveyors, the Court determined that there is a distinction between ‘standard’ purchasers (to whom a duty is owed, even if the valuer was instructed by the lender) and buy-to-let investors, whom the Court of Appeal ruled can be expected to be better equipped to ‘look after themselves’ by obtaining their own valuation. In presenting his case, the claimant said he had only been able to let the flat he purchased for half the monthly value predicted by Colleys. According to the judgement of the Court of Appeal, a valuer would most likely have believed that a buy-to-let purchaser would seek his or her valuation advice, even though the transaction was for a low-end residential property. “Commercial purchasers of low to middle value residential properties, such as those buying to let, can properly be regarded as less deserving of protection by the common law against the risk of negligence than those buying to occupy as their residence,” the Court said. n
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Buying & Selling New TV specifications for new builds Sky has published detailed specifications for communal TV systems aimed at helping new build developers. The new specifications contain all the information new build developers need to ensure they install the correct system from the beginning – avoiding costly rewiring at a later date. Pascal Wharton, Head of Sky Communal TV Solutions said “if
developers specify the correct wiring at the outset, buyers could also be able to sign up to services such as Sky Multi Room which allows them to watch Sky TV in different rooms.” Sky has a dedicated team of specialist installers who can help set up the system. The specification PDF can be downloaded for free from www.sky.com/newbuild. n
RICS launches Condition Report RICS has launched a new alternative to its HomeBuyer Report and building surveys: the RICS Condition Report. According to the organisation, the new report provides buyers of conventional properties and newer homes with a clear, concise picture of the state of a property. The report does not provide an additional price valuation, but instead is designed to complement a mortgage valuation. RICS says that the Condition Report is principally aimed at buyers who would otherwise rely purely on a lender’s mortgage valuation, rather than face the expense and complication of a traditional survey.
“Other types of clients benefiting from the report will be landlords wanting to assess the condition of their investments and sellers looking to highlight any problems that may potentially impact on a future sale,” the organisation says. As it does not contain a valuation, both RICS valuers and those not registered with the RICS Valuer Registration Scheme will be able to conduct condition reports. The Condition Report is the most affordable of the surveys produced by RICS. It also provides details of urgent defects and a section offering advice for legal advisers. n
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Latest English housing market stats Latest housing statistics published by the Department for Communities and Local Government set out a useful snapshot of the housing stock in England. One of the key findings picked up by analysts in the financial sector is that the share of owner occupiers declined to 67.4 per cent in 2009/10, down from a peak of 70.9 per cent in 2003 and marking the seventh consecutive annual decline. Other findings from the report include: • The energy efficiency (SAP) rating of the housing stock steadily improved from a mean of 42 SAP points in 1996 to 53 in 2009. Improvement was particularly marked in local authority and private rented housing. However in 2009 there were still 3.3 million dwellings in the lowest Energy Efficiency Rating Bands F and G. • If cost-effective energy improvements (averaging around £1,400/dwelling) were
carried out to all 19.3 million dwellings that would benefit from them, the average SAP rating would increase from 53 to 63 and the average CO2 emissions per dwelling could be reduced from 6.0 to 4.6 tonnes/year. • There has only been a modest improvement in the proportion of the stock with problems of damp (from 10 per cent to 8 per cent), primarily because the incidence of serious condensation and mould (one cause of damp) has not changed from 4 per cent of all dwellings. • Electrical safety has improved significantly since 2001, especially for rented dwellings in both the private and social sectors. • There has been a significant reduction in the amount of disrepair since 2001, particularly in private rented housing although this sector still had on average much higher average repair costs than other tenures in 2009. n
Public land to be released for new homes The Government has announced plans to release enough public land to build as many as 100,000 new homes in England. Every government department with significant landbanks will publish plans to release thousands of acres of previously-developed land to housebuilders. From now until 2015, the Public Expenditure Committee, a Cabinet Committee chaired by Francis Maude, will go through each department’s plans, to make sure that sites are made available for housebuilding. Ministers are also encouraging councils to follow the lead set by central Government and make their unused land available for development. Later this year, a new map will be launched
to show land and buildings owned by public bodies in each area. A new Community Right to Reclaim Land has been introduced, enabling residents to apply to organisations including central Government departments and councils to bring their sites back into use. Housing Minister Grant Shapps also unveiled a Build Now, Pay Later deal, which allows housebuilders to pay for the land only once work has started on the new homes. Mark Clare, Chief Executive of Barratt Developments PLC, said “the rapid release of publicly owned land has the potential to be an effective catalyst for increasing the supply of land for new homes in this country during the next few years.” n
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Planning
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Review of rights to light legislation
Planning policy to be simplified The Government has published a draft National Planning Policy Framework for England that aims to safeguard the environment while meeting the need for sustainable growth. The Framework maintains the Government’s commitment to protecting the green belt, Areas of Outstanding Natural Beauty and Sites of Special Scientific Interest. In addition, the draft Framework delivers on the Government’s commitment in the Natural Environment White Paper to allow communities to earmark important
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local green spaces for special protection. A so-called “presumption in favour of sustainable development” will mean that proposals should be approved promptly unless they would compromise the key sustainable development principles set out in the draft Framework. Planning minister Greg Clark said “we now want to hear the thoughts of councils, communities and businesses on the draft Framework and work together to get the planning system right for generations to come.”n
The Law Commission has announced that it plans to review whether the acquisition and enforcement of rights to light are appropriately balanced between those benefiting from the rights and those proposing development. The Law Commission’s review, which is
due to begin in 2012, will also consider the relationship between rights to light and the planning system, with a view to publishing a consultation paper in 2013. Any relaxation of the current rights to light rules will be a boon to developers of residential and commercial property. n
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Finding Tenants Local authorities take up NLA Accreditation The NLA Accreditation Scheme for private landlords is now being used by 28 local authorities, just one year on from its launch. The Scheme provides local authorities with the means for compliant landlords to self-regulate and keep up-to-date with best practice and legislation, freeing up vital resources to tackle the small number of rogue landlords that
blight the sector. Launched by the NLA in April 2010, the Scheme is free to local authorities, and is recognised by all local authorities in Wales. Over 85 per cent of landlords who have completed the Scheme to date have described it as ‘excellent’. Commenting on the success of the Scheme to-date, David Salusbury, NLA Executive
Chairman, said he was pleased that “local authorities are now waking up to its potential. The NLA Scheme provides landlords with a clear way of demonstrating that they are professional by understanding their obligations, as well as the extensive legislation governing the letting of private residential property.” n
LOFT Interiors provides kit for student flats With a new university year just about to begin, and landlords expressing increasing interest in the high yield student market, LOFT Interiors has begun offering its student survival kit: basic packs of interior furnishing for every room in a student house. The Student Survival Kit is made up of a Kitchen Pack, Electrical Pack, Bed Linen & Bathroom Pack, and an Emergency Pack. Each pack can be ordered individually, or all four packs can be requested at the same time. Taken together, the items represent all the basics that will be needed to provide students with a decent level of accommodation for the start of the term. The Kitchen package, which costs £125, includes sets of pans, crockery, and cutlery, plus those old student essentials, the can opener and the corkscrew. Just to make sure that students remember to do the washing up occasionally, tea towels, a dish cloth, and a pan scourer are
also included. The Electrical pack, which is also priced at £125, includes a vacuum cleaner, providing another gentle nudge in the direction of cleanliness and respect for the property. Also in the kit are a toaster, kettle, microwave, and even an iron and ironing board. The Bed Linen & Bathroom pack is a fair bit cheaper, at just £45. This kit includes pillows, a duvet, pillow cases, a duvet cover and mattress protector, and a collection of towels for the bathroom. Finally, the £30 Emergency pack includes those traditional student favourites, Cuppa Soup and Pot Noodle, and other basics designed to help first time students get through their first day in digs: an alarm clock, shower gel and deodorant, tea, coffee and sugar, toilet roll, pens and an A4 note pad. LOFT says that it can deliver the Student Survival Kit within fortyeight hours of the order being placed, with free delivery in the North West. n
LOFT Interiors is a member of the NLA Recognised Supplier Scheme. For more information, see page 48.
AST threshold rise in Wales Landlords in Wales should note that as from 1st December 2011, the annual threshold for assured tenancies, including assured shorthold tenancies, is being raised from £25,000 to £100,000. The rules apply to existing and new tenancies, and landlords in
Wales are recommended to ensure their tenancies comply with the full legal framework affecting assured shorthold tenancies. Any tenancy with an annual rent between £25,000 and £100,000 in existence on 1st October 2010 will become an AST overnight. n
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OFT delays approval for agents’ codes of practice We now have details of The Property Ombudsman’s new Codes of Practice for member agents which took effect as from 1st August 2011. The Codes of Practice, covering residential sales and lettings activities, have been pending for some time while awaiting approval from the Office of Fair Trading. Among the major changes is the need for member agents to have separately designated client money accounts to protect money they receive. “We were delayed because we were waiting for OFT approval for the Sales Code revisions and were hoping to have the Lettings Code included under the OFT’s Consumer Codes Approval Scheme,” explained Bill McClintock, Chairman of the TPO operating company, who oversees membership matters. “In the end we decided we could not wait any longer as the Codes are intended to improve levels of service and remove confusion for member agents that may arise through recent legislative changes. I have been pressing the OFT for almost three years in the case of the Lettings Code approval and for many months for the Sales Code improvements but so far without success.” The new Codes are being issued along with guidance notes that were first given to member agents in October 2010 to enable them to improve their practices. The guidance does not set out specific terms for agency agreements or say what type of agreements should be entered into. Rather, the emphasis is on clarity when dealing with consumers. There is also supplementary guidance on the practice known as ‘touting’ or canvassing for business, an area which has been drawing some complaints about the behaviour of rival agents, as well as the Consumer Protection from Unfair Trading Regulations and the drawing up of agency agreements. n
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said “I am clear that the days of so-called ‘squatters’ rights’ must end and squatters who break the law receive a proper punishment.” The consultation paper, ‘Options for dealing with squatting’, asks for views on various suggestions for overhauling laws on squatting, some of which date back to the 1970s. It follows Ministry of Justice proposals to stop squatters getting legal aid to fight eviction as part of reforms to civil legal aid. In welcoming the proposals, the NLA warned that at present, it can take landlords upwards of three months to lawfully
regain possession of their property from squatters. “The NLA would like to see landlords being able to demand that squatters leave immediately, and also automatically regain lawful possession,” said David Salusbury. “The Police should be able to support landlords in such action through amendments to their existing statutory powers, such as Exclusion Notices which should prevent the squatters from returning. We would like to see the Government put the rights of property owners at the core of this policy.” n
HMO Licensing Rent repayment order for failure to license Legal action by Camden Council has forced Mayfair Property Agencies Limited to pay back more than £34,000 received in rent, to eight tenants. The order was made by the Residential Property Tribunal. The property company had already been convicted at Highbury Magistrates Court for failing to license a five-bedroom property in King’s Cross as a house in multiple occupation. The prosecution was taken under Section 72 of the
Housing Act 2004, with the Rent Repayment Order under section 73(5), the Housing Act 2004, section 73(5). In order
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Housing authorities not targeting unsafe properties
Calls to beef up squatting offence The NLA has welcomed the Government’s move to tackle the problem of squatting by making squatting a criminal offence in England for the first time. However, NLA Executive Chairman David Salusbury said “we do not feel the proposals fully address the central issue of property owners being able to regain possession if squatters occupy their premises....the NLA does not believe that criminalising individual squatters will alone solve the problem.” A new crime of squatting has been proposed by Justice Minister Crispin Blunt as part of a range of proposals designed to protect both home and business property owners from the problem. As well as making squatting a criminal offence for the first time, the options up for public consultation include abolishing ‘squatters’ rights,’ which currently prevent rightful commercial property owners from using force to break back in. Justice Minister Crispin Blunt
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for tenants to be able to apply for a Rent Repayment Order a landlord must already have been convicted of failing to license their property. The eight tenants who lived there successfully claimed back a total of £34,347.81 of rent which they had paid to their landlord, Mayfair Properties Agencies Limited and their managing agents, Network Agencies Limited. Each company was also fined £10,000 plus Camden Council’s legal costs. n
A damning report by Dr Stephen Battersby, Environmental Health Consultant and President of the Chartered Institute of Environmental Health, has found that local housing authorities (LHAs) in England and Wales are failing to formally inspect properties that could be dangerous to live in, failing to issue landlords with Hazard Awareness Notices and Improvement Notices, and failing to prosecute. Based on freedom of information requests, Dr. Battersby’s report found a striking difference between the numbers of inspections, the numbers of hazards found and then the level of use of the powers that LHAs have. The report says that “rather than being heavy-handed regulators, LHAs are quite the reverse, and indeed seem to be averse to effective regulation.” It found that non-formal action, such as a telephone call to a landlord, was the most common route taken by local authorities, rather than making formal inspections. Less than 10 per cent of dwellings with major hazards are dealt with by LHAs in any year, the report says. “With so much informal action it is also difficult to know if these hazards are dealt with adequately if at all....it is surprising that so little use is made of Hazard Awareness Notices.” The report was commissioned for Shadow Housing Minister, Alison Seabeck. It concludes that changes to Housing Benefit will lead to less responsible landlords crowding in more people into homes to maximize income. “At the same time there will be less incentive to maintain properties or even improve homes leading to deterioration...the question arises as to who will protect the most vulnerable tenants?” n
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Repairs & Maintenance Digital switchover in apartment blocks The switchover to digital television continues to sweep across the UK, with regions in the North of England the latest to have their analogue channels turned off for good. Over the summer, switchover was completed in East Yorkshire and Lincolnshire, and the process is well underway in the East Midlands, while switchover in Scotland was completed back in June. Sky is providing property managers with support as they prepare for the switchover process and for the upgrade of their communal TV systems. The Shared Dish system is particularly suitable for private apartment
blocks, and includes a dedicated account manager. During the switchover process at Norfolk Mansions, a block of 30 private flats near Battersea Park in London, residents and the managing agents consulted with Sky about their digital options. That consultation resulted in the installation of Sky’s Shared Dish solution, using discreet cabling that kept the visual impact to a minimum. Residents do not need their own mini dishes, just a Sky set top box, and can choose to subscribe to Sky at any time, simply by contacting their local installer. Sky is currently able to offer substantial
subsidies on the Shared Dish system starting at 50 per cent. This offer is available until the end of November 2011. n
Changes to sewers and drains rules Under new regulations that apply to England and Wales, all existing private sewers and lateral drains that connect into the public network will be transferred to the relevant sewerage undertaker and they will then take on responsibility for repair, maintenance and upkeep. As from 1st October 2011, most private sewers and lateral drains (i.e. that part of the drain which runs from the curtilage of a building to the sewer) will transfer overnight, with any relevant pumping stations
transferring on 1 October 2016. Private drains that service individual properties and that lie within the property
boundary will remain the responsibility of the property owner, as will connections that do not drain into the public network, e.g. drains/ sewers to cess pits, septic tanks etc. Chris Norris, NLA Policy Manager, told UK Landlord that the same outcome was achieved in Scotland by the Sewerage (Scotland) Act 1968 which defines sewers differently from legislation in England and Wales, meaning that all drainage outside of an individual curtilage became part of the sewerage authority (now part of Scottish Water). n
Making your Property Safe Fire causes BEKO fridge warning There are concerns that as many as 500,000 homes and businesses could be at risk of fire from potentially faulty fridge freezers. Fire investigators from the London Fire Brigade have discovered that a major fire in a tower block in Bermondsey in June was caused by a faulty BEKO fridge freezer. Fire chiefs are urging people to check if they own the particular models of BEKO fridge freezer which were
manufactured between January 2000 and October 2006. There are believed to have been 20 fires in London alone involving the fridge freezers since 2008. These fires have seen 15 people injured and one person die. Over the last three years, the London Fire Brigade’s fire investigation team has been working to establish the link between a faulty defroster timer switch on the appliances and a number of house fires
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the Brigade has attended. The problem occurs when water gets into the defrost timer switch in the fridge freezer, which can lead to an electrical malfunction resulting in plastic components and other highly flammable insulation inside the appliance catching on fire. London Fire Brigade’s Assistant Commissioner for Fire Safety Regulation, Steve Turek, said while any fire can be lethal, they are particularly concerned about
this because fires involving any sort of fridge freezer develop rapidly and produce an enormous amount of toxic smoke. n
For more information, see www.landlords. org.uk/support-advice/ product-recall-andsafety-notices.
