uk landlord magazine (may/june 12)

ISSUE No.156

UKLandlordTHE LEADING PUBLICATION FOR THE PRIVATE-RENTED SECTOR MAY/JUNE 2012

Issue price: £12 (where sold)

IN THIS ISSUE

Budget 2012 update

Running a successful HMO

Open letter to Newham Mayor

How to assess yields

The NLA’s entrepreneurial mentor

NLA Property

Women Awards

nominations

close 25 June!

UKLANDLORD May/JUNE 2012 01

EDITORIAL

Welcome...Although on the face of it, times should be good for landlords, we face a number of rather significant hurdles to playing a role in supplying good quality housing.

In his open letter to Sir Robin Wales, the Mayor of Newham, NLA Chairman David Salusbury constructively advocates that Newham Council should build a progressive relationship with local reputable landlords. Rather than imposing universal licensing on local landlords, the NLA is calling on Newham to create an alliance with reputable landlords, and for landlords to be given tangible business benefits from working with the local authority to increase standards.

The tax regime still continues to thwart investment and growth by landlords who want to further invest in the private-rented sector. I am very concerned that the Government appears to be considering reducing the current tax reliefs available to buy-to-let investors, for example, capping tax reliefs to expenses, including mortgage interest, that landlords offset against rental income. It was great to see the NLA responding immediately and robustly to this discussion, arguing that as the costs can only be offset against rental income – not total taxable income – they should be treated as a business expense, not relief.

In his overview of the implications for landlords from the Chancellor’s recent Budget announcements, Stephen Fay of Fylde Accountants believes that the changes are unlikely to affect finance interest relief or property rental losses. And, if you are wondering how best to calculate yields on a rental property investment, take a look at the approach of Amer Siddiq of Property Portfolio Software on page 46. Both companies are members of the NLA’s Recognised Supplier Scheme.

Many of these topics are no doubt likely to be discussed in detail at the NLA’s National Conference in Warwickshire this October and the bookings system has now opened. The gala awards ceremony for the NLA Property Women Awards 2012 will take place in the evening of the NLA National Conference day (31 October), and I understand there is still time to submit nominations for these awards – the deadline for entries is 25th June. So, if you know a woman who is making a difference in the private-rented sector, why not nominate her for this year’s awards? For more information, see www.propertywomenawards.org.uk

Already a successful woman in property, Carolyn Uphill is also now one of the NLA’s Board Directors. Read her interview on page 10 where she outlines how she intends to apply her business acumen and experience as a company director to the running of the NLA.

Best regards,

Andy Stern Editor [email protected]

INTRODUCING THE NLA BOARD

May/June 2012: Issue 156 ISSN 1741 8801Publisher’s statement: Circulation 22,000

PUBLISHERThe National Landlords Association22-26 albert Embankment, London SE1 7TJContact > Richard Price, Director of OperationsE: [email protected]

EDITORIALEditor > andy SternE: [email protected] Editor > Louise GaleE: [email protected]: 020 3235 1805

ADVERTISING & PRODUCTIONFor all enquiries and bookings:Advertising Manager > Steve PearceE: [email protected] T: 0117 957 5400

NLA CONTACTSMembership T: 020 7840 8937 (9am-5pm Mon-Fri)E: [email protected]

Media Enquiries: T: 020 7840 8906 (9am-5pm Mon-Fri)E: [email protected]

General Enquiries and Correspondence with the NLA: 22-26 albert Embankment, London SE1 7TJ T: 020 7840 8900 (9.00am-5.00pm Mon-Fri)F: 0871 247 7535 E: [email protected] 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 2012. 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 957 5400

UKLandlord

ChairmanDavid Salusbury

DirectorCarolyn Uphill

Director of Finance& AdministrationPatrick Jacobs

Director (marketing)anthony Lock

Director of OperationsRichard Price

DirectorTony Richard

Chief Executive OfficerRichard Lambert

02 UKLANDLORD May/JUNE 2012

1206

04 MESSAGE FROM THE CHAIRMAN David Salusbury’s open letter to Sir Robin Wales, Mayor of Newham, on alternatives to blanket licensing of landlords.

06 NLA CAMPAIGNS Better late than never for HMO licensing renewal rules.

07 HOT OFF THE PRESS

08 NLA PROPERTY WOMEN AWARDS 2012 Juliet Ashton talks about what winning the NLA Property Woman Award in 2010 meant for her and her business development.

28 NLA NEWS Aspiration Renting: Inspirational Landlords – fi nd out more about the NLA National Conference 2012 in October.

35 NLA LANDLORD DEVELOPMENT & NLA ACCREDITATION

40 PUBLIC AFFAIRS

58 MAXIMISE YOUR MEMBERSHIP

59 NLA MEMBER VIEWPOINT

60 LETTERS & EMAILS CGT and dealing with letting agents.

29 REGIONAL NEWS Getting to landlord meetings near your properties.

30 LANDLORD EVENTS

32 EAST MIDLANDS FOCUS Regional investment information, with detailed insights from NLA Representatives.

CONTENTS


NLA REFERENCE

Inside this issue...FEATURES

16

“We are such a maligned breed that to highlight the good instead of constantly hearing about the rogues is so refreshing. If someone has a passion and zest for what they do it helps the rest of us if we hear about it.”

Juliet Ashton, NLA Property Woman of the Year 2010.

14 LANDLORD PROPERTY MANAGEMENT 14 BUYING & SELLING Rental Britain is here to stay.

14 FINANCE & TAX Flat conversion allowances abolished.

16 PLANNING The Olympics – pitfalls for landlords in London.

18 FINDING TENANTS Jail for subletting fraudster.

19 LANDLORD AND TENANT Mental capacity to pay rent.

20 LOCAL HOUSING ALLOWANCE LHA rate freeze.

22 SOCIAL HOUSING Scottish Housing Regulator role goes live.

22 HOUSES IN MULTIPLE OCCUPATION HMO licence renewals.

24 SAFETY IN YOUR PROPERTY NLA and ESC work together on electrical safety.

24 DEPOSIT PROTECTION my|deposits moves towards Scottish approval.

26 MAINTENANCE AND REPAIRS Multipoint locks from Yale.

26 SUSTAINABILITY Feed-in-tariff victory over Government.

52 MORTGAGE MARKET ROUNDUP Analysis of trends and latest buy-to-let mortgage deals.

53 HOUSE PRICES & LETTINGS MARKET Latest NLA lettings data and other statistics on house prices and the lettings market.

10 THE UK LANDLORD INTERVIEW: CAROLYN UPHILL NLA Board Director Carolyn Uphill talks about corporate governance and her entrepreneurial mentoring role at the NLA.

12 BUDGET 2012: CHANGES FOR LANDLORDS Specialist property accountant Stephen Fay of Fylde Accountants provides an overview of the changes in the recent Budget that affect landlords and property investors.

36 RUNNING A SUCCESSFUL HMO NLA Member Andrew Markey talks about the rules he applies for his 11-bedsit HMO. 38 RELOCATION RELOCATION Ever considered fi nding tenants via a relocation agent? UKALA Members guide landlords on the key clauses to consider when sourcing tenants through relocation agents.

44 Q&A: ENERGY PERFORMANCE CERTIFICATES Make sure you know how the EPCs rules work when you are fi nding new tenants.

46 EXPERT ADVICE ON PORTFOLIO MANAGEMENT Amer Siddiq of Property Portfolio Software explains how to assess the yields from your rental properties.

47

NLA SERVICES

47 NLA RECOGNISED SUPPLIERS

50 INDESIT: REWORKED DOMESTIC APPLIANCES

51 MONEYPENNY: VIRTUAL ASSISTANCE

REGIONS

29


16th April 2012

Sir Robin WalesThe Mayor of NewhamLondon Borough of NewhamNewham Dockside1000 Dockside RoadLondon E16 2QU

I write concerning your proposal for licensing the private-rented sector in Newham, with particular reference to the meeting of local landlords on 14 November 2011 hosted by the National Landlords Association (NLA) and at which you were the principal speaker. You may recall that at the end of the meeting you welcomed my suggestion that there should be further dialogue between you and your offi cials, and the NLA.

My purpose in writing is to propose an alternative approach to the borough-wide licensing you propose. This approach, I believe, would be more effective way in bringing about the improvement in standards we all seek. In essence, I suggest a strategy based on:

• Forging an alliance between reputable landlords and the local authority;• Enabling reputable landlords to identify themselves through their active and continuing commitment to professional development and accreditation;• Targeted, intelligence-led inspections, enforcement and prosecutions;• Giving landlords tangible business benefi ts from working with the Council.

By way of background, let me fi rst say that few who heard you on 14 November last could doubt that there is a serious problem with rented accommodation in Newham. Few would doubt that something must be done to raise standards and deal with abuses as a prerequisite for a healthy sector. The NLA agrees with that analysis. Where we differ is on the means of resolving the problem.

It is clear that local landlords do not support universal licensing. Such a scheme, they believe, is a blunt instrument and will not achieve its aims. The NLA shares this view, believing that whereas reputable landlords will comply with the law, the less reputable minority at whom the scheme would be primarily directed will continue to evade their responsibilities.

The imposition of a borough-wide licensing scheme identifi es landlords as posing a problem which must be solved to bring about a healthy private-rented sector. This approach does a disservice to the majority of landlords who operate professionally and with an awareness of their social responsibilities. For this reason the NLA believes that proponents of a borough-wide scheme are mistaken in believing that such a scheme will solve the problems of the private-rented sector in Newham.

As a national body the NLA has gained wide experience in what constitutes best practice, the appropriate application of regulation and, crucially, how to engender co-operation between landlords and local authorities. Against this background, we are well placed to assist Newham in meeting its objectives in a more effective manner than a blanket licensing scheme under the Housing Act 2004. The approach we would like to suggest would enable reputable landlords to continue conducting their businesses unhindered by additional, unnecessary bureaucracy and expense, and at the same time raise standards.

The key lies in identifying rogue operators and dealing with them, at the same time encouraging and supporting the reputable landlord. There are, after all, more than fi fty acts of parliament and over seventy separate statutory instruments relating to the letting of private residential property in the UK. Using these powers coherently, it should be possible to devise a sensible strategy for dealing with the problems in Newham, the key components of which are set out below.

Forging an Alliance with Reputable LandlordsMany landlords have little contact with their local authority. Many, if not most, who do have dealings derive little value from the relationship. This negative perception is largely based on the manner of their dealings with the authority, which for most landlords are determined by the authority’s statutory duty to deal with homelessness, administer housing benefi t and discharge a regulatory function.

OPEN LETTER TO SIR ROBIN WALES, MAyOR OF NEWHAM

T: 020 7840 8900F: 0871 247 7535

www.landlords.org.uk

National Landlords Association22-26 Albert EmbankmentLondon SE1 7TJSupporting and Protectingthe private residential landlord

May/June 2012


The NLA would like to assist Newham in developing a more constructive relationship with local landlords. This approach would be designed to enable offi cials to better understand the sector, support landlords needing guidance and, crucially, identify rogue operators.

Most landlords want to run their business to the best of their ability. There is however a small, but signifi cant, minority of rogue operators. These rogues must be identifi ed, prosecuted where appropriate, and driven out of the sector. Once a strong working relationship is forged between reputable landlords and the local authority, I suggest the former will be able and willing to play a key role in identifying the rogue element, enabling scarce public resources to be more effectively directed at correcting abuses than at present. The key to bringing this about is a working relationship based on professional development. To this end we suggest that Newham should promote landlord accreditation. As provided by NLA Accreditation (among other schemes), accreditation offers landlords the ability to develop their professional skills and improve the management of their lettings businesses. The benefi t to Newham would be twofold. First, encouragement of accreditation will raise standards. Secondly, by identifying and encouraging landlords interested in professional development, the pool from which potential rogues have to be identifi ed should reduce, in turn facilitating identifi cation and releasing council resources to undertake corrective action.

Tangible Business Benefi tsIn parallel, and as a complement to encouraging standards, Newham should seek to offer a higher degree of professional respect and support to private landlords than it does at present. As a starter, I suggest the authority could take two measures which would demonstrate the value of co-operation.

First, make direct payment of Local Housing Allowance (LHA) to the landlord as easy as possible where the tenant so wishes. Secondary legislation makes clear that local housing authorities should use discretion where direct payment would assist in the creation or continuation of a tenancy. Such a guarantee of a rental income stream can help the viability of a lettings business, yet our data suggests that fewer than one quarter of authorities are prepared to actively negotiate with individual landlords.

Secondly, Newham should look carefully at the way in which its housing team advises private tenants to conduct themselves during possession proceedings. The authority should accept that reputable landlords seeking possession do so reluctantly and as a last resort, invariably to deal with arrears of rent and anti-social behaviour. Yet our research shows that local housing authorities interpret government guidance in such a way as to suggest that if a tenant leaves a property at the expiration of a legally-served possession notice, they will have made themselves voluntarily homeless and will consequently be ineligible for assistance from the local authority. They are thus encouraged to await a court order. Yet government guidance indicates that this should not be the case. The cost of waiting, unnecessarily, for a warrant of possession can tip a small landlord over the fi nancial edge and can cause diffi culties for tenants who accept they have to move on. It would save time, money and effort – and relieve the burden on the courts - if Newham recognised the validity of correctly serviced notices. Interpretation of the guidelines in this way would be very much welcomed by local landlords.

EvaluationWhilst confi dent that the approach I have outlined would be benefi cial to all parties, the NLA recognises the need to evaluate progress with a view to checking its effectiveness. We suggest that a programme over thirty-six months of communication, development and enforcement should be suffi cient to evaluate the strategy, during which the NLA would work closely with your offi cials.

ConclusionI am sure there are other possibilities for developing a coherent strategy for engendering the cooperation that is a prerequisite for raising standards. The measures I have outlined represent a start and would be an important step in encouraging the better landlords and enabling the Council more effectively go after the rogue operators who blight the sector. They would do much to secure the cooperation of the many reputable landlords in Newham for getting rid of bad practice and raising standards. The NLA stands ready to work closely with you in working towards this goal. Landlords are part of the solution, not the problem.

As a fi rst step, Richard Lambert and I would welcome an opportunity to discuss with you any points raised in this letter and how matters could be moved forwards. I should also add that I intend asking the editor of the NLA house magazine, UK Landlord, to publish this letter. I will arrange for you to have sight of the relevant edition.

I hope this is helpful.

DAVID SALUSBURYChairman

May/June 2012


Find out here about the NLA’s latest campaigns to encourage the Government to achieve a healthy private-rented sector.

NLA CAMPAIGNS

As reported in this issue’s Message from the Chairman, the NLA is campaigning hard against proposals by the London Borough of Newham to introduce a Selective Licensing scheme intended to cover the entire locality (not to mention the fact that they are also pursuing an Article Four Direction). The NLA believes that the Borough’s approach is fundamentally flawed, and crucially will not provide a solution to the issues identified throughout the area. However, it is important that the NLA, and the wider landlord community, contributes towards finding solutions. While the vast majority of landlords in Newham and elsewhere are entirely law-abiding, conscientious business people. We cannot deny that there is a small minority of individuals and companies operating in our sector. These rogues operate criminally, undercutting respectable businesses and exploiting those in society with

limited options, they will not be effected by licensing or registration of any kind and will continue to ignore the laws which are in place to stop them. This is why the NLA is developing proposals which provide an alternative to licensing, without the need for statutory intervention. Based on the principles of reciprocity and professional development, we have offered to work with Newham in order to drive standards in the sector, improve outcomes and grow consumer confidence. The concept is simple, by visibly driving standards and professionalism in the sector the landlord community can start to police itself freeing up the local authority to target the shadowy bottom-feeders who give us a bad name. This in itself will be made that much easier by the professionalization of the mainstream, highlighting the malpractice of those who ignore their responsibilities.

We have offered Newham a chance to work together to improve the sector in their part of London. It remains to be seen whether they will agree to work constructively with us, but whatever the outcome the NLA is determined to demonstrate in law and in practice why working with the landlord community as a partner is far more effective that restricting it as a regulator. n

Newham – licensing is not the only answer

STARTING UP REGULATORY PROPERTY NEWS SAFETY FINANCE

The long-awaited statutory instrument (SI) prescribing the conditions where local authorities in England can apply common sense in respect of mandatory HMO re-licensing has finally been produced – in draft, at least. There is still no concrete confirmation on when this important revision of the HMO licensing rules will actually become law, but we

have been reassured that having missed the April common commencement date (when most secondary legislation comes into force), we will not have to wait for the next one in October. This SI will allow local authorities to require less repetition when landlords apply to relicense their HMOs. This corrects an oversight in the original legislation which has seen many

of the earliest renewals having to follow exactly the same administrative process used for their initial application.

As this is already more than a year later than expected, and would have been useful, it is a bittersweet victory for landlords – but a welcome one nonetheless. n

Relicensing of HMOs

To see more about the external affairs activities of the NLA, go to the Public Affairs section on page 40.


Hot off the Press!!

TDP changes in England and WalesYou’ve no doubt heard through press coverage in recent years about landlords successfully appealing penalty fi nes they received for not protecting deposits with a government-approved scheme. Now the law is catching up with landlords who don’t do the right thing. Changes to the Localism Act applied from 6 April 2012, giving landlords 30 days to protect deposits, up from 14 days. But as the Financial Times reported, those that don’t protect won’t escape penalty “The new rules aim to tighten up loopholes in previous regulations affecting tenancy deposits that enabled landlords to avoid paying penalties for not safeguarding a tenant’s deposit.”

Electrical Safety in the PRSThe NLA has joined forces with the Electrical Safety Council (ESC) to help raise awareness about the dangers of electricity in homes. A study by the ESC found tenants in the PRS are at more risk of suffering an electric shock than those living in other accommodation. Richard Price, NLA Director of Operations, joined the ESC in a series of radio interviews to raise awareness about safety. As The Times reported, “Although one in fi ve tenants say they are concerned with electrical safety in their home, 75 per cent do not recall discussing safety with their landlord.” Remember, check electrical installations in your properties every fi ve years and make sure your tenants feel comfortable raising any concerns.

Are you protecting your tenants’ deposits properly? There are more certain penalties for landlords in England and Wales who don’t, under changes to the Localism Act. Meanwhile the NLA has been helping promote electrical safety in the private-rented sector (PRS) and warning accidental landlords they shouldn’t go it alone.

Dane Svenson NLA Press Offi cer

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: [email protected]

Goodbye!This is the last Hot off the Press from me as I leave the NLA and head overseas. I hope you’ve enjoyed reading the column. Sam Haidar will be keeping you up-to-date in future editions of UK Landlord.

Follow us at twitter.com/nationalandlord

Goodbye!

