The Network - Leeds Accreditation Scheme

The Network
Landlords Accreditation Newsletter
Summer 2014
➤ Tackling criminal landlords
➤ Changes to EPCs
➤ Landlords in Court
Switch on to electrical safety
West Yorkshire Accreditation
Working Together
www.leedslas.co.uk • 0844 887 1406
...news in brief...
The Network
What’s inside
Summer 2014
Page 2
• News in brief
Page 3
• Choose your letting agent
with care
Pages 4-5
• Fighting the rogues
Page 6-7
• Electrical safety for tenants
Pages 8
Leeds produces best yields for landlords
Yields in Leeds are far better for landlords than in London, agents
Knight Frank has reported.
While gross yields in central London were just 4.3% in the second
quarter of this year, in Leeds, they were 8.2%.
While Leeds tops the list of cities for yields, Manchester, Glasgow,
Bristol and Birmingham also all did better than London.
Knight Frank’s research specifically looked at tenanted single
blocks of flats in each city, for which there is strong investor
demand.
• Landlords’ in Court
Page 9
• Clock is ticking on improving
energy efficiency
Pages 10
• Court action over bedsit that
was too small
Page 11
• Green Deal funds warm up
homes in Leeds
Page 12-14
• News reports
Page 15
• Need help finding tenants?
Page 16
• Spread the word about
LLAS membership
To renew your membership, visit
www.leedslas.co.uk, call 0844 887
1406 or email [email protected]
The Network is published on behalf
of the Leeds Landlords Accreditation
Scheme by the Residential Landlords
Association, www.rla.org.uk
Designer: Andrew Chapman
(www.preparetopublish.com)
2
Workshop on the Green Deal
The Residential Landlords Association is holding a workshop on the
Green Deal in Leeds on September 25 (see article on page 9).
The content will include:
* An outline of the drivers and the Government’s key ambitions for
the scheme.
* The financial benefits for landlords and tenants.
* Details of how the scheme will operate, the steps involved in
taking out the scheme, the importance of obtaining consents and
the consequences of not following the correct procedures.
* Information on the key customer protection points.
* The initiatives established to encourage the take-up of the
scheme by the Private Rented Sector (PRS).
* The important part Energy Performance Certificates will play in
both the scheme and associated regulation.
The date: Thursday, September 25, 10am to 1pm.
The venue: Jurys Inn Leeds Hotel, 9 Kendell Street, Brewery
Wharf, Leeds LS10 1NE.
To book, see the RLA website at:
http://www.rla.org.uk/landlord/courses/landlord_greendeal_training
_course.shtml?zoom_highlight=green+deal+workshop
The Network - Summer 2014
Choose your letting agent with care
Landlords are being urged to choose their letting agents with care, ahead of the requirement that
all agents will have to belong to an authorised redress – or ombudsman – scheme.
No date has yet been announced for implementation, but it is expected to be from October 1.
Both landlords and tenants will be able to use one of the three property ombudsman services
available if they wish to complain about their agent, and the agent has not been able to resolve the
issue satisfactorily first.
All three ombudsman services offer free dispute arbitration services and can make financial
awards.
Landlords should also be aware that agents have new legal requirements, including a 14-day
cooling-off period when contracts with tenants are signed away from the agent’s own office – for
example, at the premises of a rental property.
This means that for 14 days afterwards, the tenant can change their mind about taking the
property.
Another important requirement for landlords to understand is that agents must now strictly adhere
to the Consumer Protection from Unfair Trading Regulations.
These make it incumbent on the agent to give any information about a property which might be
negative – and which might put a prospective tenant off even making a phone call to arrange a
viewing.
For example, an agent would have to make it clear if a property was next to a noisy pub or road, or
whether it had been the scene of a murder.
In the case of a rental property, other information might be relevant under the legislation – for
example, whether previous tenants had left because of anti-social behaviour by a neighbour.
Photographs of a property must also not be misleading – for example, they should not include a
picture of a garden if the garden is not part of what is on offer.
Both the 14-day cooling-off period and the Consumer Protection from Unfair Trading Regulations
will also protect you as a landlord if you are buying from a sales agent. As a purchaser, you are
also entitled to the cooling-off period (which was
extended from seven to 14 days in June) and to
getting full information about a sales property under
the Consumer Protection from Unfair Trading
Regulations.