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Making your Property Safe
Cheshire slumlords busted
Be Gas Safe The NLA is supporting the Gas Safe Register in raising awareness of gas safety and the importance of taking care that gas appliances in their private-rented properties are checked. By law, landlords are required to have the boiler, cooker, heating system and any other gas appliances in their properties inspected every 12 months. The inspection must be carried out by a Gas Safe registered engineer and the tenant must be provided with a current gas safety record. Poorly serviced appliances can cause gas leaks, fires and explosions or poisoning from carbon monoxide, which is an odourless gas that can kill quickly without warning. It’s often called the “silent killer” and is produced when a gas appliance is faulty or has a blocked flu. A carbon monoxide alarm can also be installed at the property which will warn tenants if there is a leak. They can be purchased
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from the NLA website at www.landlords.org.uk/shop within the Fire Safety Equipment section. It is also wise to show your tenants where the emergency gas shut off valve is and tell them not to use any appliance they suspect may be unsafe. NLA Executive Chairman David Salusbury reminds landlords to keep annual inspections up to date and provide tenants with a gas safety record. Always use an engineer who is on the Gas Safe Register (this replaced CORGI) and ensure you or your tenant checks their ID card. n
For gas safety advice or to find and check an engineer visit the Gas Safe Register website at www.GasSafeRegister. co.uk Alternatively, call the free helpline on 0800 408 5500.
Cheshire-based landlords Israr Fazal, 54, and son Shahbaz, 30, have been found guilty by Manchester Magistrate’s Court of breaking a range of fire and health safety regulations at five flats they let in Longsight, Greater Manchester. The two let the overcrowded and squalid flats mainly to families of foreign nationals. Council and fire investigators found damaged electric and gas meters, and bare electrical wiring. No fire alarms had been installed and the two had not carried out a single statutory fire risk assessment. Fire escapes were blocked, there was no emergency lighting, and no means of escape in the event of a fire. The council and fire service both brought prosecutions against the two men who pleaded guilty to a range of charges relating to housing conditions and fire safety. Given the serious nature of the breaches, the Magistrates Court has referred the men to the Crown Court for sentencing. n
Fire safety champion for landlords The Government’s Fire Kills campaign is targeting landlords and has appointed Mark Healey, who is Chair of Devon and Somerset Fire and Rescue Authority, as a champion for fire safety in rented homes. His role will be to encourage private landlords to make their properties as safe as possible for their tenants. As an advocate for the Fire Kills campaign, Councillor Mark Healey will remind private landlords that it is good practice to install and maintain smoke alarms in the properties they let to tenants. He will also encourage them to help protect their tenants and their property from the devastating effects of fire by fitting long-life smoke alarms like 10-year battery devices or hard-wired systems in every home they let. Since its beginnings in 1988, the Fire Kills campaign has seen the number of yearly
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fire related deaths and casualties reduce dramatically, and ownership of smoke alarms has increased from just nine percent in 1987 to 86 per cent last year. A landlord himself, Mark Healey said “most fire deaths are preventable, and can be avoided if householders alter their behaviour and think more about fire safety as an important issue that could affect them and their families.” He is urging all landlords to consider installing either 10-year battery alarms or hard-wired detectors in their properties. A wholly owned subsidiary of smoke alarm manufacturer Ei Electronics, Aico Ltd. is an official Partner of the Fire Kills campaign. Aico (www.aico.co.uk) is a leading supplier of residential fire protection in the UK, with its alarms fitted in hundreds of thousands of houses. It offers high quality, high reliability
mains-powered optical smoke alarms, ionisation smoke alarms, heat alarms and a multi sensor. These are available with a choice of conventional battery or 10-year plus Lithium cell back-up technology. n
For installation and information about a wide variety of smoke alarms and fire safety systems, please contact the NLA’s recognised supplier ASA Fire Systems on Tel 020 8575 1801 or info@asafiresystems.co.uk. To purchase smoke alarms and fire safety products, see the NLA website at www.landlords.org.uk/shop within the Fire Safety Equipment section.
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Making your Property Safe Tidying up building regulations Former Environment Agency Chairman Sir John Harman has been appointed to chair a group looking at reducing the complexity of home building standards and the impact regulations have on the industry in England and Wales. The new steering group, established jointly by the Home Builders Federation and the Local Government Group, will aim to oversee work to simplify, harmonise and declutter the ‘minefield’ of building standards applied to new housing. It will also provide advice to councils and developers on the best way to conduct plan
level viability studies, so as to ensure necessary housing development is not blocked by unrealistic expectations or policies. This work will support the new National Planning Policy Framework. Housing Minister Grant Shapps said “over the past thirteen years, housebuilding fell to its lowest levels for any peacetime year since 1924. Working with the industry, councils must do everything they can to ensure that any new developments both meet the needs of the local community, but also remain viable to enable projects to get off the ground.” n
Sustainability Question marks over changes to EPCs Major changes to landlords’ obligations to provide Energy Performance Certificates have been delayed. These changes are likely to make it mandatory to commission an EPC before a property is marketed for rent. While current rules give landlords twenty eight days in which to produce an EPC, this period could
be reduced to just seven days under the new proposal. As the law currently stands, landlords can market a property without an EPC, as long as an EPC has been ordered. Under the new rules the full EPC for the property, rather than just the graph, may have to be attached to all particulars, for both rentals and sales.
Government slashes carbon emissions The Government has said that carbon emissions from government buildings and offices have been reduced by nearly 14 per cent in the last year, and it has set a new target of cutting their emissions by 25 per cent by 2015. It estimates energy bills have been cut by £13m as a result of bearing down on energy wastage in government departments. The 10 per cent target covered around 300,000 civil servants in 3,000 buildings. Between 14 May 2010 and 13 May 2011 more than 100,000 tonnes of CO2 was saved. The Government also launched a series of business-led trials aimed at making it easier for people to insulate their homes and reduce fuel bills. The energy efficiency trials, many of which will include joint working with local authorities, will begin in
26 UKLANDLORD september/october 2011
September and will test how best to encourage people to take up the Green Deal. The Green Deal, which will start in autumn 2012 and is currently being discussed in Parliament, will mean households will be able to invest in home improvements at no upfront cost and repay through the expected savings on energy bills. In one trial, B&Q and Sutton Council are considering offering a subsidised loft clearance service to test whether removing the ‘hassle’ factor of insulation motivates people to make efficiency improvements. The unwanted contents of the loft clearance will be donated to local charities. B&Q will also test the impact of offering collective purchasing discounts to households for buying energy efficient products. n
The Government has already announced a new design of the front page of the Energy Performance Certificate. This will be launched from April 2012, with the information most likely to motivate an individual’s behaviour prominently displayed on the first page. n
UKAS to monitor Green Deal standards The United Kingdom Accreditation Service (UKAS) has been appointed to ensure that Green Deal assessors and installers adhere to robust new standards. Under the Green Deal, people will be able to access up to £10,000 upfront to pay for energy efficiency work, repaying the costs through savings on energy bills. UKAS is the sole national body recognised by the Government to assess evaluating organisations to international standards. It will accredit certification bodies to ensure the competence of assessors and installers to new Green Deal standards. Existing trade schemes will be accredited by UKAS to have met the Green Deal standard, which is being developed by the British Standards Institute, in consultation with industry stakeholders. UKAS accreditation involves assessment and verification (against international standards) of certification, inspection, testing and calibration activities. UKAS employs over 300 assessors and technical experts, and has over 40 years’ experience. n
UKLANDLORD september/october 2011 27
FEATURE: FINDING TenantS STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Helping people find a place to call home By Leslie Morphy, Chief Executive, Crisis
Landlords want a tenant who pays the rent on time, takes care of the property and treats the neighbours with respect and consideration. Those in need of housing want a good quality home that provides them with stability and security. But how can either party know that’s what will happen in advance? At Crisis we know that the private-rented sector can provide a great home for people who have experienced homelessness and we also know that those same people can be great tenants. At the same time, we understand that both parties will often require reassurances and practical support. We get to know our clients and prepare them for private renting. We take some of the pain out of renting a property for landlords by providing a steady supply of tenancy-ready tenants, arranging all the benefit payments and providing ongoing support to ensure the tenancy stays on track. With the cuts being made to Housing Benefit, people need this kind of help more than ever. Similar services are already run by a range of voluntary sector agencies around the country and Crisis has been working to improve their coverage and quality for over 14 years. Still, there are far too many areas in which no such assistance is available, particularly for single homeless people. Now, thanks to a major funding boost from central government, we are building up a network of services across England that will help both landlords and those in housing need to establish long-term and mutually beneficial tenancies. New tenancies Crisis is receiving a £10 million grant from the Department for Communities and Local Government (DCLG) to support our Private Rented Sector Access Development Programme over the next three years. Supported by an advisory group made up of DCLG, Ministry of Justice, Homeless Link and the National Landlords Association, we are selecting local voluntary sector agencies throughout England
28 UKLANDLORD september/october 2011
to run new services that will benefit landlords and people in housing need alike. We’ve already set up 48 new schemes – from Torbay to Tyneside and from Blackpool to Bath – and they’ve been hard at work setting up over 400 tenancies in the last few months. Each of them is providing a service that is tailored to the local housing market and provides a range of services to make letting an attractive and straightforward option. Over the course of the year the aim is to help over 1,500 single homeless people set up tenancies. Leslie Morphy, Chief Executive, Crisis
Fundamental to everything we do is making sure that tenancies are sustainable. We want to see people move away from the risk of homelessness permanently and that’s what our landlords and tenants want too. That’s why we pay the service providers by results and one of the results we measure is whether the tenancies last. Single homeless people rarely meet the criteria to acquire council accommodation and finding a flat in the private-rented sector can be a complex and expensive option. They need advice and help, but in many areas of the country, these specialist services are simply not there. These schemes will help people overcome financial barriers, match them to good landlords and help more individuals avoid the perils of homelessness. In October we will be selecting the next set of new schemes to launch around the country. We’ll be helped by the National Landlords Association because we know that we need to talk to landlords to understand their needs. We aim, over the three years of the programme, to establish around 150 new schemes and to assist over 8,000 single people into
accommodation. We’re always on the look out for landlords who have a property to let that could be just right for one of our clients. Landlords who want to find out more about the programme or see what services are available to them locally should visit the dedicated website at www.privaterentedsector.org.uk or e-mail Crisis at private.renting@crisis.org.uk. n
These schemes will help people overcome financial barriers, match them to good landlords and help more individuals avoid the perils of homelessness.
