uk landlord magazine

Issue No.155

UKLandlordThe leading publicaTion for The privaTe-renTed SecTor March/april 2012

Issue price: £12 (where sold)

in this issue

Student lettings after the cuts

Theft by tenants

NLA Property Women Awards 2012

Guide to tenancy deposits

Will a Living Rent

be the future for London?

UKLANDLORD MARCH/APRIL 2012 01

eDitORiAL

Welcome...As the debate hots up in anticipation of the mayoral elections taking place on 3rd May, UK Landlord asked the London Mayor candidates from the three largest political parties about their policies in relation to the private-rented sector. Their answers make lively reading, and will not only have relevance to London-based landlords who are deciding from whom they will vote, but also to landlords outside of London where some local government bodies may also be looking to make changes in the area of housing.

The NLA Property for Women Awards are back! Now is the time to send in nominations and applications for these prestigious awards – for more information about the 2012 Awards, see page 06.

In this issue of UK Landlord we also touch on the rarely noted but unfortunately widespread problem of theft by tenants. Steve Barnes of NLA Property Insurance sets out some examples of the types of thefts that happen and how to prevent the problem arising. One essential element in protecting your property from theft or damage by tenants is the inventory and the NLA’s Director of Operations Richard Price sets out in this issue’s Q&A what a robust inventory should entail. One of the tips from No Letting Go, the NLA’s new recognised supplier for inventory management who are profiled in this issue is not to assume that an unfurnished property does not need an inventory – 80 per cent of tenant liabilities at check-out relate to cleanliness, according to No Letting Go. Closely linked to inventories are Tenancy Deposits where new rules will come in to force in England and Wales and in Scotland. Our guide for landlords to both jurisdictions is intended to be practical and as up to date as possible.

If you need to regain possession of your property, make sure you have a look at the NLA Advice Line’s very useful pointers on page 46.

As NLA Chairman David Salusbury remarks in his message overleaf, this year looks set to be a busy year for the private-rented sector landlords and the NLA, with plenty of challenges and opportunities ahead.

If you are expanding your portfolio this year, as I will be, happy hunting!

Best Regards,

Andy Stern Editor [email protected]

intRODuCinG the nLA BOARD

March/April 2012: Issue 155 IssN 1741 8801Publisher’s statement: Circulation 22,500

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UKLandlord

ChairmanDavid salusbury

DirectorCarolyn uphill

Director of Finance& AdministrationPatrick Jacobs

Director (marketing)Anthony Lock

Director of OperationsRichard Price

DirectorTony Richard

Chief Executive OfficerRichard Lambert

Nominations for NLA Property Women Awards 2012

02 UKLANDLORD MARCH/APRIL 2012

1404

04 MESSAGE froM ThE chAirMAN David Salusbury on how the NLA is responding to the challenges and opportunities presented by the Government’s localism agenda.

06 NLA ProPErTY WoMEN AWArDS 2012 The awards are back! Find out about this year’s awards and how to enter.

09 hoT off ThE PrESS

27 NLA AccrEDiTED LANDLorD Experiences from North Tyneside Council and NLA Member Jonathan Beach.

28 NLA NEWS

35 NLA LANDLorD DEVELoPMENT

40 MANAGiNG TENANT coMPLAiNTS Tony Richard, NLA Board Director on managing tenant complaints.

42 PUBLic AffAirS

58 MAXiMiSE YoUr MEMBErShiP

59 NLA MEMBEr ViEWPoiNT

60 LETTErS & EMAiLS Rogue landlords, EPCs and boilers.

29 rEGioNAL NEWS Can landlord licensing reduce anti-social behaviour in Southend?

30 LANDLorD EVENTS

32 EAST of ENGLAND focUS Regional investment information, with detailed insights from NLA Representatives.

COntents


nLA ReFeRenCe

Inside this issue...

FeAtuRes

26

“The nla takes complaints against its Members very seriously and our code of practice, which applies to all Members, underpins the professional image of our organisation.”

Tony Richard, NLA Board Director

19 LANDLorD ProPErTY MANAGEMENT 19 BUYiNG & SELLiNG Avoid being the victim of property fraud.

19 fiNANcE & TAX FSA review raises BTL fears.

20 ProPErTY MANAGEMENT Scottish factors prepare for new regime.

20 LANDLorD AND TENANT Loan sharks preying on tenants.

22 LocAL hoUSiNG ALLoWANcE LHA rates frozen from April 2012.

22 MAiNTENANcE AND rEPAirS Flood risk cover in question from June 2013.

24 SAfETY iN YoUr ProPErTY HSE cracks down on gas safety.

26 SUSTAiNABiLiTY Bright future for LEDs?

52 MorTGAGE MArKET roUNDUP Analysis of trends and latest buy-to-let mortgage deals.

53 hoUSE PricES AND LETTiNGS MArKET Latest NLA lettings data and other statistics on house prices and the lettings market.

10 ThE UK LANDLorD iNTErViEW: LoNDoN MAYor cANDiDATES Boris Johnson, Ken Livingstone and Brian Paddick tell us about their plans for the private-rented sector in London. 14 STUDENT LETS AfTEr ThE cUTS Prospects, the yields, where to invest, and how to prepare a property for students.

18 hoW To coPE WiTh ThEfT BY TENANTS What tenants steal from privately-rented properties and how to prevent it.

36 TENANcY DEPoSiTS: WhErE ArE WE NoW? Michael Devlin of Chafes Solicitors LLP looks at recent case law in England and Wales affecting landlords and tenancy deposits.

38 PrEPAriNG for TENANcY DEPoSiTS iN ScoTLAND Landlords in Scotland will have to start submitting new deposits and all existing deposits to a government-approved Tenancy Deposit Scheme for safe keeping.

44 Q&A: iNVENToriES NLA Director Richard Price sets out how to make sure your inventory is watertight.

46

nLA seRViCes

46 NLA ADVicE LiNE oN rEGAiNiNG PoSSESSioN

47 NLA rEcoGNiSED SUPPLiErS

50 DEAc: ENErGY EfficiENcY EXPErTS

51 No LETTiNG Go: iNVENTorY MANAGEMENT SPEciALiSTS

ReGiOns

29

One of the paradoxes of the government’s policy of localism as embodied in the localism agenda is that the 375 local authorities in England and Wales are freer than they were to introduce measures designed to regulate the private-rented sector (PRS).

Regrettably, what many town halls seem unable to do is effectively balance their responsibility to maintain healthy local communities with their obligation to ensure that households have access to affordable, quality housing.

The NLA has long campaigned to persuade local authorities that landlords are part of the solution and not the cause of many of the nation’s housing woes. The starting point for nudging them in the right direction is to influence the PRS element of local housing strategies. Regrettably, while central government saw fit

to grant the PRS a full chapter in the Housing Strategy for England, many local strategies are very superficial in their treatment of the letting of private residential property. Some local authorities seem to think that two or three sentences in a housing policy document of several dozen pages is sufficient to do justice to the complexity of the sector.

This superficial approach is possibly due to the PRS being relatively small in some local authority areas; it also finds its roots in a lack of expertise about the PRS among local government officers.

On the other hand, many local authorities are open to the important role the PRS can play in fostering housing growth. For example, we are making progress in persuading local authorities to work with us on landlord accreditation, with over thirty now fully on board and a number of

others actively considering doing so. The NLA’s commitment to accreditation has become a significant channel for constructive working with local authorities, even though the path is seldom smooth.

What this all means is that the NLA faces a challenging time, but also one of great opportunity in seeking to influence public policy at the local level. In the past, the main focus of our activity has invariably been at the national level but we have to accept that this is changing, and that unless we shift our focus to local authorities successfully we are going to fall behind in our bid to bring about a healthy private sector – which, as NLA Members know, is a central objective of the NLA.

As a result we are placing greater emphasis on the role of our network of local representatives


David Salusbury, NLA Chairman

Organised nationally, working at the local level

March/April 2012messAGe FROm the ChAiRmAn


to ensure we continue to be effective at the local level, as well as continuing our important work at national and, increasingly, at the European level. In a nutshell, our aim is to position the NLA so that we can proactively propose workable housing strategies to local authorities.

It is also worth highlighting in this context that the combination of the localism agenda and the current economic climate has led to many local authorities taking political decisions which lead to impossible contradictions. The most effective means of tackling genuinely bad landlords is to enforce and ultimately prosecute. Unfortunately this is costly and often difficult to do successfully. A less effective option is to limit the number of rented properties in a given area and to license the remaining landlords. Discretionary licensing has to be revenue neutral so by definition is a cheaper option for local councillors. However, experience tells us that low cost does not always equal cost effective. We have been successful in persuading some local authorities to revise their approach to working with landlords and in some

cases reduce their licensing fees. We are working to develop a central mechanism that can provide some checks and balances, but there is much to do. For this reason we must not allow even a hint of complacency to enter our minds as we consider the challenges ahead. n In a nutshell, our aim is

to position the NLA so that we can proactively propose workable housing strategies to local authorities.

Read more onlinewww.landlords.org.uk


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

www.propertywomenawards.org.uk

The NLA is delighted to announce that the Property Women Awards will return this year, taking place on Wednesday 31st October 2012. The awards celebrate the year’s most successful business women who are making their mark on the private-rented sector and transforming the lives of their tenants.

Whether you’re a female landlord with one property or several, if you’ve got an inspirational story to tell, or know of someone who does – we would like to hear it. Here is a reminder of 2010’s winner and her story…

Juliet Ashton-Taylor bought her first property in 2003, and now has six buy-to-let properties in the North East, as well as two tenants who live in her home on the rent-a-room scheme.

Things looked very different for Juliet in 1999, when her marriage broke up and with no career or income, she found herself without a job or a home, looking for a place to rent…

“One day I had a twenty-year marriage, four children, a house, a car, a job and friends. Literally overnight I lost everything.

Because I had no real career and no income I could not have my children with me which broke my heart. I decided that no one was going to

help me out of the pit I was in so I had to do whatever it took to make things different.”

“Part of my reason for being in property is that I have seen my children at the mercy of unscrupulous landlords and felt I could do better myself for them.

I am also motivated to always have room in my portfolio to help someone in difficult circumstances.

I have taken a chance on various people who maybe don’t tick all the boxes but whom you can see deserve another chance in life.”

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


The NLA Property Women Awards will take place in the heart of the UK, at the beautiful Chesford Grange Hotel, Warwickshire, on Wednesday 31st October 2012. The hotel is easily accessible by road and rail (nearby Warwick Parkway and Leamington Spa stations have direct train links to Birmingham and the North, as well as London, South East and South West.)

The NLA Property Women Awards 2012 will also take place alongside the NLA National Conference, which will run during the day. This year’s theme will be “Aspiration Renting: Inspirational Landlords”.

For more information on tickets for both events and the entry process for the NLA Property Women Awards 2012, please visit www.propertywomenawards.org.uk We look forward to receiving your entry and welcoming you to the event!

The Regional awards are open to all female landlords who let property in the UK. The Region you enter should reflect the area where the majority of your properties are located. Female landlords can nominate themselves or be nominated by a third party. The regions are as follows:

The NLA Property Women Awards will also celebrate inspirational women from other areas of the private-rented sector, particularly those who have fought in the face of budget cuts or against other kinds of economic uncertainly in recent months…

• NLA Property Woman of the Year 2012 – the overall winner, selected from the regional and principal categories

• NLA Green Property Woman Award – those displaying ‘green’ initiative with their properties through making energy efficiency improvements

• NLA Young Property Woman Award – celebrating young women under 30 who show innovation beyond their years

• NLA Letting Agent Property Woman Award – inspirational women operating within a lettings agency

• NLA Local Authority Property Woman Award – female local authority employees who have shown particular resilience

• NEW! NLA Third Sector Property Woman Award – not forgetting those operating within the ‘third sector’ (e.g. charities or housing associations) who provide exceptional housing advice and support to the private-rented sector.

1. NLA South West2. NLA South East3. NLA London4. NLA East of England5. NLA Midlands6. NLA Wales

7. NLA Yorkshire & The Humber8. NLA North West9. NLA North East10. NLA Northern Ireland11. NLA Scotland

Entrants don’t have to be an NLA member and can also be nominated by a third party. Please select your regional category by using the map below; this should reflect the area in which the majority of the nominee’s properties are located.

The Awards Evening

Regional Awards

Principal Awards

1

2

4

5

7

9

11

10

8

6

3

ENTER NOW!1. Nominate a friend

2. Nominate yourself

Visit www.propertywomenawards.org.uk


Hot off the Press!!

Olympic LandlordsIt’s almost here – in just a few months London will host the 2012 summer Olympic Games. There has been a lot of press coverage about rents over the Olympics period. One penthouse apartment looking over London’s Hyde Park is being advertised for £100,000 a week. The games are expected to push London’s already stretched housing market to the brink. There are even reports of some tenants being asked to move out of their properties during the games so landlords can hike the rent for visitors during those few weeks. As MSNBC reported “some landlords are also enforcing expensive penalty clauses for tenants who want to remain during the gathering of the world’s top athletes”. Neither practice gives landlords a good name.

To sell or let?With house prices tipped to fall this year and rental yields giving attractive returns, there are an increasing number of “accidental landlords” choosing to rent their properties rather than sell. Our surveys of landlords found yields up to 7 per cent last year, while the Knight Frank UK Housing Market forecast predicts property prices could fall up to 5 per cent this year. Little wonder why many home owners who were planning to sell are now looking to rent. NLA Chairman David Salusbury was quoted in the Sunday Express: “If house prices fall we may see more homeowners who were planning to sell instead consider letting their homes while they wait for the market to stabilise, as they would have no problem finding a tenant.”

We are reminding landlords of their obligations to tenants ahead of the Olympics, while many property owners weigh up whether to sell or let. Meanwhile, the Prime Minister claims rents are falling. Welcome to another edition of Hot off the Press.

Dane Svenson NLA Press Officer

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]

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A confused David CameronThere’s been much reporting in the press about comments made by Prime Minister David Cameron about falling rents. He told Parliament in January that rent levels had dropped, claiming the coalition’s benefit reforms have helped reduce rents. But a survey by Inside Housing found 10 out of 11 councils had not seen any rent reduction by land-lords. Indeed our own figures show three quarters of landlords can’t afford to cut their rents and are considering reducing the number of tenants on benefits. It turns out Mr Cameron was referring to average monthly rents for December 2011. They fell 0.8 per cent compared to November, but rose for the previous ten months.


STARTING UP REGULATORY PROPERTY TENANCY SAFETY FINANCE

The UK Landlord Interview: The London Mayor Candidates

UK Landlord asked the Mayoral candidates of the three main political parties about their policies in relation to the private-rented sector.

UK Landlord: One in four Londoners live in the private-rented sector (PRS). Why in your view has the sector only recently become a priority for the London Mayor candidates?

Ken Livingstone (Labour): Londoners in the PRS are being ignored by policy makers. The impact of the recession and London’s shortage of affordable housing means that a growing number of Londoners are making their home in the private rented sector. There is no doubt that for too long the issues faced by Londoners living in the PRS have been overlooked. Over the last year I have spent a day in every London borough listening to residents’ concerns. Housing is consistently one of the biggest issues and I have been shocked by some of the experiences of Londoners renting in the PRS.

Brian Paddick (Liberal Democrats): This has always been an important issue for me. I spent some time renting in Central London. Despite the slowdown in the economy, house prices continue to grow. Up to one million more people are expected to be living here by 2020 and 300,000 families are currently on housing waiting lists whilst rents and house prices race ahead. This is a crisis that the current Mayor

has failed to grab hold of, and if elected, I will ensure that we get that waiting list down and build those much needed houses.

UKL: Do you plan to increase the supply of PRS housing in London, and if so, how?

Boris Johnson (Conservative) mayoral campaign spokesman: We’re going through one of the toughest periods in recent times but despite this there are signs of progress which have resulted from a fresh and honest approach. Boris Johnson’s determination to end the waste and mismanagement of the previous Mayor has freed up the money to pay for a strong plan for our future. This plan includes improving the private rented sector and enabling it to expand.