First-time landlordsThe number of ‘accidental landlords’ is on the rise, with an increasing number of people choosing to let out their homes instead of selling. The NLA’s quarterly survey of landlords recently found up to 7 per cent had been forced into letting because they couldn’t sell their prop-erty. The stagnant property prices and near-record rents in many parts of the country are adding extra incentive. But as our Chairman, David Salusbury, told The Sunday Telegraph many accidental landlords “do not even accept they are landlords. They don’t realise that letting out a property is strewn with pitfalls and they need to get it right.” One solution, of course, is for them to join the NLA where they can receive all the advice and help they need.

To see more about the external affairs activities of the NLA, go to the Public Affairs section on page 40.


The NLA Property Women Awards: an opportunity not to be missed!

www.propertywomenawards.org.uk

Juliet Ashton won the NLA Property Woman of the Year award in 2010. She talks here about this has helped her change her business over the past two years, and why you should nominate a woman in property whom you respect for this year’s awards.

What made you decide to enter the NLA Property Women Awards in 2010?

Juliet Ashton: Being a landlord can be a challenging business! No one congratulates you when you do a good job but you can be sure you will be criticised if you don’t. At the time I entered the awards I had had a difficult year one way or another and yet had managed to tackle every situation along the way and really felt I wanted to share some of my experiences to encourage others who were going through difficult times with their property.

I think I also felt as a landlord that it is very easy to cut corners and I wanted to take a stand for doing things as properly as I am able to. Sometimes that means a lower financial reward, but winning the titles of North East Property Woman AND Property Woman of the Year were confirmation that I am doing something right.

How did you feel when you won the overall award?

J.A.: I went to the awards with a friend and to be honest we just travelled from Newcastle to London to enjoy the experience and I was feeling very happy to have reached the finals. When the envelope was opened for North East Property Woman I was amazed! I know it’s a cliché, but I had

never expected to win. When I saw the other women who all had amazing stories I felt privileged to be amongst them, but truly did not expect to be carrying anything home (the suitcase I’d brought was way too small!). Getting that trophy was so exciting and I was texting my family and friends to let them know the good news.

How has your lettings business changed since winning the award?

J.A.: One of the first things I did was to name the business Jabez Homes. I’d previously operated just in my own name, but having a name has helped define it. Jabez is a character in the Old Testament who asks God to enlarge his territory and bless him which seemed really apt.

I have added another property to my portfolio and also managed some properties for other people. The award gave me confidence to do more of what I was already doing and I have taken challenging tenants with mental health, drug and alcohol problems etc. Sometimes this is successful, sometimes not.

Winning the award has attracted a better quality of tenant. Some people who might previously have contacted me now see the title and steer away, knowing I will be doing things properly. I am therefore more able to consider who I want to take on to help while

having a background of steady tenants who are covering all the costs. I’ve also found people are more willing to be honest with me. They know even though they may have had problems in the past, it won’t exclude them from what I have to offer. I’m more interested in the future than the past.

I feel very strongly as a landlord that I am in a privileged position to be able to do something practical to help in our society. We can’t help everyone of course, but if we all helped someone it would be amazing.

Juliet Ashton-Taylor, NLA Property Woman of the Year 2010


What do you feel are the main challenges facing the private-rented sector at the moment?

J.A.: For myself, financing has meant it has been difficult to expand further. I’m the same as many landlords in that I have a full-time job and then have to fit property around that. I’d like to have been in a position to do this full time but in the current climate it’s not been possible.

Also, there are many private landlords with just one or two properties and a whole lot of legislation to get to grips with. It’s a challenge to keep abreast of this and I couldn’t do it without the help of the NLA. Going to local meetings and hearing about local issues is vital to me, as well as the help online or at the end of a phone.

I’ve also had issues with Local Housing Allowance and managing tenants who are in receipt of these benefits. It’s possible but time consuming when you are chasing tenants for rent rather than being paid direct. I fear it means landlords shying away from helping vulnerable people because it’s another layer of hard work

Would you recommend that someone nominates a female colleague for an NLA Property Women Award?

J.A.: Definitely! We all need encouragement and recognition for what we do and the NLA Property Women Awards are a wonderful occasion to celebrate the best in the job of being a landlord. We are such a maligned breed that to highlight the good instead of constantly hearing about the rogues is so refreshing. If someone has a passion and zest for what they do it helps the rest of us if we hear about it. n

The NLA Property Women Awards 2012 will take place on Wednesday 31st October.

To nominate someone for an award, visit www.propertywomenawards.org.uk for details of the award categories and to download a nomination form.

You can also call Charlotte Clements for more details on 020 7840 8920.

Nominations close on Monday 25th June 2012.

I have added another property to my portfolio and also managed some properties for other people.The award gave me confidence to do more of what I was already doing and I have taken challenging tenants with mental health, drug and alcohol problems etc. Sometimes this is successful, sometimes not.


STARTING UP REGULATORY PROPERTY TENANCY SAFETY FINANCE

In addition to running her own manufacturing business, Carolyn has served as President of the Stockport Chamber of Commerce and is keen to share her wealth of business experience in her role as a business growth consultant and mentor.

UK Landlord: What does your role as a member of the NLA Board entail?

Carolyn Uphill: As a Non-Executive Board member I have the same legal responsibilities as the board as a whole. I also have particular responsibility in the areas of financial control and corporate governance which involve protecting the interests of the NLA by •ensuringthatfinancialinformationis accurate •ensuringthatfinancialcontrolsandsystems for risk management are robust•contributingtoandchallengingthe development of the NLA’s strategy• scrutinisingtheperformanceofmanagement of the NLA in meeting agreed goals and objectives•determiningappropriateremunerationlevels for Executive Board members•participatingintheappointmentofsenior management and succession planning.

UKL: Why does the NLA consider there is a need for this role?

CU: All successful organisations need sound financial control and motivated leaders, as well as consistent and transparent succession planning, to ensure their short and long term viability. The NLA is no exception and, having grown from a small membership base, has perhaps lacked these skills and directions in house before.

The sustained period of growth and excellent commercial partnership decisions of past years have given the NLA a strong balance sheet, but economic times are now much tougher and it is essential that the board take steps to avoid exposure to risk in the future by very careful budgetary control.

UKL: To what extent does your experience in business contribute to this role?

CU: Having been a successful business woman for over 30 years, I believe that my greatest contribution is as the ‘entrepreneurial mentor’, helping the organisation by providing experienced insight to ensure that the NLA avoids the common pitfalls of a growing business. The NLA has grown rapidly from

being a fairly small, localised trade association to a strong, national organisation with a substantial staff compliment and large national membership, offering support services and an extensive commercial operation. As such the NLA Board now needs to give it direction and support its growth, using the expertise of both experienced landlords as well as landlords who also have experiences as company directors with good business acumen.

For this reason I have agreed to serve on both the Remuneration and the Budget Sub Committees of the NLA Board. I believe my business experience, particularly in financial control, will have the greatest benefit.

UKL: How do you think the role of women in property is changing?

CU: One of the most rewarding aspects of my work is to be able to help and encourage other landlords with their buy to let businesses. In particular, I am proud to be the NLA spokesperson for the Property Women Awards 2012 which will recognise the high level of female entrepreneurship which we have in the industry.

As the first female President of my Local Chamber of Commerce back in the 1990’s, when I was one of very few women MDs in a

FEATURE – THE UK LANDLORD INTERVIEW

The NLA’s entrepreneurial mentor NLA Board Director Carolyn Uphill has extensive experience operating as a professional landlord. She joined the Board of the NLA in July 2011, and has worked as an NLA Local Representative in Manchester since 2010. Carolyn has been at the helm of several successful business enterprises. Having established her own business in 1978, she transformed it from being a hirer and reseller of third party equipment, to become a leading equipment manufacturer with a seven figure turnover.


construction-related Industry, I am impressed with the number of highly professional women who now work in every aspect of property development and management. These awards will give them the opportunity to receive the recognition they deserve.

UKL: In what other ways will you use your role as Director to influence the direction of the NLA?

CU: I am committed to using my role on the Board to underpin the strategic work of the NLA which I hope will see us continue to enhance our position as the largest and most influential membership body for private landlords in the UK, with the ear and respect of both national government and local authorities alike. Our network of local reps and branch meetings is key to this and I was happy to approve our current investment to improve IT systems, policy services and communication to support this vital team. n

I am impressed with the number of highly professional women who now work in every aspect of property development and management. The NLA Property Women Awards will give them the opportunity to receive the recognition they deserve.

Upload your feedback on this issue at www.landlords.org.uk/uklandlord or create a new conversation on the NLA Blog www.landlords.org.uk/support-advice/member-guide

Master classCarolyn Uphill will be running a master class at the NLA National Conference on Wednesday 31st October 2012. Book your place now by visiting www.landlords.org.uk/conference


NLA Accredited Landlord:Promoting good relations between landlord and tenant


FEATURE – FINANCE & TAx

Budget 2012 Changes affecting landlords Specialist property accountant Stephen Fay ACA provides an overview of the changes in the recent Budget that affect landlords and property investors. Stephen is part of Fylde Accountants who have recently joined the NLA’s Recognised Supplier Scheme.Landlords are affected by a myriad of taxes – meaning that each Budget brings new challenges – some of which are specific to landlords, and some are general changes that affect everyone. The following highlights the key points:Income taxThe key tax affecting landlords as it is usually payable every year. Good news: The Personal Allowance on which no tax is charged is to increase to £8105 (2012-13) and then to £9205 (2013-14) – note: this also applies to non-resident landlords. For landlords with total income under the Basic Rate limit of £42,475, this means a real future income tax reduction. The Chancellor mentioned £10,000 as the target Personal Allowance for the medium term. The 50% tax rate is reduced to 45% as of 2013 – affecting some lucky landlords! For those with companies, ensure that bonuses & dividends above this level are paid out after April 2013 if possible. Bad news: The Higher Rate tax threshold reduces from £35,000 to £34,370 – so Higher Rate taxpayers will not benefit from the Personal Allowance increase. Higher Personal Allowance for those aged >65 are to be phased out to align (eventually) with the ‘regular’ Personal Allowance – AKA the so-called ‘granny tax’. This is part of the euphemistically called ‘tax simplification’ process!

Tax Reliefs – New RulesIncome tax ‘reliefs’ are to be restricted to the greater of £50,000 or 25% of income as of April 2013. This has been a concern for some landlords as it is currently unclear exactly which reliefs this relates to – for example, does this include sideways loss relief claims for capital allowances? It certainly affects Gift Aid payments, but it’s unlikely to affect finance interest relief, or property rental losses. Those with capital allowances to claim (you do know

if you’re entitled to claim capital allowances on your property – don’t you?), and loss-making property traders, should ensure their accountant keeps them updated.

Capital Gains TaxNo change to the Personal Allowance of £10,600, or to the rate of either 18% or 28%. However, property disposals by non-resident & ‘non-natural’ (companies mostly) entities will be subject to CGT from April 2013 – anyone with an offshore property investment company should see their accountant!

Capital Allowances (CAs)CAs are the tax equivalent of depreciation. The ‘first year’ CA (called the ‘Annual Investment Allowance’) reduced in April 2012 from £100k to £25k per annum, with remaining allowances only dripping through in future years at 18% per year, rather than the previous 20%. This means tax relief is delayed, though still received eventually. Also, new legislation will ensure that CAs are not claimed more than once during the life of a property. Property buyer and seller will need to agree a value for CAs within 2 years of the transaction, and the seller will need to have accounted for these pre-sale. Missing out on valuable CAs can be a painful experience – so make sure your solicitor is on the ball when completing the conveyancing!

Stamp duty land tax (SDLT)There is a new rate of 7% now payable on residential properties worth >£2m – I wonder what the yields are like on £2m properties?! There is also a better definition of ‘residential’ and a new 15% SDLT rate for properties worth >£2m acquired by ‘non-natural persons’ (mostly companies) – both UK and foreign. Also, so-called SDLT ‘sub-sale relief’ – using an option to buy a property – has been abolished. This was a ‘loophole’ that HMRC ‘considered’ illegal (i.e. only their opinion) – the new legislation literally makes these schemes illegal now.

Corporation TaxThe Small Companies (i.e. profits <£300,000 per year) tax rate of 20% remains, whereas the Main Rate reduces by 1% for 3 years to hit 22% in 2014. The Coalition has mentioned a flat rate of 20% for all companies as a possibility – good news for large landlords and profitable developers.

Flat Conversion Allowances (FCAs)Expenditure when converting space above commercial premises is normally capital – so no income tax relief. FCAs enable this expenditure to be claimed as against rental profits – however, FCAs are no longer claimable as of April 2013. n

SummaryThis is a budget that looks to restrict tax reliefs to Higher Rate taxpayers in particular – although there is a personal allowance increase, HR taxpayers don’t benefit. And, anyone with income tax reliefs >£50k could see their tax bills rise, and those with high-value properties will pay more SDLT.

On the other hand, Basic Rate taxpayers will keep more of their income, and capital allowances are still claimable albeit with some tightening of the rules.

All in all – a reasonable budget for landlords in these times of austerity.

Master classStephen Fay of Fylde Accountants will be running a master class at the NLA National Conference on Wednesday 31st October 2012. Book your place now by visiting www.landlords.org.uk/conference

For more information, see www.landlords.org.uk/services/suppliers/fylde-tax-accountants


A recently published review of the private rented sector in Britain concludes “Rental Britain is here to stay” and says that the need for new supply is urgent.

According to the report by Savills and Rightmove, “a shift to private renting may go against a nation’s emotional attachment to home ownership and long-established political aspirations of a nation of private sector home owners, but facilitating the supply of new stock into the sector is now critical...investors are urged to continue to re-examine the very real opportunities the sector offers and policy makers to ensure these opportunities are not closed down.”

The total value of properties in the private-rented sector is £840bn, up 42 per cent over the past five years, the report says.

The total rent for 4.8 million rented homes was £48bn in 2011. This is expected to rise to £70bn in 2016.

“The biggest challenge is supplying rising demand, forecast to rise to one in five households by 2016, requiring an additional 1.1 million homes in the sector,” the report argues. “£200bn investment is required over the next 5 years and only one quarter is expected to come from buy-to-let lending.”

Average rents rose by 5.2 per cent per cent across Britain in 2011, creating affordability issues in some markets; “a step change in institutional investment in new build rental accommodation is needed to boost supply and this needs to be recognised by the planning system.”

According to the report, average gross yields vary from 5.3 per

cent in the South West to 6.3 per cent in the North West, but there are significant variations within regions. Gross yields average 7.8 per cent in the top performing 10 per cent of postcodes while the bottom 10 per cent deliver just 4.4 per cent.

The report forecasts that the best returns over 10 years will come from London and the South East. Seven London boroughs (Newham, Greenwich, Tower Hamlets, Islington, City of London, Southwark and Hackney) are forecast to deliver net total annual returns of more than 8.5 per cent over that period.

Beyond London, Elmbridge (in Surrey), Reading, Woking and Milton Keynes are forecast to deliver net total returns of over 8 per cent. n

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.

LANDLORD PROPERTy MANAGEMENT INFORMATION

Buying & Selling


Rental Britain here to stay

A new report on the prospects for the rental market for 2012 puts the case forward for greater opportunities for build to rent.

Large-scale landlord and residential developer Grainger plc states said in its review of the rental market for 2012 that as there is a shortage of rental stock, which strengthens the case for an institutionally backed, build-to-let movement alongside more development generally.

These types of statements may well feed in to the Government’s review of barriers to institutional investment in the private-rented sector (PRS), which also looks at ways to encourage greater investment in ‘build to rent’ homes.

According to the Government, the dominance of small landlords has increased to the point where just 1 per cent of private landlords own more than 10 properties. Housing Minister Grant Shapps said “the sector has seen several years

of strong growth and increasing standards, but in some areas rents have begun to rise faster than wages. Over three million households live in privately rented homes, so it’s vital that we take steps to ensure the sector’s continuing growth and affordability.” The review is led by Sir Adrian Montague, the non-executive Chairman of 3i, and a member of the Housing Finance Group established by the Homes and Communities Agency in the wake of the credit crisis. He said “the private rental sector has gone through a period of rapid growth, and it’s crucial that the Government does all it can to ensure that demand continues to be met. I aim to help remove barriers to investment, contributing to the continuing health of a sector that millions of people rely on.”

Sir Adrian plans to report his findings and possible recommendations to Ministers in June 2012. n

Changing trends in housing demand

Flat conversion allowances abolishedHMRC is repealing flat conversion allowances (FCAs) in April 2013. Flat conversion allowances were introduced in 2001 and are designed to increase the availability of low cost rental accommodation in urban areas by providing 100 per cent capital allowances for the conversion of empty or under-used space above shops and other commercial premises into residential property for letting.

The flats must be available for short term letting. FCAs were not available if the flats are of high value or the property in which they are situated was built after 1980.

HMRC says that “take-up of the scheme has been much lower than anticipated, suggesting that the relief has not been successful in achieving its objective and is now being repealed....this change is not expected to have any significant economic impacts on the rented accommodation sector as very few businesses have chosen to claim the allowance.” n

Finance & Tax

For more information, see page 12



Planning


The Government has published a revised version of its planning framework for England which is designed to be less complex and more accessible, to protect the environment and to promote sustainable growth.

Although there has been criticism about how the definition of terms like sustainable developments will be applied, the new set of rules, the National Planning Policy Framework (NPPF), has been applauded for going further than earlier draft rules to protect the countryside, and for reducing over 1,300 pages in 44 separate documents into a more readable guide of 50 pages.

However, the NLA has criticised the Government for missing an ideal opportunity to address the abuse of Article Four directions by local authorities to limit the availability of shared housing in areas where it is greatly needed.

According to the NLA, Paragraph 200 of the new NPPF which outlines how Article Four Directions should be used “represents barely any change from its predecessor.”