FEATURE: FINDING TenantS - CASE STUDIES
CASE STUDY 1
CASE STUDY 2
Debbie Richmond, a landlord who lets through the Worcester Citizens Advice Bureau & Worcester Housing and Benefits Advice Centre (CAB & WHABAC) funded by Crisis: “I started working with Worcester CAB & WHABAC when a tenant contacted me about renting one of my properties. I own a lot of rental properties and initially let just one of them through Worcester CAB & WHABAC but this has now expanded to many of my properties. I have benefited in many ways because of the nature of the service provided. I like the fact that there is one port of call and the management has been very efficient and thorough. Contact was made regularly and I was happy to extend and use the service.”n
nla news STARTING UP
Thomas Ó Cinnéide, tenant through the Causeway Irish Housing Association service in Haringey, North London. Thomas was once a family man running a taxi company. When his marriage ended he endured a series of traumatic events and left his business behind. Financially stable, he rented a two-bed flat for which he paid cash up front. He always managed his tenancies well but had to downsize as he depleted his savings until they ran out altogether, forcing him to sleep in his car. This lasted until the council repossessed it (along with all his possessions) when the road tax ran out. Describing his experiences, Thomas recalls: “It is like slipping down a slope; you fall off the edge, you start to slide, you grab hold of whatever is there and you try to climb up, but you slip and you slip and you slip.” With the
car gone, without anywhere to go and no one to turn to, he had no choice but to sleep rough. He started drinking heavily to dampen his anxiety: “It is very stressful when you don’t know where you are going to be sleeping next week or next month,” he told Crisis. Then he came into contact with a service in Haringey in North London – funded by Crisis and run by Causeway Irish Housing Association – which helped him get back on his feet and fund and secure a privately rented studio flat. Knowing he has a place to call his own enables Thomas to think, breathe, and focus on his next steps. Outside his flat there is a big park and he spends much time walking. His anxiety levels have dropped significantly and he has stopped drinking. “I feel like a man again. You don’t feel like a man when you are sleeping in the back of a car.” n
Your feedback If you want to comment on this story, please go to www.landlords.org.uk/news-campaigns/uk-landlord-magazine
For the latest news visit: www.landlords.org.uk REGULATORY
PROPERTY
NEWS
SAFETY
FINANCE
The NLA’s Policy Debates To coincide with the Party Political Conference season, the NLA is organizing a series of debates which are open to NLA members. The theme of all the events is ‘Where would the UK be without Landlords?’ Liberal Democrat Party Conference Date: Monday 19 September Location: Garden Room, Novotel Hotel, Birmingham Time: 18:15 – 19:30 Speakers: Sophie Elmhirst, New Statesman (Chair) Stephen Gilbert MP David Salusbury Phil Spencer, Property Expert (tbc) David Mullins, Professor of Housing Policy, University of Birmingham (tbc)
Labour Party Conference Date: Monday 26 September Location: Albert Room, Novotel Hotel, Liverpool Time: 18:00 – 19:00 Speakers: Sophie Elmhirst, New Statesman (Chair) Caroline Flint MP David Salusbury Craig Phillips, Celebrity Landlord (tbc) Alison Jarvis, Programme Manager, Joseph Rowntree Foundation Conservative Party Conference Date: Tuesday 4 October Location: Dalton and Joule Room, Museum of Science and Innovation (MOSI), Manchester
Time: 13:00 – 14:00 Speakers: Sophie Elmhirst, New Statesman (Chair) Jake Berry MP David Salusbury Richard Blakeway, Mayoral Advisor on Housing, London Assembly Nancy Kelley, Deputy Director of Policy and Research, Joseph Rowntree Foundation The events will be a good networking occasions as well as opportunities to engage with key decision-makers and industry experts. If you would like to attend any of these events, please send an email to Vincenzo.Rampulla@landlords.org.uk or telephone 020 7840 8900. n
UKLANDLORD september/october 2011 29
nla news STARTING UP
For the latest news visit: www.landlords.org.uk REGULATORY
PROPERTY
NEWS
SAFETY
FINANCE
NLA National Conference 2011 Wednesday 9th November 2011 Park Inn Manchester, Victoria, 4 Cheetham Hill Road, Manchester, M4 4EW Why attend? • Listen to and question industry experts • The latest on Government policy • In-depth look at opportunities and challenges facing landlords • Interactive sessions covering the practical side of letting • An excellent environment to network with landlords from across the country
Growth Areas and Eco Towns). Also, she is the lead on the sponsorship of the Tenant Service Authority and the Homes and Communities Agency. The Panel Debate Listen to and question our panel of experts in a ‘Question Time’ style debate about the impact of the market, government policy and industry developments on private renting in the UK.
Conference highlights Keynote speaker: Terrie Alafat, Department for Communities and Local Government Terrie Alafat began her career in the UK in social services policy development in a local authority and most recently was Director of Housing and Corporate Strategy in Kensington and Chelsea until 2002. She then moved to the Government Office for London with responsibility for housing and local government. She also had responsibility for a range of government programmes in the Thames Gateway. She has worked in the Civil Service since 2003 covering various housing policies including Homelessness, Supporting People, Affordable Housing and Housing Supply.
Breakout Sessions Discuss the practical side of letting with experts and other landlords during our interactive sessions. Delegate can pick and mix areas of interest: • Better the tenant you know • Creative ways of investing in residential property • How to make Local Housing Allowance work for you • Practical Possession Proceedings • Scotland: A land of opportunity? • Successful Property Investment in today’s market • Tax strategies for property investors • Tenants are playing by new rules… Do you know what they are? Conference Reception Reflect on the issues of the day and make new contacts at the Conference Reception. The venue Opened in 2009, The Park Inn Manchester, Victoria is a four star hotel in the centre of Manchester, next to Manchester Victoria rail and tram stations. It is located on one of the city’s main road arteries, allowing easy access to the motorway network. Over 1,000 public car parking spaces are available within a 2-minute walk.
Following a recent reorganisation within Communities and Local Government, Terrie is now Director of Housing Growth and Affordable Housing, with responsibility for the supply, repair and improvement of affordable Housing across all tenures, targeted housing growth (e.g.
30 UKLANDLORD september/october 2011
Day delegate rate including Conference Reception
Accommodation The NLA has negotiated special bed and breakfast rates at the Park Inn Manchester, Victoria. £85 B&B single occupancy and £95 B&B double occupancy. These rates are available on a first come first served basis. Delegates will need to book accommodation with the hotel direct and quote a special promotional code provided by the NLA. NLA National Conference gives you the confidence to plan for the future, whether you let one property or manage a portfolio. The full programme and booking details are available at: www.landlords.org.uk/conference n
NLA member rate
Non member rate
£50 inc VAT
£65 inc VAT
Places are limited. Reserve your place today by calling 020 7840 8920 or emailing bookings@landlords.org.uk
nla news STARTING UP
For the latest news visit: www.landlords.org.uk REGULATORY
PROPERTY
NEWS
SAFETY
FINANCE
New NLA Focus: the e-newsletter for NLA members
We just don’t listen – we implement! We have launched our e-newsletter ‘NLA Focus’ with you in mind. You told us what you wanted to hear about, and we’ve implemented it. The new ‘NLA Focus’ is sent on a fortnightly basis to allow for more informative and relevant content. It features more on law and policy issues, as well as practical advice and information for landlords. Our research also told us that you wanted to hear what we’re up to and how we’re working on your behalf to represent the needs of UK landlords, so expect to see more of this. In addition, we will also include new sections detailing the latest news from the NLA and stories that affect landlords, as well as case studies you can relate to. The new improved ‘NLA Focus’ ensures that you can make use of the full range of NLA benefits available, including special offers exclusive to NLA members on a number of essential products and services. It also lists free meetings in your local area, as well as courses available to landlords.
With an increasing heavy regulatory burden it is more important than ever that as a landlord you have access to the most up-todate information available and that you clearly understand your rights and responsibilities. So, if you are not receiving the new ‘NLA Focus’ direct to your inbox, please forward us your email address so we can update our records. Your details with be dealt with in the strictest of confidence. Simply send an email to focus@landlords.org.uk with ‘Subscribe’ in the subject line, including your full name and NLA membership number. We’ll make sure you receive future editions. As a part of our commitment to support our members it is important that we clearly understand your requirements. So, please let us know if you have any feedback and we will try to best meet your needs. n
NLA Annual General Meeting 2011 The NLA’s AGM for 2011 will take place on Friday 18th November 2011. Members are invited to arrive at 2.00pm for a 2.30pm start at the Royal Pharmaceutical Society, 1 Lambeth High Street, London SE1 7JN.
Members wishing to attend the AGM should use the following contact details to book: Email: bookings@landlords.org.uk Tel: 020 7840 8920 Web: www.landlords.org.uk/events
If you want to more information about last year’s AGM, please see the Annual Report in the About Us section of the NLA website and scroll down & download ‘NLA AGM 2010 Answers’. n
Notice is hereby given of the ninth Annual General Meeting to be held on Friday 18th November 2011 at 2.30pm at Royal Pharmaceutical Society, 1 Lambeth High Street, London SE1 7JN AGENDA Item Item Item Item Item Item Item Item Item Item
1 2
To consider and adopt the Company’s Annual Report and Accounts for the period ended 30 April 2011. To re-appoint Cobley Desborough as reporting accountants of the Company until the next Annual General meeting at a fee to be agreed with the Board of Directors. 3 To elect RICHARD LAMBERT as a Director. 4 To elect ANTHONY RICHARD as a Director 5 To elect CAROLYN UPHILL as a Director 6 To re-elect PATRICK JACOBS as a Director. 7 To re-elect RICHARD PRICE as a Director. 8 SPECIAL RESOLUTION: to adopt revised Articles of Association 9 Any other Business (please notify the under-signed with any issues you intend to raise by 2.30pm on 16 November 2011 10 Address by the Chairman.
By order of the Board Patrick Jacobs Company Secretary Registered Office: 22-26 Albert Embankment, London, SE1 7TJ Note : The Annual Report together with Proxy Form & proposed revised Articles will be circulated during October.
UKLANDLORD september/october 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 learn how to carry out safety checks themselves 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
Specialist Courses To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
Possession One-day course on Possession, with practical workshops on filling in the forms and notices: Price: Members: £85 (inc VAT) Non-members: £110 (inc VAT)
2011 DATES
LOCATION
2011 DATES
LOCATION
Tuesday 20th Sep Monday 17th Oct Wednesday 19th Oct Tuesday 25th Oct Tuesday 1st Nov Tuesday 15th November Tuesday 13th Dec
Manchester Bristol Brighton London Birmingham London London
Wed 27th Sept
Manchester
Tues 1st Nov
London
Wed 23rd Nov
Birmingham
Tues 6th Dec
Brighton
ALL TIMES: 8.45am for 9.00am start; 5.00pm finish
Landlord Foundation Courses The NLA runs one-day courses designed to help both new and experienced landlords to develop their professional skills. The course focuses on the main issues facing landlords, including: • finding tenants • setting up • managing and ending a tenancy • keeping records • repairing obligations The programme offers an excellent opportunity to network with
other landlords and discuss face-to-face ideas, problems and possible solutions. Price: Members £85 (including VAT), non-members £110 (including VAT) To reserve a place: Charlotte Clements on 020 7840 8920 or bookings@landlords.org.uk
2011 DATES
LOCATION
Wednesday 5th Oct Thursday 6th Oct Thursday 13th Oct Thursday 20th Oct Wednesday 26th Oct Thursday 27th Oct Wednesday 16th Nov Tuesday 22nd Nov Tuesday 29th Nov TBC TBC
Manchester Birmingham Brighton Cardiff Liverpool Reading Slough Newcastle London Edinburgh Glasgow
ALL TIMES: 9.00am for 9.30am start; 5.00pm finish
32 UKLANDLORD september/october 2011
ALL TIMES: 8.30 for a 9.00am start; 5.00pm finish
Local Housing Allowance & Deposits, Damages & Disputes Half-day course on Deposits, Damages and Disputes, incorporating Inventories and how to deal with disagreements: Price: Members: £40 (inc VAT) Non-members: £55 (inc VAT) Half-day course on Local Housing Allowance, what to be wary of and LOCATION how the system can work for you: Price: Members: £40 (inc VAT) Non-members: £55 (inc VAT) 2011 DATES
LOCATION
Wed 14th Sept
Brighton
Wed 28th Sept
Birmingham
Tues 4th Oct
London
Thur 17th Nov
Manchester
ALL TIMES: 8.30am for 9.00am start; 12.20pm finish
All in a day’s work The 2 half-day courses on LHA and Deposits, Damages & Disputes can be followed on the same day.