A healthy private rented sector is essential to making sure we have enough housing. The sector is home to a diverse range of Londoners, from young professionals to students to economic migrants to people in housing need. Surveys show that most tenants are happy with their landlord.

Last year, the Mayor published his plan to keep housing development going through tough economic times. Boris has been committed to promoting an attractive and vibrant private rented sector and is working with landlords and agents to improve the private rented offer through a new London Rental Standard. The

London Rental Standard, which will bring together accreditation schemes under one badge, will accredit 100,000 private landlords by 2016. Landlords already accredited will not have to re-accredit, but everyone will benefit from being accredited under the same badge. Boris has also unlocked stalled schemes like Greenwich Peninsula while securing £3 billion in funding from the Government to invest in London’s housing, creating around 100,000 new jobs.

Ken Livingstone: I am planning to increase the supply of affordable housing in London as a matter of priority. I will be making a series of announcements in the course of the campaign about innovative financing approaches to the building of affordable homes. This is turn will

FeAtuRe – the uK LAnDLORD inteRVieW

The elections for the Mayor of London take place on 3rd May. Given the powers the Mayor has to determine housing policy, and to release the Greater London Authority’s landholdings for development, who becomes Mayor in May does matter for London’s landlords. It also has national significance as proposed polices for London may well be trialled in other areas of the UK, particularly since Localism is the new flavour for political decision-making when it comes to housing, and there is talk of housing being devolved to elected mayors in a number of English cities.

The Mayor’s Spatial Development Strategy sets out the policies for new building and land use in London. London boroughs must refer their local development plans and any major planning applications to the Mayor. The Mayor is responsible for London’s housing strategy, and for the annual regional housing budget.


free up more homes in the PRS. I am committed to driving up the standard of PRS properties through cracking down on rogue landlords, unsafe properties and rip-off agencies.

Brian Paddick: There is capacity in London for over 360,000 new homes to be built over the next ten years. The land is there, much of it in public ownership. We would develop a massive home building programme, for 250,000 people, with a new London Housing Company to match public land with private investment.

In the US and Europe there is a much bigger PRS, and within that many institutions (such as pension funds) invest in private housing for rent, from which they make long term returns. There is huge potential in new developments in London to get private investment, but this requires some innovative new products.

UKL: What incentives would your administration provide to landlords to help improve and maintain their properties?

Ken Livingstone: If elected I plan to establish a London-wide lettings agency based out of City Hall. This would reward good landlords by giving a kite mark to recognise their property is of a decent standard, it would promote long-term lets to the benefit of both landlords and tenants and it would free them both from the excessive agency fees and commission many are currently charged, because it would be a not for profit initiative.

Brian Paddick: We will work together with landlords to lobby Central government if necessary to provide tax breaks for landlords to help them to bring derelict properties into use and provide loans to help landlords to bring properties up to a decent standard. It makes sense for me, for Londoners, and for landlords to have a PRS that provides good standards of accommodation at reasonable rents.

UKL: What impacts do you think the Government’s welfare reforms (particularly housing benefit-related) will have on London? If you feel these could be negative, how are you proposing to mitigate this?

Ken Livingstone: I believe the Government’s proposed changes to housing benefit could prove extremely damaging for London. We do not want a doughnut effect, like Paris, where the poorest are pushed to the outskirts of the city and the richest in the centre. If elected I will stand up against the Government on these plans and give a voice to ordinary Londoners. I will argue that you cannot reduce the housing welfare bill by punishing landlords and tenants but that new homes must be built.

Brian Paddick: There are concerns that because of the higher costs, people in London in receipt of housing benefit will lose out. Liberal Democrat colleagues at the London Assembly have raised this with Ministers at the Department for Work & Pensions and the Deputy Prime Minister, pushing for flexibility and regional weighting to be applied to allowances. We have particular concerns about the introduction of a fixed cap and that some inner London boroughs are likely to become almost entirely unaffordable to low-income tenants on Local Housing Allowance. Many Londoners are having to live further and further out from the centre in order to find affordable housing and new claimants may have to follow suit but we do not want to disrupt the lives of established families with children at school if that can be avoided.

UKL: What role do you think compulsory selective licensing schemes for landlords (such as the one being considered by Newham) should play in London? If you support these schemes, please explain why.

Spokesman for Boris Johnson: Charging £1,000 under compulsory licensing schemes is not the right approach, and will only make the sector more expensive for tenants as landlords will be forced to pass on the costs of such schemes.

Boris Johnson is committed to working constructively with landlords with a new London Rental Standard. By contrast, Ken Livingstone has recently confirmed that he wants to roll out the Newham scheme that will charge landlords £1,000 to become licensed (Source: Financial Times, 4th December 2011), saying: “I will be working with Newham … to

try and roll out what they are doing London wide” (Source: ‘Tell Ken’ public meeting, Newham, 30th January 2012).

On 3rd May, landlords face a clear choice. Ken Livingstone will impose rent controls and charge landlords a £1,000 tax. In doing so, he will suck the life out of the private rented sector, and take it back to the 1980s. Through energy and optimism, Boris Johnson will work constructively with landlords to improve standards, negotiate a better deal for housing investment from No.10 and protect a free and competitive market.” Ken Livingstone: I have been impressed with the work that Newham are undertaking and leading the way on across London in terms of cracking down on rogue landlords and substandard properties. I recently saw first-hand some of the properties in Newham that the council are cracking down on and the shocking conditions some tenants are living with.

I support the council’s work in this area and it is my view that good landlords have nothing to fear from schemes like this and tenants are given some much needed protection. In fact, good landlords can only benefit from a crack-down on rogue landlords.

Brian Paddick: We would like to see best practice by landlords spread around the boroughs. Reputable landlords have nothing to fear from a compulsory scheme and everything to gain from making it difficult for disreputable landlords to operate. I will ensure that such a scheme is consulted on widely and that landlords do not pick-up the administrative costs of such a scheme. We do need to encourage enforcement against rogue landlords – helping to drive up standards for the 697,000 London households currently living in the PRS.


NLA Accredited Landlord:Promoting good relations between landlord and tenant


FeAtuRe – the uK LAnDLORD inteRVieW

Nobody should be forced to spend more than a third of their take home pay on rent.

UK Landlord: What in your view can be defined as a fair rent for London properties?

Spokesman for Boris Johnson: A vibrant and competitive sector is the best guarantor of sustainable rents. However, the private rented sector as we know it will be at risk if Ken Livingstone wins on 3rd May. He will impose rent controls on landlords (Source: Evening Standard, 4th October 2010), which experience has shown will drive away investment and limit the supply of homes to rent. It will make it harder and potentially more expensive for Londoners to rent on the open market because the incentives for landlords to enter the sector will be reduced.

Ken Livingstone: Nobody should be forced to spend more than a third of their take home pay on a rent. Presently in many London boroughs the cost of renting an average

2-bedroom property is two-thirds of the average take home pay. This is an issue of great concern as we need people to continue coming to London and making it their home and we cannot allow people to be priced out of the capital. That’s why I’m committed to campaigning for a London Living Rent and will spearhead a campaign under the same successful model that saw the London Living Wage introduced and wages increase.

Brian Paddick: The present Mayor’s London Housing strategy has suggested a target of delivering Affordable Rent homes “at a range of rents, with a programme average of 65 per cent of median market rent and rents charged within the new welfare caps.” This clearly would be a place to start. n

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

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


Student lets after the cuts

The impact of tuition feesIt is too early to assess fully the impact of tuition fees at England’s universities rising up to an annual maximum of £9,000 in autumn 2011, although a pretty good steer was provided by data released in January of this year which showed that up until mid-December, applications from UK students for UK universities were down 7.6 per cent (23,000) on the same time last year.

Tuition fees will also rise in Wales and Northern Ireland, but students from Wales will be subsidised wherever they study in the UK and those from Northern Ireland studying there will not pay more. In Scotland, Scottish students will continue to pay no fees, although those coming from other parts of the UK will be liable for fees of up to £9,000.

Clearly the brunt of the fees will be felt in England, and an independent commission has been set up to examine the impact of increased tuition fees in England. Chaired by Will Hutton, principal of Hertford College, Oxford University, and executive vice-chair of the Work Foundation, the commission is expected to

provide its findings towards the end of March.Many in the lettings industry remain confident

that the student market will hold up or even grow over the coming years. “University tuition fees will not become a long-term issue for admissions,” according to Upad CEO James Davis. “Any impact to date is more due to intense media interest than in the affordability of a university education. UK universities represent amazing value on an international scale, and competitive job markets are becoming even more competitive.”

James observes that “The marketplace has been growing, and is very much expected to continue growing – [with demand coming] in the main from overseas students.”

While this assessment is likely to apply to top university towns like Oxford, Cambridge, St Andrews, Manchester and London, there are signs that tuition fees will affect demand in locations where demand may fall. “There may be reason to be more concerned for individual institutions that have seen more significant drops in applications” said Greg White of Purple Frog Property. “In the cities we operate

in (Birmingham, Bristol, Nottingham), the more significant drops in applications have been for the new universities such as Nottingham Trent University with a 17 per cent drop or The University of West of England (UWE) with a 13 per cent drop.” So when buying a property for student letting it is important to choose the right town and also the right location within the town if, as appears to be the case in Bristol for example, demand close to Bristol University is set to hold up better than that close to UWE. As with all investments, landlords need to do their own research to ensure they understand any market they are considering buying into.

What is already clear is that more students in England will be reliant on student loans to finance their course fees, accommodation and day-to-day living expenses. The payment of these loans is usually made in termly instalments, so landlords are advised to consider collecting rent on a termly rather than monthly basis, and to try to ensure the date of collection is soon after the expected arrival date of the student loan.


FeAtuRe – inVestinG in stuDent Lets

Student lets have long been one of the more profitable and demanding sectors. In this feature UK Landlord Editor Andy Stern considers the outlook for student lets after the cuts, the yields currently available in the sector and how to prepare a property so it rents easily to students.


Yields in the student sectorReturns on property can vary in different regions of the UK but also in the different sub-markets in each of these regions, and student lets can present higher yields than in other segments of the private-rented sector.According to Paragon Mortgages, student lets typically outperform the wider market because they are let out on a per-room basis rather than a per property basis, earning landlords an average income of 6.45 per cent. In contrast, young couples earn landlords 5.94 per cent a year.

The view that student yields outperform the wider market is shared by Simon Thompson, Managing Director of Accommodation for Students, albeit with a more upbeat assessment of the potential yields available.

“Take a three bedroom house worth £150,000; let to a family on a tenancy agreement the property grosses around £625 rent, depending on where it is in the country” says Simon. “Now rent the same house in the same place to students for an average £80 a week for a room, which is £320 a week rent or £1,260 a month gross rent. The yield on the family let is 5 per cent, while on the student let, it’s 8.4 per cent.”

James Davis, CEO of Upad, also believes yields on student lets can be significantly higher than 5.94 per cent a year and explains that is why many landlords see this sector as a real opportunity as it can offer “at least 50 per cent more than letting to young professionals.”

“But this comes with a health warning – you will have a much higher wear and tear AND you have a short window to let your property (June

– Sept generally),” he warns. “If you miss the boat, your property could stand empty for the rest of the year.”

It is these higher yields that have attracted many NLA members to the student market and also, in recent years, they have also attracted large investors like UNITE, UPP, Opal and Liberty Living to the sector.

The presence of these large-scale investors in the market need not unduly deter private landlords from making further investments since what they offer will not appeal to all. However, their interest in the student market underlines the importance of choosing the right location for your investment and also of ensuring that the quality and price of the accommodation you offer is competitive in the market.

Bob and Rita Leydon own and let over 50 properties comprising over 250 tenants in Canterbury, Kent. “Rental yields in our portfolio currently range from 8 per cent to 14 per cent with a portfolio average of 11.85 per cent gross,” Bob told UK Landlord. This is based on annual rent divided by property values x 100. Property values are recalculated following significant renovation usually improving the yield. We bought 13 properties in 2011 producing some lower yields of around 8 per cent.” Bob notes that the most popular locations often initially generate the lowest yields. “This is due to the high purchase price and renovation costs. Students have an affordable rent ceiling, especially in the current economy, resulting for the first time in some popular locations taking longer to let,” he says. “Conversely the highest yielding properties may require more effort in terms of viewings and support. So yields are only part of the picture.”

Bob anticipates another factor that will influence student and all HMO yields in Canterbury is the impending implementation of Article 4 directions. “This will probably increase the purchase price of HMO properties, but probably not the rent, thereby reducing potential yields on new purchases. Conversely, owner occupied home values could fall in relation to HMOs, which logically should increase the yield, however, without permission to let as an HMO a permissible family-let will generate less rent and thus lower yields!” Bob’s website

(www.leydonlettings.co.uk) gives clear information about his properties and the amenities provided. Leydon Lettings adopts a two tier system with discounts only available for houses located further than ¾ of a mile from university. “Even with full-summer-rents, the close proximity houses often produce lower yields,” he says. In summer Bob and Rita let some houses to holiday makers or foreign language

students. “We provide in our contract that discounted houses may be let during summer (continuing-tenant-houses are not so let in summer). We do not actively seek summer lets because they can present more work than they are worth, but we seem to get them anyway. All this activity means summer is our busiest time!” Bob says he and Rita usually take holidays in Easter.

Tips from a landlord who lets to students

FeAtuRe – inVestinG in stuDent Lets


‘Check out capers’ to watch out forRichard Price sets out the importance of creating a good inventory prior to the start of a tenancy on page 44 of this issue, and the advice he gives applies as much to student tenants as any other type of tenant. NLA Recognised Supplier No Letting Go has provided the following checklist of ‘check out capers’ to look out for, which apply to all tenants, and will certainly stand landlords going into student lettings in good stead given the wear and tear many student properties experience!• Tenantconvenientlysiteshandbagorbriefcasetoconcealaburn

or dent on the work surface – No Letting Go advises all inventory clerks to run their hands over the work surface to pick up signs of any chips which might have been masked with marker pen

• Furnituremovedaroundtomaskscorchmarksorbadstainsoncarpets Items which have been broken or mislaid are replaced with cheaper versions often representing inferior brands

• Bannisterspindleswhichhavebeenknockedanddamagedasaresult of moving furniture around are secured by dubious means - tenants have been known to secure the spindles with chewing gum!

• Tenantremainsrootedtoonespotfortheentiredurationofthecheck out in an effort to conceal damage e.g. standing with back to the fireplace to conceal candle wax burn on the carpet.

• Paintworkwhichhasbeendamagedistouchedup–butinaccurately. A classic mistake is to think that all magnolia shades are the same – magnolia colour is in fact a generic term and there are many interpretations of this!

• Tenantsclaimtohavelostormislaidone/someofthefullsetofkeys. These can miraculously reappear when the tenants learn they are liable for rent as long as they have access to the property or alternatively that they will have to fund a change in locks!

Preparing your property for the student market“Creating a ‘home from home’ environment for your residents, with practicality, storage and study being the main focus is often challenging” says Ben Hall, Director of Loft Interiors. “Properties need to be appealing to students, bring in top rents and let quickly, but you don’t want it to cost the earth! Student furniture needs to be sturdy, durable and practical – but still be contemporary.”Loft Interiors, through its Student-Furniture.co.uk range, aims to offer landlords of student lettings a “one stop furnishing solution” and will “help source, warehouse, deliver, assemble, install and even remove unwanted worn out, furniture.”Key elements in any appealing student home will be: desks and bookshelves in every room, a washing machine, a drier or clothes horse, a large fridge-freezer, broadband internet connection, locks on all the bedroom doors and emergency contact details on display (including those of the landlord or the agent). NLA member

Bob Leydon recommends buying new furniture. “Students are guilt-edged clients, without whom we have no business. Do not economise with cheap beds and children’s quality mattresses or multi-period bedroom suites from some 1960s ‘bedsit-land’ emporium. We never ever buy second-hand bedroom furniture, carpets or curtains – always new!” That said, he admits that some furniture that is likely to be subject to excessive wear, like lounge-sofas, are often quality second hand. “We have never charged for damage to a second hand lounge-suite. They are inexpensive – just buy another!”