The new Framework comes into force with immediate effect for plan-making and decisions. n

New planning framework The Olympics – possible pitfalls for landlords

With the London Olympic Games almost here, John Midgley of Seddons Solicitors sets out some advice here for any landlords who are considering letting out a property in London on a short term basis to someone who wants to watch the games. “Whilst this may be an opportunity to gain rental income for a short period of time, there are potential pitfalls which landlords should consider. The use of a property for short term temporary letting for less than 90 days in London is a material change of use of a property which requires planning permission. Without planning permission, Councils have the power to prohibit the use of the property for “temporary sleeping accommodation”. A landlord who is in breach of the planning laws could face enforcement action by the Council. A number of London local authorities such as Westminster, Camden and Tower Hamlets have warned that they may take action against landlords without

planning consent whereas others may take a more lenient approach. Landlords would therefore be well advised to check with their local authority as to the approach they intend to take because some councils see problems with short-term lets as including increased crime, litter and late night noise. In addition, landlords need to take care that they do not inadvertently create an assured shorthold tenancy (AST). As a consequence of an AST being created, if the Tenant refused to leave at the end of the agreed term, possession proceedings cannot begin until the Tenant has been in occupation for 6 months. If an AST has been created, Landlords must also protect the Tenant’s deposit. Where the property is

Leasehold (as opposed to Freehold) landlords will be well advised to check the terms of their leases to ensure that short term lettings are permitted and/or to consider whether the Freeholder/Landlord’s consent to letting is required. If the lease is breached, the Freeholder could take action potentially leading to forfeiture. Similarly, if the property is subject to a mortgage, the mortgage company may need to be notified. It is also prudent to check building insurance policies to ensure that temporary lettings are covered. Landlords will also need to ensure that they have the appropriate certification in place for letting a property whether it be gas safety, electrical appliance tests or Energy Performance Certificates.” n

New rules for contaminated land The Department for Environment, Food and Rural Affairs (Defra) has issued new statutory guidance and regulations for contaminated land in England. The new statutory guidance is intended to be more usable for those that deal with land contamination and remediation. In particular, a new four category test is intended to clarify when land does and does not need to be remediated. Defra said the new regime would be better at focussing efforts

on finding high risk sites and dealing with them first, and at speeding up local authority decision-making by helping them dismiss low risk sites more easily. Land contamination can pose a threat to the environment and the health of humans, animals and plants. Land is considered to be “contaminated” in the legal sense if it poses an unacceptable risk to human health or the environment. The revised regulations came into force on 6 April. n

For further advice, please contact John Midgley at Seddons Solicitors on: 020 7725 8000 or via [email protected].

For more information, see: www.defra.gov.uk/environment/quality/land/

The above is only a summary and does not seek to cover all potential issues, and is no substitute for taking legal advice on the specifics of your case.

Keep on ‘top-form’ with NLA ASTs

1. EDITABLE ONLINE TENANCY AGREEMENTS

3. SELF PRINT TENANCY AGREEMENTS2. PRINTED TENANCY AGREEMENT PACKS

You can now create a professional, NLA-approved tenancy agreement by entering the details online.

The vast majority of tenancies today are Assured Shorthold Tenancies (ASTs). The main benefi ts of tenancy agreements are that landlords can set market rents and can recover possession so long as the correct notice is served.

Having the right tenancy agreement in place is as important as having the right tenant. It will set out the terms of the tenancy and includes important details on who is responsible for what in a clear, concise and transparent manner. The tenancy agreement will be used in the event of a dispute at the end of the tenancy so it is vital that it incorporates everything you may later want to rely on.

Using an NLA approved tenancy agreement ensures that you are providing tenants with up-to-date, legally enforceable agreements. It shows that you operate in a professional, ‘Best Practice’ manner, and that you are proud to be an NLA member landlord.

The NLA online tenancy agreement guides you through the process of compiling a tenancy agreement and will help you consider and include factors you may otherwise have overlooked.

• Preview

• Modify

• Amend

• Add clauses

• Save and Print

Available from the NLA Shop in packs of fi ve. Print off directly from the member’s area and fi ll out by hand.

• Best practice ASTs

• Simple to use

• 3 formats to suit your needs

• Peace of mind

For editable or blank tenancy agreements visit: www.landlords.org.uk/formsTo buy pre-printed tenancy agreement packs visit: www.landlords.org.uk/shop

Please Note: This document is for use in England and Wales only. For guidance when it is appropriate to use an Assured Shorthold Tenancy and how to set up a new tenancy visit the NLA Landlord Library: www.landlords.org.uk/library

Don’t Forget: Remember to protect the deposit in a government-authorised Tenancy Deposit Protection Scheme.Visit: www.mydeposits.co.uk


The Property Ombudsman (TPO) has released his annual report for 2011 and renewed his call for standards to be raised across the lettings industry. “My office dealt with 7,641 letting enquiries during 2011, a 26 per cent increase on 2010,” the Ombudsman, Christopher Hamer (pictured), said. “Slightly more than 25 per cent of these complaint enquiries concerned letting agents who were not registered with TPO and I am concerned that, for those consumers, they may have little alternative but to undertake potentially costly legal action to pursue their complaint, a daunting prospect in the current financial climate.” “Consumer awareness is the key,” Mr Hamer said. “Knowledgeable landlords already

check if an agent has a separate account for client money and has signed up to a redress scheme, before allowing them to market their property.” “However, landlords who are new to lettings, for example, will no doubt be attracted by lower fees and may not enquire what protection the agent can provide both them and their tenants should problems later occur. Agents who protect client money and follow the TPO Code of Practice can give landlords this reassurance. If all landlords ensured that their agent had these credentials, I firmly believe that tenants and landlords would see the benefits of using agents who adhere to important standards of business and stories concerning ‘rogue agents’, with which we are all familiar, would dramatically

reduce.” In order to achieve this level of consumer awareness, the Ombudsman is proposing the formation of an industry council to develop and promote overall standards within the lettings sector. The council would also

seek to ensure that consumers understand why they should avoid letting agents who refuse to follow a set of industry standards, such as the TPO Code of Practice, and who do not seek out membership of recognised industry bodies. n



Finding TenantsProperty Ombudsman reports increase in complaints

Consumer protection and residential propertyRICS has called for urgent government action to reform the current regulatory and redress regime for UK residential property, which it says is complex, inconsistent and ineffective at preventing significant consumer detriment and confusing for businesses. “The Government must no longer turn a blind eye to regulatory reform in the residential property sector. It must be removed from the ‘too difficult pile’ and dealt with immediately in order to create a level playing field within which all businesses can operate,” RICS Director of Residential David Dalby (pictured) said. “As long as agents don’t have to legally meet any minimum professional standards before they start trading, the consumer is at significant risk. This must not be allowed to continue.” The campaign by RICS coincides with Royal Assent being given for the Consumer Insurance Act, which shifts the balance

of the law in favour of the consumer, with insurers only able to refuse to pay a claim if a consumer acts deliberately or recklessly in making misrepresentations. Insurers will now have one year to implement the necessary changes. However, according

to RICS, the range of licensing schemes, awareness groups, and ombudsmen in the property sector present a complicated picture to consumers who want and deserve more effective and transparent regulation. RICS is calling on the Government to introduce a single regulation proposition for residential property aimed at preventing consumer harm and increasing consumer understanding. Steven Gould, RICS Director of Regulation said: “an easy first step for the Government would be a simple amendment to the 1979 Estate Agents Act, redefining the definition of estate agents to include letting agents. This needs to be followed up by action by trading standards officers to prosecute those agents not complying with the law. Property sales and lettings are too important to be left to those unwilling to demonstrate high professional and ethical standards.” n


Have you got what it takes to be Property Woman of the Year 2012?

www.propertywomenawards.org.ukNominations close on Monday 25th June 2012

See Pages 8-9for moredetails

Rose Chimuka of Hinchcliffe, Peterborough, has been sentenced to four years’ imprisonment by Croydon Crown Court, having been found guilty of committing eleven counts of fraud by false representation linked to six addresses across south London from August 2009 to June 2011. The scam involved the 32-year old often using a false name, approaching estate agents saying that she was looking for a large

family home to rent, that she and her family would live in. She would enquire with agents about schools and claim her husband worked away. A suitable property would be found and Ms Chimuka would rent the property on the basis of it being for her and her family. However, Ms Chimuka had no intention of moving into the property with her family. Rather, she would advertise locally for tenants so that she could sub-let the property to other

tenants. She would then sub-divide the houses she had rented and put locks on internal doors. She sub-let the property to up to 15 people in some cases. All this was done without the real landlord’s knowledge. DC Lee Haslett, from Croydon CID who investigated the case said: “This was an elaborate fraud and Chimuka was very calculating in committing this crime. She would go from place to place, sub-letting the properties

and collecting cash from her ‘tenants’ until the real landlord found out what was going on; at which point she’d move onto a new area and property and repeat the process.” He said that the fact that Chimuka carried out this ruse on numerous occasions showed that “she had clear intentions to defraud her victims – both the landlords and owners of the properties and the people who believed they were her legitimate tenants.” n



An Upper Tribunal judge has found that a severely disabled woman must continue to be allowed to claim housing benefi t from a local authority for rent payable, although she had not signed a tenancy agreement and had no contractual obligation to make the payments. The woman had applied for housing benefi t on the basis of a tenancy agreement with her father in which the father was described as the landlord and the claimant as the tenant. The woman could not sign the document and had no capacity to understand the agreement. The council decided that she

was not entitled. On appeal, the Upper Tribunal judge found that she had no liability to pay the rent because she had never actually entered into the tenancy agreement. She had no knowledge or means of knowledge of it and had not had the mental capacity to enter into such a tenancy. However, the claimant’s representatives then raised the point that, under the Mental Capacity Act 2005 section 7, a person who lacked capacity but to whom necessary goods and services were supplied had to pay a reasonable price for them. The

same judge agreed to review his decision and decided that accommodation was a ‘necessary’ service for the claimant and she was obliged to pay an amount equivalent to the rent because it was a reasonable charge. “In this case the accommodation was provided in circumstances which leave me in no doubt that it was provided with the intention that the claimant should pay for it with the assistance of housing benefi t,” the Judge said. For more information, see Wychavon District Council v EM (HB) [2012] UKUT 12 (AAC). n

Jail for subletting fraudster

Finding Tenants

Mental capacity to pay rent

Landlord and Tenant



Landlord & Tenant

Local Housing Allowance

A real pigsty


As the biggest changes to the housing benefit system in a generation begin to take effect, a survey by the NLA has shown that 53 per cent of landlords believe the cuts to the Local Housing Allowance (LHA) have made it unaffordable to let to benefit claimants.

The LHA cuts have seen maximum rent benefit payments reduced to the 30th percentile of local average market rents, rather than the previous 50th percentile. Caps have also been introduced, based on the size of the property.

Nearly half of the 956 landlords (46.9 per cent) surveyed earlier this year consider that tenants aged under 35 will be hit hardest by the changes. The age at which a tenant on benefits qualifies for anything more than a single room in a shared house has been raised from 25 to 35, forcing many more people into shared accommodation.

The NLA has raised concerns that nearly 70 per cent of the landlords surveyed said they cannot see themselves letting to LHA tenants in 2015. And, despite the wide-ranging impact of the cuts, the majority of landlords say they have still not been approached by their local authority to reduce rent for tenants on housing benefit. Just 25% of landlords surveyed by the NLA said their local authority had contacted them to discuss the situation.

NLA Chairman David Salusbury said “local authorities must acknowledge that landlords have to cover costs and cannot simply reduce rents to cover benefit cuts. It is vital they actively engage with tenants and landlords to discuss how these cuts will affect them.” One important discretion that local authorities can apply is to make LHA payments direct to housing providers. “While this won’t offset the cost of lowering rents,” he said, “it will provide a more secure income stream which could encourage more landlords to remain in the LHA market.” n

LHA changes could lead to landlord exodus

Arms length management organisation Derby Homes has evicted a tenant after concerns about the unhygienic conditions inside his home led to the discovery of a pig – and a Shetland pony! Derby Homes said a member of staff had raised issues of unhygienic conditions inside the home. The tenant failed to respond to initial requests to make contact. On receiving a complaint by a neighbour that the tenant had a Shetland pony in the rear

garden and also claimed that a pig was living in the house, Derby Homes contacted the Environmental Services team at Derby City Council and the RSPCA.

When the tenant repeatedly failed to allow access to Derby Homes and an Environmental Health Officer from Derby City Council, legal proceedings were launched to regain access to the property. It turned out that there were two Shetland ponies living in

the domestic garden that were removed from the property by the RSPCA. On attending the eviction of the tenant, Derby Homes representative found the property to be in extremely poor condition, particularly as the tenant had been keeping a dog and a 14-stone pig inside the house. Derby Homes estimated the cost of repairs at up to £15,000. The pig has now been taken to an animal sanctuary near Burton. n

LHA rate freeze begins

As from April 2012, Local Housing Allowance (LHA) rates were frozen. This means LHA rates will no longer be published each month and any new claims, changes and reviews will use the April 2012 rates.

From April 2013 Local Housing Allowance rates will be set at the lower of either the previous annual rate uprated by the September 2012 Consumer Price Index inflation (CPI), or the 30th percentile of local rents.

Moving to annual rates from April 2012 will enable the Department for Work and Pensions to establish a baseline and will mean that on-going

awards should not fall in April 2013. The measure is designed to relieve pressure

on the housing benefit bill, and bring the system in line with the uprating of other pensions and benefits. According to the Government, over the last ten years, the cost of Housing Benefit has nearly doubled in cash terms from £11bn to £22bn in 2010/11. If left unreformed, the Housing Benefit budget will exceed £24 billion by 2014/15, the DWP says.

The Government estimates that uprating LHA rates by CPI could save £300m a year, depending on actual changes in the CPI. n

Local Housing Allowance

Advice Line Supervisor

The NLA is seeking a full-time Supervisor for its Advice Line team. The post holder’s main responsibility will be to supervise a team of Advice Line operators and develop other advice services.

For information about the requirements for the position, please see www.landlords.org.uk/about-nla/jobs

All applications should be sent to [email protected] with an accompanying letter stating why you wish to be considered for this position. The closing date for all applications will be Wednesday 6 June 2012.


In April the new independent Scottish Housing Regulator (SHR) assumed its full regulatory powers and published its first Corporate Plan. SHR has just one statutory objective: to safeguard and promote the interests of current and future tenants of social landlords, people who are or may become homeless, and people who use housing services provided by registered social landlords (RSLs) and local authorities. Its new powers enable it to monitor and report on social

landlords’ performance and to intervene where necessary to protect the interests of tenants and other service users.The new Regulator regulates over 180 RSLs and the landlord and homelessness functions of 32 local authorities. Kay Blair, SHR Chair, said: “We are intent on promoting continuous improvement, effective governance and sustained financial health in social landlords. Our new powers give us the tools we need to regulate effectively. We will be confident in using these, and we will be swift and assertive

where necessary to ensure that the interests of tenants and other service users are protected.” In its first action, the SHR published regulation plans for 51 RSLs. SHR assesses annually the risk each landlord presents to the interests of tenants and other service users. It publishes a regulation plan for those RSLs it will engage with. It engages with an RSL where it needs more assurance or where it wants to see improvements. n



Social HousingScottish Housing Regulator goes live

Gas safety breaches

A landlord in Lancaster has been fined for putting the lives of a family at risk by failing to arrange an annual gas safety check. Carole McMillan, 57, was prosecuted by the Health and Safety Executive (HSE) after she failed to arrange for a registered engineer to visit a property in Scalehill. Lancaster Magistrates’ Court heard Ms McMillan had been letting the house to a couple and their two young children, aged five years and nine months old. An investigation was launched when it was discovered that gas appliances at the house had not been checked since February 2009. The landlord admitted a breach of the Gas Safety (Installation and Use) Regulations 1998 for failing to arrange an annual gas safety check. Ms McMillan was fined £750 and ordered to pay £2,250 in prosecution costs. Rohan Lye, the investigating inspector at HSE, said “landlords have a legal duty to ensure tenants aren’t exposed to dangers from gas appliances in their home. It doesn’t cost a lot to arrange a visit from a registered gas engineer but checking that appliances are safe once a year could save someone’s life.” Meanwhile, a Glasgow GP was given a conditional discharge for two year and ordered to pay nearly £5,000 in costs, after failing to maintain a gas boiler at a student flat he owned. Oxford Magistrates’ Court heard that a gas installer was called by the landlord, Dr Tariq Mahmood, to repair a boiler in Oxford. He refused to service the appliance and called an emergency gas engineer, who immediately condemned the boiler and flue. He then reported it to the HSE. The HSE investigation revealed that Dr Mahmood had failed to maintain the flat’s boiler and flue for two years between January 2009 and December 2010. n

Safety in your Property

The Department for Communities and Local Government has finally published the draft statutory instrument that allows local authorities to renew Mandatory HMO Licences in England.

Currently, to renew a licence, most of which have a five-year duration, a landlord of an HMO has to go through the whole licensing application procedure all over again.

Under the new rules, as long as there have been no complaints about the property and the landlord is still a ‘Fit and Proper’ person, they will only need to sign a declaration and provide the basic property details in order to get a Renewal Licence.

According to DCLG, the simplification of the HMO

re-licensing application form will help speed up the administrative process for HMO licence renewals and will also help reduce costs both for local authorities and those private landlords who are required to renew an HMO licence for their properties. DCLG estimates that an average HMO licence fee is £500, while an average renewal for a five year licence would be £375 (a 25 per cent reduction). It estimates that there are currently 56,000 licensable HMOs.

The Department says that time ‘freed’ up by simplifying the form will enable local authorities to better target their resources

at those private landlords who evade the licensing requirements. “These proposals therefore have the added benefit of protecting tenants in sub-standard properties,” DCLG says. “Prioritising these landlords will lead to an improvement in property condition and management standards in the private rented sector. Local authorities and landlords alike will benefit from reduced bureaucracy due to shorter application forms for HMO licence renewals.” n

Houses in Multiple OccupationHMO licence renewals

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.

See NLA Campaigns on page 6.

Safety in your Property





The Electrical Safety Council has joined forces with the NLA to help raise awareness about electrical safety in the private-rented sector (PRS). Each week, at least one person is killed and 1,000 people are seriously injured in electrical accidents in UK homes. Half of all accidental house fi res were caused by faulty or misused electrical equipment in 2010/11. Research from the ESC found that many landlords are confused over their responsibilities. Misunderstandings between landlords and tenants over responsibilities for safety are exposing some tenants to electrical dangers. The ESC is particularly concerned that there are a number of new or ‘accidental’ landlords entering the marketplace who may not be aware of their obligations surrounding electrical safety. The 16 per cent of the UK

population now living in the PRS accounts for 20 per cent of people receiving an electric shock. The NLA is reminding landlords that by law, they must ensure all electrical wiring and installations in their properties are safe, and the best way to be sure of that is to have the installation inspected periodically (typically every fi ve years) by a competent electrician. Landlords should also ensure there is adequate Residual Current Device (RCD) protection in their properties. They signifi cantly reduce the risk of electrical shock. Ideally these should be installed in the consumer unit but plug in RCDs can be used. Any landlord found to be negligent over electrical safety could face fi nes of up to £5,000 on each count or imprisonment. Tenants should be shown how to isolate the supply in the event

of a problem and advised to fl ag any electrical problems immediately so they can be fi xed. A term in the tenancy agreement not to make any alterations or additions to the supply is recommended. The ESC has produced a simple guide for landlords outlining how to ensure the electrical safety of a property, available free at www.esc.org.uk/landlords. It has also launched a smartphone app that helps people identify and resolve risks around the home.For more information, see the NLA Online Library (electrical safety section) and if you have any doubts, call the NLA Advice Line who will be able to guide you further. n

Safety in your propertyNLA and ESC work together on electrical safety

Tenancy Depositsmy|deposits moves towards Scottish approval

my|deposits Scotland has moved a step closer to becoming a government-approved tenancy deposit protection scheme in Scotland, having been given the green light by the Scottish government to proceed to a period of public consultation which ended on 8 April.