REGIONS news STARTING UP
Regular Local Business and Investment News REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
New Head of Regions for the NLA Ken Staunton (pictured) recently took up his position as the NLA’s Head of Regions and talks to UK Landlord about his plans for his new role. Like most NLA member landlords, I see great benefits from being part of the landlord community. My new position with the NLA will be to manage the overall direction of our regional representation so as to ensure our effectiveness in serving NLA members. We have nearly fifty NLA representatives across the country, and it is likely that this network will grow in line with the NLA’s priorities and objectives. My job will be to make sure that our representatives are well supported so that NLA members can take advantage of the benefits of being part of a local landlord community, which includes good representation at the local level. If you look, for example, at how the new localism agenda is kicking in, primarily in England,
I believe we have interesting times in store. There are 27 local authorities in England who are now using Article Four directions (thanks to amendments to planning rules in 2010) to restrict planning for shared housing, and we know of at least a further four councils who are also considering going down this route. With selective licensing in place in sixteen areas in England, and seven more local authorities with additional licensing schemes and many more considering these forms of discretionary licensing, I feel it is really important to fully understand what is happening in those areas where you have rental properties, or where you are planning to buy. As a landlord and NLA Representative for Hampshire for the past two years, I know how important it is to have
the right information about local developments. By being involved with your local landlord network, you can also provide input to the NLA so that we can anticipate trends and be proactive in local and central government lobbying. Dates of the branch meetings
can be found in the centre pages of UK Landlord and details of the venues and agendas are on the NLA web site. Hope to see you at one of our local branch meetings – there is virtually one every day of the week somewhere in the UK! n
West Midlands Focus: Key Dates DATE
EVENT
Thu 15 Sept NLA Walsall & Sandwell
6.30pm to 8.30pm
West Midlands
Queen Elizabeth Drive, Pershore WR10 1PT
10.30am to 1.00pm
West Midlands
University of Birmingham, Pritchatts Park Villiage B15 2QX
2.00pm to 5.00pm
West Midlands
Community Fire Station, Tamworth B77 2NW
10.00am to 12.00pm
West Midlands
Council House, Nuneaton CV11 9ZY
7.00pm to 9.00pm
West Midlands
Council House, Lichfield B79 7BZ
10.00am to 12.00pm
West Midlands
Council House, Solihull B91 9QS
6.00pm to 8.30pm
West Midlands
Shire Hall, Shrewsbury SY2 6LY
6.00pm to 8.00pm
Meeting
Mon 7 Nov NLA Shropshire Branch
Darnford Manor Golf Club, WS14 9JG
Meeting
Mon 31 Oct NLA & Solihull MBC Joint
West Midlands
Meeting
Thu 27 Oct NLA & Lichfield BC Joint
9.30am to 1.30pm
Meeting
Wed 19 Oct NLA & Nuneaton BC Joint
Bescot Stadium, Walsall WS1 4SA
Meeting
Thu 13 Oct NLA & Tamworth DC Joint
West Midlands
Meeting
Mon 10 Oct NLA & Birmingham CC Joint
TIME
Branch Meeting
Mon 19 Sept NLA & Wychavon Joint
LOCATION
Joint Branch Meeting
Thu 15 Sept NLA South Staffordshire
REGION
Meeting
UKLANDLORD september/october 2011 33
EVENTS GUIDE
September-October 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.
DATE
EVENT
REGION
Tue 13 Sep NLA Teesside Branch Meeting North East
LOCATION
TIME
The Blue Bell Hotel, Acklam, Middlesbrough, TS5 7HL
7.00pm for
Tue 13 Sep
NLA North East Branch Meeting North East
7.30pm start
Novotel Newcastle, Queen Elizabeth Suite, Ponteland Road,
6.30pm refreshments
Newcastle, NE3 3HZ
for 7.00pm start
Tue 13 Sep
Apex International Hotel, Sydney Room, 31-35 Grassmarket,
7.30pm
NLA Edinburgh Branch Meeting Scotland
Edinburgh, EH1 2HS, Tel 01313 003456
Wed 14 Sep
Best Western Reading Moat House, Loddon Suite, Mill Lane,
NLA Reading Landlords Meeting South East
Sindlesham, Nr Wokingham, Berkshire, RG41 5DF
7.30pm
Wed 14 Sep NLA Guildford Branch Meeting South East
Council Chambers, Guildford Borough Council, Millmead House,
7.00pm to
Millmead, Guildford, Surrey, GU2 4BB
9.00pm
Wed 14 Sep NLA and Hillingdon Borough
Civic Centre, Committee Room 6, High Street, Uxbridge,
6.00pm to
Middlesex, UB8 1UW
9.00pm
Holiday Inn Express, Solent Room, Pembroke Road, Portsmouth,
7.00pm to
PO1 2TA
9.00pm
The Manor Barn, Bexhill-on-sea, East Sussex, TN40 2HA
9.30am to
Council Landlords Meeting
Thu 15 Sep NLA Portsmouth Branch
London
South East
Meeting
Thu 15 Sep NLA Hastings & Rother Branch South East
Meeting
Tue 20 Sep NLA Weymouth Branch
South West
Meeting
Tue 20 Sep NLA Cumbria Branch Meeting
North West
1.00pm
Weymouth Working Men’s Club, 1 Mitchell Street, Weymouth,
6.30pm to
Dorset DT4 8BT
9.00pm
University of Cumbria, Room LG101, Fusehill Street, Cumbria,
7.00pm
CA1 2HH
Tue 20 Sep
Gravesham and Dartford
South East
Council Chamber, Gravesham Borough Council, Windmill Street,
2.15pm to
Landlords’ Forum in
Gravesend, Kent, DA12 1AU
5.30pm
Association with the Landlords
Association
Tue 20 Sep NLA Fife Branch Meeting
Scotland
The Gilvenbank Hotel, Huntsman Road, Glenrothes, Fife, KY7 6NT 7.00pm
Wed 21 Sep NLA North London Launch
London
Southgate Masonic Centre, 88 High Street, Southgate, London,
Branch Meeting
Wed 21 Sep NLA Eastbourne & Wealden
Wed 21 Sep NLA Chichester Branch
South East
Lansdowne Hotel, King Edward’s Parade (Eastbourne Seafront),
East Midlands
Branch Meeting
6.30pm
East Sussex, BN21 4EE Chichester University, College Lane, Chichester,
7.00pm to
West Sussex, PO19 6PE
9.00pm
Check NLA website for details
7.00pm to
Branch Meeting
Thu 22 Sep NLA Nottingham and Derby
South East
Meeting
Thu 22 Sep NLA North Hampshire
South East
Branch Meeting
6.30pm
N14 6EB, Tel 020 8882 3074
9.00pm
Novotel, Jacquard room, Bostock Lane, Long Eaton,
7.00pm for
Nottingham, NG10 4EP
7.30pm start 7.00pm to 10.00pm
Thu 22 Sep NLA Dorset Branch Meeting
South West
Queens Hotel, Meyrick Road, Bournemouth, BH1 3DL
Thu 22 Sep The Purfleet Trust Open Day
East of England
The Purfleet Trust, 5 St Ann’s Fort, Kings Lynn, Norfolk, PE30 1HY 11.00am to 3.00pm
Tue 27 Sep NLA Brighton Branch Meeting
South East
Hilton Brighton Metropole, Chartwell Room, Kings Road,
6.30pm
East Sussex, BN1 2FU
Tue 27 Sep NLA Bradford Branch Meeting Yorkshire and the Humber
Cedar Court Bradford, Cypress Suite , Mayo Avenue, Rooley Lane, 6.30pm refreshments
Bradford, BD5 8HW
for 7.00pm start
Mon 3 Oct
Tonbridge and Malling Borough Council, Gibson Building,
4.00pm for 4.30pm
Gibson Drive, Kings Hill, West Malling, Kent, ME19 4LZ
start to 9.00pm
West Kent Landlords Fair
South East
34 UKLANDLORD september/october 2011
EVENTS GUIDE DATE
September-October 2011
EVENT
Mon 3 Oct NLA Aberdeenshire Launch
For an up-to-date list visit: www.landlords.org.uk/events
REGION
LOCATION
TIME
Scotland
Waterside Inn, Fraserburgh Road, Peterhead, Aberdeenshire
7.00pm to
Meeting
AB42 3BN
9.00pm
Tue 4 Oct
Private Landlords Information East Midlands
Chesterfield Football Club, 24 Saint Margaret’s Drive, Chesterfield,
Exchange
Derbyshire S40 4SX Tel 01246 209765
Thu 6 Oct NLA Crawley Branch Meeting
South East
Crawley Library, Southgate Avenue, West Sussex, RH10 6HG
6.30pm to 8.30pm
Tue 11 Oct NLA Glasgow Branch Meeting
Scotland
Radisson Blu Hotel, 301Argyle Street, Glasgow G2 8DL
7.30pm
Tue 11 Oct NLA Mid Devon Branch
South West
Council Chamber & Mayoralty Room, Tiverton Town Hall,
6.00pm for 6.30pm
Meeting
St Andrew Street, Tiverton EX16 6PG
start to 8.30pm
Tue 11 Oct
Canterbury Landlords’
Darwin Conference Suite, Darwin College, University of Kent,
5.00pm for 6.00pm
Information Evening
Canterbury, CT2 7NY
start to 8.30pm
Holiday Inn,Yeoman Room B, Ipswich Road, Norwich, NR4 6EP
6.30pm for
Wed 12 Oct NLA Norwich Landlord Forum
South East
East of England
7.00pm start
Wed 12 Oct NLA Wessex (Bath) Branch
Lansdown Golf Club, Lansdown, Bath BA1 9BT
2.00pm
Tue 12 Oct NLA Worthing Branch Meeting South East
Field Place, The Barn, The Boulevard, Worthing, West Sussex,
7.00pm
BN13 1NP Tel 01903 244034
South West
Meeting
Thu 13 Oct NLA Bridgend Branch Meeting Wales
Bridgend Rugby Stadium, Tondu Road, Bridgend CF31 4JE,
6.00pm to
Tel 01656 838281
7.30pm
Mon 17 Oct NLA and Cherwell District
Cherwell District Council, Bodicote House, White Post Road,
6.30pm to
Bodicote, Banbury, OX15 4AA
8.30pm
Wed 19 Oct NLA Wisbech Branch Meeting
The Boathouse Business Centre, Lady Alice Lambton Room,
6:30pm for
Nene Parade, 1 Harbour Square, Wisbech, Cambridgeshire,
a 7.00pm start
PE13 4BH (please use Postcode PE13 3XE if using Sat Nav)
South East
East of England
Thu 20 Oct
Shepway and Dover Landlords South East
Shepway District Council, Civic Centre, Castle Hill Avenue,
4.00pm
Forum
Folkestone, CT20 2QY
for 4.45pm
Sheffield Park Hotel, Chesterfield Road South, Sheffield,
6.30pm to
South Yorkshire, S8 8BW
9.30pm
Mon 24 Oct NLA Sheffield Landlords
Yorkshire and the Humber
Meeting
Tue 25 Oct NLA Kirklees (South) Branch
Yorkshire and the Humber
check NLA website for details
Wed 26 Oct NLA Exeter Branch Meeting
South West
Mercure Southgate Hotel, Southernhay East, Exeter EX1 1QF
6.00pm for 6.30pm
start to 8.30pm
Wed 26 Oct NLA Wessex (Bristol) Branch
7.00pm
South West
BAWA, 589 Southmead Road, Filton, Bristol, BS34 7RG
North West
The Galleon Hotel and Leisure Club, Manchester Road, Didsbury, 6.30pm for 7.00pm
Meeting
Thu 27 Oct NLA Manchester Branch
Meeting
Manchester, M20 5WZ Tel 01614 450225
start to 9.00pm
(ample parking to the rear)
STOP PRESS. EXTRA DATES! Mon 10 Oct
NLA Milton Keynes
Branch Meeting
South East
Abbey Hill Golf Centre (Main Building), Monks Way, Two Mile Ash, 6.00pm for 6.30pm Milton Keynes, MK8 8AA
UKLANDLORD september/october 2011 35
REGIONAL FOCUS STARTING UP
West Midlands Investment Focus REGULATORY
PROPERTY
TENANCY
SAFETY
The West Midlands Regional Areas
Key Statistics for the West Midlands Population (2010): 5,445,200 Unemployment rate (March-May 2011): 8.5 per cent Average house price June 2011): £170,920 Detached (June 2011): £277,337 Semi-detached (June 2011): £150,768 Terrace (June 2011): £125,365
Flat (June 2011): £113,786 Proportion of private-rented property (2009-10): 14.4 per cent Long-term privately owned empty homes (April 2010): 31,477 Sources: Office for National Statistics, Communities and Local Government, Nomis, Land Registry, Halifax Empty Homes in England survey
NLA REPRESENTATION 1. Staffordshire Moorlands District Council 2. East Staffordshire Borough Council 3. North Warwickshire Borough Council 4. Walsall Metropolitan Borough Council 5. Sandwell Metropolitan Borough Council 6. Birmingham City Council 7. Solihull Metropolitan Borough Council 8. Warwick District Council 9. Stratford on Avon District Council 10. Redditch Borough Council
11. Coventry City Council 6 12. Nuneaton & Bedworth Borough Council 13. Tamworth Borough Council 14. Litchfield District Council 15. Cannock Chase District Council 16. Stafford Borough Council 17. Newcastle under Lyme Borough Council 18. Stoke on Trent Council 19. South Staffordshire Council 20. Wolverhampton City Council
21. Dudley Metropolitan Borough Council 22. Wyre Forest District Council 23. Bromsgrove District Council 24. Worcester City Council 25. Wychavon District Council 26. Rugby Borough Council 27. Shropshire Council 28. Telford and Wrekin Borough Council
Mandy Bygrave, NLA Representative for Coventry and North Staffordshire Responsible for developing relationships with local authorities and organising branch events in the east of the West Midlands region. I am working on the launch of branches in Tamworth, Nuneaton and Coventry. Portfolio: Currently six properties in the West Midlands and one in France.