Decide whether or not you will include all utilities in the rent. Landlords wishing to go down this route might consider the service offered by Glide who offer NLA Members a referral fee and an easy solution for students’ utility bills, providing bundled packages so that landlords can receive a single itemised monthly bill for all utilities and properties or else they can ask Glide to bill individual tenants directly and pay back

commissions for the referrals. In terms of the 5 attributes that students look for in their property, James Davis sums up the following characteristics to help your property stand out from the crowd:1. Close to local amenities - is there a pub nearby, Good public transport? 2. Communal areas and sufficient fridge space3. Wi-Fi4. Good value for money5. Well sized and appointed rooms for living and study.

Complying with rules relating to HMOsAs shared houses, student lets can fall within HMO licensing and planning rules. These rules are dealt with on the NLA Online Library (www.landlords.org.uk/library). The best advice if you are thinking of purchasing a property to let to students or thinking of letting a property to students for the first time is to check out the specific rules with the council where the property is located beforehand. n


“Our claims statistics demonstrate the most common claims pertaining to theft by tenants include the theft of white goods (such as fridges and washing machines), general furniture and central heating systems.

To date the worst claim we have received was from a landlord whose tenants stole the boiler and associated copper piping from the rental property. Whilst it only cost the landlord a few hundred pounds to replace the boiler, the resultant water damage to the property meant the claim ran in to thousands.

Prevention measuresIt can be very difficult for landlords to prevent theft by their tenants once they have keys to the rental property. However, the most important piece of advice that we could give

a landlord is to ensure that they obtain a FULL tenant reference check before you go ahead with a tenancy. This will provide you with detailed information on their financial security and place of work, which will assist in giving you peace of mind that you have selected a suitable tenant.

A detailed inventory is also always advisable not just for insurance purposes, but also in the event of any accidental damage. Although this would not be covered under the insurance policy, it could possibly be recovered from the tenant’s initial deposit. In terms of theft by the tenant, keeping receipts of all purchases will assist in putting together your claim.

To ensure the property remains secure, we would encourage landlords to change the locks every time a tenancy comes to an end.” n

FeAtuRe: theFt BY tenAnts


It’s a topic that is rarely talked about but unfortunately does happen. Theft by tenants in the private-rented sector is common. Steve Barnes, Broking Manager with NLA Property Insurance, explains how landlords can prevent this happening and what to do if theft does arise.

How to cope with theft by tenants

The NLA Property Insurance Superior Policy includes cover for theft by the tenants. A condition of the cover is for any thefts to be reported by the landlord to the police and the crime reference number obtained. The Standard Policy does not include cover for theft by tenants.

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

www.propertywomenawards.org.uk

See Pages 6-7for moreinformation

See Pages 6-7for moredetails


As of 1 February 2012, there is no Land Registry fee for property owners in England and Wales who want to register a restriction on their properties to prevent forgery. This applies as long as they do not live in the property they wish to protect. Owner occupiers will continue to pay a small fee.

The Land Registry has issued some tips to help owners protect their property from fraudsters. The properties most vulnerable to fraud are usually empty, tenanted or mortgage-free. Individuals at a higher risk of fraud include owners who are absent for whatever reason; for example because the owner may live abroad, buy to let landlords, the elderly not living in their properties because they may be in long term hospital or residential care, and where a relationship has broken down.

The Land Registry’s tips include:• Makesureyourproperty

is registered. If you become an innocent victim of fraud and suffer a financial loss as a consequence, you will be compensated.

• Onceregisteredmakesureyourcontact details are up-to-date so the Land Registry can reach you easily.

• Ownerswhofeeltheirpropertymight be at risk can have a restriction entered on their property which is designed to help prevent forgery by requiring a solicitor or conveyancer to certify they are satisfied that

the person selling or mortgaging the property is the true owner. 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


Avoid being the victim of property fraud

Research from property services firm Knight Frank, which tracks the performance of mainstream housing markets, showed zero growth in the three months to September 2011. This was the index’s weakest performance since Q2 2009 and raises fears that it could enter negative territory by the end of the year.

According to the firm’s Global House Price Index, the third quarter saw mounting pressures on the global economy with politicians seemingly helpless to get to grips with the Eurozone debt crisis. This has reawakened fears of a double dip recession, not just in Europe but around the world. Unsurprisingly, this economic uncertainty has been reflected in the performance of the world’s housing markets.

Knight Frank believes that house prices are likely to show little improvement in respect of the final

quarter of 2011 given that much of the unravelling of the Eurozone sovereign debt crisis took place post-September and has yet to be reflected in the index results.

Knight Frank points out that luxury housing markets appear to be better insulated from this new weaker phase than mainstream markets. This is due in part to the scale of global wealth generation, the on-going search for ‘safe-haven’ investments and the growing divide between the prime markets in the West and the rest of the world.

This is borne out by research recently released by Knight Frank, which shows that the price of prime central London residential property rose by 0.9 per cent in January, pushing the three-month rate of growth to 2.7 per cent, the highest rate since last July. n

Zero growth in global housing market survey

FSA review raises BTL fearsConcern has been raised that the new regulations of the mortgage market proposed by the Financial Services Authority could lead to an increase in fraudulent applications for Buy-To-Let (BTL) mortgages by people seeking to avoid stricter first-charge mortgage standards.

The Mortgage Market Review of the FSA aims to prevent a recurrence of the irresponsible lending in the years before the credit crisis. The FSA warns “we are currently seeing anecdotal evidence of buy-to-let mortgages being used by borrowers who would otherwise be denied an owner-occupied mortgage. We remain concerned that this problem may be exacerbated with the implementation of our responsible lending proposals.”

If the proposals are implemented, it may be easier to access BTL mortgages than standard mortgages. The FSA said that the overall impact of its mortgage proposals on the BTL market is unclear. “Fewer consumers entering the housing market will increase demand in the rental market, thus making buy-to-let investments more attractive as a result of the increased rental yield. On the other hand, lower expected capital gains from reduced house price growth will lower incentives for buy-to-let investors.” Currently, BTL mortgage lending itself is not regulated by the FSA. “Whether we regulate buy-to-let lending is a decision for the Government,” the FSA says. See page 42 for developments at the EU level relating to BTL mortgages. n

Finance & Tax



Property Management

Landlord & Tenant

Scottish factors prepare for new regime


Research conducted by the Chartered Institute of Housing for The Guardian has said that welfare reforms will leave low income families with shortfalls in their rent payments.

These changes will mean that housing benefit claimants face the unenviable choice of debt, cutting back on basic living expenses or face the risk of homelessness as they are confronted with being unable to afford to pay their rent. In-depth analysis revealed a significant number of properties are no longer fully covered by local housing allowance for private tenants as a result of the changes which took effect as from 1 January 2012.

The research shows that across the UK more than 800,000 homes will be out of reach to low income families. This is due to measures that restrict housing benefit payments to rents paid in the cheapest third of lettings and the placing of absolute caps on the amount of housing benefit to be received by a household.

In many cities and towns across the UK, the research says there will be more tenants than available homes that are within the LHA rates for those who rely on housing benefit. The report anticipates that the entire UK will be affected, with an estimated 720,000 homes becoming unaffordable in England, a further 60,000 in Scotland and 30,000 in Wales. The gap is most noticeable in London and the South East, where over a quarter of a million homes are now beyond the reach of housing benefit.

Grainia Long, Interim Chief Executive of CIH said: “Welfare reforms will see for the first time more people chasing homes than the market currently provides.... low income families could move to more affordable areas, creating “benefit ghettoes”, and resulting in increased social disorder and a breakdown in community cohesion.” n

CIH warns on welfare reforms

In Scotland, property managers (known as factors) are preparing for the start of the country’s licensing regime by 1st October. The Property Factors (Scotland) Act 2011 passed last year establishes a statutory framework which will provide protection for homeowners in Scotland who receive services from factors. Within that framework, a new Code of Conduct will set minimum standards of practice for the industry. The consultation period for the draft Code of Conduct closed at the end of 2011. The Chartered Institute of

Housing Scotland has welcomed the proposed Code’s aim to provide minimum standards of practice for the property and land management industry. “The code as suggested appears to be reasonable and should address concerns about the inconsistency of property management services across Scotland,” it stated. When the law comes into force, anyone providing block management services for residential properties must be registered and adhere to the Code. The Act does not apply to people managing property as letting agents for individual

landlords. Any factor who is not registered will face a fine of up to £5,000, or six months in prison. Registration is valid for three years, but factors can be removed from the register.A Homeowner Housing Panel will also be established as part of the Act, to resolve disputes between homeowners and factors. n

Loan sharks preying on tenants

Landlords in the private-rented sector who believe their tenants may be in the grip of a loan shark can contact a specialist government team with their concerns.

Statistics provided to UK Landlord by The England Illegal Money Lending Team show that around 310,000 homes across the UK are using a loan shark. For landlords, especially those in the private rented sector, this can be a major problem; 18 per cent of loan shark victims (based on past cases) live in private rented accommodation. All too often the victims realise too late that the person lending them money is not their friend and they have become intimidating or violent. The victims live in fear of not being able to pay up. Clearly, there are also knock on effects. Important expenses such as bills and rent can be forced by the wayside.

Wendy Loades from Birmingham City Council who is LIAISE Officer (Lead in Awareness, Intelligence, Support and Education) for the Illegal Money Lending Team – England spoke recently to landlords at the NLA Dorset Branch meeting about what to do if you believe your tenant is a victim of a loan shark.

An illegal money lender lends without a licence from the Office of Fair Trading and therefore does not abide by the rules and

regulations in place. Tenants should know that loans from illegal lenders are not enforceable through law and those borrowing will not be in trouble with the authorities – it is the lender who has committed a crime.

In terms of spotting a loan shark, typically they may offer little or no paperwork, refuse to tell the borrower how much they still owe or what their interest rate is, add on extra arbitrary charges or interest (in some cases as high as 131,000% APR) and take items as security such as passports, bank cards and benefit cards. There is also the risk that they can become intimidating, threatening or violent.

Wendy Loades advises landlords who have any concerns to contact the specialist teams who will deal with the information confidentially. If you live in England: call 0300 555 2222; text LOAN SHARK and the details you want to pass on to 60003; or send an email to [email protected]. If you live in Wales: call 0300 123 3311 or send an email to [email protected]. If you live in Scotland: call 0141 2876 655 or send an email to [email protected] n

Landlord & Tenant

CIH warns on welfare reforms


Tenants are being let down by an unregulated lettings market, with significant upfront costs, variable fees and a lack of transparency around charges, according to a new report published by independent think tank, the Resolution Foundation.

In a mystery shopping exercise of letting agents in three cities, the range and type of fees charged varied significantly; for example, administrative fees ranged from £95 to £375. Total upfront costs (including deposit, admin fees and rent in advance) for a one bed property in London were £2,166, around double those in Manchester (£1,028) and Gloucester (£1,094).

Just two of the letting agents displayed the costs of renting on their websites and many renters only discovered charges after they had decided to rent a property.

The Resolution Foundation is calling for: letting agents to be regulated to the same level as estate agents, so that unscrupulous agents can be banned. It also recommends that all agents to be signed up to an ombudsman service giving redress

to tenants; the ombudsmen’s codes of practice to stipulate that agents must display all charges to tenants and landlords on their website and in adverts in a way that is easily comparable across agents; and for the government to consider ways to make it easier for tenants to transfer deposits between landlords when they re-tender for the tenancy deposit protection schemes in 2012.

Christopher Hamer (pictured), The Property Ombudsman said

‘this report emphasises the growing importance of the lettings sector for people seeking a home to live in. The Government does not see regulation of the sector as a priority and I, therefore, welcome the recommendation of this report that all letting agents should be required to be registered with an ombudsman scheme so that, at least, landlords or tenants can gain redress where they have been disadvantaged by an agent.” n



Landlord & TenantLetting agent practices attacked

Flood risk cover in question from June 2013 The current Flood Insurance Statement of Principles agreement with the Government, which was agreed back in 2000 as a short-term measure, ends in June 2013. Until then insurers will continue to offer flood insurance to existing customers including those at high risk (up to a 1 in 75 year flood risk probability). The Association of British Insurers (ABI) says it will not be renewed as it grossly distorts the market as: people in lower risk flood areas pay more to subsidise those at higher risk; customers in high risk areas are tied to their existing insurer, and those insurers covered by it have ended up with a disproportionate number of high flood risk properties. The ABI has drawn attention to the large number of homes at risk of flooding in England and Wales with Boston and Skegness in Lincolnshire being the constituency with the most homes at significant risk of flooding followed by the Vale of Clwyd, Folkestone and Hythe, then Windsor. According to the ABI, in 92 constituencies there are 1,000 or more homes at high flood risk, based on an analysis of the latest Environment Agency flood data covering the 573 parliamentary constituencies in England and Wales. This shows that thousands of homes and businesses remain at significant flood risk. Significant flood risk is defined as a greater than 1 in 75 chance of flood in any given year. The ABI said in a statement that: “The findings reinforce ABI’s warning that, with the insurance industry’s voluntary flood agreement with the Government ending in June 2013, a new sustainable long-term solution needs to be urgently agreed to avoid as many as 200,000 high-risk households facing problems in getting flood insurance after then.” n

Repairs and Maintenance

The NLA has learned from the Department for Work and Pensions that LHA rates are to be frozen from April this year.Officials have indicated that this is an “immediate change” to prepare for the pegging of LHA rates to the Consumer Price Index (CPI) measure of inflation in 2013. However, as NLA Policy Officer David Cox points out, “it is not something landlords knew they had to prepare for.”

The Chancellor had announced

this linking of LHA rates to CPI in his June 2010 budget. The subsequent detail has been that from April 2013, LHA rates will change only once a year and will be set at either: the previous annual rate uprated by the September Consumer Price Index, or the 30th percentile of local rents (whichever is the lowest).

The NLA will be updating members as soon as more information is available. n

Local Housing AllowanceLHA rates frozen from April 2012

Repairs and Maintenance




Tenants brought a case against a private landlord in November 2011, in which they brought a claim for compensation for the landlord’s breach of his obligations to repair their drains. Their case was that rats had entered from the broken drains and that the rats and fleas

had infested the house. At trial, a judge awarded them damages of £2,000. The landlord sought permission to appeal to the Court of Appeal on the basis that the expert evidence could not have enabled the judge to find the claim proved on the balance of probabilities. Permission to appeal was refused.

The judge had assessed the evidence and reached a conclusion which there was no real prospect of reversing his judgement on an appeal.The case reference is: Bernard v Meisuria [2011] EWCA Civ 1382. n

Repairs and MaintenanceLandlord fined £2,000 over broken drains

A landlord has been fined after he failed to make sure gas safety checks were carried out at a house in Blackburn, putting a family of eight at risk. Rashid Hussain was prosecuted by the Health and Safety Executive (HSE) after he ignored repeated warnings about not arranging an annual visit by a registered gas engineer to a property.

Blackburn Magistrates’ Court heard Mr Hussain had provided proof to his tenants of a gas safety check when he first rented out the property to a couple and their six young children in September 2008. But the 29-year-old failed to get a registered gas engineer to carry out another check a year later. He was served with an Improvement Notice by HSE

in November 2010, requiring him to arrange an inspection within 21 days, but he failed to act on this. Mr Hussain was fined £10,000 and ordered to pay £8,000 in prosecution costs on 6 January 2012.