The Scottish Government says that its aim is for my|deposits Scotland, and two other schemes, to be approved and ready for operation by 2 July. The scheme proposed by The Letting Protection Scotland has been approved by Scottish Ministers.

The new law will require landlords and letting agents to lodge a deposit they take

from their tenant with a government-approved scheme. The money will be held by the scheme for safe keeping until the end of the tenancy. The service will be free for tenants and landlords.

Eddie Hooker, Chief Executive, my|deposits Scotland, said “my|deposits has already protected well over 1.2 million deposits in England and Wales and we look forward to bringing our experience to serve landlords and agents in Scotland.”

He recommends that landlords and agents understand how tenancy deposit protection works and how to properly protect tenants’ deposits within the time required

as there will be penalties under the law for those who don’t comply. He hopes that by using my|deposits Scotland, “landlords and agents can be assured that they are complying with the law and be safe in the knowledge their deposit money is secure. We will be bringing our reputation of outstanding customer service to landlords and agents in Scotland.” n


NLA National Conference 2012

Wednesday 31 October 2012

Aspiration Renting: Inspirational Landlords

at Chesford Grange Hotel, Warwickshire

For details and to register your interest please visit: www.landlords.org.uk/conference



Maintenance and Repairs

Sustainability


Door lock specialists Yale have released a new Doormaster range of multipoint locks that allow landlords to replace failing or broken multipoint locks, without replacing the entire entrance door.

When other multipoint locks – which often lock in three places – break, finding exactly the same

replacement lock to fit the door is not always easy, particularly as several common multipoint locks are no longer available. According to Yale, for many landlords, this has meant the only real option is to replace the whole door. Yale have released a new Doormaster range of multipoint locks that

allow landlords to replace failing or broken multipoint locks, without replacing the entire entrance door. The aim of the new range is to reduce callouts, maintain tenant security, and minimise door replacement for landlords, Yale says. n

Replacement multipoint locks from Yale

Consultation on energy efficiency in buildings

Feed-in-tariff victory over Government

German standards come to North east England

The Government will have to respect the 43.3p per kWh feed-in tariff (FIT) guaranteed to all home owners and businesses who installed solar panels before March 3rd, after the UK’s highest court, the Supreme Court, rejected a Government appeal of an earlier ruling that its decision to more than halve the payments was legally flawed.

Last October, the Government unexpectedly cut the tariff from 43.3p/kwh to 21p for all panels installed after 12 December 2011. The solar industry and environmental groups challenged the decision on the basis that not enough notice was given, and that the Government’s decision was made before the closure of a public consultation on the issue. As a result of the latest court ruling, the original index-linked feed-in-

tariff of 43.3p/kwh will apply to properties with solar scheme installations fitted between 12 December 2011 and 2 March 2012 for 25 years. Solar panels installed between 3 March and 31 March will only receive the higher rate until 1 April 2012 when it is reduced to the reduced rate of 21p/kwh. The lower tariff will now apply only to those panels installed after 1 April 2012. And, landlords who installed panels before 12 December 2011 will receive the original 43.3p for the duration of the 25 year scheme, as before. Ed Davey, Energy and Climate Change Secretary, said “the court’s decision draws a line under the case. We will now focus all our efforts on ensuring the future stability and cost effectiveness of solar and other microgeneration technologies for the many, not the few.” n

Housing association Gentoo has launched the first housing development in the UK to be accredited to the ‘PassivHaus’ energy efficiency standard first developed in Germany in 1990.

Gentoo, with the help of £200,000 investment from the Homes and Communities Agency (HCA), has built 28 low energy bungalows utilising the standard, in the town of Houghton-le-Spring.

‘PassivHaus’ homes rely on solar gain, air tightness and high standards of insulation.

The building fabric is said to significantly reduce energy consumption (by 75 per cent compared to building regulations) and helps reduce carbon emissions by around 80 per

cent. Passive heat is mainly gained from sunshine through the windows, but is also generated from people and appliances in the home.

The heat is then recovered and re-circulated using a Mechanical Ventilation and Heat Recovery (MVHR) system.

Through high levels of air tightness and insulation together with low energy demand these homes are estimated to have an annual energy bill for heating and hot water of only £68.

Along with the financial savings, the home occupiers will also benefit from better air quality and a reduction in noise levels. n

The Department for Communities and Local Government has launched a consultation on proposed changes to the Building Regulations regime in England that include specific environmental targets for new homes. The most significant proposals concern the area of energy efficiency in buildings. For new buildings, the Government has already committed to introduce zero carbon standards from 2016 (homes) and 2019 (non-domestic) for all new buildings. The proposed 2013 changes take the next step towards these zero carbon standards, by tightening the carbon dioxide targets for new buildings and introducing a specific energy efficiency target for new homes.

Other proposals include the introduction of ‘consequential’ improvements: meaning that when a home owner or business is carrying out works to their building (e.g. an extension, loft conversion or replacement windows) they would be asked to undertake additional work to improve the energy efficiency of the building at the same time. Some changes are also being made to the standards for works in existing buildings, including raising the minimum performance standards for replacement domestic windows from an energy rating of ‘C’ to ‘B’. If implemented, some of these changes may become effective from October 2012, alongside the introduction of the Green Deal, with more following in 2013. n

The NLA National Conference gives you the confidence to plan for the future, whether you let one property or manage a portfolio.

The private rented sector has changed beyond all recognition in the past 10 years. Private renting is becoming the tenure of choice for a new generation, while Local Authorities are relying on private landlords to meet housing needs. Standards have significantly improved, transforming the image of the sector and raising expectations. The landlord community is brimming with new ideas on how to improve service levels for tenants. At the same time, landlords increasingly make it their business to keep abreast of developments in areas such as finance and tax, local planning rules, energy efficiency and benefits.With the sector predicted to house 20% of UK households next year and almost 30% by 2020, private landlords are fuelling an economic and social revolution in housing. How will landlords respond to these challenges? These will be just some of the issues to be explored at this year’s NLA National Conference.

Conference highlights

Keynote speakersListen to and participate in question and answer sessions with industry leaders on the key topics affecting the private-rented sector.

Master ClassesInteractive sessions with successful landlords, leading specialists and business experts covering the practical side of letting. The Master Classes will look at innovative ideas for marketing your rental properties, new approaches to ensuring good tenant relations, maximising the business and tax opportunities from your portfolio, and how to get the most from the Green Deal.

The latest on Government policyWe look at the different policies being implemented in England, Wales and Scotland,

and what this may mean for landlords and the future of letting in the UK.

NLA Property Women Awards Gala DinnerBest practice and excellence in property will remain key themes at the glamorous NLA Property Women Awards ceremony. Unwind, reflect on the issues of the day and make new contacts at our Black Tie Gala Dinner.

The Venue

The NLA National Conference 2012 will take place in the heart of the UK at the beautiful Chesford Grange Hotel in Warwickshire. The hotel is set in seventeen acres of beautiful countryside and is easily accessible with convenient links to the M40, M42, M6, M69 and M1, with ample free parking. Nearby Warwick Parkway and Leamington Spa stations provide

direct train links to Birmingham and the North, as well as to London, South East and South West.

Accommodation

The NLA has negotiated special bed and breakfast rates at the Chesford Grange. A standard single room is just £99 (inc. VAT) per night, a double room is £109 (inc. VAT) – available on a first come, first served basis.


STARTING UP REGULATORY PROPERTY NEWS SAFETY FINANCE

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

NLA National Conference 2012Aspiration Renting: Inspirational Landlords Wednesday 31st October 2012, Chesford Grange, Kenilworth, Warwickshire, CV8 2LD

NLA National Conference 2012

NLA Property Women Awards Gala Dinner

Combined ticket – Saving £40

£75£75£110

£95£96£150

Places are limited. Reserve your place today by calling Charlotte Clements on 020 7840 8920 or by emailing [email protected]

For more details go to www.landlords.org.uk/conference

NLA / UKALA member rate Non-member rateTicket Prices

Prices do not include accommodation. All prices include VAT.



Regular Local Business and Investment NewsREGIONS NEWS

Make sure you get to the meetings that count!

The NLA has introduced a new facility to enable its Members to receive notification of landlord meetings near their rental properties, as well as near where they live.“Many landlords don’t live where their rental properties are,” NLA Head of Regions Ken Staunton (pictured) explains. “However, a number of our Members have told us that it would be useful for them to attend landlord meetings that are local to their properties. We are all aware that different local authorities implement regulations in different ways and it is useful to be kept in the picture about upcoming developments, such as Article 4 planning directions or new licensing proposals.”

It is simple to set your preferences for being informed about local meetings. All you

need to do is login to the NLA Website and go to the My Profile section where the details of your NLA Account are displayed. If you click on to the Email Preferences on the left hand column, you can then select the regions and areas within these regions that you would be interested to receive information.

Ken told UK Landlord: “NLA Members can go to as many local NLA meetings as they like. There are already around 200 every year. Once we know which locations a Member is interested in, we will email them notices for the meetings in those locations selected.” n

Blackpool goes for unjustified selective licensingBlackpool Council has introduced a controversial new selective licensing scheme for landlords in the South Beach area.

While the Council says the scheme is justified as a means to combat anti-social behaviour and improve housing conditions, the NLA is concerned that the Council may be abusing its powers in relation to this scheme. According to David Cox, NLA Policy Officer, Blackpool’s approach is “symptomatic of so many of these Selective Licensing schemes that seem to be popping up with limited basis in evidence.”

Under the scheme, which

came into effect in March 2012, landlords will need to apply for a licence, with fees starting at £670 for a licence for a property occupied by one household. Many of South

Beach’s 751 rented properties are in former bed and breakfast and holiday accommodation. Selective licensing imposes conditions on landlords relating to issues including property

management, fire safety and the selection and management of tenants. The scheme also commits the Council to providing landlords with help and support, for example when dealing with problem tenants. Councillor Gillian Campbell, the Council’s Cabinet member for housing, said: “This is just a start – in the future we hope to introduce the scheme, where appropriate, in other parts of the resort too.”

For David Cox, Blackpool’s decision “shows how selective licensing is being used as a political tool with limited justification in evidence and no prospect of successfully achieving its aims.” n

For more information, see: www.landlords.org.uk

£95£96£150


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 [email protected] to your safe senders list and/or address book.

Non NLA event

EVENTS GUIDE May 2012-July 2012 For an up-to-date list visit: www.landlords.org.uk/events

Mon 14 May NLA Reading Branch Meeting South East Best Western Reading Moat House, Mill Lane, Sindlesham, 6.30pm Nr Wokingham, Berkshire RG41 5DF

Mon 14 May Launch of the NLA Sunderland North East Sunderland Central Community Fire Station, North Moor Road, 3.00pm to 5.00pm & South Tyneside Branch Sunderland, Tyne and Wear SR3 1TJ Meeting

Tue 15 May NLA Weymouth Branch Meeting South West Weymouth Working Men’s Club, 1 Mitchell Street, Weymouth, 7.00pm for Dorset DT4 8BT 7.30pm start

Tue 15 May NLA Teesside Branch Meeting North East The Blue Bell Hotel, Acklam Road, Middlesbrough TS5 7HL 7.00pm for 7.30pm start to 9.00pm

Tue 15 May NLA Walsall Branch Meeting West Midlands Walsall RFC The Clubhouse, Delves Road, Walsall, WS1 3JY 7.00pm to 9.00pm

Tue 15 May NLA Portsmouth Branch South East Holiday Inn Hotel Portsmouth, Pembroke Road, Portsmouth, 6.00pm for 6.30pm Meeting Hampshire PO1 2TA start to 8.30pm

Wed 16 May Brent Landlord Event London Sattavis Patidar Centre, Forty Avenue, J/W The Avenue, 5.00pm to 8.00pm Wembley Park HA9 9PE

Thu 17 May NLA and Ryedale Private Yorkshire and the Humber The Malton and Norton Rugby Club, The Gannock, Old Malton 6.00pm to 8.00pm Landlord Forum Road, Malton, North Yorkshire YO17 7EY

Thu 17 May Sutton Landlord Forum London London Borough of Sutton, Civic Centre, St. Nicholas Way, 4.00pm to 9.00pm Sutton, SM1 1EA

Mon 21 May West Kent Landlords Forum South East Tonbridge & Malling Borough Council Offices, Gibson Building, 6.30pm for Gibson Drive, Kings Hill, West Malling, ME19 4LZ 7.00pm start

Tue 22 May NLA Southampton Branch South East Eastpoint Conference Centre, Bursledon Road, Southampton, 6pm for 6.30pm Meeting Hampshire, SO19 8BR start to 8.30pm

Tue 22 May NLA Redditch Branch Meeting West Midlands Redditch Town Hall, Committee Room 3, Alcester Street, B98 8AH 6.30pm to 9.00pm

Wed 23 May NLA Branch Meeting for London Tudor Barn Eltham, Well Hall Pleasaunce, Well Hall Road, 6.30pm for Landlords in Bexley, Bromley London SE9 6SZ 7.00pm start and Greenwich

Wed 23 May NLA Worthing Branch Meeting South East Field Place, Chichester room, The Boulevard, Worthing, 7.30pm to 9.30pm West Sussex BN13 1NP, Tel 01903 244034

Wed 23 May NLA Glasgow Branch Meeting Scotland Radisson Blu Hotel, Room 1, 301 Argyle Street, Glasgow G2 8DL 7.30pm

Wed 23 May NLA Nuneaton Branch Meeting West Midlands Town Hall, Coton Road, Nuneaton CV11 5AA Free buffet from in partnership with Nuneaton 6.30pm for 7.00pm Borough Council start to 9pm

Thu 24 May NLA Dorset Branch Meeting South West The Queen Hotel and Spa, Meyrick Road, Bournemouth BH1 3DL 7pm for 7.30pm start

Mon 28 May Launch of NLA Derby Branch East Midlands Days Hotel Derby, Derbyshire County Cricket Ground, Pentagon 6.30pm to 9.30pm Meeting Roundabout, Derby DE21 6DA

Tue 29 May Launch of NLA Herefordshire West Midlands The Kindle Centre, Belmont Road, Hereford HR2 7JE 6.30pm to 9.00pm Branch Meeting

Wed 30 May NLA Bolton Branch Meeting North West Britannia Bolton, Beaumont Road, Bolton BL3 4TA 6.30pm

Thu 31 May West of England Landlord Expo South West University of the West of England, Exhibition and Conference 12.00pm to 7.00pm Centre, UWE North Entrance, Filton Road, Stoke Gifford, Bristol BS34 8QZ

Thu 31 May Launch of NLA Stoke on Trent West Midlands Burslem School of Art, Queen Street, Stoke on Trent ST6 3EJ 6.30pm to 9.00pm Branch

Thu 7 Jun NLA Leicester Branch Meeting East Midlands Peepul Centre, Training Room 3, Orchardson Avenue, Leicester 6.00pm for 6.30pm LE4 6DP, Tel: 01162 616000 start to 9.00pm

EVENT REGION LOCATION TIMEDATE

NLA National Conference 2012: All day event, Wednesday 31st October 2012, Chesford Grange Hotel, Warwickshire

Now Thurs 31st May

Now Thurs 14th June


EVENTS GUIDE

EVENT REGION LOCATION TIMEDATE

May 2012-July 2012 For an up-to-date list visit: www.landlords.org.uk/events

Mon 11 Jun Launch of NLA Durham North East Durham Leadership Centre, Neville Hall, Enterprise Way, 5.00pm to 8.00pm Branch Meeting Spennymoor DL16 6YP

Mon 11 Jun NLA Trafford and Salford North West Premier Inn, Manchester, Old Trafford, Waters Reach, 6.00pm Branch Meeting Trafford Park M17 1WS 6.30pm start

Tue 12 Jun NL A Lincoln Branch Meeting Yorkshire and the Humber Check NLA website for details. 6.30pm to 8.30pm

Tue 12 Jun NLA North East Branch Meeting North East Novotel Newcastle, Queen Elizabeth Suite, Ponteland Road, 6.00pm for Kenton, Newcastle Upon Tyne NE3 3HZ 7.00pm start

Tue 12 Jun NLA Edinburgh Branch Meeting Scotland Virgin Money Lounge, 28 St Andrew’s Square, Edinburgh EH2 1AF 6.30pm for 6.45 start

Tue 12 Jun NLA Bedworth Branch Meeting West Midlands Bedworth Civic Suite, High Street, Bedworth CV12 8NF 7.00pm to 9.00pm

Tue 12 Jun NLA Wolverhampton Branch West Midlands Wolverhampton Racecourse, Cleveland Suite, Dunstall Park, 6.30pm to 9.00pm Gorsebrook Road, Wolverhampton WV6 0PE

Wed 13 Jun NLA Stafford Branch Meeting West Midlands Stafford Borough Council, Civic Centre, Riverside, 6.00pm to 8.00pm Partnership with Stafford Stafford ST16 3AQ Borough Council

Thu 14 Jun NLA The Marches Landlord West Midlands Ludlow Football Club, The SBS Stadium, Bromfield Road, 5.30pm to 8.00pm Meeting - Ludlow Ludlow SY8 2BN

Thu 14 Jun NLA York Branch Meeting Yorkshire and the Humber Holiday Inn, Tadcaster Road, York YO24 1QF 6.30pm start

Mon 18 Jun NLA Dundee Branch Meeting Scotland Best Western Queens Hotel, 160 Nethergate, Dundee, 7.00pm to 9.00pm Angus DD1 4DU

Tue 19 Jun NLA Grimsby Branch Meeting East Midlands The Humber Royal Hotel, Littlecoates Road, Grimsby DN34 4LX, 6.30pm to 8.30pm Tel 01472 240024

Tue 19 Jun NLA Darlington Branch Meeting North East Community Safety Centre (Fire Station), Hackworth Suite, 6.30pm for 7.00pm Off Park Place, Darlington DL1 5LR start to 9.00pm

Tue 19 Jun NLA Brighton Branch Meeting South East Hilton Brighton Metropole, Kings Road, East Sussex BN1 2FU 6.30 start to 9.00pm