Investment opportunities: The large student population in Coventry means that the market for Coventry rental property is strong. A recent market summary states the following average rental for a two bedroom property in Coventry as £554pcm and in Nuneaton as £487pcm. Upcoming events: First joint meeting with Tamworth Borough council is 13th October 2011.
Contact: mandy.bygrave@landlords.org.uk if you have suggestions for meetings in this area.
36 UKLANDLORD september/october 2011
FINANCE
REGIONAL FOCUS
NLA Regional Representation
Mary Latham, NLA Representative for Staffordshire, Warwickshire & West Midlands Mary has been working with local authorities in the West Midlands for over 20 years, and cofounded the Association of Midlands Landlords. She is also a committed member of the HOMESTAMP consortium of local authorities, fire, police, universities, students unions, landlords and other partners which work together to raise PRS standards in the West Midlands. Mary is responsible for continuing to develop on-going relations with local authorities in Birmingham, North Warwickshire,
Redditch, Sandwell, Solihull, Stratford-upon Avon, Walsall and Warwick. Portfolio: I have been a landlord since the early 70’s and I have let all types of property to most client groups, mainly in the West Midlands but also in Oxford where I bought my first property to let. Upcoming events: please refer to the NLA’s website and/or your local authority website.
Contact: mary.latham@landlords.org.uk if you have suggestions for meetings in this area.
Julie Woolfenden, NLA Representative for Shropshire Responsible for developing relationships with Shropshire Council and Telford & Wrekin Council. She set up the NLA Shropshire Branch which is run in partnership with Shropshire Council which holds landlord meetings 3 times a year at the Shire Hall in Shrewsbury. Portfolio: Seven properties, three and fourbedroom houses, let to a variety of working/ benefit families. Trends: The Shropshire rental market is buoyant, with yields of between 6 to 8+ per cent. The type of property is mostly houses/flats with few HMOs. However, there are a few philanthropic landlords who are keen to maximise HMO lettings, especially in light of the change to the threshold
when a person can move from the shared room rate to the single room rate. Investment opportunities: Shrewsbury is seeing the more established landlords expanding their portfolios, whilst Telford has seen many brand new landlords enter the market recently, partly because there are some major housing developments being built and manufacturing and export companies are still relatively strong in the area. Upcoming events: The next NLA Shropshire Branch meeting is on Monday 7th November 2011 at 6pm. This is an excellent opportunity for landlords to network and hear speakers on specialised topics.
Contact: julie.woolfenden@landlords.org.uk if you have suggestions for meetings in this area.
Christine Fernandes, NLA Representative for Rugby and Leicestershire Responsible for developing relationships with local authorities in North West Leicestershire (Coalville), Leicester City, Loughborough, Rugby and Market Harborough. Christine also runs the NLA Blaby Branch and is looking to run more joint venues with her nominated Council Regions.
Portfolio: Sixteen houses in the North-East of England, plus two houses, one in Derby and another in Nottingham. Trends to note: There is a lot of industrial business surrounding Rugby which tends to create a strong rental demand within this area and falling across the border into East Midlands, in particular Lutterworth.
Contact: christine.fernandes@landlords.org.uk if you have suggestions for meetings in this area.
UKLANDLORD september/october 2011 37
REGIONS news STARTING UP
Regular Local Business and Investment News REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Large house demand in West Midlands According to the recent Q2 2011 Rental Market Review by Countrywide there is an increase in demand for properties in the West Midlands, with particular focus on large four-bedroomed houses. Countrywide reports that there were 7.2 tenants for each available property in the West
Midlands region. This is up from 6 in Q1 2011. Properties were snapped up in an average of 11.7 days, down from 12.1 in the first quarter of the year. Larger properties make up 45 per cent of all rental stock in the West Midlands, compared to 21 per cent last year. n
Selective licensing in Wolverhampton The traditional All Saints area of Wolverhampton has become the first area in the West Midlands to be subject to a selective licensing scheme. This will mean private landlords and letting agents will need to obtain a licence to let property in this area. The scheme kicks in as from 4th January 2012 and requires landlords to pay £525 per property that is let. Discounts will be available to those who apply on time, have more than
one property and for those who are members of a professional landlords association or an accreditation scheme. Wolverhampton City Council says it is introducing the measures “to combat a failing housing market and to tackle persistent anti-social behaviour that has blighted certain parts of All Saints despite other intervention measures undertaken by the council and its partners over a number of years.” n
Keeping drugs out of rental properties Landlords in the West Midlands may be interested in a useful guide by the West Midlands Police on how to keep cannabis cultivation and drug laboratories out of rental properties. The police force says that since 2003, increasing numbers of both buy-to-let properties and vacant properties have been targeted by cannabis cultivators. It warns that the damage to landlords, in both financial and legal terms, can be catastrophic, particularly for uninsured landlords who may find themselves having to foot the bill for extensive repairs to their properties. It is also worth noting that many insurance policies will not pay out for damage done as a result of criminal activity (irrespective of whether the landlords knew about it). Landlords can face prosecution if their properties have been used as a cannabis farm, with a maximum sentence of 14 years in prison and/or a fine. Cannabis cultivation also poses a major fire hazard because of amateur electrical wiring and the heat
38 UKLANDLORD september/october 2011
involved in the production of the plants. Fire Services state that the fire created from cannabis factories is particularly difficult to deal with as it spreads rapidly due to the way the property is restructured, for example, removing walls and adding extraction units. Police recommend that landlords complete full and proper reference checks with both previous employers and previous landlords before entering into a tenancy agreement to avoid taking on criminal tenants. The NLA advises its members to be on the look-out for the following tell-tale signs
• Strong smell of de-odourisers or air fresheners to disguise the smell of drug production • Lights being left on all day and night and curtains and blinds drawn • A sudden jump or fall in electricity bills • Possible rewiring • High humidity in the property According to the West Midlands Police force, many drug gangs use a ‘front couple’ to secure a tenancy, often paying a large amount in cash and in advance, who then quickly disappear. n
UKLANDLORD september/october 2011 39
feature: UKALA EXPLAINED STARTING UP
REGULATORY
PROPERTY
NEWS
SAFETY
FINANCE
Partnering the UK Association of Letting Agents The NLA has entered a new relationship with the UK Association of Letting Agents which aims to raise standards in the private-rented sector, and provide a single voice when addressing issues of concern to both landlords and agents. Although they represent different parts of the market, the wider interests of landlords and letting agents can be so aligned that it makes sense for the two sectors to work together for the greater good of the rental market. By cooperating with each other, landlords and agents can improve transparency, enhance confidence, and better represent the concerns of the rental market, at a time when renting is gradually winning back share from home ownership in the property market. The UK Association of Letting Agents (UKALA) represents the interests of letting and management agents across the UK. As well as giving agents greater access to landlords and tenants, it also provides general support to agents, including a wide range of services, such as professional courses, EPCs, Inventories and an online buy-to-let mortgage search facility. Most agents join the UK Association of Letting Agents primarily for the marketing support it offers. The logo and brand of the UK Association of Letting Agents can help provide peace of mind for landlords and tenants, and the Association promotes its brand heavily, with distinctive branded wall posters, business cards, and window stickers, as well as publishing guides for both landlords and tenants. This marketing support helps to instil confidence in landlords and tenants, and can prove a real boon in helping agents generate new business at a time of economic uncertainty. To encourage members of UKALA to uphold the highest professional standards, all prospective members must agree to observe a code of practice based on the Code of Practice for Residential Letting Agents published by The Property Ombudsman. Members must ensure transparency in their terms of business, fee structure and contracts, manage data responsibly, keep clear and concise written records, and operate a clear and accessible in-house complaints process. And of course, they must always act in good
40 UKLANDLORD september/october 2011
faith towards landlords, tenants and other third parties, and handle all client money responsibly and in accordance with the appropriate laws, professional standards and norms. Members also qualify for preferential rates for membership and deposit protection with my|deposits, one of the governmentapproved tenancy deposit protection schemes. Landlords and agents – two sides of the same coin But what really sets the UK Association of Letting Agents apart from other similar bodies is its relationship with the NLA. In March of this year, the two organisations signed a business agreement which has seen them work more closely together, to the mutual benefit of both landlords and agents. David Salusbury, Executive Chairman of the NLA, sees the relationship as “an excellent opportunity to create a more unified voice for landlords, tenants and letting agents across the private-rented sector. Landlords and agents represent two sides of the same coin and this mutually beneficial business agreement will benefit both as we strive for higher standards of practice.”
Online marketing forms a major part of the agreement. Thanks to the new, deeper relationship, members of the UK Association of Letting Agents can promote their business on the NLA website, and all member products, such as marketing materials for letting agents, are now available for sale on the website. A full directory of member letting agents is also now available on the NLA website, accompanied by an interactive map that facilitates the search process. Away from the Internet, members of the UK Association of Letting Agents will also benefit from the same discounted rates as NLA members for the familiar portfolio of NLA services, including tenant checks and rent guarantee insurance. The relationship between the two bodies is likely to help raise standards in the sector. The NLA and UKALA are working together to address a range of issues of concern to both bodies. The two organisations are in regular contact with public policy makers, locally, nationally, and even on a European level. The housing market, and the rental sector’s future role in the housing market, has become a priority economic and social issue at all levels of government. The two industry organisations say that because of the increased political sensitivity of housing issues, it is essential to provide strong representation for the interests of landlords and agents. n
For more information about the UK Association of Letting Agents, see www.ukala.org.uk Your feedback If you want to comment on this story, please go to www.landlords. org.uk/news-campaigns/uk-landlordmagazine
UKALA: A new light for Letting Agents GENERATE Leads Income Profit
REAL Value Benefits Opportunities
BUSINESS Support Advice Representation
In an expanding private-rented sector, both landlords and tenants increasingly seek a letting agent that offers both quality of service and peace of mind. UKALA is dedicated to representing the interests of letting and management agents in the UK, whilst also safeguarding the interests of both landlords and tenants.
www.ukala.org.uk
JOIN US & BECOME A
UKALA LETTING AGENT for landlords and tenants
Course Dates UKALA has a programme of voluntary courses for anyone wishing to update their knowledge in any area. To book, call Charlotte Clements on 0207 840 8920
London Understanding Lettings Wednesday, 5th October – A basic Introduction to the Law Possession of my Property
Wednesday, 26th October
Understanding Inventories Wednesday, 2nd November & Handling deposits disputes What is Block Management?
Wednesday, 30th November
Birmingham Understanding Lettings – A basic Introduction to the Law Tuesday, 11th October Possession of my Property
Thursday, 20th October
Understanding Inventories Tuesday, 8th November & Handling deposits disputes What is Block Management?
Wednesday, 23rd November
Understanding Lettings – A basic Introduction to the Law Ideal for the newcomer as well as the administrators and office based staff – A good overview of lettings from the appraisal to ending a contract. What is Block Management? Being a letting agent can easily lead to being a block manager, but there are a lot of laws and legislation required to fully understand the job – from getting instructed to ongoing responsibilities. I want possession of my property This course covers accelerated possession proceedings for an Assured shorthold Tenancy and gaining possession for a breach of contract during a fixed term contract – from filling out the paperwork needed to gain possession to enforcing the possession using the bailiff. There is also a final part for those who have gained possession because of rent arrears and shows the next step to recover the arrears via the courts. Understanding inventories and handling deposit disputes The 2004 Housing Act introduced the compulsory use of deposits schemes and with that the need for inventories. This course covers the correct way to write the inventory as well as the need for check in’s, check out’s and regular periodic visits to reduce the chances of a dispute arising at the end, but if a dispute does arise, what’s the best way to handle it?