Elsewhere, a Tenby landlord has been fined for failing to maintain a gas fire safely within one of his properties. David Ian Douglas-Law of Penally, Tenby was fined £8,500 and ordered to pay costs of £1,500 at Haverfordwest Magistrates’ Court following a prosecution brought by the HSE. The court heard Mr Douglas-Law’s tenant had originally raised a complaint with Pembrokeshire County Council environmental health officers over cold and damp conditions at the

property. On viewing the conditions at the property, council officers served Mr Douglas-Law an Improvements Notice under the Housing Act and reported concerns about the condition of the gas appliances to the HSE. An HSE investigation discovered he had failed to maintain the gas fire in a safe condition, as well as failing, over a period of six years, to ensure the appliance was checked for safety every 12 months. n

Safety in your propertyHSE cracks down on gas safety

health and Safety Executive

Fine for boiler failureA landlord who failed to provide hot water to her tenants for four months has been fined £525 by Runcorn Magistrates Court, after being prosecuted by Halton Council. The tenants reported the problem to the landlord, Teresa Kirk, who took

no action, even after the visit of an environmental health officer and the hand delivery of a statutory notice giving her a week to restore hot water. Legal proceedings were taken given the landlord’s continued failure to fix the boiler. n

Fine for boiler failure




Sustainability


Light-Emitting Diodes (LEDs) can bring about significant reductions in energy and maintenance costs, according to an Energy Saving Trust field trial of over 4,000 light fittings in England.

Following a feasibility study in 2008 that looked into installing LED lighting in communal areas such as stairwells and corridors, the Energy Savings Trust has completed a subsequent field trial of the technologies in action. This shows increases in light levels, colour temperature and good maintenance of performance over time, as well as considerable energy and long-term cost savings.

The first phase of the trial, which ran in 2008-09, saw a 100 per cent average improvement in light (lux) levels across the sites, with two buildings showing lux improvements of over 500 per cent. The second phase of the trial, in 2009-10, featured a greater number of individual light fittings and also saw an increase in lux levels, of 57 per cent.

Across both phases of the trial, the normalised energy savings from the new LED lighting installed across the field trial – just under 3.4 million kWh per year – is the equivalent to lighting 5,788 average UK homes for a year with traditional lighting.

Using the ‘normalised’ energy savings calculated, the LED lighting in both phases of the trial would pay back its original

investment cost in roughly two years – significantly less than the lifetime of the LEDs themselves.

Russill said: “The final issue to overcome in getting LED lighting in more buildings is cost. We hope that this trial will go a long way to convince housing providers that the investment is more than worth it in terms of energy savings and reduced maintenance costs over the long life of LED fittings.” n

Bright future for LEDsFollowing the resignation of Chris Huhne, Energy Secretary, after the announcement that he will be prosecuted for (allegedly) getting his wife to take speeding points, the new Secretary of State at the Department of Energy and Climate Change (DECC) is Liberal Democrat Ed Davey (pictured). “Although Chris Huhne was not massively involved with the Green Deal (leaving it up to Energy Minister, Greg Barker) we will have to see what impact Mr Davey’s appointment will have on the Green Deal’s implementation,” said David Cox, NLA Policy Officer. n

Davey replaces Huhne

The Government is appealing to the Supreme Court in order to try to get approval for its plans to reduce the Feed-in-Tariffs (FITs) for Solar Panels.

Last year, the Department of Energy and Climate Change (DECC) consulted on reducing the current level of Feed-in-Tariffs for solar panels from 43.1p to 21p (per kilowatt hour) from the beginning of this year. However, they laid the legislation reducing them during the consultation.

A coalition of organisations, led by Friends of the Earth took DECC to Court on the basis they had not followed the correct procedure. Friends of the Earth won the initial case and the Court of Appeal also ruled in their favour.

This has meant that the existing Feed-in-

Tariffs (43.1p) will continue until DECC re-consults, has considered the responses and then lays appropriate new tariffs. However the Secretary of State has now indicated that DECC intends to appeal to the Supreme Court. n

Government still seeking to reduce the solar subsidy

nLA ACCReDitAtiOn

Why NLA Accreditation works

“All of our private sector access schemes (e.g. Deposit Guarantee Scheme and Bond Bank) require a minimum property standard and management practices. In addition access for landlords to advertise properties through the council’s choice based lettings scheme, North Tyneside Homefinder, is based on accreditation. The incentives we offer local landlords to become accredited include Free Tenant referencing, a dedicated Housing Benefit contact, a dedicated Safer Estates Officer for advice on Anti-Social Behaviour, taking care of all paperwork needed to set up tenancies, the use of Homefinder and other access schemes. Approximately 9,000 properties in the borough are privately rented representing 10 per cent of all properties in North Tyneside. This number has risen steadily over the past 5-10 years. 455 landlords are registered with our Private Landlords Service and Landlord Forum. We recognised the NLA Accreditation scheme in the borough on 14th November 2011. However North Tyneside Council (NTC) has been a Local Authority Associate Member of the NLA for a number of years. NTC recognises that for self-regulation in the form of accreditation to work the offer

must be flexible to the business needs of landlords. The NLA offers a way of becoming accredited which differs from our current property based scheme. We have a property based scheme (that was operating prior to NTC recognising the NLA Accreditation scheme) with 126 properties accredited. We hope the NLA scheme will allow for greater market penetration, encouraging landlords with larger portfolios to become accredited.

Our team is responsible for a number of private rented sector access schemes and dealing with empty properties. The team use the NLA’s Online Library as a resource for training and information. By increasing the number of accredited landlords in North Tyneside we hope to raise the overall management standards of rented property in the borough. We need to help all landlords realise that a more professional sector is in everyone’s best interests. n

The NLA Landlord Accreditation Scheme is gathering pace. More than 1,000 landlords have achieved accreditation, 32 local authorities use NLA Accreditation as their sole accreditation scheme, and the majority of local authorities in England and Wales recognise NLA Accreditation, whether or not they provide their own scheme. NLA Members can become accredited for free.

Rob Peach, Private Housing Project Co-ordinator, North Tyneside Council

“I am a surveyor and have spent my career working with large property companies. I’ve also done my own developments and when I sold enough units to recoup the investment, instead of selling the rest for profit I decided to build a property investment portfolio. Initially I had a full-time job so I used letting agents. But one property was problematic and kept needing work, so the agents gave it back to me, which is how I started managing my own property I thought it was important to be as up-to-date with legislation as the agents, so I joined the NLA three years ago. Being accredited has given me more confidence and more credibility when dealing directly

with tenants – it shows that I do things by the book! As part of my NLA Accreditation process, I attended the NLA Landlord Foundation Course in person rather than doing it online. About twenty people were also taking the course. As a chartered surveyor, not a lot of it was new information to me, but the section on Landlord and Tenant was very helpful as it was an area I didn’t know a great deal about. The NLA Advice Line has also been very useful to me, and certainly better than paying legal fees. I also insure my properties with NLA Property Insurance. I can’t see anything wrong with the concept that every landlord should be accredited. Some local authorities are insisting on it, and in my area there is a clear preference from authorities for accreditation. I haven’t actually needed accreditation to find tenants. Tenants are falling over themselves to find good places to live. But the procedures I now have in place will help me if problems occur with a tenant." n

Becoming an NLA Accredited Landlord: Jonathan Beach

Visit our website www.landlords.org.uk and click on the accreditation area or contact our Local Government and accreditation officer at: [email protected]

NLA Accredited Landlord:Promoting good relations between landlord and tenant



For the latest news visit: www.landlords.org.uknLA neWs

STARTING UP REGULATORY PROPERTY NEWS SAFETY FINANCE

The NLA has released on video to help landlords control condensation and mould in their properties. To view the video online, go to the additional resources of the section on Condensation in the NLA Online Library at www.landlords.org.uk/library/property/condensation/additional-resources. n

The NLA’s marketing team has set out the checks that are run on advertisers in UK Landlord. When a company applies to advertise in UK Landlord, the Marketing department runs a company check which includes:• Confirmationofregisteredoffice,trading addresses and date of incorporation, where applicable • Verificationofbusinessactivities

• Detailsofanypreviousnamesor subsidiaries • Fullanalysisofprofitandlossaccountand balance sheet • CountyCourtJudgmentsearch• VerificationofDirectordetails“If a company is relatively new (therefore does not have a full credit history) we request two trade references and review their website,” adds Lucy Salter, NLA Marketing Executive. n

Tackling condensation and mould

NLA advertising policy for UK Landlord



Regular Local Business and Investment NewsReGiOns neWs

Can landlord licensing reduce anti-social behaviour in Southend?

Over the last few months we have seen a rush by many local authorities to license landlords. Their goal is to reduce the anti-social behaviour of private tenants; a laudable aim. However, is licensing landlords going to solve the problem of anti-social behaviour? The NLA is sceptical.

In Southend on Sea, the Council have decided certain parts of the town have such massive problems with anti-social behaviour that the only way to deal with it is to license the landlords. While this is allowed under the Housing Act 2004, local authorities have to prove that the anti-social behaviour is being caused by private tenants near where they live.

The accusation that landlords were to blame for anti-social behaviour in Southend caused one proactive NLA member to contact Essex Police. He was informed that the vast majority of the anti-social behaviour in the area has nothing to do with the residents (whether private tenants or owner-occupiers) – and more to do with the nearby pubs and clubs. This gave other NLA members, together

with our newly appointed Local Representative in Essex, Barbara Carr, the ammunition to challenge the Council. The group has spent the last few months questioning officers at Southend Council on the strength of their evidence, as well as contacting Councillors to highlight the flaws in these proposals. This proactive engagement does appear to be yielding some results. Councillors are starting to question the logic that licensing landlords is going to improve the behaviour of tenants. All landlords can do is ask their tenants to stop the offending behaviour and then begin possession proceedings if the situation persists. If a landlord does anything else, it could be classed as disrupting ‘quiet enjoyment’ or even harassment.

Local authorities have extensive powers to deal with anti-social

behaviour; from fines and confiscating equipment to ASBOs and criminal prosecution. If there truly is a “significant and persistent problem with anti-social behaviour” in Southend, what are they, and the Police, doing to combat it? We also need to ask what proportion of the anti-social behaviour is actually being committed by private tenants.

Until Southend Council can answer these questions, the NLA believes that they will be making policy decisions which impose additional regulation on landlords without any real evidence. We will continue to engage with the Council to ensure that landlords are not left shouldering the burden of solving the problem of anti-social behaviour. n

By David Cox, NLA Policy Officer

Council tries again on selective licensing

Hyndburn Council in Accrington has redrafted plans for a controversial selective licensing scheme that was rejected by the High Court in 2011 because the Council

had failed to consult landlords adequately. Deputy leader Clare Prichard said “we have really listened to landlords who are now part of a forum we consult with. The

scheme as a whole is smaller, rather than covering entire wards, which was the main concern of landlords.”

To be able to rent out properties in the areas covered by the scheme, landlords will need to be licensed by the council.

Council leader Miles Parkinson said “the sooner we can have this implemented the better as it protects tenants and will provide a better quality of housing in the borough.

I think the progress that has

been made is promising.”In spite of the consultation

many landlords feel that the new proposals are unworkable given the small number of council staff working in this area, and the large number of licences to process and manage.

A strong concern is that the council will spend all its time regulating the responsible landlords and have no time to pursue those who have poor standards. n


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

Mon 19 Mar NLA Trafford and Salford North West Premier Inn, Manchester, Old Trafford, Waters Reach, 6.00pm free

Branch Meeting Trafford Park M17 1WS refreshments 6.30pm start

Mon 19 Mar NLA Dundee Branch Meeting Scotland Best Western Queens Hotel, 160 Nethergate, Dundee, 7.00pm to 9.00pm Angus DD1 4DU

Tue 20 Mar NLA in conjunction with South East Canterbury University, Darwin Conference Suite, Darwin College, 5.30pm for 6.00pm

canterbury Student housing Darwin Road, Canterbury CT2 7NY start to 9.00pm Landlords information Evening

Tue 20 Mar NLA Weymouth Branch South West Weymouth Working Men’s Club, 1 Mitchell Street, Weymouth, 7.00pm for 7.30pm

Meeting Dorset DT4 8BT start

Tue 20 Mar 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 20 Mar carlisle city council Landlord North West Carlisle City Council, Civic Centre, Rickergate, 12.00pm until Carlisle CA3 8QG 5.00pm

Tue 20 Mar NLA in partnership with South West The Tramways, Wells BA5 2HN 6.00pm for 6.30pm Mendip Landlord Association start forum

Wed 21 Mar NLA Mid Devon Branch South West Council Chamber & Mayoralty Room, Tiverton Town Hall, 6.00pm for 6.30pm

Meeting in partnership with St Andrew Street, Tiverton EX16 6PG start to 8.30pm Mid Devon council

Thu 22 Mar NLA Wandsworth Branch London Robing Room, Civic Suite, Wandsworth High Street SW18 2PU 6.00pm to 8.00pm Meeting

Thu 22 Mar NLA Dorset Branch Meeting South West Borough of Poole, Civic Centre, Poole BH15 2RU 7.30pm

Tue 27 Mar NLA Peterborough Branch East of England Ramada Hotel, Fenland Suite, Thorpe Meadows, 6.00pm for 6.30pm Meeting Peterborough PE3 6GA start

Tue 27 Mar Warrington Landlord forum North West Town Hall, Sankey Street, Warrington WA1 1UH 2.00pm

Tue 27 Mar NLA Bolton Branch Meeting North West Brittania Bolton, Beaumont Road, Bolton BL3 4TA 6.30pm

Thu 29 Mar Wirral Landlord Workshop Day North West Floral Pavilion, New Brighton CH45 2JS 3.30pm

Thu 12 Apr NLA and North Tyneside North East The Nightingale Room, Riverside Centre, Minton Lane, 6.00pm Branch Meeting North Shields NE29 6DQ

Mon 16 Apr NLA Sheffield Branch Meeting Yorkshire and the Humber Double Tree by Hilton, Chesterfield Road South, Sheffield, 6.30pm for 7.00pm South Yorkshire S8 8BW start to 9.30pm

Mon 16 Apr NLA Milton Keynes Branch South East Abbey Hill Golf Centre (Main Building), Monks Way, Two Mile Ash, 6.00pm for 6.30pm

Meeting Milton Keynes MK8 8AA start

Mon 16 Apr Macclesfield Landlord forum North West Macclesfield Town Hall, Macclesfield, Cheshire SK10 1DX 9.30am

Tues 17 April crewe Landlord forum North West Municipal Buildings, Earle Street, Crewe CW1 2BJ 6.00pm

Tues 17 April NLA Warwick Branch Meeting West Midlands Lord Leycester Hotel, Jury Street, Warwick CV34 4JD 6.30pm to 9.00pm

Weds 18 April Launch of NLA Southend East of England The Bell, Toby Carvery, Prince Avenue, Southend SS2 6RL 6.00pm for 6.30pm Branch Meeting start to 8.30pm

Wed 18 Apr NLA Eastbourne & Wealden South East Lansdowne Hotel, King Edward’s Parade (Eastbourne Seafront), 6.30pm to

Branch Meeting East Sussex BN21 4EE 9.00pm

Wed 18 Apr NLA Wessex (Bath) South West Lansdown Golf Club, Lansdown, Bath BA1 9BT 2.00pm Branch Meeting

EVENT REGION LOCATION TIMEDATE


eVents GuiDe

EVENT REGION LOCATION TIMEDATE

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

Thu 19 Apr Launch of NLA colchester East of England North Colchester Business Centre, 340 The Crescent, 6.00pm for 6.30pm

and ipswich Branch Meeting Severalls Business Park, Colchester, CO4 9AD start to 8.30pm

Thu 19 Apr NLA hastings & rother South East The Manor Barn, Bexhill-on-sea, East Sussex, TN40 2HA 9.30am to 1.30pm

Branch Meeting

Thu 19 Apr Dover and Shepway South East Dover District Council, White Cliffs Business Park, Whitfield 4.15pm for

Landlords forum CT16 1DA 4.30pm start

Mon 23 Apr NLA oldham Branch Meeting North West The Bower Hotel, Hollinwood Avenue, (Next to Morrisons), 6.30 for 7.00pm

Chadderton, Oldham OL9 8DE until 9pm

Mon 23 Apr NLA Aberdeen Branch Meeting Scotland Thistle Aberdeen Altens, Loriston Room, Souterhead Road, 7.00pm to 9.00pm

Aberdeen AB12 3LF

Mon 23 Apr NLA in conjunction with Kings East of England Dukes Head Hotel, 5-6 Tuesday Market Place, Kings Lynn, 6.00pm help & advice