Wed 20 Jun NLA Torbay & Teignbridge South West Forde House, Brunel Road, Newton Abbot TQ12 4XX 6.00pm for 6.30pm Branch Meeting start to 8.30pm

Thu 21 Jun Launch of NLA Loughborough East Midlands Charnwood Lodge, 136 Leicester Road, Loughborough, 6.00pm to 9.00pm Branch Meeting Leicestershire LE11 2AQ

Mon 25 Jun NLA Manchester Branch North West The Waterside Hotel, Manchester Road, Didsbury, Manchester, 6.30pm for 7.00pm Meeting M20 5WZ Tel 01614 450225 (ample parking to the rear) to 9.00pm

Tue 26 Jun NLA Cumbria Branch Meeting North West University of Cumbria, Room LG101, Fusehill St, Cumbria CA1 2HH 7.00pm

Tue 26 Jun NLA and Northumberland North East North Forum, Committee Rm1, Wallace Green, Berwick TD15 1ED 6.00pm Cty Council Landlords Forum

Tue 26 Jun NLA Solihull Branch Meeting West Midlands Corus Hotel, Solihull, Stratford Road, Shirley, Solihull, B90 4EB 6.30pm to 8.30pm

Wed 27 Jun NLA Exeter Branch Meeting South West Mercure Southgate Hotel, Southernhay East, Exeter EX1 1QF 6.00pm for 6.30pm start to 8.30pm

Thu 28 Jun NLA Market Harborough East Midlands Best Western, The Three Swans Hotel, Cromwell 1, High Street, 1.00pm to 4.00pm Branch Meeting Market Harborough, Leicestershire, LE16 7NJ & repeated 5.00pm to 8.00pm

Tue 3 Jul Test Valley Private Landlord South East The Council Office, Weyhill Road, Andover, SP10 3AJ 9.30am to 12.00pm and Letting Agents Forum

Tue 3 Jul NLA Hull and East Riding Yorkshire and the Humber Check NLA website for details. 5.30pm to 8.30pm

Tue 3 Jul London Borough of Barking & London Barking Town Hall, 1 Town Hall Square, Barking IG11 7LU 6.00pm for Dagenham Landlords Forum 6.30pm start

Tue 3 Jul NLA Conway Branch Meeting Wales Bodlondeb Council Offices, Conway, LL32 8DU 5.30pm to 8.00pm

Mon 9 Jul NLA Shropshire Branch Meeting West Midlands Shire Hall, Abbey Foregate, Shrewsbury, SY2 6ND 5.30pm for 6.00pm in partnership with Shropshire start Council

NLA Property Women Awards 2012: Evening event, Wednesday 31st October 2012, Chesford Grange Hotel, Warwickshire

National HMO Network Conference 2012, for more see www.landlords.org.uk/events

Now Tues 26th June


Population (2011): 4.5 million

Unemployment rate (March 2012): 8.2 per cent

Average house price (Feb 2012): £124,208 Detached: £194,648

Semi-detached: £105,396 Terrace: £81,865

Flat: £88,146

Proportion of private-rented property (2010): 15.7 per cent

Long-term privately-owned empty homes (April 2011): 30,735

Sources: Offi ce for National Statistics, Land Registry, Communities and Local Government, Halifax Empty Homes in England survey.

Key Statistics for The East Midlands

REGIONAL FOCUS The East Midlands Investment Focus


1. Nottinghamshire2. Derbyshire3. Leicestershire4. Rutland5. Northamptonshire6. Lincolnshire

NLA REPRESENTATION

NLA Local Representatives

Raj Beri NLA Representative for Nottinghamshire and Derbyshire

Contact: [email protected] if you have suggestions for meetings in his area.

Responsible for developing relationships with local authorities in Nottinghamshire and Derbyshire. “I regularly attend local landlord forums organised by these councils and I also sit on a panel of landlords and local council offi cials to discuss current issues.

Portfolio: I have a mixed portfolio of properties (LHA tenants, professional tenants and HMOs) predominantly in Nottingham.

Local investment opportunities: Assuming one can get fi nance, now is a fantastic time to acquire

investment properties in this area as long as you buy at the right price. Rental demand is strong for well-presented properties in the right areas. Demand for HMOs will undoubtedly increase in the LHA sector in Nottingham due to the under 35’s only getting the 1-room rate at a time when the local council has implemented Article 4 directions.

Landlord events: I will be organising events in Nottinghamshire and Derbyshire so please check the NLA website for further details.

1 2

3 4

5

6


The East MidlandsREGIONAL FOCUS


John Socha NLA Representative for Northamptonshire

Lynda Bowen NLA Representative for North Lincolnshire

Christine Fernandes NLA Representative for Leicestershire

Contact: [email protected] if you have suggestions for meetings in her area.

Contact: [email protected] if you have suggestions for meetings in his area.

Contact: [email protected] if you have suggestions for meetings in her area.

Portfolio: 15 apartments and 7 houses, all except one of the houses are within 4 miles of my offi ce. We have just constructed our fi rst “built to rent”, two-bedroomed terraced house. I also own the freeholds to 300 apartments spread across 18 sites in Northamptonshire.

Local investment opportunities: Landlords have been concentrating on the opportunities in the student rental market until this year. The market is about to be hit by a new development by the University in the town centre which will house around 300 additional students, removing at least 60 houses from the market. These are likely to join the sharers market, where supply is being

shortened by the introduction of Article 4 in the centre of town and around Northampton University in Kingsthorpe.

Landlord events: Northampton is the oldest NLA branch, having been in existence since 1996. We have high attendance – usually around 60 NLA Members attend our branch meetings. At our recent meeting, we raised our concerns about Article 4 with the Northampton Borough Council cabinet member for housing. Our next scheduled meeting will be on Monday 24 September 2012. Every year we hold a meeting for the landlords renting to students at Northampton University. This will be on Monday 7 January 2013.

Portfolio: A small but growing portfolio of homes across Lincolnshire and Nottingham, including student properties, and holiday lets.

Local investment opportunities: Lincolnshire is one of the most rapidly developing areas in the UK, with solid demand for rental properties in the county. Wage levels are generally lower than national average, meaning affordability issues for many potential home owners, and a strong demand for rental properties; Lincolnshire has a high proportion of people living in the private-rented sector – over 20 per cent in some parts of the county.

What with Lincoln University, the road and rail network in Lincolnshire and the number of start-up businesses seeing major developments, it is not surprising that Lincolnshire with above national average population growth, continues to be a great investment opportunity for landlords.

Landlord events: Lynda is responsible for developing relationships with local authorities in Boston, Lincoln, East Lindsey and West Lindsey and organising member events in North Lincolnshire. NLA Lincoln Branch meeting: Tuesday 12th June 6.30-8.30pm

Portfolio: Sixteen houses in the North-East of England and currently purchasing more. Two houses, one in Derby and another in Nottingham.

Local investment opportunities: Leicester and Loughborough are strong rental areas. Student demand is high. HMOs are still an attractive opportunity, however, this may be affected if

Leicester City Council introduce Article 4 directions.

Landlord events: An NLA branch has now been established at Market Harborough, and inaugural meetings are planned for Leicester and Loughborough in June. For all meeting dates, please refer to the NLA website.



Regular Local Business and Investment NewsREGIONS NEWS

Sustainable heating for rural homes in ScotlandPeople living in rural Scotland are being encouraged to install renewable heating devices in their homes if they are not connected to the gas grid.

Over half a million households in Scotland are not connected to the gas grid and 135,000 rely on heating oil.

High heating oil prices mean that renewable heating systems are increasingly attractive, although the up-front investment costs remain a barrier for many people. In addition, half of households in rural Scotland are in fuel poverty and the construction of older and rural houses means that loft or cavity wall insulation is often not suitable.

Latest research by Scotland’s consumer watchdog, Consumer Focus Scotland, shows that both social landlords and tenants are finding renewable systems can provide warmer homes at lower costs than traditional alternatives. The report document a number of housing associations and local authorities in Scotland who are successfully using solar panels, air and ground source heat pumps and community heating schemes.

Tenants and landlords also emphasised the need to support tenants as they get to grips with their new systems.

Simple measures like arranging visits to houses where the systems are already installed,

providing clear information and simple controls are suggested to help ensure that the benefits are delivered in practice, and that teething problems are avoided.

Consumer Focus Scotland

is now calling for the Scottish Government to make support for tenants, and reporting on the results of projects, key parts of funding agreements for installing renewables. n

New NLA Representative for Surrey After her well-received presentation

at the NLA National Conference Emma Bulmer (pictured) from the Green Deal Demand Team, Department for Environment & Climate Change, gave a keynote speech recently at a seminar organised in London by the NLA and spent time talking with landlords during the break. Speaking to a packed hall at the Institute of Directors in London, Ms

Bulmer and David Cox, NLA Policy Officer, gave a concise and insightful overview of the how the Green Deal will work in practice for landlords to improve energy efficiency across their portfolio. The seminar was

jointly sponsored with London lettings agency Edmund Cude and also covered the opportunities and possible downsides posed by Olympic Short Lets. Maryann Richmond-Coggan was extremely pleased with the high turnout and positive feedback from the many London landlords who attended the seminar. “There was a good discussion on the London factor and at how the London market

has bucked the trend (although not all parts). Prime locations such as Westminster, Kensington and Chelsea are the types of areas that have seen the large rises.”

Aside from the stimulating topics under discussion, the event also provided an opportunity for networking over wine, juice and water. The next NLA London Seminar is on Wednesday 25th April. See page 30 for more information. n

NLA London Seminar on the Green Deal and Olympic Lets

For the latest news visit: www.landlords.org.ukNLA LANDLORD DEVELOPMENT

Specialist CoursesTo reserve a place: Charlotte Clements on 020 7840 8920 or [email protected]

PossessionOne-day course on Possession, with practical workshops on fi lling in the forms and notices:Price: Members: £95 (inc VAT)Non-members: £125 (inc VAT)

Local Housing Allowance & Deposits, Damages & DisputesHalf-day course on Deposits, Damages and Disputes, incorporating Inventories and how to deal with disagreements:Price: Members: £55 (inc VAT)Non-members: £75 (inc VAT)

LOCATION

Half-day course on Local Housing Allowance, what to be wary of and how the system can work for you: Price: Members: £55 (inc VAT)Non-members: £75 (inc VAT)

The 2 half-day courses on LHA and Deposits, Damages & Disputes can be followed on the same day.Price: Members: £95 (inc VAT)Non-members: £125 (inc VAT)

Manchester

Liverpool

South London

2012 DATES

Wed 23rd May

Tues 29th May

Wed 30th May

Local Housing Allowance: 8.30am for 9.00am start; 12.20pm fi nish

Deposits, Damages & Disputes: 1.30pm for a 2pm start; 5.20pm fi nish

LOCATION

2012 DATES LOCATION

TIME: 8.30 for a 9.00am start; 5.00pm fi nish

Portable Appliance Testing for Landlords

Landlord Foundation CoursesThe 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:

• findingtenants• settingup• managingandendingatenancy• keepingrecords• repairingobligations

The programme offers an excellent opportunity to network withother landlords and discuss face-to-face ideas, problems and possible solutions.

Price: Members £95 (including VAT), non-members £125 (including VAT)To reserve a place: Charlotte Clements on 020 7840 8920 or [email protected]

2012 DATES LOCATION

ALL TIMES: 9.00am for 9.30am start; 5.00pm fi nish

2012 DATES LOCATION

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: £155 (including VAT) for members and £185 (including VAT) for non-members.

To reserve a place: Charlotte Clements on 020 7840 8920 or [email protected]

ALL TIMES: 8.45am for 9.00am start; 5.00pm fi nish

Tuesday, 22nd May

Monday, 28th May

Tuesday, 29th May

Monday, 18th June

Newcastle

Oxford

Poole

Hertfordshire

Thursday, 17th May

Tuesday, 12th June

Thursday, 14th June

Friday, 22nd June

Tuesday, 3rd July

Tuesday, 19th July

Tuesday, 31st July

Slough

Southend

Reading

Bournemouth

Canterbury

Birmingham

South London

Wed 13th June

Thurs 28th June

Birmingham

South London

UKLANDLORD JaNUaRy/FEBRUaRy 2012 39UKLANDLORD May/JUNE 2012 35


Running a successful HMO business

“I run a business based on the old fashioned principles of trust and confidence,” says landlord Andrew Markey. “I want my tenants to have confidence in me and me in them. And we never have any vacancies – it’s been 100 per cent full for the last 15 years.”

Much of the secret to the success of Andrew’s business lies in his rigorous process of tenant selection. He favours advertising online, and asks prospective tenants to telephone him so that he can talk to them directly about his property and then go through a very thorough telephone interview.

“I always try and get the best tenants,” he says. “The only real criterion in the selection process is whether the person will be a good, polite tenant. There are four house rules: no noisy people, keep the place clean and tidy, pay rent on time, and stick to the principle of mutual respect. We respect tenants’ privacy, and we expect our tenants to respect us as landlords.”

Rules are rulesAndrew does not accept couples at his HMO and he requires a salary slip or bank statements to show proof of income. To secure the room, tenants have to pay a deposit, which equals one month’s rent, £200 of which must be in cash. Similarly, when they move in, they must pay the first month’s rent, of which a minimum must be £200 cash.

The balance in each case can be by cheque or bank transfer. Thereafter rent is paid by direct debit into a dedicated Rent Bank Account. “There’s no substitute for cash and most people can get £200 out of a hole in the wall,” Andrew says. “Moreover, I don’t like to ask people to walk around with more cash on them than that.”

Andrew does not accept tenants in receipt of benefit on the basis that as the deposit may not be tenant’s own money, there is little incentive for them to care for the property.

However, when existing tenants run into financial difficulties, he is there to provide support and lend a helping hand. “I have a former council worker with us who is now on Housing Allowance as he lost his job,” Andrew says. “He was a very good tenant but suddenly couldn’t afford to pay. So I told him I wouldn’t serve him notice as long as he pays a slightly lower amount each month, and I also gave him a credit limit to take away the immediate fear. And, he’s come good.”

Despite his commitment to best practice in managing his tenants, Andrew’s life as a landlord is not made any easier by the seemingly arbitrary and contradictory actions of his local council.

“They’ve asked for things that would have meant ripping out all the circuits and rewiring the entire house,” Andrew says. “They’ve made totally inaccurate complaints about the fire doors, heat detectors and even my kitchen


FEATURE: CHOOSING THE RIGHT TENANT

UKL spoke to long-standing NLA member Andrew Markey about how he manages his 11-bedsit HMO in Crouch End, North London.


worktops. I’ve got them to back down but at times I feel very victimised. I am accredited and do all the right things, but this council have just never liked private landlords!”

As a result, Andrew has strong feelings about housing legislation and has contributed to local and national level consultations on housing. “I think housing standards should be improved by targeting bad landlords,” he says. “There is a lot

that the Government can do in tax law to encourage landlords, whereas at the moment the tax system only discourages them.”

“And, I have been telling my local MP that Grant Shapps needs to abolish council-run landlord accreditation schemes, and replace them with the NLA scheme, which I think is a much better scheme!” n

Running a successful HMO business

The only real criterion in the selection process is whether the person will be a good, polite tenant. There are four house rules: no noisy people, keep the place clean and tidy, pay rent on time, and stick to the principle of mutual respect. We respect tenants’ privacy, and we expect our tenants to respect us as landlords.

The only real criterion in the selection process is whether the person will be a good, polite tenant. There are four house rules: no noisy people, keep the place clean and tidy, pay rent on time, and stick to the principle of mutual respect. We respect tenants’ privacy, and we expect our tenants to respect us as landlords.


Relocation, Relocation

Although economic conditions remain tough, the UK and international workforce is as mobile as ever. In the UK, the public sector in particular is looking to base more of its operations in regions away from London, with the BBC currently transferring a number of its productions to Salford in Manchester. Following the creation of 21 new Enterprise Zones across England last year – designed to encourage the growth of the private sector with fast broadband, lower taxes and low levels of regulation and planning controls – the Government is hoping that professionals will relocate to take up positions of employment or to start new business ventures.

At the same time, there continues to be a steady stream of new arrivals and their families from abroad who come to this country to fill positions in both UK and international companies.

The economy has never been so globalised, and this growing population of mobile workers presents significant opportunities to the private-rented sector in the UK. More specifically: a large and attractive pool of prospective tenants who are in steady employment, most whom are not looking to buy property, at least immediately, in their new location.

The fastest and most effective way of accessing this source of potential tenants is often to use a relocation agent who works closely with companies and other organisations to help relocate their employees and their families.

Caroline Kempster and her husband Anthony are the owners and directors of letting agency, The Letting People, in Leamington Spa, which is a member of the UK Association of Letting Agents (UKALA). The Letting People works with relocation agents to place employees from companies such as IBM and Caterpillar. Caroline has had a positive experience of working with relocation agents as they usually have a good knowledge of their client requirements, especially when it comes

to foreign nationals and this facilitates a successful application and reference process. She also adds that a relocation agent will be able to assist with moving the tenant into the property, connection of subscription services such as broadband services, dealing with the council tax and utilities and finding schools and local clubs for the tenants.

Jag Sandhu, manager of netlettings.com in London who are also members of UKALA sums up the advantages for landlords of working with a relocation agent: “Valued, professional tenants working for large organisations ensure longer, more stable tenancies and the sort of tenants you’d wish for your property.”

Netlettings.com works with banking and financial institutions such as UBS and Thomson Reuters, IT consultancies such as Accenture and Polaris, and many smaller companies. “We relocate individuals, couples, families or entire teams from anywhere in the world, and we’ve even relocated a football player or two in our time,” Jag told UK Landlord.

Jag advises that “Any agency worthy of your consideration should have a decent portfolio of corporate clients, a strong tenant assessment process, and a reputation for honesty, efficiency and effectiveness in finding quality tenants for their landlords,” Jag says.

No cost to the landlordThe set up with relocation agents is not exactly the same as with letting agents, although, of course, the professions are similar and a number of lettings agents also act as relocation agents. A relocation agent is employed by a corporate client to ensure that their valued staff are happy and settled in their new homes. It is the company, not the landlord, who picks up the bill for finding the rental property.

Caroline advises landlords to “ensure that, through their letting agent, relocation agents are aware of suitable properties for the relocation agent’s clients. Landlords should also check that their letting agent is used to liaising with relocation agents on a regular basis and has systems and procedures in place for on-going liaison during the tenancy.”

Important clauses for relocation contractsAs ever in the property business, it’s essential to be aware of the legal obligations of every party involved. Contracts must protect the interests of the landlords, and should ensure that in the event of there being damage to your property during a tenancy or should the tenant default on their rent, you are protected.