The Property Ombudsman, Christopher Hamer,
pictured, has now issued new Codes for agents – the
majority of whom belong to his scheme. The Codes
are effective as from August 1.
The other two schemes are Ombudsman Services,
and the Property Redress Scheme. All three schemes
cover both sales and lettings agents, and management
agents.
The schemes are all authorised by the National
Trading Standards Estate Agency Team, which is
based at Powys Council in Wales, and which has
taken over responsibility from the now-defunct Office
of Fair Trading.
The Network - Summer 2014
3
FIGHTING THE ROGUES
Councils call for fairer and more streamlined
system to tackle criminal landlords
Tougher fines and a more streamlined
prosecution system are needed to
tackle rogue landlords who are putting
tenants’ lives at risk.
The Local Government Association
(LGA) – which represents almost 400
councils in England and Wales – says
that while most landlords are
reputable, and local authorities want
to work with them, there is a growing
minority of criminal operators who
view fines as ‘operating costs’, to be
offset against their profits from
exploiting tenants by renting substandard properties.
The LGA says councils are doing
everything they can to tackle rogue
operators, but they are being
hamstrung by a system that is “not fit
for the 21st century”.
It is calling for a streamlined system
which is fairer, faster, simpler and
more efficient, and treats the criminal
abuse of tenants seriously.
Prosecution in its current state is not
seen as an effective deterrent by
rogue operators. In many cases,
councils are being left out of pocket
because they are not even recovering
the costs of the prosecution.
New research by the LGA has found
that it can take up to 16 months to
CASE STUDY: WOLVERHAMPTON CITY COUNCIL
Wolverhampton City Council made an emergency prohibition order evacuating tenants from one
house because it was so dangerous. There were 11 serious contraventions, including no electricity,
gas or water; fire escapes missing so doors opened on to an outside drop of three storeys; and no
fire alarm or fire doors. The front door could not be locked and a stranger was found sleeping on a
tenant’s sofa. The landlord was fined just £2,600 and the council was left out of pocket by almost
£5,500 from costs.
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The Network - Summer 2014
CASE STUDY: REDBRIDGE COUNCIL
A landlord who failed
to comply with an
improvement notice
for a house that was
infested with mice
and cockroaches was
fined just £3,000.
Ten tenants,
including two children,
were forced to share
a damp and mouldy
kitchen and wait ten
months for the work
to be carried out.
“We need a system
which protects good
landlords, whose
reputation is being
dragged down by
the bad ones”
prosecute a rogue operator. A spokesman said:
“In almost three-quarters of cases, the average
fine for a criminal landlord – many of whom are
accruing large profits every year while tenants
live in dangerous conditions – was £5,000 or
less.
One landlord received a fine of £100 in a case
where six tenants were left living in a property for
a year without fire alarms or proper escape
routes. In another example, the property did not
have secure front doors, and tenants discovered
strangers sleeping on their sofas.
While the LGA supports government proposals
to raise the limit on fines magistrates can impose,
it wants to see them applied consistently, and to
be proportionate to the crime and the threat to
life that is posed by dangerous properties.
Cllr Mike Jones, chairman of the Local
Government Association’s Environment and
Housing Board, said: “We are talking about
properties with fire escape doors opening out on
to three-storey drops, and without proper front
doors so tenants have discovered strangers
sleeping on their sofas.
“Rogue landlords are calculating they can keep
these going while the cash comes in and walk
away after a year with effectively a slap on the
wrist.
“We need a system which protects good
landlords, whose reputation is being dragged
down by the bad ones.
“Councils will do everything they can to try and
work with landlords to improve an ‘unfit’ property
and prosecution is always very much a last
resort.
“But it is imperative that change happens
because, at a time of unprecedented austerity,
ultimately the taxpayer foots the bill.”
CASE STUDY:
COVENTRY CITY COUNCIL
A landlord was fined just £100 after six tenants
were forced to live in a property for 12 months
without fire alarms and a proper escape route.
The landlord had failed to comply with an
improvement notice.
The Network - Summer 2014
5
www.niceec.co.uk
Electrical safety for tenants
The findings in a new report from Electrical Safety First and Shelter examining electrical safety in the
private rented sector reveal that one in eight private tenants live in a home with an electrical hazard.