Lynn and West Norfolk Borough Norfolk PE30 1JS presentations start

council Landlords Meeting 6.30pm

Tue 24 Apr NLA cumbria Branch Meeting North West University of Cumbria, Room LG101, Fusehill Street, Cumbria 7.00pm

CA1 2HH

Tue 24 Apr NLA and richmond Borough London York House, Council Chamber, Richmond Road, Twickenham 6.00pm to 8.30pm

council Landlords Meeting TW1 3AA

Tue 24 Apr Swale Borough council South East Swale Borough Council, Swale House, East Street, Sittingbourne, 5.45pm for

Landlords information Meeting Kent ME10 3HT 6.00pm start

Wed 25 Apr NLA Wessex (Bristol) Branch South West BAWA, 589 Southmead Road, Filton, Bristol BS34 7RG 7.00pm

Meeting

Wed 25 Apr Launch of NLA Basildon and East of England Premier Inn, Main Road, Boreham, Chelmsford CM3 3HJ 6.00pm for 6.30pm

chelmsford Branch Meeting start to 8.30pm

Wed 25 Apr NLA London Seminar at the London Institute of Directors, The Burton Room, 116 Pall Mall, London 7.30pm

institute of Directors SW1Y 5ED

Thu 26 Apr NLA South Somerset Landlords South West The Yeovil Rugby Club, Dorchester Road, Yeovil, Somerset 6.00pm

Meeting in partnership with BA22 9TR

Somerset District council

Mon 30 Apr NLA Norwich Landlord forum East of England Holiday Inn, Ipswich Road, Norwich NR4 6EP 6.30pm for 7.00pm

start

Wed 2 May NLA in conjunction with South East Medway Council Offices, Gun Wharf, Dock Road, Chatham 1.00pm to 4.00pm

Medway council Landlords ME4 4TR and repeated

Training Day 5.30pm to 9pm

Tue 8 May NLA fife Branch Meeting Scotland The Gilvenbank Hotel, Huntsman Road, Glenrothes, Fife KY7 6NT 7.00pm

Wed 9 May NLA and Solihull Landlords West Midlands Solihull Council House, Solihull B91 9QS 6.00pm

forum

Thu 10 May Gravesham Landlords forum South East Gravesham Borough Council, Civic Centre, Windmill Street, 3.00pm

Gravesend DA12 1AU

Tue 15 May NLA Weymouth Branch South West Weymouth Working Men’s Club, 1 Mitchell Street, Weymouth, 7.00pm for 7.30pm

Meeting Dorset DT4 8BT 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 6.30pm to 8.30pm

Wed 16 May harrow Landlord Event London Sattavis Patidar Centre, Forty Avenue, J/W The Avenue, 5.00pm to 8.00pm

Wembley Park HA9 9PE


Population (2011): 5.8 million

Unemployment rate (August to october 2011): 7.2 per cent

Average house price (Nov 2011): £171,619 Detached: £268,442

Semi-detached: £166,438 Terrace: £136,345

flat: £112,419

Proportion of private-rented property (2010): 15.9 per cent

Long-term privately-owned empty homes (April 2011): 25,964

Key Statistics for The East of England

ReGiOnAL FOCus East of England Investment Focus


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

1. Norfolk2. Fenland District Council3. Suffolk4. Ipswich District Council5. Essex6. East Hertfordshire District Council7. Hertfordshire8. Bedfordshire9. Cambridgeshire

NLA REPRESENTATION

Local Representatives

Billy Gill, NLA Representative for Bedfordshire, Luton & Cambridgeshire

contact: [email protected] if you have suggestions for meetings in this area.

1

2

3

4

56

7

8

9

Portfolio: A mixture of flats and houses country wide. In my local area of Bedford I have 3 and 4 bedroomed houses that are predominantly rented to LHA tenants. The properties outside of Bedford are managed by local letting agents. Last year I invested in my first professionally let House in Multiple Occupation.

Local investment opportunities: With the current economic climate and restricted lending, rental demand is high in Bedford. Bedford Council recently launched a Private Rented Leasing Scheme where they are looking for landlords in the PRS to supply over 60 one-bed properties for homeless

people. Cambridge City Council told us recently that they desperately need PRS properties in their area to help with their Homelessness issues. You only need to look in the local property section of the local papers at the number of letting agents looking for landlords & properties. Personally I get one or two phone calls a week from prospective tenants looking for properties to rent from me.

Landlord events: There will be meetings within my area in late March/early April. For more information, see the NLA website.


The East of EnglandReGiOnAL FOCus


Barbara Carr, NLA Representative for Essex

James Fraser, NLA Representative for Hertfordshire

Emma Hunter, NLA Representative for Norfolk & Suffolk

Portfolio: A family portfolio of three properties: a house and flat in Colchester and a house in central Chelmsford.

Local investment opportunities: Essex is a growing area for rental properties due to its close proximity to London and its own major cities. HMOs are a growing trend due to the large numbers of professional single people looking for quality accommodation.

Landlord events: NLA meetings this Spring will be held in Southend (17th April), Chelmsford (18th April) and also Basildon and Ipswich/Colchester on 19th April. Check the NLA website for venues.


Portfolio: 22 houses (3 and 5 bedrooms) in Stevenage, Herts and a 1-bed flat in Peterborough.

Local investment opportunities: Stevenage and Peterborough are both strong rental towns. Buy and rent to your heart’s content as it rarely takes longer than 24 hours to let in Stevenage.

Landlord events: I’m a regular attendee and organiser of landlord events in Broxbourne, Hatfield, St. Albans (and Luton occasionally). I am hoping local authorities such as East Herts, North Herts and Stevenage will be joining us soon.


Portfolio: a varied portfolio in the North and Midlands.

Local investment opportunities: Rental demand remains high in Norwich for well-presented properties appealing to a wide variety of tenants as well as corporate lets. The Golden Triangle is ever popular with tenants and landlords alike due to its proximity to local shops, amenities and the city. Rents here for a two-bedroomed terrace can achieve in excess of

£650, whilst newly-developed, furnished, city-centre flats are currently holding their own at around £1000pcm.

Landlord events: A new cycle of events in Norfolk and Suffolk is being planned to continue the good work of former NLA Representative Lynsey Sweales.


Broxbourne Borough Council in Hertfordshire has launched a forward-looking ‘Simple Lets’ scheme which provides landlords with a free tenant finding service when letting their properties to Council tenants. It is designed to support both the landlord and the tenant throughout the term of the tenancy.

The main aim of the scheme is to increase the number of properties provided by private landlords and to increase the number of landlords who would re-let their property through the council scheme.

Landlords who let their properties through

the scheme will be assigned a dedicated officer who will be available to give advice, help with inventories and early interventions and assist in resolving disputes at any point during the tenancy.

The ‘Simple Lets’ officer will carry out tenant checks, arrange for the deposit and rent in advance to be paid at the beginning of the tenancy and ensure fast track housing benefit claims. Under the ‘Simple Lets’ scheme, rental payments will be paid directly into the landlord’s bank account.

Tenants will receive tenancy sustainment

training to ensure they understand their responsibilities and enable them to successfully maintain their tenancies.

Broxbourne Borough Council hopes the new scheme will also increase the availability of privately rented properties in the Borough to meet the needs of the Council’s homeless applicants. James Fraser, a local government councillor, landlord and one of the four NLA representatives covering East of England, says “it really is a refreshingly modern scheme with a genuine landlord-friendly bias.” n

Simple letting scheme with Broxbourne



Regular Local Business and Investment NewsReGiOns neWs

Bangor students in recycling initiativeLandlords in Wales may want to refer new student tenants to the Bangor Students’ Union guide to recycling which is now being promoted in universities across Wales. The guide has been produced to address the confusion

surrounding recycling. At Bangor, a stringent colour code is in place for recycling: blue recycling bins for paper, red for glass, grey for plastic, and so on. As the guide points out, there is a lot more to recycling than just disposing of bottles and

paper in the right places. The recycling guide encourages students to donate clothes and books to charity shops, and to give unwanted possessions away rather than send them to landfill. Bangor University’s Student Union building has now been turned into

a recycling hub for all students at the University. The Union has even begun collecting used stamps for charity. “There’s actually a lot more stuff you can recycle than your standard empty beer can,” the guide explains. n

NLA Local Representative for London, Yvonne Baisden, recently attended a tenant training course at Harrow Council presented by Help2Let, a social local lettings agency. Based on feedback from landlords that tenants receiving social welfare benefits are not always well prepared for the private-rented sector, Help2Let has designed the course to inform tenants of their responsibilities and to promote good relations between landlords and tenants. To date, Help2Let has trained over 220 tenants in the last 18 months. The training covers areas such as the importance of paying rent on time; looking after the property; condensation; responsibility for household bills; Tenancy Deposit Schemes; how to end a tenancy; Local Housing Allowance rules and the importance of good communication with landlords. Yvonne told UK Landlord

that the training session that she attended (which was run by Help2Let’s Account Managers, Salima Alotia and Felicia Thornhill), was relaxed and informal. “At the end of the training, participants were given a test to make sure they were paying attention,” she said. “Everybody must have been paying attention as they got all the questions right! The tenants were awarded attendance certificates to show landlords when viewing properties.” Following positive feedback from tenants, Harrow Council and landlords, Help2Let now run the courses twice a month. A number of other London local authorities are now following this model. Help2Let also helps families claiming housing benefits to locate to areas outside London as it is increasingly difficult to find satisfactory and local private-rented accommodation. n

A report by the London Assembly has called for tenancies of at least five years and tax incentives for landlords who improve properties to help improve conditions for Londoners who live in the private rented sector. The report sets out a range of measures aimed at improving conditions for the one in four Londoners who live in the private rented sector – including the possible application of selective licensing schemes for landlords. The Planning and Housing Committee found that about a third of the private rented sector in London – around 280,000 homes – fails to meet the “decent homes” standard used in the social rented sector, and one in three private landlords is considered to be “rogue”, leaving tenants at the mercy of poor conditions or sudden

eviction. The Committee estimates that the cost to make London’s private rented sector ‘decent’ is over £1.4 bn. Given its growing importance and changing role, the report calls on the Mayor, boroughs and central Government to make it a priority to bring properties and landlords up to scratch. “In his revised London Housing Strategy, the Mayor should review the selective licensing approach that Newham is implementing, in terms of its cost effectiveness and ability to target improvements in the worst private rented sector housing,” the report says. “Financial incentives are another potential source of improvement; for example, the Government could explore offering tax incentives to landlords who offer longer tenancies,” it adds. n

London Assembly calls for major PRS changes

Harrow trains tenants for PRS

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

Harrow trains tenants for PRS

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 filling 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)

BrightonNorth LondonSheffieldLeedsBirminghamManchesterLiverpool

South London

2012 DATES

Thurs 22nd MarTues 17th AprTues 24th AprThurs 26th AprWed 9th MayWed 23rd MayTues 29th May Wed 30th May

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

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

LOCATION

2012 DATES LOCATION

TIME: 8.30 for a 9.00am start; 5.00pm finish

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 finish

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 finish

Tuesday, 22nd May Newcastle

Monday, 16th April

Thursday, 19th April

Tuesday, 2nd May

Manchester

Leeds

Sheffield

Mon 26th Mar

Wed 28th Mar

Tues 3rd April

Tues 3rd April

Thurs 10th May

Birmingham

North London

Liverpool

South London

Sheffield

UKLANDLORD JANuARy/FebRuARy 2012 39UKLANDLORD MARCH/APRIL 2012 35


Tenancy Deposit Protection: Where we are we now?

If a landlord did not either protect the deposit nor inform the tenant in time, then they faced having to pay the deposit back to the tenant and three times the deposit in compensation.

As will be seen below this is about to change and you should be aware of the new position from April.

Originally, the penalty meant that a tenant could live in property rent free for three months because a landlord didn’t provide the details within 14 days. No matter how honourable the intentions of those behind the Housing Act it cannot have been intended that for one administrative error a good landlord could be, without recourse, deprived of one quarter of their annual potential income. Parliament has recently recognised that the current TDP scheme is unworkable and changes will be brought in under the Localism Act in April 2012.

Under the original system, your obligations were as follows and details must be provided within 14 days of receipt of the deposit:• Thenameandcontactdetailsofthe Scheme including details of dispute resolution service;

• Howthedepositisprotectedandhowto apply for its release;• Detailsofwhathappensifthelandlordor tenant cannot be found;• Theaddressofthepropertyandamountof the deposit;• Thelandlordoragent’snameandcontact details;• Detailsofanythirdpartyresponsibleforthe payment of the deposit;• Itemscoveredbythedeposit;• Detailsofwhenthelandlordisabletoretain part of the deposit and how to dispute this retention.

If not protected the court must order that the landlord places the deposit into a Scheme within 14 days and the tenant is paid compensation within 14 days.

Although it states that the deposit must be placed in a Scheme within 14 days, in practice the landlord is able to protect the deposit and inform the tenant before the hearing should the landlord be taken to court. The court views the sanctions to apply to landlords who fail to comply at all, rather than those who fail to comply with the ‘initial requirements’ correctly. As such it is quite possible for landlords to place their deposits with correct schemes and provide this information to the tenant at any point before the date hearing. It is not advisable to wait, due to cost implications of taking a case to a hearing without it being necessary.

Recent case lawFor those of you presently experiencing difficulties the courts have offered some relief and you should be aware that not all is lost under the original system.Tiensia is the leading case relating to the penalties and allows tenants to recover their costs of bringing the claim provided the Act has

not been complied with at the time the claim was made and the tenant has given notice of their intention to issue proceedings. There have been further developments in Hashemi which concerned a tenant bringing proceedings after the tenancy. The Court of Appeal held that it is not possible for a tenant to bring a claim once the tenancy has ended. It is usually at the end of a tenancy that it is realised that the deposit is not held properly, so this is to your advantage.

Section 21 and tenancy deposit rulesIn relation to s21 notices, landlords must be very wary of their obligations and ensure they have complied with their obligations. If not, then you cannot rely on s21 Notices.

From April 2012The Localism Act is about to change the rules:1. The time period for complying with the requirements to secure the deposit and provide the information are to be extended from 14 to 30 days from receipt of the deposit;2. A penalty will be payable if the landlord fails to comply;3. The ‘Tiensa’ defence of retrospectively complying after the 30 days will no longer be available to landlords;4. The ‘Hashemi’ defence in relation to former tenants will no longer apply;5. The penalty will no longer automatically be

three times the deposit plus the deposit, but will be at the discretion of the Court so that will allow landlords an opportunity

to explain any reasons for failure and if considered reasonable then the Court can reduce the penalty, which comes as some relief for landlords who have made genuine mistakes;

6. The restriction on the service of s21 Notices has been relaxed.


FeAtuRe – FeAtuRe: LAnDLORDs’ GuiDe tO tenAnCY DepOsits in enGLAnD AnD WALes

From its introduction in April 2007 in England and Wales there has been confusion surrounding the TDP scheme resulting in a number of appeals.

By Michael Devlin, Chafes Solicitors LLP


One query that comes up in relation to deposits is when it should be returned. If the landlord and tenant agree that there is no dispute then it should be returned within 10 days, however, if there is a dispute then the deposit will be held pending the parties going through a Scheme’s dispute provisions.

Wear and tearAnother issue that arises is less of a legal matter, but more a practical one being that of fair wear and tear. This issue can be best dealt with by carrying out a thorough check-in inventory with the tenant and the same at the end of the tenancy. The development of digital cameras makes this a much easier job! It is appreciated that this may seem an overly laborious step to take, but it does pay dividends with difficult tenants and can be done when handing over the keys. n

Tenancy Deposit Protection: Where we are we now?

The above is only a brief summary on the present position and is based upon the writer’s interpretation of recent developments and is not to be taken as formal legal advice. If you require further advice on this or any other issue then please contact Michael Devlin at Chafes Solicitors LLP: www.landlords.org.uk/services/suppliers/chafes-solicitors

Parliament has recently recognised that the current TDP scheme is unworkable and changes will be brought in under the Localism Act in April 2012.