UKALA in association with The National Landlords Association: www.landlords.org.uk
PUBLIC AFFAIRS
Public Affairs Diary Chris Norris, NLA Policy Manager STARTING UP
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PROPERTY
TENANCY
SAFETY
FINANCE
Aside from the first summer recall of Parliament in nine years, the break provided by recess has given the NLA plenty of opportunity to feed into the policy development process on issues far and wide. It is difficult to identify the most pressing issue facing landlords at the moment, since there appear to be so many. However, the impending EU Mortgage Directive must be fairly high on the list. The NLA has always adopted a fairly balanced position so far as financial regulation is concerned, as regulating buy-to-let (BTL) would no doubt affect different landlords in different ways. Nevertheless, it came as somewhat of a relief when the FSA and HM Treasury accepted that new regulation would likely do more harm than good last year. Unfortunately, the EU has
different views. Not wishing to jump onto the euro-sceptic bandwagon, I should point out that there are perfectly reasonable wider justifications for the Directive. It is also true that the UK’s BTL market is not entirely replicated in other European states meaning that, should these proposals become law, the impact could be quite different from other countries. Supporters of the measures argue that the requirements will at worst increase the cost of lending very slightly, an impact which will be offset by the protection provided. The problem is that a
significant proportion of lending in the UK PRS is provided by niche BTL specialists. These specialists are the companies prepared to be more flexible in their lending criteria. They are the ones which allow landlords to accept LHA recipients, lend against shared housing and are in a position to work proactively with portfolio landlords. These specialists, largely, fall outside of the current regulatory regime in Britain and will therefore either need to entirely revolutionise their business models or exit the market once and for all if the draft Directive is unchanged.
The NLA believes that the BTL market is not currently strong, or resilient enough to withstand the potential impact of this type of interference and is calling on the institutions of the EU to recognise the individual impact that additional regulation could have and to exclude BTL from the Directive altogether. n
More weapons to combat anti-social behaviour Given the widespread anti-social movement which seemed to grip towns and cities throughout the nation in August, it is perhaps no surprise that proposals to give landlords in England more powers to combat residential ASB went widely unnoticed. Any landlord who has ever had to contend with anti-social tenants (and according the most recent NLA research 21 per cent have in the last year), will know that regaining possession can be difficult. Discretionary ‘Ground 14’ is intended to offer a means to end tenancies based
on ASB but the requirement to amass evidence, usually from the very people being intimidated by the perpetrator, is often a barrier to success. The easiest option for many landlords is simply to wait until the end of the fixed term and use the section 21 route. However, the proposed new process is intended mainly for use by social landlords – who crucially do not have recourse to section 21 – but would be open to private landlords also, providing a valuable additional weapon in the fight against serious housing-related ASB. If approved, the new
power will provide for mandatory possession and be linked to a new suite of ASB powers. It will be based on certain ‘triggers’ initially described as: - Conviction for a serious housing related offence - Breach of an injunction for ASB - Closure of premises under a closure order. According to the proposal paper, this reliance on previous legal action will reduce the need to evidence poor behaviour and will significantly reduce the time taken to obtain possession. n
TDP makes headlines North and South of the Border Despite having been around for a few years, tenancy deposit protection (TDP) can still cause controversy at times. Particularly where money is concerned. Dudley South MP, Chris Kelly (Conservative), proved this point recently by highlighting the cost to Government of underwriting a custodial scheme in England and Wales when he tabled questions in Parliament asking what the Government’s liability was to support DPS, the Deposit
42 UKLANDLORD september/october 2011
Protection Service. Minister of State, Grant Shapps MP, seemed only too happy to reply that under the original terms, agreed by his predecessors, the taxpayer would have been liable for a shortfall estimated to reach £30m by 2012. He went on to explain that the Coalition had upon taking office renegotiated terms, extending the contract for four years and ending Government liability with a payment of £12.7m last summer.
Given the financial cost to the Exchequer this has led many to ask why the Scottish Government ignored the advice of many, including the NLA, to allow self-funding insurance-based schemes to operate in Scotland. Instead they have opted to enact legislation limiting scheme providers to a custodial scheme. n
PUBLIC AFFAIRS STARTING UP
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PROPERTY
TENANCY
SAFETY
FINANCE
UIPI update Energy efficiency continues to be a preoccupation for the EU, and the European Commission published its proposal for a new Energy Efficiency Directive in June. The proposed Directive is very broad in scope and would affect consumers, suppliers and energy generators. The UIPI has been working together with a coalition of European organisations including the European Landowners’ Organization, the European Property Federation, the European Group of Valuers’ Associations, the Union of European Historic Houses Associations and the European Union of Developers and House Builders (UEPC) to come to a joint position on the proposed Directive. This
has taken a lot of effort but a common position from these organisations will be much more powerful than a single voice. Water The UIPI is concerned about some of the EU’s ideas about how to create greater water efficiency for buildings. In particular, it will lobby hard to avoid the creation of any type of Water Performance Certificate. NLA Policy Officer David Cox says: “When you look at the failure of
Energy Performance Certificates to improve energy efficiency, we see re-creating a failed policy to be a total waste of time.” The UIPI believes the role of the landlord should be limited to making water efficiency improvements alone (and financial incentives could help), but that responsibility for actual water consumption must sit entirely with the tenant. The UIPI will suggest that education and information campaigns for tenants will help
the EU and its member states achieve their goals. BTL mortgages There is also work going on by the UIPI relating to new proposed EU rules on Mortgages, the proposal for a Credit Agreement Related to Residential Property Directive. For more information, see Chris Norris’ Public Affairs Diary on page 42. n
UKLANDLORD september/october 2011 43
Q&A WITH RICHARD PRICE
How criminal law can affect landlords As part of our special Legal Compliance theme, NLA Director of Operations Richard Price answers questions on what landlords need to know about the criminal law system. STARTING UP
REGULATORY
Q: What should landlords know about Criminal Law? Richard Price: The Criminal Law system is separate to the Civil Law system. It involves the state prosecuting a person alleged to have committed a criminal offence. The prosecution is therefore conducted on behalf of society as a whole and not by an individual. A private prosecution can be brought by an individual citizen but this is comparatively rare. In England, most criminal cases are brought by the Crown Prosecution Service on behalf of the police, but other organisations can also bring prosecutions. Most housing-related prosecutions are brought by local authorities (for example, for harassment or breaches of the licensing regulations). However breaches of the gas regulations will be prosecuted by the Health and Safety Executive, and the product safety regulations by Trading Standards Offices. In criminal cases, actions are brought against a defendant, by the prosecution, generally on behalf of the Queen. This is why the legal title of the cases will give the Latin for queen, ‘Regina’, generally shortened to ‘R’.
Q: What courts are used to try criminal cases? RP: The normal courts used are the Magistrates Court or, for the more serious cases, the Crown Court. Criminal offences can be indictable offences, summary offences or offences ‘triable either way’. Indictable offences are more serious and must be tried by a judge and jury, summary offences are less serious offences which can be tried by magistrates. An offence ‘triable either way’ means that the accused has the choice of a hearing before a magistrates court or a trial at Crown Court with a jury. While the legal standard in a civil case is decided on the balance of probabilities, in a criminal case – whether it is before a magistrate’s court or a crown court – it is ‘beyond reasonable doubt’. Thus, if someone is charged with a criminal offence and the court is not sure, he or she must be acquitted.
44 UKLANDLORD september/october 2011
PROPERTY
TENANCY
Q: What are the most common examples of criminal offences by landlords? RP: Unlawful eviction under the Housing Act 1988 comes up frequently. Cases include landlords issuing malicious threats and harassment, such as having their belongings removed from the property and being wrongly accused of illegal activities. There are also unfortunate cases where tenants have not been paying rent and are evicted unlawfully by their landlord. In one case, a landlord found guilty of unlawful eviction under Section 27 and 28 of the Housing Act 1988, had to pay the tenant £36,500 in damages. The tenant had fallen into rent arrears, and the landlord, with assistance from his letting agent, unlawfully evicted the tenant.
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a Stipendiary Magistrate. The Sheriff Court is the next step up from the District Court. There are two forms of criminal procedure in the Sheriff Court, namely: summary procedure, for less serious crimes, and solemn procedure, for more serious offences. When solemn procedure is adopted, the case is heard by a Sheriff together with a jury which, in Scotland, comprises fifteen members of the general public. There are three possible verdicts in Scotland: guilty, not guilty, and not proven. The High Court of Justiciary in Scotland is the supreme criminal court in Scotland. There is no right of appeal from the High Court of Justiciary to the UK Supreme Court. n
Q: What happens if a landlord is accused of a criminal offence? RP: I would strongly urge the landlord to seek professional legal advice. If you are convicted, the outcome can be a criminal record together with a fine and/or a number of other possible penalties, such as a community service order. A criminal record may affect landlords’ eligibility for the ‘fit and proper’ person test for HMO licences and selective licensing schemes in England and Wales and Landlord Registration in Scotland. If it is a very serious offence, the result could be loss of liberty – imprisonment.
Q: What are the main differences of the Scottish legal system in handling criminal cases? RP: In Scotland, there are three courts which have the right to hear criminal cases: the District Court; the Sheriff Court; and the High Court of Justiciary. The District Court is the lowest court in terms of the importance of cases which are tried before it, with very local jurisdiction. The judge is either a Justice of the Peace, who is not legally qualified, or
For more information: NLA Landlord Library: www.landlords.org.uk/library/ regulatory-regime/criminal-law If you have a complaint about a legal professional, see the NLA Landlord Library for more information.
UKLANDLORD september/october 2011 45
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
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
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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. Alternatively, you can telephone the main NLA switch board during office hours on 020 7840 8900.
Hamilton Fraser Insurance is the NLA’s preferred insurance partner having worked closely with the NLA since 1996. Services provided to NLA Members include NLA Property Insurance, Tax Investigation Insurance (a free member benefit) and most recently Professional Indemnity Insurance to UKALA accredited letting agents. Hamilton Fraser are also our partners and scheme administrators for the successful Tenancy Deposit Protection Scheme, my|deposits.
46 UKLANDLORD september/october 2011
UKLANDLORD september/october 2011 47
NLA RECOGNISED SUPPLIERs
For an up-to-date list of NLA Recognised Suppliers, visit www.landlords.org.uk
Suppliers You Can Trust For more information about the Recognised Supplier Scheme, email: recognisedsupplier@landlords.org.uk or telephone 020 7840 8921 STARTING UP
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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? Once a supplier is approved we regularly assess how many landlords are using the services and deal with any issues that arise. We provide regular reporting and ongoing support throughout the relationship term. Members can contact us with 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.
48 UKLANDLORD september/october 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 of NLA Recognised Suppliers, 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.
Glide Tel: 0333 666 5555 glide@glide.uk.com www.glide.uk.com With Glide you can cut your admin, fix tariffs to control costs and offer bills-inclusive rents to attract more tenants. One itemised monthly bill for all of your services, properties and tenants. Or ask Glide to bill individual tenants directly and pay you commissions for the referrals. Join Glide today.
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 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 september/october 2011 49
NLA RECOGNISED SUPPLIERs
For an up-to-date list of NLA Recognised Suppliers, visit www.landlords.org.uk
Mattressman Tel: 0800 567 7625 Email: barryford@mattressman.co.uk www.mattressman.co.uk Mattressman is one of the UK’s leading suppliers of mattresses, bed frames & divans, offering landlords a comprehensive range of products at low prices. We hold over 8000 products in stock including bedroom furniture & accessories all ready for next day delivery to the entire UK. Further discounts available for NLA members.
Property Owners Directory Tel 020 7722 4334 Fax 020 7722 5335 info@propertyownersdirectory.com www.propertyownersdirectory.com POD is the UK’s leading online recommended tradesmen and property services directory. NLA members are entitled to a 15% discount for a site listing, and can claim a £20 cashback for recommending reliable tradesmen who sign up for a paid listing.
Property Portfolio Software Tel 01925 398 599 enquiries@propertyportfoliosoftware.co.uk www.propertyportfoliosoftware.co.uk Property Portfolio Software provides solutions to help landlords get better organised when managing multiple properties. Our software solutions are designed by landlords for landlords and are guaranteed to save you time, money and effort in running all aspects of your property business. NLA members can claim a 15% discount.
Santander Tel 0800 068 6698 business.development@santander.co.uk www.santander.co.uk/landlord
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, referencing and rent collection. NLA members save 10% (£89.10 + VAT, normally £99) on a basic listing.
Wake Smith Solicitors Tel: 0114 266 6660 (Ask for Nick Lambert) landlords@wake-smith.com www.wake-smith.com
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.
Wake Smith 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 15% discount off fees.
Seddons Solicitors Tel 020 7725 8000 enquiries@seddons.co.uk www.seddons.co.uk
Suppliers You Can Trust
Our specialist Property Dispute Resolution team advises landlords on all tenancy problems including rent arrears, squatters and the recovery of possession. Also commercial and residential property practice with teams for secured lending, commercial contracts and employment issues. Seddons offer NLA members a 15% discount on its usual fees for landlord and tenant disputes. An estimate of fees will be provided at the outset.
Sky Communal Solutions Tel: 0844 241 0331 no-reply@skyhomes.co.uk www.sky.com/managers Sky Communal Solutions (part of BSkyB group) equips private blocks of flats with high-quality digital TV. Our communal TV solutions are Shared Dish and Integrated Reception System (IRS). They will give all your residents a wide range of great digital TV options. For a free estimate, visit www.sky.com/managers.