The survey also uncovered a number of case study stories where poor electrics injured or caused
significant distress to tenants. With this in mind, the message of the report is simple: renters need
more protection from electrical hazards. Private renting is fast becoming the new normal. The sector is now home to more than 9 million
people and 1.3 million families. For the first time in post-war history, more people rent privately than
rent their home from the council or a Housing Association. Yet standards in the private rented sector
have not kept up with this rapid growth.
Homes in the private rented sector are worse than in any other tenure. A third fail to meet the
government’s own Decent Homes Standard and more than six in ten renters (61%) have experienced
at least one of the following problems in the past 12 months: electrical hazards, damp, mould, leaking
roofs or windows, animal infestation and gas leaks. For families, this figure rises to 69%.
Electrical safety in private rented homes is a particular problem. Renters and professionals continue
to report unacceptable levels of non-compliance: 16% of renters have experienced problems with
electrical hazards in the last year and some of the worst instances of landlord neglect relate to poor
electrical safety.
Research from the British Electrotechnical Allied Manufacturers Association (BEAMA) shows that
30% of periodic inspections by their members in private rented homes indicate ‘danger present’.
Despite this, electrical safety in private rented homes is subject to weak and inconsistent regulation.
The Houses in Multiple Occupation (HMOs) Management Regulations require landlords to carry out
five-yearly electrical installation checks – but this covers only a small minority of privately rented
homes. Under the Landlord and Tenant Act 1985, landlords are expected to ensure that the electrical
installations in their rented properties are safe when tenants move in and are maintained in a safe
condition throughout the duration of the tenancy.
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The Network - Summer 2014
Yet there is no requirement to prove this: landlords
are not required to regularly inspect their electrical
installations and appliances. Electrical hazards are
often unseen, so the only way to effectively ensure
this obligation is met is to programme regular
electrical inspections and checks.
A wide range of organisations have called for the
introduction of electrical safety requirements,
including the Chartered Institute of Housing (CIH),
Chartered Institute of Environmental Health (CIEH),
Local Government Association (LGA), London Fire
Brigade, Crisis, the Association of Residential Letting
Agents (ARLA), Generation Rent, and the
Communities and Local Government Select
Committee.
The issue of electrical safety in private rented
homes has been gathering momentum for some
time. There is now a strong political interest in
private renting and the need to improve safety
standards. In 2011, Electrical Safety First conducted
a cross-party survey of 100 MPs in order to gain a
sense of their understanding of the risks associated
with poor electrical safety and their views on how
best to tackle them: 65% of MPs surveyed either
agreed or strongly agreed about the need for
mandatory wiring checks in the private rented sector.
The report seeks to ensure that this momentum is
acted upon and recommends that the Government introduce a statutory requirement to ensure that
all privately let properties have their electrics checked by a professional every five years. The report
also recommends that the law is changed to prevent those who live in poor conditions from being
evicted simply because they complain to their landlord.
Cannabis: another cause of serious fires
The Home Office has launched a Crimestoppers’ campaign aimed at raising awareness
among letting agents and landlords of the potential for their properties to be used for commercial
cannabis.
A new booklet has been published as part of the campaign, giving guidance on how to spot the
signs of commercial cannabis cultivation, how to report it, and the steps that can be taken to help
protect themselves and their properties.
Commercial cannabis cultivation is often association with human trafficking and money
laundering, as well as with serious house fires.
Crimestoppers director of operations Roger Critchell said: “This is a crime that can lead to much
more serious incidents, which is why we feel it’s important to reinforce our appeal for information
from the public.
“We’re not looking to target individual users. We’re looking at something much bigger here,
something much more dangerous, and we are targeting serious and organised crime groups who
are involved in this illicit trade.”
The campaign is being supported by ARLA, NALS, the NLA and RLA.
The booklet can be found here: www.crimestoppers-uk.org/scratchandsniff
The Network - Summer 2014
7
LANDLORDS IN COURT
Leeds City Council’s Housing Regulation Team continues to
take action against landlords who have failed to take their
responsibilities seriously. Fines imposed by the courts are
a recognition of the need for safe and healthy housing.
CASE 1
The case was heard at Leeds Magistrates’ Court where a company, FBA Properties Ltd, was fined
£1,500 and ordered to pay costs of £3,574.44 and a victim surcharge of £100. This was because
FBA Properties Ltd failed to comply with selective licence conditions at two of its licensed
properties, both in the Cross Green/East End Park selective licensing area.
The solicitor for the Council explained that the requirements were the minimum required and were
required to protect the health and safety of the tenants.