Preparing for Tenancy Deposits in Scotland

The Scottish Government’s Tenancy Deposit Scheme Regulations became law last year on 7th March 2011. It was introduced to respond to concerns that some private landlords unfairly withhold tenants’ deposits. The Scottish Government estimates that each year between £2.2m - £3.6m tenancy deposits are unfairly withheld by landlords.

With the Scottish government currently in the process of approving schemes, now is clearly the time for landlords to prepare for this major change and to identify how and when to comply with the new requirements across their rental portfolios.

What you need to know:Who should protect tenancy deposits in Scotland: Every landlord who receives a deposit in connection with a tenancy in Scotland, and who is required to register in the local authority register of landlords, in accordance with the Antisocial Behaviour etc. (Scotland) Act 2004, must comply with the Tenancy Deposit Schemes (Scotland) Regulations 2011. Accredited landlords are not exempt from the tenancy deposit rules.What to protect: Once the schemes become operational, all deposits taken on assured and short assured tenancies, university accommodation and other types of occupancy agreements must be submitted to a scheme. When to protect – the general rule: After a scheme becomes operational, landlords will have thirty working days from the start of a tenancy to submit new deposits to a scheme.When to protect deposits received before 7 March 2011: The landlord must comply with 30 working days of:a) the date of renewal of any tenancy which occurs between 3 and 9 months after a scheme first becomes operational, orb) in any other case, the date that falls 9 months after the first operational date.

When to protect deposits received after 7 March 2011 and before first scheme becomes operational: For recent tenants who have provided landlords with a deposit between 7 March 2011 and the date the first scheme becomes operational, landlords must submit the deposit to the scheme within thirty working days of the date that falls three months after the date the first scheme becomes operational. Sanctions for non-compliance: If a deposit is not paid to an approved scheme within the required timescale, the tenant may apply to the court for sanctions against the landlord. If the sheriff is satisfied that a landlord has failed to comply with the regulations, they must order the landlord to pay the tenant up to three times the amount of the deposit, and in addition, may require them to submit the deposit to an approved scheme.

Dispute resolutionIf the landlord believes the tenant has broken the agreed contract details (for example, unpaid rent or damage to the property) and the tenant disagrees, a free dispute resolution service will be available as part of each scheme to resolve the issue as an alternative option to the tenant taking legal action for recovery of a deposit through the courts.

Landlords can notify the scheme and raise a dispute. The case will then be referred to an independent adjudicator.

The adjudicator will make a decision about how the deposit should be repaid, based on evidence provided by the landlord and the tenant.

Any undisputed deposit amount will be returned to the tenant, without waiting for adjudication.


FeAtuRe – LAnDLORDs’ GuiDe tO tenAnCY DepOsits in sCOtLAnD

Over the coming months, landlords in Scotland will have to start submitting new deposits and all existing deposits to a government-approved Tenancy Deposit Scheme for safe keeping by an independent third party until they are due to be repaid at the end of a tenancy.


role of local authoritiesIn Scotland, it is a legal requirement for most landlords to register with the relevant local authority. Landlords will be asked to provide evidence of registration with the relevant local authority when the deposit is paid over.

The approved schemes will collect information about registration which will be referred to relevant local authorities to assist in the identification of unregistered landlords. Licensing authorities will be able to take appropriate enforcement action on the basis of this information where they think it is necessary.

Letting agentsThe duties in relation to tenancy deposits rest with landlords. Any sanctions imposed as a result of non-compliance with Scotland’s Tenancy Deposit Scheme regulations will apply to the landlord. Clearly, landlords can continue to use an agent to act on their behalf to manage a tenancy. And if you do use a letting

agent, it will be in your interests to satisfy yourself that the agent is acting in accordance with the Scottish tenancy deposit regulations, depending on what the agent is contracted to do. The landlord may take action against the agent through the court if there has been a breach of contract.

State of playThree proposals for running a scheme have been received by the Scottish Government, from my|deposits Scotland, SafeDeposits Scotland and the Letting Protection Service Scotland. The Scottish rules provide only for custodial schemes.

Evaluation of these proposals is under way, and officials are working towards approval of a suitable scheme by the end of March 2012. There will then be a gap between a scheme being approved and when it comes operational to allow time for further publicity to take place.

Landlords will be able to choose which scheme or schemes they submit deposits to,

and can participate in more than one scheme at a time, although an individual deposit can only be submitted to one scheme at a time. Participation in all approved schemes will be free for landlords and tenants.

Key features of all the schemes will be that the tenancy deposits will be protected by an independent third party administrator in a designated account until they are due to be repaid. The scheme administrator will return the deposit within 5 working days of obtaining agreement by the tenant. n

The Tenancy Deposit Schemes (Scotland) Regulations 2011: www.legislation.gov.uk/ssi/2011/176/contents/made

For the latest news visit: www.landlords.org.uknLA neWs: mAnAGinG tenAnt COmpLAints

STARTING UP REGULATORY PROPERTY NEWS SAFETY FINANCE


UK Landlord: Why has the NLA recently appointed a Board member to focus on managing complaints received against NLA Members?

Tony Richard: The NLA takes complaints against its Members very seriously and our Code of Practice, which applies to all Members, underpins the professional image of our organisation. It is important that we review complaints carefully and arrive at conclusions that are well researched, fair, open, recorded and supported at the top of our organisation.

UKL: How does the NLA deal with tenant complaints?

TR: There is an established complaints procedure and all complaints we receive are measured and reviewed against our Code of Practice. My role is to review the detail of each complaint, respond to both

the complainant and our Member and make recommendations to the Board concerning actions to be taken. We would in most circumstances wish to constructively assist our Members to overcome any valid issues raised in the complaint process. This may involve specific recommendations to be established within a defined timescale and subject to verification. In more exceptional circumstances where there has been a serious breach of our Code, including unprofessional conduct, we will move quickly to expel that Member from our organisation.

UKL: Is there a growing trend of tenant complaints?

TR: The number of complaints we receive relative to the size of our membership is, thankfully, very small indeed.

UKL: What do you recommend is best practice by NLA Members to avoid tenant complaints?

TR: Communication – keep talking to your tenant, invest time in resolving misunderstandings, respond to issues promptly, re-check your own understanding of the issue to be resolved, and explain; don’t blame.

UKL: Which other areas are you especially involved with as a member of the NLA Board?

TR: I have a particular interest in policy matters and look forward to working more closely with our policy team.

The NLA has a range of excellent policies and policy initiatives.

We cannot afford to be complacent about the need to ‘get the ear of’ Government and national policy makers.

I would like to see a core group of experienced and knowledgeable landlord members join our policy team at the interface between our organisation and government.

UKL: What topics will the NLA Board be looking at over the course of this year?

TR: As the Localism Act begins to take root, the role of our local representatives will become even more key. There is little doubt in my mind that not all local authorities have a good understanding of how the Private-Rented Sector (PRS) ticks and that there is a cultural difference, between the essential, albeit multi-level, bureaucracy of a large organisation, such as a local authority, and the singular independent landlord investor, working amid the day to day realities of market competition and the real economy. The role of the NLA representative must involve engaging with local councillors and senior local authority staff to improve understanding of the PRS as much as organising the local branch. n

Managing tenant complaintsTony Richard, NLA Board Director has been a landlord for over thirty years. During this time, he has founded a number of successful businesses within the housing sector. He became a full-time professional landlord in 2000 and now operates a modest portfolio of mainly residential property across the two coastal towns of Bexhill & Hastings. Tony rejoined the NLA Board in July 2011 after a two-year break with responsibility for managing tenant complaints.


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

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Chris Norris, NLA Policy Manager

Public Affairs Diary

puBLiC AFFAiRs


Spring is always a busy time for the NLA’s policy team thanks to every Government’s desire to wrap-up their legislative programme before MPs head off for summer recess and the Chancellor’s annual assault on the nation’s finances. However, 2012 looks set to reach new heights as the Coalition plans to pack in a State Opening of Parliament and therefore kick-off a new legislative agenda.

Launched personally by the Prime Minster and Deputy Prime Minister last November, the Government’s Housing Strategy for England (Laying the Foundation) included a commitment to a new review of the PRS. Sir Adrian Montague has been confirmed as the man responsible for delivering this review and the terms of reference have been agreed. Sir Adrian is tasked with

examining how best to encourage greater investment in rental properties - helping support the rapid growth of the private rented sector by increasing the supply of affordable homes. It is anticipated that this review will focus largely on alternatives to the traditional ‘small landlord’ model, specifically how to encourage large investors and institutions to commit to the PRS. n

Housing Strategy reviews English PRS

Terms of reference for the review can be found at: www.communities.gov.uk/documents/housing/pdf/2057113.pdf

As reported in previous issues of UK Landlord, the EU Directive on Credit Agreements Relating to Residential Property (AKA the Mortgage Directive) has been causing a great deal of concern for landlords and financial institutions alike. The original draft legislation caused considerable damage to the UK market for Buy-to-Let financial products. Which is why

the NLA recently met with HM Treasury and a range of European partners to discuss our collective objections to the Directive. Thankfully a compromise has been reached in relation to restrictions on allowing rental income to be taken into consideration in relation to affordability criteria. There is also a degree of optimism that the Danes, who have recently taken over the Presidency of the

Council of the European Union, will propose further changes. The NLA’s partners in Europe believe that Denmark is opposed to the Directive as a whole on the basis their mortgage market has more in common with the UK than most of mainland Europe. Greater collaboration may be possible under a Danish Presidency than occurred under the previous Polish leadership. There is still a lot of discussion and negotiation which must take place before this Directive becomes law and it looks likely to be a number of years before it could be implemented in the UK. In the meantime the NLA will continue to apply push for recognition that buy-to-let is a commercial product which does not require the same consumer protection as conventional owner-occupier mortgages. n

EU Mortgage Directive compromise on rental income

Q: Why bother with an inventory?

Richard Price: Inventories are an important part of seeing in a new tenant. They enable landlords to bring to the tenant’s attention at the beginning of the tenancy that the state of the property is fully documented. An inventory for a tenancy needs to set out in detail the descriptions, age and condition of the fixtures, fittings and furnishing in your rental property. If they are aware that the state and contents of the property has been itemised, tenants are more likely to maintain the condition of the property during the tenancy, and there is less likelihood of dispute at the end of the tenancy. This is particularly important now that Tenancy Deposit Schemes are in place in England and Wales (and in Scotland soon too). Clearly, if there is any dispute at the end of the tenancy, an inventory will be an important piece of evidence to prove your case.

Q: What types of inventories are there?

RP: Inventories can be classified into written, photographic and video. A written inventory is generally a simple listing, usually in the form of a table with columns, showing the name of the item, the condition when the tenant moved in and the condition when the tenant moved out. If you are using a written inventory, it is worth inviting the tenant to point out any scratches or dents to any item that should be noted on the inventory. Make sure you and the tenant each have a copy of the agreed inventory with both your signatures. Digital photographs are useful for showing the condition of walls, carpets, woodwork or furnishings. You need to make sure the photos are date stamped. If you use a computer, you can embed your photos into the written inventory. Try to picture two walls in each shot so that the wall pictured can be identified. Make a photo sheet for each room and ask the tenant to sign the inventory and each sheet of photos. Give the tenant copies for their retention. Preparing a video inventory can also be an efficient and effective method

provided you include a commentary and ensure that the new tenant is in shot as evidence that he or she was present. Unless a video is of excellent quality, it may not show up small detail such as scuffs and scrapes. Copy the video on to a CD and give it to the tenant.

Q: What elements should a robust inventory cover?

RP: It is good practice to approach each room in the same way. For example, start with the décor of each room and describe the colours in each room, (e.g. ‘white emulsion painted ceiling, magnolia emulsion painted walls, white gloss woodwork.’) Disputes often arise where the tenant has decorated the property. If the tenant claims that the colour scheme is the same as at the start of the tenancy it is only your word against the tenant, unless you state the colour schemes in your inventory. After you have described the décor, look at the ceiling and describe and list the light fittings, then look at the floor and list the type of floor covering. Then, look at the wall which has the door in it and rotate clockwise around the room noting the items standing against the walls. If one of these items is a cupboard or other storage piece, return to it separately to list any contents. If something is new, list it as such and make sure you have dated receipts to prove this. Make sure you include notes on the condition of any soft furnishings such as sofas or armchairs which may show stains more easily, and also note the state of the inside of the cooker, fridge, freezer, washer and dryer as you want the tenant to leave these in the same clean condition in which they are at the start of the tenancy. List all the appliances, their model types and numbers. If there is a garden or outside space, don’t forget to include this in the inventory.

Q: How do I go about making an inventory for the kitchen?

RP: The biggest inventory room is always the kitchen. If you are providing cutlery and

crockery, make sure you do not over supply and keep necessary items to the minimum. Not more than, say, four of anything.

Q: How important is a cover sheet to an inventory?

RP: It can be very useful. It will state how many sets of keys are being handed over for the tenancy and should also include some general comment sections for the tenant to complete on the day of occupation. For example: ‘What do you think of the property?’, ‘What is the condition of the appliances?’, ‘Are you happy with everything?’ Once they have answered these questions and signed the sheet at the end, it is unlikely tenants will claim that anything was wrong with the property at the time they moved in.

Q: How should I use the inventory at the end of the tenancy?

RP: When the tenant gives notice, make an appointment to visit about ten days prior to the end date. During this visit, go through the inventory with the tenant, and then write to the tenant with information of any dilapidations that may cause a charge to the deposit. Photo and video evidence will again be useful to support the inventory at the check-out stage.

Q: What about fair wear and tear?

RP: We have a specific guide on this in our NLA Online Library which I recommend NLA Members read. Common sense applies in most cases but do make sure you have as much evidence as possible at the start of the inventory in case there is a dispute with your tenant over the return of the deposit.

Q: How are inventories used as evidence in dispute resolution at a tenancy deposit scheme?

RP: In England and Wales, rather going to court, landlords and tenants can use the Alternative Dispute Resolution (ADR) service which is available under each scheme and free to both parties. This will also be the case

NLA Director of Operations Richard Price Price asserts it absolutely is, and explains how to ensure the inventory to your rental property is robust and clear, whether you are doing the inventory yourself or using an inventory management specialist.

Is it worth doing an inventory?


Q&A With RiChARD pRiCe



for the Scottish schemes when they come into operation. All ADR services in England and Wales provide an independent body (arbitrator) to look at the evidence provided by the tenant and landlord in connection with any dispute over the retention of all or part of the deposit. The arbitrator will examine this evidence and make a decision as to who will receive the deposit monies. This decision will be final. There is no appeal. For this reason, landlords need to be sure that they have as evidence the tenancy agreement, the inventory, photos, videos, correspondence and any receipts to cover dilapidation costs including bills for any replacement item allegedly damaged during a tenancy.

For more information about tenancy deposit schemes, see the articles on pages 36-39 and the NLA Online Library. There is also information on page 18 of this issue relating to theft by tenants. n

Q&A With RiChARD pRiCe

For more information NLA Online Library:www.landlords.org.uk/library/tenancy/inventories www.landlords.org.uk/library/tenancy/tenancy-depositswww.landlords.org.uk/library/tenancy/tenancy-deposits-scotland

NLA Recognised Supplier for inventory management services: www.landlords.org.uk/services/suppliers/no-letting-go


Section 21?Section 21 of the Housing Act 1988 allows a landlord to either end a tenancy at the end of the fixed term (when the agreement ends) or at any time once the tenancy has become periodic. A Statutory Periodic Tenancy starts automatically the day after the fixed term agreement ends and no paperwork needs to be issued.The requirements for service of a Section 21 notice are that• Aminimumof2months’noticemustbe given• ThenoticeMUSTendonthelastdayofa rental period**The exception to this is, if the notice is being served within the last 2 months of a fixed term agreement, your 2 months’ notice does not have to end on the last day of a rental period. However our advice, if possible, is always to end your notice on the last day of a rental period. Where you state the date you require possession, the wording MUST say: I/We require possession of the dwelling house known as:*** after (date) If you say I/We require possession ON, it will be thrown out of court.The main advantages of Section 21 are that as long as the notice is completed and served correctly the judge MUST give possession.If you want to reclaim owed rent, you either have to make an application to the courts under the ‘small claims track’ or Money Claim on Line https://www.moneyclaim.gov.uk/web/mcol/welcome

Pros & Cons of Section 21• Section21isa‘Mandatory’route,

(Judge MUST give possession)• Itisquiteunusualtohavetogotocourt

under Section 21 if an N5b is used ‘Claim form for possession of property (accelerated procedure) (assured shorthold tenancy)’

• Section21requiresaminimumof2 months’ notice

Section 8?Section 8 Notice is served to regain possession of your property because one or more of the ‘Grounds’ contained in Section 8, Schedule 2, Housing Act 1988 (as amended) has been breached. This will generally be ‘Ground 8’ (mandatory). We advise you to also include ‘Grounds’ 10 & 11 when using Ground 8 for rent arrears. Ground 8 for non-payment of rent applies both at the date of the service of the notice under section 8 of this Act relating to the proceedings for possession and at the date of the hearing: (a) if rent is payable weekly or fortnightly, at least eight weeks rent is unpaid;(b) if rent is payable monthly, at least two months’ rent is unpaid;(c) if rent is payable quarterly, at least one quarter’s rent is more than three months in arrears; and(d) if rent is payable yearly, at least three months’ rent is more than three months in arrears.