50 UKLANDLORD september/october 2011
For more information about the Recognised Supplier Scheme, email: recognisedsupplier@landlords.org.uk or telephone 020 7840 8921
NLA PARTNER NEWS STARTING UP REGULATORY PROPERTY NEWS NLA Property Insurance: Tailor-Made for Landlords
SAFETY
FINANCE
Students and deposit protection It’s that time of year again – students are heading back to university across the UK. Tenancy deposit protection laws are the same in England and Wales, regardless of whether your tenants are students or not, but often students need a bit of extra guidance as this may be the first time they have entered into a rental agreement. my|deposits recommends NLA members take the time to explain to student tenants how deposit protection works. There is a wealth of information on the my|deposits website, with special sections for student landlords and student tenants. Prepare a proper inventory before they move into the property and ensure both parties agree with what is on there. Ensure you hand over the deposit protection certificate and a copy of the Tenant’s Guide once the deposit is protected. Stay in touch with them during the tenancy, and then arrange a check out inspection of the property when they
leave and come to an agreement over the deposit return – these are the best ways to avoid a dispute. With my|deposits, landlords control the deposit money during the tenancy, and when the tenant moves out, the landlord deals directly with the tenant to return the deposit rather than applying to have the money released from a custodial scheme.n For more information see www.mydeposits.co.uk
UKLANDLORD september/october 2011 51
NLA RECOGNISED SUPPLIER PROFILE
Glide
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
Glide: One itemised monthly bill – simple!
Glide takes away the utilities nightmare for landlords, with one itemised monthly bill for all your services and properties. Or ask Glide to bill individual tenants directly in return for commissions. Clockwise from front right: Glide founders James Villareal and Sandeep Krishan, with adviser Stephen Bishop and chairman Charles Cattaneo.
Glide bundles all the services tenants need then provides landlords with one itemised monthly bill for all utilities and properties. Alternatively landlords can ask Glide to bill individual tenants directly and pay back commissions for the referrals. This enables NLA members and other landlords to cut their admin, fix tariffs to control costs and offer bills-inclusive rents to attract more tenants. Landlords can add properties, services and tenants, submit readings, monitor bills, track referrals and manage their account online 24 hours a day, 365 days a year. Or they can just call their account manager who will always be happy to help.
Glide has 15,000 customers across the UK including landlords, letting agents and property investors ranging from those with a single property to pension funds with large property portfolios. Glide’s landlord package Glide offers two very distinct ways of working: for those owning a thousand sites to those with just a single property. Multisite Helps you offer rents inclusive of bills • Avoid tenant disputes • Get billed for all your properties on one simple bill
• Deal directly with your dedicated account manager • Add and manage your portfolio online 24/7 Referral • You make commissions on your referrals to your tenants • Track all your referrals online • You can make sure all your tenants join Glide • Glide bills your tenants directly Glide provides all the services tenants need, including: • Gas and electricity • Water and sewerage • Telephone • Unlimited broadband • TV licence Contact Glide today for further information and to find out how you can make more money. n
For more information visit: www.glide.uk.com or call 0333 666 5555
52 UKLANDLORD september/october 2011
UKLANDLORD JULY/AUGUST 2011 53
MORTGAGE MARKET ROUNDUP STARTING UP
REGULATORY
PROPERTY
TENANCY
SAFETY
FINANCE
Rental demand buoys mortgage market According to latest figures from the Council of Mortgage Lenders (CML), mortgage lending totalled an estimated £12.6bn in June. This represented a 16 per cent increase from the £10.8bn lent in May but was 3 per cent lower than June 2010. CML chief economist Bob Pannell said “landlord activity appears to have picked up recently and, with evidence of strong rental demand, this should help to underpin activity over the coming months.” Reflecting this trend, the BTL market is seeing a surge in activity, with new entrants coming to the sector and some lenders now returning. According to Moneyfacts, the number of BTL products has increased to its highest point since September 2008. Gareth Lowman of Savills Private Finance says that “this increased competition in conjunction with money pricing, i.e. lower Swap rates, has resulted in keener, lower pricing for BTL mortgages. Not only that, lender criteria have started to loosen, all of which makes sweet music for landlords.” NLA Mortgages has recently compiled its latest Property Investor Profile tracking trends in the buy-to-let mortgage market. “Highlights include a drop in the average buy-to-let mortgage rate chosen by landlords during Q2 2011, which has gone down to 4.82 per cent for fixed rates and 4.02 per cent for variable rates,” says Managing Director Paul Rockett. “This reflects growing speculation that the Bank of England base rate is likely to remain at its historical low for some time to come, with some predicting that it won’t rise until 2012 at the earliest.”
At the same time NLA Mortgages has seen an increase in the proportion of landlords opting for tracker rates (59 per cent of applications received), and there are certainly some attractive deals to choose from. For professional landlords, Paragon’s 4.90 per cent 2 year tracker up to 75 per cent LTV with a 2.25 per cent completion fee was one of the most popular products applied for during July. New entrants, looser criteria New entrants are continuing to increase their exposure to the BTL market. The latest to join the fray is Accord, which launched the pilot of their first BTL range in August. During the pilot, availability has been limited, but eventually the range will be rolled out to the London and South East region. Accord’s two-year fixed rates are 4.29 per cent and 4.59 per cent for 65 per cent and 75 per cent LTV respectively. “Despite the growing popularity of variable rates, there are still a significant proportion of landlords choosing to fix their costs (41 per cent), especially over the short term,” Paul Rockett told UK Landlord. “Fixing for a period of two years appears to be preferable and there is currently an excellent choice of rates available.” Hinckley & Rugby Building Society launched two new discounted rates in July which are available to landlords directly via NLA Mortgages from a limited tranche of funds. For those looking to borrow more, Saffron Building Society launched two highly competitive products in July available up to
Best Sellers NLA Mortgages’ most popular products in July/August were: • 3.74 per cent 2 year discount with Hinckley and Rugby Building Society up to 75 per cent LTV with £1999 completion fee. • 4.90 per cent 2 year tracker with Paragon Mortgages up to 75 per cent LTV with 2.25 per cent completion fee. • 4.69 per cent 2 year fixed with BM Solutions up to 75 per cent LTV, with 0.5 per cent completion fee and £999 cash back. • 5.30 per cent 2 year fixed with Paragon Mortgages up to 65 per cent LTV with a 2 per cent arrangement fee.
80 per cent LTV. Again, these products are available directly to landlords via NLA Mortgages. There is a 4.99 per cent 2 year discounted rate with a £2995 fee and a 5.49 per cent fixed rate until 31/01/2014 with a 2.5 per cent fee. Both products have a free valuation up to £500 and free legals for remortgages. Meanwhile, Aldermore have relaxed their lending criteria. They will now accept first-time landlords, and have increased the maximum age of borrowers to 85. For its part, TMW have said they will now accept new build properties; until now, TMW were the largest and most significant BTL lender not to entertain new builds at all.
And, Woolwich have reduced BTL rates and introduced flat fees (£1999). The rental coverage required for the Term Tracker has been reduced from 135 per cent to 125 per cent but now a notional 4.99 per cent rate is used. “The demand in BTL is expected to continue growing given the lending constraints that continue to be experienced by borrowers,” Gareth Lowman says. “Supply will grow as more lenders enter into the market given that residential lending targets are not currently being met. Brokers and investors alike await Santander’s offering due later this year.” n
For rate details or to make an application, visit the NLA Mortgages website now: www.landlords.org.uk/mortgages
54 UKLANDLORD september/october 2011
MORTGAGE MARKET ROUNDUP STARTING UP
REGULATORY
PROPERTY
TENANCY
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FINANCE
Landlords’ favourite lenders revealed Mortgage Express and BM Solutions (Birmingham Midshires) are the most popular lenders for stock buy-to-let mortgages (37 per cent and 33 per cent share respectively), according to the Q2 2011 Landlords Panel study from BDRC Continental, undertaken in partnership with the NLA. TMW claim a quarter market share with Paragon positioned 4th overall with a 15 per cent share. Of course, the interest rate plays a crucial role in lender choice, with 44 per cent citing this as the reason for choosing a lender, but so do a wide range of other factors, including the advice of a mortgage intermediary (40 per cent), the lending criteria (38 per cent) and a previous
experience of borrowing from the lender in question (29 per cent). Presented with two potential mortgage rate increase scenarios, few landlords feel completely insulated from the impact. A one per cent increase will have at least a significant negative impact for 29 per cent. A two per cent rise would create a significant impact for 53 per cent, including 8 per cent being forced to re-evaluate their future as a landlord, and 6 per cent having to reduce the size of their portfolio or leave the PRS completely. David Salusbury, NLA Executive Chairman, commented: “These statistics show how important it is for a landlord expanding their
portfolio to construct a sound long-term business plan when considering buy-to-let properties. The NLA believes that such properties can be a worthwhile investment and can help ease the current housing crisis by
providing a source of muchneeded housing, but landlords should ensure that they plan for the future and are mindful of any potential increases in buy-to-let interest rates.” n
UKLANDLORD september/october 2011 55
HOUSE PRICES AND LETTINGS SURVEYS STARTING UP
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House Prices House prices remain sluggish House price indices at a glance Index Month Price movement Average house price (England & Wales) CLG
June
+0.6
£204,981
Land Registry
June
0.0
£161,479
Halifax
July
+0.3
£163,981
Nationwide
July
+0.2
£168,731
LSL Acadametrics July
-0.1
£217,300
The latest house price index from Communities and Local Government (CLG) records that in June 2011 UK house prices decreased by 2 per cent over the year but increased by 0.6 per cent over the month (seasonally adjusted). The average mix-adjusted UK house price was £204,981 (not seasonally adjusted). Average house prices were 0.5 per cent lower over the quarter to June, unchanged from the quarter to March (seasonally adjusted). • The Land Registry reported that prices were unchanged in June, representing an annual price fall of 2.5 per cent. According to the Land Registry, the average house price is now £161,479. • The Halifax house price index reported that house prices rose by 0.3 per cent in July, but fell by 0.6 per cent in the first quarter of 2011. “House prices in the three months to July were 0.5 per cent higher than in the previous three months. This was the first increase in this key measure of underlying price movements for 14 months. Prices rose for the third consecutive month, increasing by 0.3 per cent in July,” said Halifax housing economist Martin Ellis. “Overall, there has been little change in
either the level of house sales or the number of properties on the market for sale since late 2010. These steady market conditions have helped to stabilise house prices in 2011 following last year’s modest decline. This pattern is expected to continue over the rest of the year with little genuine direction in either house prices or sales. Sustained low interest rates and a slowly improving economy should help to support demand in the face of pressures from weak earnings growth, relatively high inflation and higher taxes.” The average house price is now £163,981. • House prices rose by 0.2 per cent in July, according to Nationwide. This means that house prices are 0.4 per cent lower than they were one year ago, and the price of an average house now stands at £168,731 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 0.3 per cent, little changed from the 0.4 per cent rate recorded in the previous months. Nationwide’s Chief Economist Robert Gardner said that a fundamental move away from owner-occupancy and towards renting could be taking place. Citing the English Housing Survey (for more information see
56 UKLANDLORD september/october 2011
page 16), he said that “people are increasingly recognising that they are going to have to work for longer before they are able to retire, so delaying their first steps into the property market may also make sense. The improved quality of the private rental stock is also likely to have made private renting a more appealing option.” • House prices in England and Wales fell by 0.1 per cent in July, according to the LSL Acadametrics house price index, with the average price of a home in England & Wales now £217,300, 2.6 per cent lower than in July 2010. UK trends Average prices decreased during the year in all UK countries; England (-1.8 per cent), Wales (-5.6 per cent), Scotland (-2.3 per cent) and Northern Ireland (-8.1 per cent), according to CLG. Average house prices decreased in eight of the nine English regions over the year to June 2011. The largest decrease was in the North West (-5.1 per cent) while the smallest was in
the East (-0.2 per cent). London registered an annual house price increase (1.5 per cent). Over the month to June there were average price rises in seven regions, ranging from 0.1 per cent in the West Midlands to 1.6 per cent in London. There were average monthly price falls of -0.5 per cent in Yorkshire and the Humber and -1.4 per cent in the North West. According to CLG, average mix-adjusted house prices in June stood at £212,508 in England, £144,396 in Northern Ireland, £162,363 in Scotland and £145,281 in Wales. London remains the English region with the highest average house price (£340,664). The North East has the lowest average price at £134,194. In England, southern regions including the East of England, London, the South East and South West all had average prices above the UK average in June. Excluding London and the South East, the average UK price in June was £169,044, a decrease of 3.1 per cent over the year. n
Regional house price indices 12-month percentage change for the latest month
Source DCLG
UKLANDLORD JULY/AUGUST 2011 61
HOUSE PRICES AND LETTINGS SURVEYS STARTING UP
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FINANCE
Landlords say rents are rising Almost one half of landlords report that rents are rising in their locality, and the situation is stable in a third of cases, according to the Q2 2011 Landlords Panel study from BDRC Continental, undertaken in partnership with the NLA. The survey concluded that in absolute terms, rental increases have edged down from 4.7 per cent to 3.9 per cent. Similarly the rate of absolute rental reduction has fallen from to 5.3 per cent from 4.6 per cent. Predicted tenant demand has improved on the Q1 situation (net increase of 8 per cent). Over 1 in 10 forecast a significant increase in demand in their area of operation, only 4 per cent see
reduced demand as a possibility. Rental yields have increased from 6.2 per cent (Q1) to 6.6 per cent in Q2. Portfolio landlords achieve a higher return (7.7 per cent) and indicatively landlords active in Wales and areas of eastern England are also generating higher than average yields. Year on year, landlords are increasingly optimistic about the private rental sector, with 54 per cent rating the prospects as good or very good. They remain much less enthusiastic about portfolio capital gains and the UK’s financial market in general. However, the survey did find that LHA cuts present landlords, and consequently tenants, in
that area of the market with a number of serious challenges. One in 4 landlords are already taking active steps to reduce the number of LHA tenancies, and 15 per cent claim they will leave this segment of the PRS completely.