In giving reasons, the Magistrates noted that the defendant had not learnt from previous convictions
and warned that a risk of further convictions was to be taken extremely seriously. To their credit FBA
pleaded guilty to eight charges in regard to one of the properties and four charges relating to the second
property. The offences related to the lack of fire precautions, including the lack of fire doors and a
satisfactory fire detection system.
CASE 2
of £1,500 and a £15 victim
An irresponsible landlord has been fined £500 and ordered to pay costs
ions.
surcharge for letting a property that did not comply with licence condit
es of her property licence at
Ms Farideh Poorsheiki pleaded guilty to seven offences relating to breach
Leeds Magistrates’ Court on May 15.
Cross Green selective
The property in question is a four-storey back-to-back mid-terrace in the
and East End Park. The aim is
licensing area. Selective licensing was introduced in 2009 in Cross Green
to improve private rented property standards in the community.
the roof was identified. After a
The property first came to the housing officers’ attention when a hole in
damage and damp in one of the
full property inspection the officer found that the hole had caused water
causing the property to be
attic bedrooms. There were also issues of disrepair throughout that were
excessively cold.
was no means of escape on
The officer was shocked to find several breaches of fire precautions. There
and staircase walls were not
the first floor and no fire doors on the ground floor. The basement ceiling
was also the incorrect system for
covered with fireproof materials. The fire alarm system did not work. It
serious failings to implement
this type of property as it was not interlinked. If there had been a fire these
appropriate fire precautions could have resulted in a fatality.
failing to comply with the
Ms Poorsheiki initially blamed her managing agent, Care 4 Properties, for
as she was the licence holder
licence conditions. But, after legal representation, she acknowledged that
ions.
she was responsible for making sure that the property met the licence condit
responsibility as these were
The Magistrates felt that Ms Poorsheiki could not absolve herself of her
ties and be more
serious offences. They warned Ms Poorsheiki to monitor her two other proper
responsible as a landlord.
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The Network - Summer 2014
The clock is ticking: can you let
your properties from 2018?
An estimated 390,000 private rented houses with
poor EPC ratings (bands F and G) will need to
improve by April 2018 or they will be unable to be
lawfully let. In the lead-up, from April 2016 tenants
will have a right to request energy efficiency
improvements funded by the Green Deal. These
deadlines were introduced by the Government in
the Energy Act 2011, as part of its plans to reduce
CO2 emissions, tackle fuel poverty and deal with
the UK’s future energy security. More detailed
Regulations will be announced nearer the time.
If your properties are gas central heated, they
should already achieve EPC band E standard,
unless they have an older boiler with limited
controls and lots of uninsulated external walls.
If you have solid walled properties heated by
standard tariff electricity, they will probably fail. Although electric fires are 100% efficient in terms of
heat conversion, they are heavily marked down by a ‘fuel factor’ fed into EPC calculations,
resulting in much lower ratings.
The Energy Saving Trust has estimated that 37% of band F and G properties could be brought up
to band E for less that £1,000, and a further 47% for less than £3,000, as this usually enables the
installation of gas central heating.
Traditionally, many HMO landlords have preferred electric heating, as they could fit sub-meters to
each let. Unfortunately, to achieve EPC band E, these properties will usually need an extensive
programme of insulation, including walls, roof pitches and floors. Some HMO landlords are now
opting for central heating as a solution, as it also improves marketability, particularly to those
tenants who are becoming more aware of rising fuel costs.
There have been some concerns that the impending deadlines could start to adversely affect the
values of properties in EPC bands F and G, or make remortgaging more difficult. Also, be aware
that a poor EPC rating may also indicate that there is a ‘Category 1’ hazard for ‘excess cold’ under
the HHSRS, where the Housing Regulation team would be under a duty to take action.
If you think you may be affected by the 2018 deadline, start planning now:
• If you are self-funding the improvements to an electric heated property, seek advice from a
Green Deal / Domestic Energy Assessor on the scale of works required to achieve band E.
• The Landlords Energy Saving Allowance (LESA) can still be claimed on certain insulation
measures, but remember that HMRC is ending the scheme in April 2015.
• The Green Deal has now been better incentivised for the private rented sector, and should
work on the basis of ‘nil cost’ to the landlord. For more details, call 0113 395 7159 or email
[email protected]
• The RLA is holding a Green Deal workshop in Leeds on September 25, delivered by one of
the leading experts and seen from a landlord’s perspective. More information is on the
RLA website (www.rla.org.uk) and see News in Brief on page 2 of this issue.