And for the purpose of this ground, “rent” means rent lawfully due from the tenantUnder Ground 8 you are also able to claim for any rent which is lawfully due from your tenant as well as possession.

Pros & Cons of Section 8• Section8(Grounds8,10&11)only

requires a minimum of 14 days’ notice before you can go to court.

• UnderSection8youcanrequirepossession and rent owing.

• Section8maybeappliedforonline using PCOLhttps:// www.possessionclaim.gov.uk/pcol/

• UnderSection8youwillhavetogoto court if the tenant does not vacate.

• UnderSection8thetenantmaymake a counter claim.

A Section 21 Notice may be completed on line via the NLA’s web site. The relevant Court Forms may be downloaded from: www.landlords.org.ukIt is generally best to ring the NLA ‘Advice Line’ if in doubt as they can go through your options in detail as well as checking those very important dates. n

The NLA Advice Line has been set up to provide members with practical guidance and offer reassurance on the numerous issues that can affect landlords throughout the UK.

NLA Advice Line Feedback

visit: www.landlords.org.uk


nLA seRViCes

Section 21 or Section 8 – Which should I use?One of the main topics on which NLA Members seek guidance from the NLA Advice Line relates to gaining possession of their property. When it comes to a property let under an Assured Shorthold Tenancy, there are two main routes. But which one should you use? Chris Hellings, Advice Line Supervisor, addresses the key points that the NLA Advice Line team gives to Members.

If you require any help on the above, contact the NLA Advice Line.

And, if your properties are in Scotland….N.B. These rules apply to England and Wales only! We will cover the Scottish rules on gaining possession in a future issue of UK Landlord. Until then, landlords in Scotland are advised to refer to the NLA Online Library to find out how to obtain possession in Scotland.


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

nLA pARtneR

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 specifically for landlords. Our Recognised Supplier Scheme is a convenient way you can narrow your search, read reviews and find 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

financial stability, an assessment of the products and services being sold, getting references from landlords who have used the service before, and then referring the application to our decision-making panel. A majority decision determines acceptance on to the scheme.

how 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 benefit NLA members? Members can search the supplier directory online and in UK Landlord with the confidence

that each applicant has met a series of key requirements before being accepted on the NLA’s Scheme. Discounts and special offers from an array of different suppliers are available to NLA members.

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

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.

my|deposits is the only government-authorised tenancy deposit protection scheme specifically designed for landlords who want to keep hold of the deposit rather than handing it to a third party for safekeeping. With mydeposits, 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 mydeposits. In the unlikely event of a dispute over the amount of deposit to be returned, mydeposits offer 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 flexibility landlords want from a deposit protection scheme. Members of the NLA qualify for discounted protection rates for cost effective ‘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 find their ideal digs fast and make enquiries. Featured at the top of the search engines for all ‘student housing’ related keyword searches AccommodationforStudents attracts in excess of 350,000 unique visitors per month. NLA members qualify for discounts.

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.

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.

ASA Fire SystemsTel: 020 8575 1801 [email protected]

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

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

nLA ReCOGniseD suppLieRs

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.

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

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.

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.

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.

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.

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 effective, furnishing solutions specialising in furniture packages, contract furniture, interior design, domestic appliances, laminate flooring and carpets, window blinds and property maintenance. LOFT Interiors are proud to offer all NLA members a 5% discount.


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 effort 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.

For an up-to-date list of nLA Recognised suppliers, visit www.landlords.org.uknLA ReCOGniseD suppLieRs

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

Suppliers You Can Trust

MattressmanTel: 0800 567 7625Email: [email protected]

Mattressman is one of the UK’s leading suppliers of mattresses, bed frames & divans, offering landlords a comprehensive range of products at low prices. We hold over 8000 products in stock including bedroom furniture & accessories all ready for next day delivery to the entire UK. Further discounts available for NLA members.

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

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 field 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


Formed in 1998, Dorset-based DEAC has built its reputation locally as a trusted source for impartial advice and information on energy efficiency in the home and now provides its services and advice to landlords across the UK. The Centre has strong expertise in advising on grants for the free installation of cavity wall and loft insulation that can improve energy efficiency and increase the energy rating of a property’s EPC.

At a time when the Government is starting to get tougher to ensure energy efficiency in the Private-Rented Sector, DEAC Centre Director Phil Neale says time is fast running out for landlords to benefit from the current attractive grants available for the installation of insulation. “Landlords should be aware that right now DEAC has access to a national ‘free’ scheme meaning that there is funding for cavity wall and loft insulation for all types of tenant, regardless of income, age and benefits,” he explains. In the case of loft insulation, lofts with under 60mm of existing insulation qualify for free, and all properties have a maximum allowable meterage for cavity wall/loft insulation. Over the last five years, DEAC has referred over 25,000 people to insulation grants. Phil told UK Landlord that the grants are likely to come to an end later this year or early next year. DEAC is encouraging landlords to make the most of the current opportunity: “the grants are likely to be more attractive at the moment while utility companies are still trying to achieve their targets - as they get closer to them, some of the offers may dry up.”

“At the moment our free scheme is probably the most generous in the market place, in terms of what you get for free because of the generous square meterage per property type and measure allowed,” Phil adds. “With some of the other free schemes there is so much those installers will not do or will simply charge for that their schemes very quickly become far from free.” He advises landlords to collate the addresses of their properties, the tenants’ names, their status (benefits, age etc.), the property type, heating, number of bedrooms and fuel supplier name. Then phone DEAC – 0800 975 0166 to apply whilst funding is available.

According to DEAC, it can take between four and ten weeks to organise the installation of insulation. Phil says that DEAC only uses local installers who have a proven track record of completing good quality work.

Green Deal hubThe Centre is preparing to serve as what it calls a ‘Green Deal hub’ for landlords, providing access and support and working with local authorities. DEAC will field teams of local Green Deal assessors who will complete Green Deal Assessments with energy advice, local knowledge, and use of borescope and thermal imaging cameras.

“We will be looking to work with a wide spectrum of green deal providers (including local installers and financiers) from large organisations through to ethical providers. We plan to start working with

local authorities in Dorset and surrounding areas and we expect to expand our reach into other counties providing the same high quality of service there.” n

Heat HeroesDEAC’s work in energy efficiency in Dorset has received both local and national recognition. The organisation has won several regional and national awards from fuel poverty charity NEA (National Energy Action) for its Bournemouth Landlords Project including the footprint award and the recent heat heroes award. The project has insulated 9000 dwellings for 880 local landlords and made savings in CO2 emissions of over 10,000 tonnes per year. The project also brought almost £2.6m of funding from utility companies and the local authority for insulation measures into the area.

Dorset Energy Advice CentrenLA ReCOGniseD suppLieR pROFiLe

Dorset Energy Advice Centre, DEAC, is a Not for Profit organisation that provides a range of energy saving services and advice to landlords nationwide. It will also provide a complete Green Deal offering for landlords in the private-rented sector later this year.

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.

DEAC: Energy Efficiency Experts

STARTING UP REGULATORY TENANCY NEWS SAFETY FINANCE

DEAC has won several regional and national awards

For more information see www.landlords.org.uk/services/suppliers/dorset-energy-advice-centre


No Letting Go specialises in providing inventory management services including inventory and detailed condition reports, check in, check out, property visits, block management visits, new build snagging, and specialist visit services to all types of property markets.

“When the deposit scheme legislation was introduced we realised the inventory market was not ready. Inventory Management services were erratic, often unreliable and the quality of reports was inconsistent,” says Nick Lyons, the company’s Managing Director.

“As these reports are critical for the deposit schemes to determine liability, our aim has been to improve the whole market so that property professionals and landlords understand the value of these reports and related services,” Nick explains.

A professional approach to inventories“The process of inventory management is simple but important. You need to register a detailed inventory and condition report at the start, ensuring that at check in, the tenant clearly understands their responsibilities and agrees the condition of the property from day one. This process, when followed and done properly, minimizes ambiguity and helps bring the check-out process to a quick decision. No arguments and no disagreements.”As a specialist in this area, No Letting Go creates easy to read but very detailed professional condition reports with embedded photographs,

rather than attached to the end of the report. The company says it has revamped the whole check out process by introducing very detailed damage and dilapidation reports with photographs for every item and explanation notes to explain potential liability.

It also carries out viewings and provides key holding services for overseas or out of area landlords.

All 30 offices of No Letting Go are given training to offer advice on fair wear and tear, determining liability and calculating the value of damages.

No Letting Go has also introduced online report management, giving portfolio landlords and letting agents the ability to manage all their inventory management reports on the Internet. “The system is unique in the market and gives masses of value to our clients by introducing creative ways to reduce costs, speed up processes and manage the interaction between landlords and tenants,” Nick says.

Nick’s message to landlords: “Our focus is on working with you to protect your asset – we don’t just carry out your inventory service, but work with you to ensure that the property will be looked after.” n

Nick’s Tips for Inventory Management•Inourexperience,ifapropertyisinagood

condition to start with, has been cleaned to a high standard and has had a professional inventory and check in carried out, tenants are more likely to keep it that way.

•Usingaprofessionalinventorycompanytocarry out the whole inventory, check in and check out process will save you lots of time and money in the long term and will help extend the maintenance life of your property.

•Makesureyourinventoryisverydetailed,itemized, numbered and has pictures embedded. The devil is in the detail and it saves ambiguity at the tenancy end.

•Don’tthinkthatbecauseyourpropertyisnot furnished it does not need an inventory and condition report – 80 per cent of tenant liabilities at check-out relate to cleanliness.

•Keepfurnitureitemstoabareminimumanddo not use valuable or irreplaceable items.

•Crockery/Cutleryetc.shouldbekepttoaset.It will also be easier to recover costs for a set than it would if you had a large assortment of mixed items. The extra time spent counting and itemizing low value or inconsequential items could cost you more.

•Donotallowitemstobeleftattheendofthetenancy and added to the next inventory.

No Letting GonLA 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.

No Letting Go: Inventory Management

STARTING UP REGULATORY TENANCY NEWS SAFETY FINANCE

Nick Lyons, No Letting Go

For more information, call or seewww.landlords.org.uk/services/suppliers/no-letting-go

No Letting Go is one of the UK’s largest providers of inventory management services. It has over 30 offices throughout England and Scotland. Its network of specialist inventory clerks serves landlords, letting agents and letting professionals with a variety of condition report services to protect residential and commercial let properties.


mORtGAGe mARKet ROunDup

The increase of activity in the Buy-To-Let (BTL) mortgage activity continued over the winter of 2011-2012, with financial institutions increasing their lending volumes in the segment and targeting premium borrowers.

“With lenders keen to avoid a price war, more are looking to move up the risk curve in order to attract the business and where they believe premium pricing can be charged,” Gareth Lowman of Savills Private Finance told UK Landlord. “One example is the welcome return of 80 per cent.” Aldermore Mortgages, Leeds Building Society and Clydesdale Bank, among others, all now operate at the 80 per cent level. As the investment market has become increasingly competitive, Gareth believes “lenders have the choice of resorting to either rate competition or a relaxation of criteria in order to hit target.”

Andy Young, the new Managing Director at NLA Mortgages has seen “an increase in the number of products available in the higher Loan-To-Value (LTV) brackets, including an 85 per cent LTV mortgage with Kent Reliance. Generally speaking, geared investment is a sensible option for landlords and higher LTVs can provide greater opportunity for obtaining buy-to-let properties. However, some portfolio landlords investing for the future have access to higher deposits for purchases or may prefer to retain the equity in their existing properties.”

On the remortgage side, Andy Young says that “for landlords looking to release equity from existing buy-to-let properties to expand their portfolios, there is a good choice of remortgage products currently available, including deals with incentives such as free valuations and no legal fees. For landlords

with larger portfolios, Paragon Mortgages and Kent Reliance offer the largest lending aggregates at the moment.”

New BTL products launchedIn the last months there has been a large influx of new products into the BTL mortgage market.

Paragon has launched 50 new mortgage products; 44 under the main Paragon Mortgages brand, designed especially to cater for the professional landlord, and six new products under the Mortgage Trust brand with the smaller-scale landlord in mind. There is a more streamlined process when submitting applications, including a criteria change allowing a more flexible approach to minimum income levels.

John Heron, Managing Director of Paragon Mortgages, said: “The new mix of products has been created to enable intermediaries to offer their landlord clients a flexible and open approach when looking for a buy-to-let mortgage. The Private-Rented Sector undoubtedly needs to expand this year to meet the growing demand; we hope that the creation of these new products will help intermediaries increase their offering to landlords and write more quality business.”

As mentioned above, Aldermore has increased the maximum LTV to 80 per cent on its buy-to-let fixed rate mortgages and improved its criteria. It will now lend to landlords with a maximum portfolio size of five properties worth up to £2m. Previously, it restricted its lending to buy-to-let borrowers with no more than three properties worth up to £1m. Aldermore has also reduced its two-year discount rates, three and five-year fixed rates and its buy-to-let reversion rates.

And, The Mansfield Building Society has unveiled a range

of new deals available up to a maximum loan to value of 70 per cent throughout England and Wales. Property investors have a choice of discounted or fixed rate deals for either house purchase or remortgage up to a maximum loan amount of £300,000. The Mansfield’s product manager Pete Doherty said “arrangement fees of less than £1,000 are a particularly attractive feature.”

Yorkshire Building Society, which entered the BTL market in London and the Southeast in August 2011, has now rolled out its offering across England and Wales. It has also relaxed its lending criteria, including reducing the minimum property value from £150,000 to £100,000, lowering the minimum applicant age from 30 to 25 and lifting the requirement that borrowers live less than 40 miles from the property. It has cut minimum income for an applicant from £35,000 to £20,000.

Meanwhile, Platform, the Co-operative Bank’s intermediary mortgage provider, has promised to increase its buy-to-let lending by a third in 2012, ring-fencing £600 million to be lent to landlords investing in new list property. The intermediary said that it saw sustained growth in demand for buy-to-let mortgages throughout 2011, when it lent

£450 million for rental property investments.

Gareth Lowman says that “Accord Mortgages, a relatively new name in the BTL market, has also made changes to their criteria. After a slow controlled start, minimum loan sizes, minimum incomes and minimum ages have all been reduced to £100k, £20k and 25 respectively.”

For Andy Young at NLA Mortgages, “the increase in lenders and products is undoubtedly a good sign for residential property investors and, even though the mortgage market as a whole is likely to remain flat during 2012, the increasing competition amongst lenders should ensure growth in the buy-to-let mortgage sector. This uplift in buy-to-let business is likely to be driven by existing specialist lenders, regional building societies and recent entrants like Abbey. However, the demand for buy-to-let finance still outstrips supply and further product innovation is required to meet the needs of landlords.” n

More lenders and higher LTVs


Best SellersNLA Mortgages’ most popular products in January included:

• 5.99percent2yearfixedwithKentRelianceupto85percent LTV with a 1.00 per cent completion fee.