Arrears rates have stabilised at 51 per cent, and the absolute value of outstanding rental has decreased slightly to £2,740 on average. n
Student rents continue to rise Latest research by accommodationforstudents. com, the student accommodation website, shows an increase of 3 per cent for average weekly student rents, compared to last year. Average weekly student rents now stand at £67.11, and rents can vary considerably depending on location. London leads the way with £108.03 as the average weekly rent for students, up 5 per cent on last year. Exeter is now the second-most expensive city for students in the UK, and several cities have seen doubledigit increases: Leamington Spa, Newcastle-under-Lyme, Sunderland, Manchester and Bangor. Based on a survey of nearly 86,000 properties in 78 cities across the UK, the research shows there have been some significant moves in the rent league table over the past year, with several cities showing 10
per cent+ increases on last year. Leamington Spa (Warwick University) has seen its average student weekly rent rise 16 per cent, from £60.24 to £70.47. Newcastle-under-Lyme (Keele University) and Sunderland have seen 13 per cent increases, to current weekly rents of £64.65 and £61.05 respectively. Largest campuses have seen significant rises. Manchester, which has the UK’s largest student population, has experienced a 12 per cent increase from last year, from
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£58.58 to £67.04. Other movers are Bangor, up 11 per cent, and Stoke-on-Trent, Cheltenham and Exeter up 9 per cent, the latter now being the second most expensive place after London to rent accommodation in the UK, at £94.61. Other cities that have seen an increase more than double the national average of 3 per cent include Edinburgh, 8 per cent, Bournemouth, Coventry and Bolton, all 7 per cent, and Cardiff, York, Reading, Crewe and Stafford, 6 per cent.
Simon Thompson, co-founder and director of Accommodation for Students, said: “The rent increases for some cities reflect two key factors. One is the changing nature of accommodation coming on the market. The trend is for hi-spec, better quality student accommodation, and some locations are leading the way in this area. The other key factor is the popularity/desirability of attending some universities that puts pressure on the accommodation available and hence, the charging of higher rents. Universities like Exeter, Warwick (Leamington Spa), Edinburgh and, more recently, Manchester, would come into this category, as have, in the past, Newcastle, Bristol and Durham. ” For more information about accomodationforstudents.com, please see the NLA Recognised Supplier pages 48-50. n
UKLANDLORD JULY/AUGUST 2011 59
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 Executive Chairman Chief Executive Officer (designate) Executive Assistant
Geoffrey Cutting David Salusbury Richard Lambert (w.e.f. 1/10/2011) Steven Powers
Policy Policy Manager Public Affairs Officer Policy Officer
Chris Norris Vincenzo Rampulla David Cox
Media Media Relations Manager Press Officer
Lucy Cheeseman Dane Svenson
Editor UK Landlord
Andy Stern
Managing Editor UK Landlord
Louise Gale
Marketing & Sales Head of Marketing & Sales Marketing Manager Affinity Marketing Manager Marketing Executive
Paul Berwick James Acreman Claire Mansell . Lucy Salter
Marketing Executive Membership
Sai Mehta
Marketing Executive my|deposits
James Royston
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 & Administration Director of Finance and Company Secretary
Patrick Jacobs
Membership Manager
Pauline Wilson
Membership Administrator
Dean Johnson
Membership Administrator
Vicky Little
Membership Administrator
Shabana Khan
Accounts Manager
Ian Wilcox
Book-keeper
Janet McCarthy
HR Executive
Christine Williams
Systems Head of Systems IT Consultant
Richard Marston 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
60 UKLANDLORD september/october 2011
Regions Head of Regions Regions Coordinator Regions Support Officer
Ken Staunton Sally Thorn Lyra Haldane
England East of England Regional Representative Lynsey Sweales Local Representative (Bedfordshire, Cambridgeshire, Essex & Hertfordshire) James Fraser East Midlands Local Representative (Derbyshire & Nottinghamshire) Vacant Local Representative (Northamptonshire) John Socha Local Representative (Nottingham, Derby, Lincoln and Gratham) Raj Beri 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 Local Representative (Bristol & Bath area) Jacqui Darbyshire Local Representative (Gloucestershire) Paul White West Midlands Local Representative (Staffordshire, Warwickshire & West Midlands) Mary Latham Local Representative (Shropshire & North Wales) Julie Woolfenden Local Representative (Wolverhampton & Coventry) Vacant 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
PROPERTY FOR SALE Doncaster DN1
Clapham SW4
Cheshire
RUDHEATH, NORTHWICH CW9 7ET Ferndale Road • £825,000 • Victorian terrace house 2,900sqft • Requires complete refurbishment • Period features throughout • 6 double bedrooms • 4 reception rooms • 2 bath, 2 shower rooms • 2 kitchens • Garden • Development opportunity Planning permission for FOUR spacious apartments (2x2Bed, 2x1Bed) Email: jonathan.piercy@ukgateway.net
South Yorkshire INVESTMENT OPPORTUNITY OF 7 STUDIO APARTMENTS FOR SALE. 12% YIELD Recently refurbished 3-storey, end of terrace property for sale. Within walking distance of town centre and train station, in established residential area. • 7 fully let studio apartments on ASTs • £75-£115 rental yield per unit per week inclusive • Fully licensed HMO with DMBC • Recent high spec refurbishment • Managed by reputable management company • £290,000 ovno
INVESTMENT OPPORTUNITY – BLOCK OF 4 SELF-CONTAINED APARTMENTS BUILT 2007. • £425,000 ovno Each apartment comprising: • Open plan fitted kitchen and lounge • 2 Bedrooms • Bathroom • Gas Central Heating • Economical Running Costs • Private Parking • Security System • Open Views • All tenanted on Assured Shorthold Tenancies Tel: 01606 836648 or 07711075660
Property For Sale Adverts can be booked for as little as £40 (£50 for non-members). For more details call 0117 330 8370
Tel: Paul Rothwell (Empire property Concepts) 01302 564263/07976 969 236
UKLANDLORD september/october 2011 61
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
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COSTS: TRADE ADVERTISING 3 issues Black Colour
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62 UKLANDLORD september/october 2011
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products and SERVICES directory LETTING AGENTS
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PLUMBING, HEATING & GAS
LANDLORD SOFTWARE
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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
UKLANDLORD september/october 2011 63
nla member viewpoints STARTING UP
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Landlord Views: Rob Beale “I have four, 2-bedroomed houses all in Gillingham, Dorset, and I also intend to buy more properties when prices drop, and when I have the funds! Generally most of our tenants past and present are nice people and I am proud to rent decent and affordable property to them. At the same time, they are paying off my mortgages. The main problem I have encountered in the market is when renting to tenants receiving benefits. I really
Rob Beale, five-year member
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think the rent should be paid to the landlord direct from day one, and not when the rent is eight weeks in arrears. Having had a recent bad experience, unfortunately I won’t be taking on any more tenants receiving benefits unless things change. I am also Managing Director of a small company that I founded 25 years ago. The company hires toilets and other equipment to the construction & events industry, as well as
operating five vacuum tankers mainly for the emptying of septic tanks. We cover a wide area from our base on the Dorset / Wiltshire border using a fleet of 10 modern vehicles. I joined the NLA to get the resources I needed so that I could manage my properties without using an agent. The primary benefit of being a 5-year member of the NLA is that membership is cheaper, and it also removes the hassle of renewing membership so often.”n
* Membership fee is tax deductable against letting income
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64 UKLANDLORD september/october 2011
Save £10 on Direct Debit**
**To join via Direct Debit call the membership team at 020 7840 8937
To join the NLA or to find out about the benefits of membership visit: www.landlords.org.uk/membership
MAXIMISE YOUR MEMBERSHIP
Gain a competitive edge NLA membership differentiates you from local competition and helps you establish a trusted relationship with tenants, local authorities and letting agents.
As a member you can: • Proudly display the NLA Member logo on your website, company stationery and marketing materials • Use your personalised NLA Membership Card • Obtain additional marketing support materials including the ‘About NLA – Information for Tenants’ leaflet to help explain to your tenants why it is important to use a reputable landlord and our ‘Moving – In’ folder to ease the process of welcoming your tenants • Choose to appear on our online register of members For details visit: www.landlords.org.uk/member-verification • Achieve NLA Accredited Status. You will also enjoy the benefit of being able to appear on our online register of members as an accredited landlord, use the accredited logo and display an accredited landlord certificate For details visit: www.landlords.org.uk/accreditation
Other membership benefits: • Know your rights and responsibilities • Enjoy substantial savings • Meet fellow landlords • Strengthen our voice • Benefit from a wide range of services
For details: Visit: www.landlords.org.uk/membership-benefits Call: 020 7840 8937 Email: membership@landlords.org.uk UKLANDLORD september/october 2011 65
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
(Much) more on CGT… I was most pleased to see the letter from Martin Holmes on CGT. The present punitive tax of 28 per cent was aimed at overpaid bankers, but has in fact penalised the provident who have built up a pension portfolio based on property, rather than uncertain shares. The huge tax certainly justifies the term of ‘legalised theft’ which has been applied to it. Not only is the tax percentage high, but the gain itself is wrongly worked out. Though house prices have steadily increased over time, this is mainly the result of continual devaluation of our currency, rather than any real increase in house values relative to that of other commodities. An average inflation increase, over the period a property is owned, should first be applied to its original price, before
it is subtracted from the sale price to determine the capital gain. For a short period significant ‘Indexation’ and ‘Taper Relief’ were available to effect such a correction in the gain, but I believe the present Chancellor considered these measures ‘too hard to understand’. It could be noted that the matter is not so difficult on the continent. For example, in France there is a sliding scale for CGT, such that present-day property speculation is appropriately taxed, but a house owned for 18 years attracts no tax at all. The unfairness of the CGT is not just seen when a portfolio is ‘cashed up’ at retirement. CGT is payable on every property sale, so a person prudently revising a property portfolio will lose out even if the portfolio value does not change. John Venn
The letter from Mr Holmes regarding CGT in the current issue of UK Landlord hit the nail on the head. I am in a similar position of having to delay my retirement since my potential retirement pot has been dramatically reduced. The loss of taper relief means that long term investors, as most landlords are, pay the same rate of CGT as shortterm speculators. This is patently unjust! The liability should be reduced by say one tenth each year so that the liability is Nil after 10 years. This would be a lot fairer and simple to administer. Also the base year from which CGT is calculated (1982) needs to be brought up to date. To be expected to keep records for nearly 30 years is ridiculous! Another point that I believe the NLA should campaign more strongly on is the treatment of ‘Buy-to Let’ as an investment. Where one has a significant portfolio of properties, spends the bulk of one’s time administering it and receives the bulk of one’s income from it, it should be treated as a business (which is what it is) not an Investment. Michael Stickler FCA
I was very interested in Martin Holmes’ letter in your last journal issue (page 68). I too bought a number of properties – in a not very planned way – many years ago, thinking that I would be able to sell them one by one when I retired. But with these recent
changes in Capital Gains Tax, all my plans have been seriously disrupted. I am finding two issues particularly confusing: Does the sale of the asset count as an income at the point at which the property is converted from an asset
(bricks and mortar) into cash? And, is it true that it is no longer useful to live in the property for a short or even long time before it is sold – what are the current criteria? We all thought that we had a nest egg for our retirement and now HMRC have a draconian hand
Chris Norris, NLA Policy Manager, responds: The law relating to CGT liability can be complex so it is often worth seeking professional advice. However, in response to these questions, you may still be able to qualify for partial Private
Residence Relief if you lived in the property during the final 36 months prior to sale, although if it was previously let to tenants your eligibility will be proportional to the time for which it was your main residence. With regards to
the ‘gain’ made when a property is converted into cash, this does count as income for CGT purposes, so will (unfortunately) be used to determine when to apply the 18 and 28 per cent respectively.
outstretched. Is there any scheme, for example, whereby a landlord can sell a home in instalments so as to avoid CGT on a larger lump sum being raised at any one time? Member’s name withheld Member’s name withheld
For information on the NLA’s work on CGT, see page 6
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 september/october 2011