The Network - Summer 2014
9
Property developer told that bedsit
accommodation is too small
A property investment company has been told by an independent property tribunal that a bedsit
in a property they own in the Cross Green area of Leeds is too small for a tenant to live in.
Following a hearing held in Leeds by the Residential Property Tribunal, Mr Paul Rothwell and Mr
John Lodge, who own the property in their capacity as directors of Doncaster Property
Investments Ltd, were told on April 29 that the order served on their company by Leeds City
Council prohibiting use of the room as bedsitting accommodation was “wholly appropriate” and
that “a minimum standard in terms of room size was there for a reason”.
The tribunal dismissed an appeal by the company who claimed the bedsit was “more than
adequate” and provided “safe accommodation for all tenants and visitors”.
The order served by Leeds City Council’s Private Sector Housing Team came about following an
inspection of the property on Cross Green Lane last December. During the inspection the council
saw that the mid-terrace property had been sub-divided and was being rented out as a mixture
of bedsitting accommodation and non self-contained flats which contravened planning
permission granted by the council.
Planners had granted permission for the house to be occupied by tenants living communally as
a group, but on inspection the Private Sector Housing Team found the property to be occupied
by individual tenants, and what was supposed to be a communal living room had been turned
into a bedsit.
Leeds City Council has a minimum space standard for a bedsit of 10 sq m. The bedsitting room
in this case was 9.15 sq m which fell well short
of the LCC minimum. As a consequence, the
tribunal agreed with the council that because of
its size the bedsit was hazardous to live in and
threatened the health and safety of the tenant.
Leeds City Council was also awarded
enforcement costs by the tribunal.
Advisory Standards for HMOs can be found on
the LCC website at www.leeds.gov.uk
A full copy of the Residential Property Tribunal
decision can be found on their website under
reference number MAN/00DA/
HPO/2014/0001.
10
The Network - Summer 2014
A similar ‘studio flat’ under 10 sq m in size in Islington,
London, which hit the headlines earlier this year
Green Deal funds warm up homes
A multi-million pound project is under way to help insulate some of Leeds’ solid walled homes.
A £2.37m slice of Green Deal Communities funding will ensure that Leeds City Council can help even
more residents make their homes energy efficient and cheaper to heat.
The council is targeting hundreds of residents in specific communities who live in solid walled homes
and properties of a non-traditional build. These properties are not able to benefit from more widely
available energy saving measures like cavity wall insulation.
Homes could benefit from internal and external wall insulation and other secondary measures like
glazing, loft or attic room insulation and heating improvements.
Through the council’s existing Wrap Up Leeds ECO project, residents are being offered a mixture of
energy company obligation (ECO) funding and Green Deal Communities funding which cuts the cost
residents would have to pay.
It is a requirement of the Green Deal Communities funding that residents must contribute to the cost
either through their own savings or a Green Deal loan. But it is estimated that a typical solid walled
home receiving insulation and other energy saving measures would only have to pay about a quarter
of the overall cost.
Cllr Mark Dobson, executive member for the environment, said: “Insulating your home is one of the
best ways to stop your home leaking heat and money. Having already helped thousands of residents
cut their fuel bills, we’re rightly turning our attention to those homes that are more difficult to tackle.
“We’re certainly not put off by the challenge of these solid walled or system built properties, and
residents shouldn’t be either. Help is at hand and I would encourage people to get in touch.”
Around 400 solid walled and system built properties in specific communities are being targeted for
financial assistance.
Residents who live outside these areas can still apply for assistance through the Wrap Up Leeds
ECO project and will also be able to apply for cash-back worth up to £7,600 through the Green Deal
Home Improvement Fund.
To find out more, contact 0113 395 0757 or email [email protected] and see the website at
www.wrapupleeds.co.uk
Green Deal Communities funding will also assist with a second phase of the project which will see
residents across the whole of the Leeds City Region offered a £750 voucher to be redeemed against
a Green Deal assessment and any works actually carried out.
A number of show homes will also be developed to show people just how easy it is to get done and
how much difference it makes.
Areas specifically being targeted are:
Hyde Park; Central Roundhay; Weston Drive (Otley and Yeadon); Silk Mills / Ivesons (Weetwood);
Nowells (Burmantofts and Richmond Hill); Harehills and Burmantofts; The Drive (Kippax and
Methley); Meynells Estate (Beeston and Holbeck); Cross Green (Burmantofts and Richmond Hill).