One of the first points to check, according to Caroline Kempster, is that the landlord should


FEATURE – FINDING TENANTS

Relocation agents are specialists who work with companies to help move employees and their families and mitigate the stress of a change of home. They often work with professional landlords with a portfolio of top quality properties in the targeted area for relocation.

The team at The Letting People, Leamington Spa


avoid paying any fees to a relocation agent.She also negotiates on behalf of her landlord clients that the agreement provides for a clause that the relocation agent arranges an end-of-tenancy property preparation schedule for checkout, including cleaning. In addition, she suggests that landlords ensure a jointly assessed end-of-tenancy schedule should be prepared with a condition and dilapidations report.

Jag Sandu advises that one way to ensure a lower likelihood of issues arising is to request that companies act as guarantors for employees who choose to rent as individuals. He also insists that any contracts “keep up with current legislation.”

Jag recommends that NLA Members check that a relocation agent is able to establish their expertise to any prospective landlords. “All staff should be industry trained, their legal documentation should be regularly reviewed to be up to date with current legislation, and they should have years of experience working as relocation specialists within a defined market.”

The job of a relocation agent is to ensure that an employee moves residence and settles in to their new home with as little stress as possible. They are specialists who are always looking to expand their local networks of attractive, well located properties, run by professional and experienced landlords. In return, a partnership with a relocation agent can provide landlords with a valuable source of high quality tenants for your portfolio. n

For more information and to find a UKALA agent in your area, go to: www.ukala.org.uk

Any agency worthy of your consideration should have a decent portfolio of corporate clients, a strong tenant assessment process, and a reputation for honesty, efficiency and effectiveness in finding quality tenants for their landlords.Jag Sandhu, manager of netlettings.com in London

Jag Sandhu, manager of netlettings.com


Chris Norris, NLA Policy Manager

Public Affairs

PUBLIC AFFAIRS


Following an unusually long parliamentary session, which saw the Coalition’s legislative big beasts reach the statute books, all eyes are on the Queen’s Speech for what the next year will bring for Westminster.

At the time of writing, the Government has not released details of the bills which will form the spine of its agenda. However, the expectation is that there will be no direct housing legislation brought forward in the next session. The biggest issue for landlords to watch is likely to be the (carried over) Water Industry Bill and a new Draft Water Bill, intended to allow private customers to put their water and sewerage use out to tender.

Beyond housing, a great deal of parliamentary time is likely to be taken-up by legislation to make further constitutional reforms including; reform of the House of Lords, electoral registration and the rules concerning the recall of MPs. Banking and Financial legislation is likely to be at the forefront of the agenda also with a Financial Services Bill and Banking reform Bill expected in due course.

Back in the present, the full ramifi cations of the Chancellor’s

2012 Budget are beginning to make life diffi cult for the Government. The issue of capping tax reliefs against income tax is dominating the headlines, principally because of the potential impact on the charity sector. However, it remains to be seen what this will mean for landlords offsetting their mortgage interest again income tax. The NLA is keen to see clarifi cation from HM Treasury that landlords will not be detrimentally affected.

Away from Westminster, the date from which Scottish tenancy deposit protection schemes will come into force has been announced. From 2 July 2012, approved deposit protection schemes will be available and landlords will be expected to protect every relevant deposit taken – subject to appropriate deadlines depending on the circumstances of the tenancy. More details can be found at: www.mydepositsscotland.co.uk

In Wales, the Welsh Assembly

Government are continuing at pace with their plans to register and eventually accredit every landlord and letting agent in the country. A white paper outlining the Government’s plans is expected to be published before the end of May.

Finally, the feed-in-tariff saga continues. The Supreme Court has rejected the Government’s appeal against December’s court ruling

that its halving of solar payments were “legally fl awed”. This means that the Department of Energy and Climate Change has run out of legal options and the 30,735 homeowners and businesses who installed solar panels after a 12 December cut-off date and before 3 March will now be eligible for the previous, higher feed-in tariff (Fit) of 43p per kWh of energy generated. n

Readers could be mistaken for thinking that the Scottish Government already had a strategy for the private rented sector, given that the Private Rented Housing (Scotland) Act became law last year, following extensive consultation. However, in April the Government published a substantial document entitled ‘Consultation

on a Strategy for the Private Rented Sector’ – presumably intended to inform their thinking on what a strategy for the sector

should look like. The proposed strategy seems

to be based on a vision, stated as: “A thriving and professional private rented sector that offers good quality homes and high management standards; inspires consumer confi dence; and encourages growth and investment to further develop and improve the sector.” Of

course there is very little to disagree with in this statement, and the NLA is always supportive of attempts to give the PRS equal footing with other tenures. However, it does seem a little counter-intuitive to consult on a national strategy a year after a major piece of legislation affecting the sector went through the Scottish Parliament. n

New strategy for Scotland


“

If you take a deposit from your tenant you must protect the deposit with a government-authorised tenancy deposit protection scheme such as my|deposits.

Over 1 million tenant deposits successfully protected

Over 80,000 landlord members and growing

Mr Popat, my|deposits member since 2008

Tenancy deposit protection

www.mydeposits.co.ukTel: 0844 980 0290

I like to be able to manage the money myself and have more control over the deposits.I can return the deposit to the tenants quickly at the end of their stay which they appreciate.

“

SIGN UP TODAY

Discounted Fees for NLA Members


PUBLIC AFFAIRS


There has been a great deal of speculation in the press concerning a legal case which has been given permission to be heard before the Court of Appeal.

The case in question, Khela v Dainter is important for the PRS because it involves a tenant challenging the service of a Section 21 notice and the use of the Accelerated Possession Procedure to bring the tenancy to an end. This challenge is brought under Article 8 of the

European Convention of Human Rights (ECHR), which defends an individual’s “private and family life, his home and his correspondence” which has led some commentators in the industry to speculate that real damage could be done to landlords’ ability to obtain ‘no-fault’ possession in the future. The crux of the issue rests on a principle known as proportionality, which in this context relates to whether it is

reasonable to be able to evict without the resident being able to mount a defence. However, reports have made little reference to the landlord’s rights under Article 1 of Protocol 1 of the ECHR which protects from unreasonable state interference, which the Court will consider with equal importance. A lot has been written about previous hearings which focused on tenants of social landlords – although much less about the Court’s refusal

to make any comment on the private sector or suggest that eviction in any way contravened Article 8. The issues involved are very complicated, and public details of the case are very limited at this stage.

In reality it is very, very unlikely that the Court will seek to throw out the Accelerated Possession Procedures, but it remains a very interesting case to watch. n

No need to panic – landlords have human rights too

EU Mortgage DirectiveAs previously reported the Mortgage Directive is continuing its slow but steady progress through the institutions of the EU. Many landlords are understandably worried about the impact that this piece of legislation could have on their ability to borrow against their portfolios, or invest in new stock. Taking the issue up in Europe with our partners in the UIPI (International Union of Property Owners), the NLA has lobbied hard for concessions removing the potential restrictions on lending for rental property and is beginning to make progress. Following months of negotiation it looks likely that, although BTL may still be regulated in the future, the prescriptive sections of the Directive which would have made it impossible to take rental income into account to secure lending have been replaced with NLA sponsored

compromise amendments designed to limit the impact of the changes. The Directive is still some considerable time,

perhaps many years, away from becoming law in the UK, but it is beginning to look like a much less onerous prospect for the PRS. n


UKALA EXECUTIVE (full-time, based in London)

The National Landlords Association (NLA) has established a strategic alliance with The UK Association of Letting Agents (UKALA) in order to enhance the representation of the interests of letting and management agents in the UK, whilst also safeguarding the interests of both landlords and tenants.

The NLA is seeking an Executive who will take the lead role in working within the NLA Executive team to co-ordinate the provision of advice and services to UKALA members and perform lobbying, public relations and marketing activities on behalf of UKALA. He/she will also be responsible for delivering the agreed strategy and policy of UKALA. Some UK travel is required.

REQUIREMENTS

• Aflexibleself-starterandstrategicthinker,whocanworkwithateam,andmanagemultipleprioritiesagainsttightdeadlines.

• Experienceoftheprivate-rentedsectorisessential,preferablyasalettingagent.

• Highlyeffectiveinterpersonalandcommunicationskills;abletoinfluenceatalllevelstoachievestrategicpolicyandorganisationalobjectives.

• Numerate,withanunderstandingoftheuseofbudgets,accountsandstatistics.

• Experienceindealingwithgovernmentandmediawouldbehelpful.

All applications should be sent to [email protected] with an accompanying letter stating why you wish to be considered for the post. A full job description can be sent to you upon request. The NLA offers a competitive salary.

The closing date for all applications will be Wednesday 6 June 2012.

Q: What information does an Energy Performance Certifi cate (EPC) contain?

Richard Price: The purpose of the EPC is to show prospective tenants the energy performance of the property they are considering renting.

It also gives your tenant an idea of how much it is likely to cost them to run the property. EPCs carry ratings that compare the current energy effi ciency and estimated costs of energy use with potential fi gures that the property could achieve.

Potential fi gures are calculated by estimating what the energy effi ciency and energy costs could be if energy saving measures were put in place. The rating measures the energy effi ciency of the property using a grade from ‘A’ to ‘G’, with A being the most energy effi cient – similar to the ratings used for fridges and other electrical appliances. EPCs also contain a detailed recommendation report showing how the amount of energy used could be reduced. The report lists suggested improvements, like fi tting loft insulation and the potential energy and cost savings per year if the improvements are made.

The recommendations on how to improve energy effi ciency do not have to be implemented. As from April 2012, an EPC in England and Wales must also set out the details of the person who carried out the EPC assessment and whom to contact if you want to make a complaint.

And, the recommendation report should now suggest which improvements may be eligible for funding through the UK-wide Green Deal which is due to be launched in Autumn of this year.

Q: When do landlords need to provide an EPC?

RP: The general rule is that an EPC for the property needs to be provided free of charge to prospective purchasers or tenants. It is suffi cient for the seller or landlord to provide a copy of a valid EPC. A copy of the EPC must be given to the person who takes up the tenancy. However, the landlord is not required to produce the certifi cate when an existing lease is renewed – only when the tenant changes. An EPC is also not required for any property that was occupied prior to 1 October 2008 (in England and Wales) or 4 January 2009 (Scotland) and which continues to be occupied after that date by the same tenant. In England and Wales, the new rules require landlords to use all reasonable efforts to ensure that an EPC is obtained within seven days of marketing the property, and in any event within 28 days of marketing. The property particulars have to include a copy of the fi rst page of the EPC – not just the asset rating. This fi rst page must be ‘attached’ (not inserted loose) to the written particulars of the property. In Scotland, building regulations require that the EPC also be ‘affi xed’ to the dwelling. It should be located in a position that is readily accessible, protected from weather and not easily obscured. A suitable location could be in a cupboard containing the gas and electricity meter or the water supply stopcock.

Q: I run a House in Multiple Occupation and rent out rooms. Do I need an EPC?

RP: An EPC is only required for a dwelling that is self-contained. Where individual rooms in a building are rented out and there are shared facilities (e.g. kitchen and/or bathroom), an EPC is not required. This is because an EPC is only required on the rental of a building or part of a building designed or altered to be used separately. Renting a room does not meet the ‘part of a building’ defi nition. An EPC is therefore not required each time a tenant moves in to a property where there are shared

facilities, although one will be required for the whole house if it is sold or rented as a whole. In the situation where a group of friends rent a property and there is a single contract between the landlord and the group for the rental of the entire property, an EPC is required for the whole dwelling.

Q: How often do EPCs need to be updated?

RP: For a rented property, the certifi cate will last for 10 years, and can be reused as many times as required within that period. It is not necessary to commission a new EPC each time there is a change of tenant. The owner of the property may commission a new EPC, for instance if improvement work has been undertaken, so that it will help to make the property more marketable. Once a more recent certifi cate has been produced it will always supersede an existing one. Only the most recent one will be valid. If a landlord has bought a property and received an EPC as part of the sale documents (in Scotland, the Home Report Pack), that EPC can be used for rentals until it expires. However, if a landlord then wants to sell the property, the EPC is only valid for 3 years from the time the property was purchased; if it’s more than three years old, the landlord would need to get a new EPC to form part of the new sale documents.

Q: Who carries out an EPC?

RP: European law states that an EPC must be issued by a qualifi ed and accredited assessor in an independent manner. In England and Wales, an EPC needs to be issued by a Domestic Energy Assessor who has followed specifi c training courses and is accredited with a governing body.

Following the changes brought in as from April 2012, all existing DEAs must have completed up-to-date training before continuing to produce the new look EPCs. In Scotland, the EPC must be produced by a member of an organisation which has been approved by Scottish Ministers.

Following changes to the rules in England and Wales, NLA Director of Operations, Richard Price, gives an overview of landlords’ obligations when it comes to energy effi ciency in rental properties across the UK.

Do you know the EPC rules?


Q&A WITH RICHARD PRICE



Q: How is an EPC produced?

RP: The survey for an EPC involves an external and internal evaluation of the property to establish how energy efficient it is, based on criteria such as age, type, insulation and heating. It should take about an hour and access to all rooms in the property (including the loft) is necessary to work out an accurate energy efficiency rating. If the loft is inaccessible, the energy assessor will need documents detailing the insulation; if these are not available, the calculation will be based on the standard insulation at the time the property was built. According to NLA EPCs, properties with low energy light bulbs in fixed lighting sockets (lights secured to walls or ceilings) will get a better energy rating. However any appliance that can be unplugged and removed will not be taken into account. Low energy lights in areas such as lofts, cupboards, garages and outbuildings are not included in the assessment. Written documentation of any energy efficiency improvements (including proof of cavity wall insulation and boiler brand and model) is likely to help increase the EPC’s rating of the property. If this information is not available, the calculations will be based on for example the age of the property or of the boiler which may be inaccurate.

Q: What are the sanctions for non-compliance with the EPC rules

RP: Trading Standards Officers now have increased powers in England and Wales to ensure compliance, and can require letting and estate agents as well as the landlord to produce an EPC if they suspect an offence has been committed. In cases where the marketing starts before the EPC has been obtained, sellers, landlords and anyone acting on their behalf will have to demonstrate that an EPC has been commissioned. If the landlord has failed to provide an EPC to a tenant, or fails to show an EPC to an enforcement officer when asked, Trading

Standards can issue a fixed penalty charge of £200 per dwelling. In addition to paying the penalty, the landlord will still have to provide an EPC to the person who has become the tenant. In Scotland, the local authority can issue penalty charge notices with a fine for £500 per dwelling. The local authority can also decide whether to take civil or criminal action based on whichever best reflects the scale of the contravention.

Q: Do landlords have to make energy efficiency improvements to their rental properties?

RP: Not for the time being but the upcoming Green Deal will increase pressures on landlords to make improvements. As from 2018, there will be a ban on letting F and G rated properties. As well as making rental properties more marketable, energy efficiency improvements are useful for maintaining the

fabric of a property, reducing the possibility of damp, mould and frozen pipes. There are currently a number of financial incentives available to landlords to make improvements to rental properties across the UK, including government and local authority grants. The Landlords Energy Savings Allowance permits landlords to deduct tax paid on rental income to a maximum of £1,500 per property when they make specific energy efficiency improvements such as loft or cavity wall insulation, draught-proofing and insulating hot water systems (although not double glazing). Under the Green Deal (due to be introduced in October 2012), landlords will be able to make energy efficiency improvements without any up-front capital payment. The costs of the works will be attached as a loan to the utility meter of the property and repaid by whoever pays the utility bills – in most cases, the tenant. n

Q&A WITH RICHARD PRICE

For more information on EPCs:

NLA Online Library: www.landlords.org.uk/library/property/energy-efficiency-and-energy-performance-certificateswww.landlords.org.uk/library/property/energy-efficiency-and-energy-performance-certificates-scotland

NLA EPCs: www.landlords.org.uk/services/nla-lettings-and-property-management/nla-epcsDomestic Energy Assessor register in England and Wales: www.epcregister.com. Authorised suppliers of EPCs in Scotland: www.scotland.gov.uk/Topics/Built-Environment/Building/Building-standards/profinfo/epcintro/epcguidadvice.


Expert Advice on calculating yields

How should landlords calculate the yield on each property they buy?Yield is important for landlords. There are two types of yield, Gross Yield and Net Yield. The gross yield is calculated as the annual rent that the landlord receives divided by the purchase price of the property. So it is a measure of the performance of each property in relation to the purchase price.

What are the key components to making this calculation?You simply start with the purchase price of the property for instance £80,000. You then take the rent i.e. £550 per calendar month and times that by 12 to get the Annual Rent which is £6,600. So, the Yield calculation is £6,600 divided by £80,000 which is 8.25% which is not bad.

The formula is very simple. No need for an Excel spread sheet. It is simply the Annual Rent Divided By Purchase Price.

What aspects in your experience do landlords most often omit to include when evaluating their portfolios from a yield perspective?Net Yield is something that often gets forgotten about by landlords. The Net Yield takes into account the monthly expenses that the landlord will be incurring. It is very important. Let’s say the gross yield is 8.25% and the rental income is £550. You would then start taking away typical monthly costs such as service charges, mortgage payments, insurance policies which could be estimated at £125 per month. This means that the net yield would be £425 x 12 / 80,000, which is 6.4%. So as you can see, it is lower than the gross yield and it gets lower with the more expenses you have. For example, there may also be costs for fire safety measures, HMO licences or other regulatory requirements.

Is there any evidence to suggest which type of properties and/or tenancies provide the best yields?Multi-lets often produce the best yields – i.e. renting by room. We say that renting up to 4 rooms can cover much of the landlord’s basic costs, potentially providing an opportunity for a significant profit margin. However, managing shared accommodation can be much harder work than more straightforward lets and can require a specialist set of skills. Landlords should look at these opportunities as they arise in the current market, bearing in mind the extra commitment that may be necessary.

For instance, a 5 bedroom house in the North West can be bought for £150,000. The rent doesn’t rise in line with this new purchase price so monthly rent is only £700 x 12 = £8,400 the yield is only 5.6%. Now, if you let each one of these 5 rooms for £65 per week, the income is £65 x 5 rooms = £325 per week x 52 weeks = £16,900. So the new calculation is £16,900 divided by £150,000 which leaves a much healthier yield of 11.2%. There are many other aspects to setting up a tenancy like this but this is the basis of it.

Are there any elements other than yield you think landlords should consider when evaluating their portfolio? Also look at the Cash On Cash Return. This is income derived from the amount of cash the landlord has had to lay out to acquire an asset. So, you are looking at the profitability of the cash deployed. This calculation is the amount of annual income divided by the amount of cash deployed. The landlord can use this to work out how hard their cash is working for them.