• 4.99percent2yeardiscountwithSaffronBuildingSocietyup to 80 per cent LTV with £2995 completion fee.

• 3.74percent2yeardiscountwithHinckleyandRugbyBuilding Society up to 75 per cent LTV, with £1999 completion fee.

• 4.19percent2yearfixedratewithKentRelianceupto75per cent LTV with a 3.00 per cent completion fee.

• 4.90percent2yeartrackerwithParagonMortgagesupto75 per cent LTV with 3 per cent completion fee.

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


hOuse pRiCes AnD LettinGs suRVeYs


House prices remain flat

Source DCLGRegional house price indices 12-month percentage change for the latest month

House price indices at a glance

Index Month Price Average house price

movement (England & Wales)

CLG November 0.0 £205,796

LandRegistry December 0.0 £160,384

Halifax January 0.6 £162,228

Nationwide January -0.2 £162,228

LSLAcadametrics December +0.2 £220,385

•Thelatesthousepriceindexfrom Communities and Local Government (CLG) for November show that UK house prices decreased by 0.3 per cent over the year whilst they remain unchanged over the month. The average mix-adjusted UK house price was £205,796. Average house prices increased by 0.2 per cent over the quarter to November, compared to no change over the quarter to August. The Land Registry reported an annual price decrease of 1.3 per cent in December, which takes the average property value in England and Wales to £160,384. There was no monthly change from November to December. The only region in England and Wales to experience an increase in its average property value over the last 12 months was London with a movement of 2.8 per cent. The North West experienced the greatest monthly rise with a movement of 1.5 per cent. The North East experienced the greatest annual price fall with a decrease of 7.1 per cent and the most significant monthly price fall with a decrease of 1.9 per cent.

The Halifax house price index reported that house prices increased by 0.6 per cent in January, which takes the average UK property price in January to £160,907, a price just slightly lower than that recorded in May 2011 (£161,039). House prices in the three months to January were 0.9 per cent lower than in the preceding three months. Martin Ellis, Housing Economist, said: “Prospects for house prices over the coming months will, to a large extent, depend on events in the Eurozone and the repercussions of developments there for the UK economy. If the UK can avoid a prolonged recession, we expect broad stability in house prices in 2012.”

House prices declined by 0.2 per cent in January according to Nationwide. The price of a typical home is now £162,228, 0.6 per cent higher than in January 2011. Chief economist Robert Gardner said that given the challenging conditions prevailing in late 2011, it was not surprising that house price growth softened at the start of 2012. “The demand/supply balance may move further in favour of buyers

in the months ahead. The economy is not expected to gather much momentum until the second half of 2012 at the earliest, which suggests that labour market conditions and buyer sentiment may be slow to improve. Nevertheless, with the flow of properties coming onto the market, still more of a trickle than a flood, house prices arelikely to continue to move sideways or only modestly lower in the months ahead.” According to the LSL Acadametrics house price index, property prices rose 0.2 per cent in December, but fell 0.5 per cent annually with the average price of a home in England & Wales now £220,385.

UK trendsAverage house prices decreased in six of the nine English regions over the year to November 2011.The largest decrease was in the

North West (-3.3 per cent) while the smallest was in the South East (-0.3 per cent). London registered an annual house price increase of 3.2 per cent. Over the month to November five regions saw average price increases ranging from 1.8 per cent in the North East to 0.2 per cent in the North West. Average monthly house prices fell in the other four regions including London (-0.2 per cent). According to CLG, London remains the English region with the highest average house price (£346,123) whilst the North East has the lowest average price at £133,230. In England, southern regions including London and the South East all had average prices above the UK average in November.Excluding London and the South East, the average UK price in November was £169,063, a decrease of 1.5 per cent over the year. n

hOuse pRiCes AnD LettinGs suRVeYs


In the fourth quarter of 2011, almost a half of landlords levied rent increases in the preceding 12 months, according to the Q4 2011 Landlords Panel study from BDRC Continental, undertaken in partnership with the NLA. One in three planned to increase rents across their portfolio, during the first half of 2012.

Unsurprisingly, landlords remain upbeat about the private-rented sector, with the Landlords Panel study noting that there was a reduction in Q4 2011 in the proportion of landlords NOT feeling positive about their situation (15 per cent to 7 per cent), and concluding that “overall it appears to be a fairly benign situation.”

The study found that landlords continue to be in expansion mode and that projected net growth in landlords’ portfolios remains stable at +13 per cent, as does recent purchase activity.

Looking at recently acquisitive landlords, it’s those in the North East and Yorks/Humber who have been most active.

Landlords with 20+ properties have been almost twice as active than average.

While 11 per cent acquired more properties in the last quarter of 2011, 20 per cent said they planned to buy more in the next 6 months.

In Q4 2011, the average portfolio size was 10.4 properties, accommodating 12.6 individual tenancies (1.2 tenants per property).

Property type remains fairly consistent, though the incidence of ‘terraced’ properties has fallen back from 67 per cent in Q1 2011 to 58 per cent.

The profile of tenants accommodated in Q4 2011 is little different to that measured at the start of the year.

The presence of LHA claimants has fallen from 39 per cent to 35 per cent, and other forms of benefit claimant from 19 per cent to 15 per cent.

If you want to participate in an upcoming NLA survey, email [email protected] with survey in the subject bar. n

Landlords report rents still rising

While media interest during much of the summer months last year focussed on the high rents that landlords

might achieve for short term lets during the London 2012 Olympic Games, attention now seems to be on the

limited number of people actually looking for residential accommodation during July and August 2012. According to Lucy Morton, head of lettings at central London estate agency, W A Ellis, 90 per cent of the enquiries they receive are from landlords. “At the moment, there is very limited demand from tenants.” Ms Morton believes that it is the hoteliers who will benefit from increased occupancy and rates and not the majority of landlords. “I offer a word of caution to investor landlords who are considering losing their long-term, blue chip tenants for

this short term gain. Looking at the pros first, the clear advantage is that the average increase is 400 per cent of the long term rental value but this may vary depending on the property and location.” “However, the major drawback is the void period running up to the let and more importantly, following the let. If long term investors jump on the Olympic bandwagon and launch their properties back on to the market in September, there is a strong risk that there will be a sudden surge in supply of properties available without the demand.” n

Olympic effect in London lettings?

Source: Q4 2011 Landlord Panel, BDRC Continental in partnership with the NLA



President Geoffrey Cutting

Chairman David Salusbury

Chief Executive Officer Richard Lambert Executive Assistant Steven Powers

Policy

Policy Manager Chris Norris

Public Affairs Officer Vacant

Policy Officer David Cox

Media

Public Relations Manager Lucy Cheeseman

Press Officer Dane Svenson

Editor UK Landlord Andy Stern

Managing Editor UK Landlord Louise Gale

Marketing & Sales

Head of Marketing & Sales Paul Berwick

Marketing Manager James Acreman

Affinity Marketing Manager Vacant

Marketing Executive . Lucy Salter

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) Emma Hunter 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, Derbyshire, South Lincolnshire) 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 Local Representatives vacancies, please see website

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

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 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 per single unit 3cm x 6cm

pRODuCts AnD seRViCes DiReCtORY

APPLIANCES

FIRE SAFETY

6 issues Black - £380 Colour - £495

LANDLORD SOFTWARE

LANDLORD PORTAL

PLUMBING, HEATING & GAS

PROFESSIONAL SERVICES

COSTS: TRADE ADVERTISING


LETTING AGENTS

pRODuCts AnD seRViCes DiReCtORY

LETTING TRACING SERVICES

MAINTENANCE

INVESTMENT OPPORTUNITY Prestwich, M25

Land with planning permission for 200m2 shops with 350m2 above for 6 self contained offices. Includes 24 car parking spaces and is valued with planning permission at £325k. Opportunity to invest with first charge on the site. contact Massoud Shafai on: Tel: 07812 042255 or Email: [email protected]

BATHROOMS

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

STUDENT LETS

You can achieve NLA Accredited Status by:

1. Completing our one day attendance-based NLA Foundation Course

(discounted for members), or completing the core subjects in the NLA Online Library

(FREE for members)

2. Signing up to The NLA Code of Practice and Scheme Rules in which Continued

Professional Development is a requirement

Benefits of accreditation

• Becomepartofanationallyrecognisedschemethatalllandlords,tenants

and councils can recognise

• Improveyourknowledgeandpropertymanagementskills

• Gainacompetitiveadvantageoverthelocalcompetition

• Verifiablypromoteyourserviceasagoodlandlord

• UsetheNLAAccreditedlogo

• DisplaytheNLAAccreditedLandlordCertificate

• Choosetoappearonouronlineregisterofmembersasan

NLA Accredited Landlord

Landlord Accreditation is becoming increasingly important to landlords, tenants and local

authorities. The NLA provides a central, nationally recognised accreditation scheme offering

aUK-widebannerforresponsiblelandlordstoverifiablypromotetheirservices.


For details on other membership benefits:Visit: www.landlords.org.uk/membership-benefitsCall: 020 7840 8937 Email: [email protected]

mAXimise YOuR memBeRship

ACCREDITEDLANDLORD

The number of NLA Accredited

landlords doubled in

2011

For details visit: www.landlords.org.uk/accreditation


“I joined the NLA for three main reasons. Firstly, access to expertise, in particular a helpline managed by knowledgeable, experienced people.

Secondly, notwithstanding using a very good agent, I like to be up to date with legal requirements and good practice and be exposed to, and perhaps learn from, the experiences of others. The magazine and emails nicely fulfil that role. Thirdly, it’s an organisation that can represent landlords’ views, and project and protect our

interests at the highest levels in the UK. The prime reward for me of being a landlord is being able to have investments that I am involved with and have a degree of control and influence over.

My wife and I have three purpose-built, two-bedroom flats and one old house (built 1897) that is split into one, two-bed and two, one-bed self-contained flats. All our properties are based in Essex.

I always keep the rental levels very keen relative to local values; always deal with repairs promptly

and have a list of good local tradespeople who can leap into action when required. This is particularly useful, for as well as keeping existing tenants content, it can minimise the length of any void/change over period.

I’m an advertising, media and business consultant. I am also a jazz musician and a qualified shooting instructor and international shooting sports official (which is possibly why nobody criticises my jazz playing).”

Landlord Views: Alan Phillips


Five-year member Alan Philips

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 find out about the benefits 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

pROpeRtY FOR sALe

Central Worthing BN11

LARGE S/D EDWARDIAN HOUSE divided into one 2 bedroomed flat, two 1 bedroomed flats (1 garden) and two studio flats. All long term tenants on ASTs. Yield 7.1% at current rates with scope to increase. Also potential to extend property.

• Retirementsale£425k

Tel: 01903 232770 Email: [email protected]

Dorset BH14

• Parkstone,Poole• £395,000.00

• Wellmaintained,CounciltaxbandC.

• 1s/cstudioflat,1flatlet,4bedsits• 2showerrooms• Laundryfacilities• Offroadparking.• AlltenantedonAST,25kincome.

Tel: 01202 891728 or 07775872251 Email: [email protected]

KENT

SALE of rESiDENTiAL iNVESTMENTS DUE To rETirEMENT Gravesend – 3 x 1 bed + 2 x studios freehold £350,000 producing circa £27,000 pa. Yield 8.5%

Gillingham – 9 x studios freehold £450,000 producing circa £37,000 pa. Yield 8.7%

Scope to increase income

Some long term tenancies in both properties. All with AST’s

Email: [email protected] Tel: 07970 195995 for further information

Property For Sale Adverts can be booked for as little as £40 (£50 for non-members).

For more details call Sandra Zealand on 0117 957 5400


Letters to UKLandlord are welcome and should be sent by email to [email protected] or by post to The Editor, UKLandlordmagazine,22-26AlbertEmbankment,LondonSE17TJ.

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.

Evasive responses by boiler manufacturersHow refreshing to read the points John Bird

brings out. With maturity he demonstrates much common sense and, above all, a practical approach to problems. Besides the profit factor, we have an essential part to play for good in Society. We landlords generally have a poor reputation. Even after we thought Rachmanism was a thing of the past, there are still many, too many, rogue landlords. This was clearly brought out in John Snow’s programme on ITV some months ago. Local authorities appear to be inept and unable to sort out rogue landlords and even use them to place some of the most vulnerable people into their accommodation. Of great benefit to the rogue and at great cost to the community. If we do not clean up our own act, then we can expect the sort of action that local authorities such as Newham propose. John Bird and John Snow both bring out points that should be followed up. We

have far too many instances of not doing anything about what really needs to be done. As the saying goes: “The Road to Hell is Paved with Good Intentions”. Most of the time, we do not even have the Good Intentions. Herminio Martinez (NLA Member)

The case for EPCs

The boiler manufacturers article in the Nov/Dec 2011 issue of UK Landlord made interesting reading. Having trotted out the usual seasonal stuff about frozen condense drains and the need for regular servicing, they completely sidestep the major issue of the appalling breakdown record of condensing boilers and the price of spare parts. I use the term appalling as it is relative to the extremely reliable older non-condensing, non-fan flued boilers. Take for example my very recent personal experience.

My wife wanted a new kitchen which meant that a thirty-year old Potterton Kingfisher had to go. It had never failed. With some concern, a new condensing boiler from a top UK boiler manufacturer was installed. Just under a year on, last December, the boiler “locked out” and had to be reset on three occasions. To their credit, the manufacturer’s local engineer was quick to respond, and he replaced both the gas valve and the circuit board “just to be sure”. No problems since.

If that boiler had been out of warranty, the parts would have probably cost a couple of hundred quid plus a hundred quid labour. That would have wiped out any savings by the boiler’s “high efficiency”.

This raises another issue that all the boiler manufacturers carefully avoid when selling to an uninformed public. For most replacement boilers connected to existing radiator systems, the claimed high efficiencies are never achieved as the heat emitters, i.e. the radiator sizes, need to be selected to suit a condensing boiler which for maximum efficiency, operates at much lower temperatures than the old conventional boilers. It’s all a function of the temperature difference between the mean water temperature and the room design temperature. The greater the difference, the greater the output from the radiator. For maximum efficiency, a condensing boiler based system will need larger radiators. Now you know why many articles on the subject recommend improving the insulation of the property at the same time!

With many new condensing boilers not operating at their claimed maximum efficiency, the relative poor reliability, the very high cost of spares and the labour rates for heating engineers, the industry has a licence to print money. Factor in condensing boilers at best having half the lifespan of the older boilers, any fuel savings may well be offset by capital and maintenance costs. Then of course there is the aggravation of a tenant without heating.William Parish (NLA Member)

The letter in your previous issue concerning a letting agent hiding an Energy Performance Certificate (EPC) from a potential tenant was interesting.

I have dealt with an agent where new tenants only saw the EPC for the first time when they had signed their contract. The attitude of the letting agent manager was “I don’t show them the EPC because they won’t take the property” although that letting agent

is more than happy making additional income from EPC fees by adding their mark-up on top.

Furthermore the letting manager said that if landlords ask about making improvements, she dissuades them by saying they will have to pay back any grants when they sell.

Proposed new legislation will make it mandatory for agents to include a new-look EPC with the property details. This will make it much easier for potential tenants to see estimated fuel running costs when they first look at property details.

Fuel costs can easily be more than council tax payments; I’ve known tenants who have their first winter in a property and then give notice to leave because they were so cold and miserable and still had massive bills.

It’s in landlords’ interests to have tenants who are warm and comfortable and stay in the property.Goff Cooper (NLA Member)

from the editor: A word of thanks to NLA Member, Mr Norman Elliott, who initiated the current landlord debate in the letters page of this publication last year on Energy Performance certificates. As a reputable landlord who takes his responsibilities seriously, Mr Norman is interested in views on the role of EPcs NLA Members and if you want to contribute further on this topic, please upload any further comments to www.landlords.org.uk/uklandlord.

Interview with John Bird

Evasive responses by boiler manufacturers

uk landlord magazine

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