When analysing your property portfolio don’t only make decisions based on the yield. Look to see how you can get the highest and best use

out of each property. Each year we go through an asset reallocation process where we identify the worst-performing properties and either dispose of them or work out how to get them performing better. This is key for investors in this climate. With property prices having dropped it is not always possible to sell properties of course but it IS possible to produce more income out of them. Doing this we find that our yield goes up. If you were to commit to this process every 6 months then within a few years you would have increased the performance of your whole property portfolio. We have found that we’re able to turn around some bad performers into some of our better performing properties. n

Property Portfolio Software’s products now include Landlords Rent Manager, Landlords Property Manager, Letting Agent Manager, Landlord and Letting Agent Manager and Property CGT Calculator.

Knowing what yields your rental properties are producing is an important aspect of managing your portfolio and assessing future investment plans.Amer Siddiq (pictured), experienced landlord and founder and Managing Director of Property Portfolio Software, an NLA Recognised Supplier, explains how he analyses his property portfolio.

For more information see www.landlords.org.uk/services/property-portfolio-software


FEATURE – ExPERT ADVICE: GROWING yOUR PORTFOLIO


my|depositsTel: 0844 980 0290Fax: 0845 634 3403 [email protected] www.mydeposits.co.uk

NLA PARTNER

NLA RECOGNISED SUPPLIERS

What is the Recognised Supplier Scheme?We know that sourcing a new supplier can be a time consuming task, which is why the NLA works with a number of companies that provide products and services specifi cally for landlords. Our Recognised Supplier Scheme is a convenient way you can narrow your search, read reviews and fi nd the supplier you need. In addition to this, a number of suppliers offer preferential rates for members of the NLA.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

fi nancial 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 can members feedback? Once a supplier is approved we regularly assess how many landlords are using the service and monitor feedback from members. Members can also rate and review our Recognised Suppliers on the website www.landlords.org.uk/suppliers/all. If you would like to recommend a supplier for the scheme, please let us know by emailing [email protected] How does the RSS benefi t NLA members? Members can search the supplier directory online and in UK Landlord with the confi dence

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.

Look for the Partner or Recognised Supplier Logo

For more information about the Recognised Supplier Scheme, email: [email protected] or telephone 020 7840 8921

Suppliers You Can Trust


For an up-to-date list of NLA Recognised Suppliers, visit www.landlords.org.ukNLA RECOGNISED SUPPLIERS

For the Scheme application pack, please visit the NLA Website: www.landlords.org.uk

my|deposits is the only government-authorised tenancy deposit protection scheme specifi cally designed for landlords who want to keep hold of the deposit rather than handing it to a third party for safekeeping. With my|deposits, you pay a small fee to that legally protects the deposit, which means you can keep it in your bank account for the duration of the tenancy. At the end of the tenancy you are free to discuss the return of the deposit directly with the tenant without involving my|deposits.

In the unlikely event of a dispute over the amount of deposit to be returned, my|deposits off er a free, evidence-based dispute resolution service to all members. The award nominated service uses an experienced and impartial adjudicator to quickly settle the dispute without the need to involve the courts.

We believe this is the type of fl exibility landlords want from a deposit protection scheme. Members of the NLA qualify for discounted protection rates for cost eff ective ‘pay-as-you-go’ deposit protections.

Accommodation for StudentsTel: 0845 351 9911 Fax: 0161 332 8261 [email protected] www.accommodationforstudents.com

AccommodationforStudents.com is the UK’s No1 website for advertising property to students. It enables students to fi nd 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.

ASA Fire SystemsTel: 020 8575 1801 info@asafi resystems.co.ukwww.asafi resystems.co.uk

Established in 1983, we specialise in the undertaking of all works pertaining to the fi re upgrade of domestic and HMO properties to include the installation and servicing of fi re alarms and emergency lighting. We also supply and install fi re doors and undertake any building works to achieve the required fi re rating standards in properties.


EnviroVent Ltd Tel: 0845 2727 [email protected]

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.

NLA RECOGNISED SUPPLIERS For an up-to-date list of NLA Recognised Suppliers, visit www.landlords.org.uk

Dorset Energy Advice CentreTel: 0800 975 0166 [email protected]

The Dorset Energy Advice Centre (DEAC) has over 15 years of experience of providing advice on saving energy in the home. The DEAC team are well versed in every aspect of Energy Efficiency, renewable technologies, transport, lighting, insulation and the grants that are available to help and advise the residents of Dorset and beyond, on saving energy in the home.

Chafes SolicitorsTel: 01663 743344 [email protected]

Chafes Solicitors LLP have an experienced team of solicitors with a proven track record. We realise that your business is as individual as you are, so we provide bespoke services for your situation. Offering a fixed cost arrangement for residential possession notices, possession proceedings, service charge / ground rent recovery, rent arrears recovery ensures our costs are transparent. Chafes Solicitors LLP can offer a 15% discount off our usual fees for NLA members.

British GasTel: 0800 980 [email protected] 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.

Bank of Scotland Tel: 0800 681 6078 www.bankofscotland.co.uk/property

Bank of Scotland has established a team of specialists who provide a 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, please visit www.bankofscotland.co.uk/property or call 0800 681 6078

E.ONTel: 0845 059 9905 www.eonenergy.com [email protected]

E.ON can help landlords to improve the energy efficiency of their properties, in some cases covering the costs of improvements which will help reduce energy bills and carbon emissions for tenants. Under the Community Energy Saving Programme, specified properties in areas identified by the Department of Energy and Climate Change could benefit from an ‘energy makeover’ with the costs covered by grant funding from E.ON. In many cases, only the administration costs will need to be paid by the landlord and your tenants don’t need to be an E.ON customer to benefit.

Fylde Tax AccountantsTel: 01253 350 [email protected] www.fyldetaxaccountants.co.uk

We provide tax-planning and accounting services, exclusively for landlords. From buying your first property, to building, running and disposing of a portfolio, or planning your estate, as well as property developing & lettings … if it’s property-related, we can help. Our specialist team is led by Stephen Fay ACA, an experienced landlord with his own substantial portfolio.

IndesitTel: 01733 556593/01454 [email protected] www.indesitcompanygraded.co.uk

Consider the Indesit Factory Graded Centre for great appliances at great prices. You can now acquire graded Indesit, Hotpoint and Cannon products direct from the manufacturer. Everything comes with a 1-year service warranty (5-year on parts). NLA members qualify for a 10% discount on appliances in store (excluding sale items).

Landlord ActionTel: 0333 240 9770 [email protected] 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.

GlideTel: 0333 666 [email protected]

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.

InstagroupTel: 01189 [email protected] www.instagroup.co.uk

InstaGroup has over 30 years experience and expertise providing products and services to improve energy efficiency. We supply Cavity Wall/Loft Insulation, Solar PV and Renewables, External/Internal Solid wall Insulation, Park Homes Insulation, Acoustic Wall/Ceiling/Floor systems and Innovative Flooring solutions. Get in touch to find out how you can reduce your carbon footprint through effective and affordable insulation systems.

Lloyds TSB CommercialPlease 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.


For an up-to-date list of NLA Recognised Suppliers, visit www.landlords.org.uk

Property Portfolio SoftwareTel: 01925 398 599enquiries@propertyportfoliosoftware.co.ukwww.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 eff ort in running all aspects of your property business. NLA members can claim a 15% discount.

Spick & Span Commercial Services Tel: 023 8060 2299 [email protected]

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.

NLA RECOGNISED SUPPLIERS

For more information about the Recognised Supplier Scheme, email: [email protected] or telephone 020 7840 8921

Suppliers You Can Trust

Upad Tel: 0333 240 1220 [email protected]

Upad is the UK’s largest online letting agency. Need new tenants? We’ll advertise your property on Rightmove, Zoopla, FindaProperty, Gumtree and many more for just £79.20+vat (20% off - exclusive deal for NLA members with voucher code NLA610). We’ll deal with tenant enquiries and introduce you. You get to meet tenants and show them around your property. We’ll take care of the tenant referencing and administration. Simple.

Seddons SolicitorsTel: 020 7725 [email protected]

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 off er NLA members a 15% discount on its usual fees for landlord and tenant disputes. An estimate of fees will be provided at the outset.

MattressmanTel: 0800 567 7625Email: [email protected]

Mattressman is one of the UK’s leading suppliers of mattresses, bed frames & divans, off ering 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.

MoneypennyTel: 0800 019 [email protected]

Moneypenny’s service is simple. You answer telephone calls whenever you can. And when you’re particularly busy, or unable to get to the phone for whatever reason, your calls are routed seamlessly to your Moneypenny PA. Fully briefed by you on your business, she answers calls in your company name and sends detailed messages back to you. NLA members are eligible to trial Moneypenny completely FREE for 2 weeks.

Property Owners Directorywww.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.

Portal Tax ClaimsTel: 0845 000 0450 Email: [email protected]

Portal Tax Claims are professional experts in the fi eld of Capital Allowances and are widely recognised as one of the industry leaders. The company works extensively with some of the UK’s largest IFA, Accountancy, Property and Legal networks to provide surveys and tax reports on commercial properties (including HMOS, apartment blocks, and holiday lets) resulting in hundreds of millions of pounds being claimed.

No Letting Go Tel: 0800 8815 366 [email protected] www.nolettinggo.co.uk

No Letting Go is the UK’s largest national provider of inventory management services. Whether you are looking for inventory, check in, check out, property visits, specialist visit services, student check in and out or just advice on deposit adjudication then No Letting Go are the company to talk to. Call now on 0800 8815 366, email: [email protected] or visit our web site at www.nolettinggo.co.uk

[email protected]

Shortcuthome is the future of property renting where landlords can fi nd their chosen tenants with no set up or advertising costs and no fees to estate agents. Our innovative approach to on-line searching and matching is exclusively designed to make the process easy, cost eff ective and effi cient for landlords.

Loft Interiors Tel: 0800 157 7322 Fax: 0800 157 [email protected] www.loft-interiors.co.uk

LOFT Interiors provide landlords their agents and developers with a “one-stop furnishing solution”. With over 30 years experience LOFT Interiors are the North West’s leading furniture supplier. We provide immediate, cost eff ective, furnishing solutions specialising in furniture packages, contract furniture, interior design, domestic appliances, laminate fl ooring and carpets, window blinds and property maintenance. LOFT Interiors are proud to off er all NLA members a 5% discount.


Indesit is one of the best known manufacturers of domestic appliances in the UK, with white goods brands including Hotpoint, Cannon and Indesit itself. UK Landlord spoke to Ian Gilson of Indesit’s Factory Graded Centre about the company’s products and services for the landlord community.

NLA Members can use a discount of 10 per cent when purchasing an appliance from Indesit, and even greater discounts may be available when making large bulk purchases.Indesit’s Ian Gilson explains that the company has established a special Reworks department to provide its brands to landlords at prices that are usually lower than High Street prices. Reworks products are those items which may have incurred minor damage or developed a fault.

“Using products from the Reworks department can improve the desirability of properties as tenants may view these recognised brands as more reliable than less known brands,” Ian says. “We recognise that our products have moved from being luxury items to household necessities and as such we have a duty to ensure we can provide products to suit everyone’s budget. Reworking minor damage allows us to facilitate this need as well minimise landfill.”

Indesit’s broad range of products and brands means that it can supply appliances for different types of property or tenant, whether it is “entry level, mid-range or at the higher end.”

Maintaining appliances in rental propertiesThe company’s products have long been recognised for the high quality of their design, and over the years Indesit has become one of Italy’s most celebrated industrial design companies. Every year, out of every 100 washing machines and dryers sold in Europe, 20 are produced by Indesit.

All of Indesit Company’s dryer production is concentrated in Yate, in southern Gloucestershire so landlords acquiring one of these appliances will also be doing their bit for British manufacturing!In the UK, all of Indesit’s domestic appliances are sold with a full 12-month manufacturer’s warranty (five years on parts), and the company currently has approximately 1000 field engineers, covering the whole country in order to support products in the market. Landlords may wish to extend the warranty to 5 years on parts and labour, for peace of mind. They can also open a parts account in order to support any appliances that have fallen outside of the warranty time scale,” Ian adds.

Indesit recommends that landlords are very clear with their tenants about the capacity of their appliances. “Students, in particular, are renowned for overloading washing machines and dryers. Regular use of a limescale removing agent will greatly prolong the life of the machine,” Ian says. n

IndesitNLA RECOGNISED SUPPLIER PROFILE

Indesit is one of the best known manufacturers of domestic appliances in the UK, with white goods brands including Hotpoint, Cannon and Indesit itself. UK Landlord spoke to Ian Gilson of Indesit’s Factory Graded Centre about the company’s products and services for the landlord community

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

Indesit: Reworked domestic appliances

STARTING UP REGULATORY TENANCY NEWS SAFETY FINANCE

For more information see www.landlords.org.uk/services/suppliers/indesit

We recognise that our products have moved from being luxury items to household necessities and as such we have a duty to ensure we can provide products to suit everyone’s budget. Reworking minor damage allows us to facilitate this need as well as minimise landfill. Ian Gilson, Indesit

Indesit Factory Graded Store, Yate


Moneypenny provides landlords with a dedicated assistant, a knowledgeable, capable person who’ll be on hand, in the background, looking after the calls that landlords don’t always have the time to manage. The Moneypenny PA is not based in a landlord’s office, but works just as if she were on site.

“She looks after calls whenever required,” sales manager Lisa Gough explains. “With her support, the landlord will always present a professional front and capture every opportunity, receive calls whenever and wherever they wish and work without the distraction of handling calls.”

“Moneypenny was born out of frustration with traditional telephone answering services. People don’t want to deal with nameless, faceless objects. They want to deal with real people who have a real understanding of their needs.”

Lisa emphasises that although the service provides a “virtual” PA, Moneypenny PA’s are very real people, and are highly trained. “We only employ people with the right happy attitude and provide them with the necessary skills and training. You would be happy to employ any of them yourself. We have been recognised with a Queen’s Award for Enterprise and we have also featured in The Sunday Times 100 Best Companies to Work For 2009/11.”

Working with landlordsMoneypenny is already working with lettings agents and landlords, and their feedback is positive in terms of the flexibility of the service provided, the sound understanding of the property industry and the good relationships established with dedicated Moneypenny PA’s. NLA members are eligible to trial Moneypenny free for two weeks and can also expect preferential rates.

Moneypenny gives interested potential clients a free trial, during which time a Moneypenny PA can get to know the business and its callers. At the end of the trial period, Moneypenny establishes a pricing scheme based on call volumes. “You will be able to make an informed decision, safe in the knowledge of what your ongoing costs will be,” Lisa says.

“We are the UK’s leading telephone answering service, with a reputation for consistently high service levels and an innovative approach,” she adds. “We’re also a family business with family values. Clients that joined us ten years ago are still with us today and our staff turnover is negligible. When we talk about building great relationships, we mean it. We’re in it for the long haul.” n

MoneypennyNLA RECOGNISED SUPPLIER PROFILE

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

Moneypenny: Telephone Answering Service

STARTING UP REGULATORY TENANCY NEWS SAFETY FINANCE

Lisa Gough, Sales Manager, Moneypenny

For more information, call or seewww.landlords.org.uk/services/suppliers/moneypenny

Moneypenny has been looking after the calls for small businesses including landlords and letting agencies since 2000 and is a winner of the Queen’s Award for Enterprise. Sales manager Lisa Gough spoke to UK Landlord about how Moneypenny can help individual landlords and property businesses manage their call volumes.

The landlord will always present a professional front and capture every opportunity, receive calls whenever and wherever they wish and work without the distraction of handling calls. Lisa Gough, Moneypenny


MORTGAGE MARKET ROUNDUP

The buy-to-let mortgage market remains in good shape in mid-2012, with growth in new lending and an increasing number of BTL mortgages on offer.

“It is expected that the buy-to-let sector will remain healthy this year, with strong tenant demand and rental yields making it a good time to be a buy-to-let investor, and the supply of buy-to-let mortgage finance is likely to increase further, albeit modestly,” says Andy Young, Chief Executive of NLA Mortgages.

For standard buy-to-let investment – flats and houses rented to families and professionals – there is a wide selection of lenders and products currently available. The level of competition in the marketplace and low bank interest rates has resulted in some good deals being offered to landlords.

Council of Mortgage Lenders figures for the last quarter of 2011 saw £4 billion advanced compared to £2.9 billion in the previous year. In contrast to the generally positive developments in the BTL sector, all does not seem well with the Government’s Newbuy mortgage indemnity scheme, which is designed to provide home buyers with access of loan-to-value (LTV) rates of 95 per cent on new properties. The Home Builders Federation and the Council of Mortgage Lenders have said very few lenders have so far signed up to the initiative, which was launched in March.

For Gareth Lowman of Savills Private Finance: “it will be interesting to see whether the continued constraints being experienced in the residential mortgage market aid the growth of the BTL market in the first quarter of 2012 or whether factors such as the end of the Stamp Duty holiday would affect rental demand.”

Double the choiceBesides a wide choice of lenders, a number of lenders have also increased their maximum LTV’s, which means that it is becoming easier to fund a buy-to-let investment with a smaller deposit.

According to Moneyfacts, nearly 500 products were available in February this year. That may not sound many compared to the residential market, but it represents a doubling of BTL products since February 2010.

“There is a good choice of products available up to 80 per cent LTV from lenders such as TMW, Aldermore and Leeds Building Society, and Kent Reliance currently has an 85 per cent LTV deal,” Andy says.

However, there is concern that the cost of credit may be about to rise. Gareth Lowman warns “the average rate has fallen around 0.5 per cent in the last two years, but as lenders look to pass on increased funding costs, that pattern may be reversed, making it important to shop around.”

In Scotland, where some lenders do not offer buy-to-let mortgages for properties due to the different legal system, there is still a good range of products to choose from. At NLA Mortgages, it is possible to arrange buy-to-let finance in Scotland from lenders including Abbey, Natwest, Northern Rock, The Mortgage Works and Woolwich.

Elsewhere in the UK, for more niche areas of lending such as limited companies and houses in multiple occupation (HMOs), there are now more options with Paragon Mortgages and Kent Reliance leading the way for larger properties with multiple tenants. A few other lenders including TMW, Leeds Building Society and BM Solutions will consider smaller HMO properties with up to five tenants. However,

there are currently only limited options available for HMO properties and limited companies in Scotland.

Out of the current increasing number of BTL lenders, Gareth highlights Nottingham Building Society. “They have a number of 2 year trackers and 2 and 3-year fixes available that punch above their weight,” he says. “However, some criteria mean the Nottingham will not be the lender of choice, for example they will not lend on flats at all and loans are capped at £250,000.”

Meanwhile Skipton Building Society has increased its maximum LTV for buy-to-let to 75 per cent from 70 per cent. At the same time, Skipton has increased its range offering two, three and five-year fixed rate buy-to-let products. Although there are no tracker/variable options available,

the relatively low fees make these products attractive. All their products come with a free valuation and legal service for remortgages.

For professional landlords with existing property portfolios, Andy Young says that Paragon Mortgages and Kent Reliance have the largest lending aggregates of £5,000,000 and £2,000,000 or 10 properties respectively. There are also some products available with no early repayment charges, which could be a good option for landlord clients who are expecting to redeem their buy-to-let mortgage within a short period. n

BTL mortgage market continues to grow


Best SellersNLA Mortgages’ most popular products in April included:

• 5.99percent2yearfixedfromKentRelianceupto85percentLTV with a 1.00 per cent arrangement fee (6.80 per cent APR)

• 4.25percent2yeardiscountfromthelender’sSVRfromLeeds Building Society up to 70 per cent LTV with no arrangement fee. Free valuation up to £335 for purchases and remortgages and free legals on remortgages only (6.00 per cent APR)

• 3.74percent2yeardiscountfromthelender’sSVRfromDarlington Building Society up to 70 per cent LTV with an £899 arrangement fee (5.90 per cent APR)

• 4.90percent2yearLIBORtrackerfromParagonMortgagesupto 75 per cent LTV with 3 per cent arrangement fee (6.00 per cent APR).

Big in ScotlandPopular products from NLA Mortgages north of the border included:

• BMSolutions–4.04percent2yearBBRtrackerwith1.25percent completion fee up to 60 per cent LTV (5.00 per cent APR)

• Godiva–5.99percent5yearfixedwithnocompletionfeeupto75 per cent LTV (5.50 per cent APR)

• LeedsBS-4.25percent2yeardiscountoffthelender’sSVRwithno completion fee up to 70 per cent LTV (6.00 APR)

• TMW–3.49percent1yearfixedwith3.5percentcompletionfeeup to 75 per cent LTV (5.40 per cent APR).

For more information, visit: www.nlamortgages.co.uk


HOUSE PRICES AND LETTINGS SURVEyS


End of stamp duty holiday boosts movement

House price indices at a glance

Index Month Price Average house price

movement (England & Wales)

ONS February 0.2 £224,473

LandRegistry February 0.1 £161,588

Halifax March 2.2 £163,803

Nationwide March -1.0 £163,327

LSLAcadametrics March +0.2 £221,543

The removal of the stamp duty holiday for first time buyers purchasing a property up to the value of £250,000 was confirmed in the recent Budget. Around 180,000 first time buyers benefited from the stamp duty holiday since its introduction in March 2010.

The house price index formerly released by Communities and Local Government (CLG) is now published by the Office for National Statistics. The figures for February show that UK house prices increased by 0.2 per cent over the month. In the 12 months to February 2012, UK house prices increased by 0.3 per cent. The average UK mix-adjusted house price was £224,473. In the 12 months to February 2012, average house prices increased in both England and Scotland by 0.4 per cent and 1.1 per cent respectively. These increases were offset by decreases in Wales, where average prices decreased by 0.5 per cent, and Northern Ireland,where average prices fell by 9.7 per cent. The House Price Index of the Land Registry for February shows an annual price decrease of 0.6 per cent which takes the average property value in England and Wales to £161,588. The monthly change from January to February is an increase of 0.1 per

cent. The most up-to-date figures available show that, during December 2011, the number of completed house sales in England and Wales increased by 8 per cent to 61,470 compared to 56,875 in December 2010.

The Halifax house price index reported that house prices increased by 2.2 per cent in March. This followed February’s 0.4 per cent fall as prices continue to fluctuate month-to-month as transactions levels remain historically low. The UK average price in March 2012, at £163,803, was almost identical to that in July 2011 (£163,765). Housing Economist Martin Ellis said “efforts by first-time buyers to beat the expiry of the stamp duty holiday at the end of March have probably increased sales in recent months and may have helped to support prices. We continue to expect little overall movement in prices this year provided that the UK economy does not suffer a pronounced weakening.”

Similar average prices for houses were recorded by the Nationwide. House prices declined by 1.0 per cent in March and the price of a typical home is now £163,327, 0.9 per cent lower than in March 2011. Chief economist Robert Gardner confirmed that the imminent expiry of the stamp duty holiday

provided a temporary boost to house prices in early 2012 as buyers brought forward purchases that would otherwise have taken place later in the year. He was hopeful that “the dampening effect on housing market activity and prices may fade over the course of the summer, especially if the wider economic outlook begins to improve and other policy measures, such as the Government’s NewBuy scheme are successful in supporting buyer demand.” However, Nationwide is concerned that “the challenging economic backdrop is likely to continue to act as a drag, with house prices moving sideways or modestly lower over the next twelve months.”

According to the LSL Acadametrics house price index, property prices rose 0.2 per cent in March, but fell 1.3 per cent annually with the average price of a home in England & Wales now £221,543. Transactions rose by 32 per cent in March following a 10 per cent rise in February, as buyers rushed to complete transactions before the return of stamp duty.

UK trendsAccording to the ONS, average house prices increased in four of the nine English regions over the year to February 2012. The largest annual increase was in London at 1.7 per cent. Over the same period, average house prices decreased in four of the regions, with the largest decrease observed in the North East, at 5.0 per cent. The average house price remained unchanged in the East Midlands during the yearto February 2012. Average mix-adjusted house prices in February 2012 stood at £232,485 in England, £151,839 in Wales, £177,354 in Scotland and £136,263 in Northern Ireland. London continues to be the English region with the highest average house price, at £366,435 in February 2012. The North East has the lowest average house price, at £138,157. Regions in the south of England including London and the South East have prices higher than the UK average. The East of England also has an average house price higher than the UK average of £224,473. Excluding London and the South East, the average UK mix-adjusted house price was £182,742. n

Regional house price indices

Sour

ce D

CLG

HOUSE PRICES AND LETTINGS SURVEyS


Despite the continued stagnation of the economy, the BTL outlook remains stable and landlords are generally upbeat, according to the Landlords Panel survey carried out for the first quarter of 2012 by BDRC Continental, in partnership with the NLA.

Rental yields rose to an average 6.2 per cent in the first quarter, from 5.9 per cent in the fourth quarter of 2011.

There were some interesting regional variations; the region with the highest yield was the North West, at 6.6 per cent, while yields in the West and East Midlands were lowest at 5.5 per cent. However, landlords do appear to holding back on rent

increases following a generalised rise in rents in 2011. Fewer than 1 in 3 landlords anticipate raising rents in their portfolio in the next six months.The survey also identified an increase in the proportion of landlords with five or more properties making a living from letting.But landlords remain especially unhappy with the BTL lending market. 41 per cent felt that the market needs greater innovation, 57 per cent think that greater competition is needed, and 28 per cent complained that lenders do not consider their individual circumstances as landlords.“BTL rates have to come down. High arrangement fees cloud the market and make comparisons harder,” according to one landlord participating in the survey of more than 540 NLA Members during March. “Generally the security of the loan is better than with owner/occupiers and the interest rates should reflect this.”

The next Landlords Panel survey is scheduled to take place in June. n

North West leads yields in first quarter

In the first quarter of the year, the incidence of rental arrears declined for the first time in a year, according to the NLA

Landlord Panel Q1 2012.However, it was not all good

news. The average amount of arrears reported had increased

by £250 since the fourth quarter of 2011, and one third of landlords are concerned by the prospect of rental arrears in the next twelve months.

Landlords generally have good relationships with their tenants, the panel confirmed. Two thirds of landlords speak to their tenants at least once a quarter.

Despite 55 per cent of landlords employing letting agents in some capacity, just seven per cent depend on them for all contact with landlords.

In this context of generally positive landlord/tenant relations, according to the

survey the main reason that most landlords who use letting agents contract their services is very simple: they don’t live close to their properties, or they do not have time to manage the lettings themselves.

Two thirds of landlords said that letting agents were important to their business. When landlords do choose to use the service of a letting agent, they are generally content.

Only one in ten reported dissatisfaction with the service provided by an agent, according to the Panel. n

Rental arrears down but concerns remain



President Geoffrey Cutting

Chairman David Salusbury

Chief Executive Officer Richard Lambert Executive Assistant Steven Powers

Policy

Policy Manager Chris Norris

Policy Officer David Cox

Parliamentary Officer Vacant

Local Authority Policy Officer Vacant

Media

Public Relations Manager Lucy Cheeseman

Senior Press Officer Sam Haidar

PR Assistant Rebecca Jones

Editor UK Landlord Andy Stern

Managing Editor UK Landlord Louise Gale

Marketing & Sales

Head of Marketing & Sales Paul Berwick

Marketing Manager James Acreman

Business Development Manager Patricija Gavele

Marketing Executive . Vacant

Marketing Executive Membership Sai Mehta

Marketing Executive my|deposits Sarah Kennett

Operations

Director of Operations Richard Price

Landlord Development Manager Alison Perkins

Member Services Manager Meurig Lloyd

Operations Manager Dave Offord

Operations Support Officer Charlotte Clements

Local Government & Accreditation Officer Siobhan Cannon

Telephone Advisers

Chris Hellings, John Coyne, David Mclean, Tesh Rai, Jilly Westcombe-Evans, Gordon Brierley,

Jackie Taylor, James Fraser, Alan Jakeway, Catherine Behdad, Sally Blunt, Stephanie Traynor,

Paul Gosal and Georgina Nwabueze and Erica Mackenzie.

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

Membership Assistant Jack Stevenson

Systems

IT Manager Mike Houghton

IT Consultant Simon Jessop

Web Developer Chandeep Khosa

Regions Head of Regions Ken Staunton Regions Coordinator Sally Thorn Regions Support Officer Lyra Haldane

EnglandEast of England

Local Representative (Norfolk, Suffolk) Vacant, see website to apply Local Representative (Essex) Barbara Carr Local Representative (Hertfordshire) James Fraser Local Representative (Bedfordshire, Luton, Cambridgeshire) Billy Gill

East Midlands Local Representative (Northamptonshire) John Socha Local Representative (Nottinghamshire and Derbyshire) Raj Beri Local Representative (Leicestershire) Christine Fernandes Local Representative (North Lincolnshire) Lynda Bowen

London Local Representative Richard Blanco Local Representative Yvonne Baisden Local Representative Philip McGriskin Local Representative Lucy Regan

North East Regional Representative (County Durham, Northumberland) Johnny Lighten Local Representative (Tyne & Wear) Bruce Haagensen Local Representative (Teesside) Steve Simpson

North West Regional Representative Tom Reynolds Local Representative Carolyn Uphill Local Representative Garry Heil Local Representative Ruth Pepper

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) Mark Richardson Local Representative (Surrey) Rowan Carstairs

South West Local Representative (Devon) Claire Heale/see website to apply Local Representative (Cornwall ) Vacant, see website to apply Local Representative (Dorset) Steve Bartlett Local Representative (Bristol & Somerset) 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) Don Robbie 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

The Aims of the NLAThe 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.

Subs renewals/queries/change of address: Tel: 020 7840 8937 E: [email protected]

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: [email protected] www.landlords.org.uk

Please Note: All NLA representatives can be emailed by using their name and standard NLA email/derivative. e.g: Lee Cecil: [email protected]

THE NATIONAL LANDLORDS ASSOCIATION


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 Sandra Zealand at [email protected] or on tel: 0117 957 5400

LEGAL SERVICES

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

PRODUCTS AND SERVICES DIRECTORy

APPLIANCES

FIRE SAFETY

6 issues Black - £380 Colour - £495

LANDLORD SOFTWARE

LANDLORD PORTAL

EPCs

PROFESSIONAL SERVICES

COSTS: TRADE ADVERTISING

STUDENT LETS


LETTING AGENTS

PRODUCTS AND SERVICES DIRECTORy

LETTING TRACING SERVICES

MAINTENANCE

BATHROOMS

ESSEX

Eastwood, Essex SALE OF BUY-TO-LET RESIDENTIAL PROPERTY COMPANY.

• 7properties-openmarketvalue £1.1million

• AllonAST’sforeither6or12months• Totalrentalincome£60,000pa• Mortgagesoutstanding£725,500at 1.5% over base rate – stays with company

Email: [email protected]: 07955 475 172

PROPERTY FOR SALE

PLUMBING, HEATING & GAS

Promote your products and services to over 30,000 landlords and Property InvestorsProducts 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 Sandra Zealand at: [email protected] or on tel: 0117 957 5400


As a member you receive:

• Access to our Telephone Advice Line advisors to deal with immediate issues

• Access to our 24/7 Online Library offering you accurate information, practical guidance, legislation updates and an online route to becoming accredited with the NLA. It is also recognised as continued professional development by all other development providers of accreditation

• Our Landlord Development Manual, a useful guide highlighting best practice for landlords

• A bi-monthly subscription to UK Landlord, the industry’s premier magazine for landlords

• Special member discounts on our attendance based Landlord Development Programme, designed to help both new and experienced landlords in developing their professional skills. Alternatively, as a member you can access most of this information for FREE via our Online Library

• Our email bulletin NLA Focus, to keep you informed of all the latest news and developments

Other membership benefi ts:

For details:Visit: www.landlords.org.uk/membership-benefi tsCall: 020 7840 8937 Email: [email protected]

Know your rights and responsibilities

• Benefi t from a wide range of services• Enjoy substantial savings

The private rented sector is now governed by over 50 Acts of Parliament. This increasingly heavy regulatory burden means it is more important than ever that as a landlord you have access to the most up-to-date information available and that you clearly understand your rights and legal responsibilities.

• Meet fellow landlords• Gain a competitive edge• Strengthen our voice

MAxIMISE yOUR MEMBERSHIP


“I joined the NLA to fi nd other landlords in my district and to get free advice and insurance.

I own 17 fl ats, two shops, two industrial units, and six houses.

I am of retirement age so I do not have another occupation. I generally have a good relationship with my tenants, both present and past.

I have had my share of problem tenants. I will never forget Robert who was in his late 50s, and who seemed the perfect tenant when he arrived

in one of my HMO properties. All went well, until some of the other tenants complained that he was acting in an antisocial manner.

He was given notice to quit and he then took an air gun and shot out the windows in the front of the building – a great shame because they were original Victorian glass. He was eventually housed by the local authority, but was dead a year later; local gossip said that he had been “topped”.

I’ve also had a series of disasters with drains (tenants putting fat down them or draining their rice into them!) and water tanks. I used to live in one of my HMO properties and seemed to be on call for all the dripping taps and non-functioning toilet cisterns etc.

Life’s too short to peel a grape, so I’m happy to leave all that to the agent. If you have a good agent things can be sorted, but letting is not without its interesting side...”

Landlord Views: Pamela Wootton-Davies


Five-year member Pamela Wootton-Davis

Options Subscription Saving

5 years £98

3 years £195* £63

1 year £98* Save £10 on Direct Debit**

£320*(only £1.23 per week)

(only £1.25 per week)

(only £1.88 per week)

To join the NLA or to fi nd out about the benefi ts of membership visit:www.landlords.org.uk/membership

* Membership fee is tax deductable against letting income

**To join via Direct Debit call the membership team at 020 7840 8937

NLA MEMBER VIEWPOINTS

NLA National Conference 2012 - Wednesday 31 October 2012Aspiration Renting: Inspirational Landlords

at Chesford Grange Hotel, Warwickshire For details and to register your interest please visit: www.landlords.org.uk/conference

Prevent BLACK SPOT and Mildew.• Add 1 pouch of Insuladd (£19.99) to 5 litres of paint.• Apply as normal to walls and ceilings.Order Line 01457 764015

Mould Control

www.wtm-insuladd.co.uk


Letters to UK Landlord are welcome and should be sent by email to [email protected] or by post to The Editor, UK Landlord magazine, 22-26 Albert Embankment, London SE1 7TJ.

LETTERS & EMAILS

e

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.

I was very pleased to see your article on page 6 of issue 154 stating that the NLA is seeking radical changes from Mr Osborne to reform Capital Gains Tax. There are additional points caused by the loss of Taper Relief which need to be tackled and made clear to the thousands of small property letting investors. In my case I will have owned an HMO for 30 years and wish to sell it when I reach 65 later this year. I will now have to pay 28 per cent CGT if I sell the property. This is so unjust as it relates back on the gain made over the last 30 years, not just the recent years when the coalition government abolished the taper relief. This makes it a

very punitive retrospective tax for landlords. In addition, since the abolition of Taper Relief, fewer small landlords will be able to trade up to larger letting properties, especially if house prices are rising, as the proceeds from the sale of their existing property will be reduced by 28 per cent due to CGT but the larger property they may wish to purchase will retain its higher price. This will prevent smaller landlords from expanding and leave existing long-term landlords with fewer purchasers and generally slow down the letting market, making letting property far less attractive to all concernedM.S. Holmes

Letting agents are a complete pain. We have experience of them as Powers of Attorney for my mother-in-law, who was a tenant, and also in dealing with tenants moving from a letting agent property to one of our properties.

Agents seem to do all they can to make life easy for themselves and extort money from the tenants. Often we experience tenants angry at being forced to engage the Agents’ own cleaner at the end of a tenancy when the house is already spotless. Then there are all those fees which tenants have to pay for Agents to do admin, credit & reference checking, preparing tenancy documents etc. This is the job that the landlord has already paid them to do. The following takes the biscuit and happened recently. We wanted to

take up a reference for a potential new tenant. A simple and quick phone chat to a landlord or agent is fi ne by us and a better guide than anything in writing. However, the agent said they would charge the tenant £30 to provide a verbal or written reference. They were already talking to us and as we were after a verbal reference there was no litigation risk for them. Is this legal? How can it be stopped? As landlords and agents we all rely on getting honest references from each other but I don’t want to be party to our valued customers being fl eeced even more.

In our town, it costs a tenant most of £1,000 paid to agents to take up a tenancy, in addition to the deposit and rent. It’s disgraceful. For a few years now we’ve put ‘No extra fees, just rent

and deposit’ on our adverts. It seems to work as we never have voids on the 20 properties we manage.Ed Atkinson

Chris Hellings, NLA Advice Line responds: As with any service, it is wise to look carefully at the ‘Terms and Conditions’ before entering into business. Agents’ fees can vary

quite dramatically from area to area, however within a locality they generally seem to charge about the same. Remember, if you don’t like the terms – negotiate with the Agent and if you are not happy, don’t do business with them. Don’t lose sight of the fact that they are YOUR agents carrying out your wishes.

The need to reform CGT

Letting agents’ fees

uk landlord magazine (may/june 12)

Documents

local landlords

local reputable landlords

rental property investment

nla boardmayjune

property rental losses

rental income

nla national conference

nlas national conference