The Network - Summer 2014
11
Younger would-be tenants are now buying
There has been a 10% fall in the number of tenants aged under 30 signing new rental contracts.
Countrywide says this is because more have moved into home ownership, thanks to Help to Buy.
It also reflects a 50% increase in mortgage lending to first-time buyers.
Average UK monthly rents have increased 4.6% year-on-year and prospects for future growth in
rents look strong, says Countrywide.
The group, which has analysed its portfolio of 65,000 rental properties throughout the UK, says that
particularly in London and the south-east, “significant upward pressure on rents” is due to lack of
house building.
Rents have risen annually in all areas apart from the midlands, where Countrywide has recorded a
drop of 1.6%. In central London, the average rent is £2,520, compared with £1,148 in the south-east,
£858 in the east of England, £762 in the south-west, £631 in the midlands and £623 in the north.
Nick Dunning, group commercial director of Countrywide, said: “The recovery in mortgage availability, the Government Help to Buy scheme and improving sentiment in the housing market has
seen a wave of tenants move into home ownership.
“This flow of tenants out of the sector saw demand for rental properties in many areas ease,
resulting in below inflation rental growth in some areas in 2013. With changing conditions in the
sales market meaning that many of those tenants looking and able to buy have already made their
move, rental growth looks set to accelerate.
“Over the medium to longer term a lack of supply will increasingly put landlords in a stronger
position to ask for, and achieve, higher rents. Significant upward pressure on rents will come from a
lack of house building, particularly in London, the south-east and other major conurbations with
sound fundamentals experiencing population growth.
“Equally, any move by the Bank of England to raise interest rates will serve to push up mortgage
costs, making it harder for those with smaller deposits, in particular, to get on the housing ladder.
“The single best way to alleviate upward pressure on rents is to build more affordable new homes,
both for rental and for sale.”
Parliamentary bid to end retaliatory evictions
A Liberal Democrat MP, Sarah Teather, has launched a private member’s Bill seeking to outlaw
so-called retaliatory evictions. It aims to make it illegal to evict a tenant within six months of a
request for a repair.
A poll commissioned by Shelter and British Gas found that 2% of tenants said they had been
evicted because they asked for repairs. Shelter said this figure, when scaled up across England,
equated to more than 213,000 tenants who had been unfairly evicted.
The Bill is supported by Tim Farron, who is the Lib Dems president and who is currently drafting the
party’s official housing policy. Farron said: “Creating fairer rules around evictions will break the
silence that traps too many renters from getting the home improvements they need, making the
system work better for both landlords and tenants.”
In March, Farron also backed another private member’s Bill aiming to ban “exorbitant” letting agent
fees charged for drawing up and renewing contracts. He said then: “I am very concerned that some
tenants are being charged excessive amounts for the standard process of letting a flat, or for the
repair or replacement of fixtures and fittings.
12
“There is no overarching regulation of the private housing sector and I am worried that tenants are
at the mercy of unscrupulous agencies which see tenancies as a way of making extra money over
and above the standard charges.” Private members’ Bills rarely make it to the statute books.
The Network - Summer 2014
Few tenancies actually end in disputes
New figures show that, despite some discrepancies between the deposit schemes, the dispute rate
is incredibly low.
The custodial service, the Deposit Protection Service, says its data shows that it is not only
protecting most deposits but that its users experience the lowest percentage of disputes.
In the past 12 months, the DPS has recorded just 8,945 (0.81%) out of 1,105,619 tenancies
needing to use its adjudication service at the end of a tenancy. The DPS says this compares with
1.02% and 0.87% for the other two providers, Mydeposits and TDS.
The most common reason for a dispute, says the DPS, is alleged property damage, with cleaning
and redecoration requirements close behind.
More bizarre claims dealt with by the DPS have included removal of cockroaches and repairs to a
garden after a tenant had dug up a dead pet dog.
At the end of the dispute process, the figures show that the DPS has returned 18.5% of deposits in
full to the landlord or letting agent, compared to just 9% by one of its competitors and 18.21% for
the other.
In total, 54.7% of the DPS’s disputed deposits have been split between both landlord and tenant
and 26.8% have been refunded in full to tenants.
DPS director Kevin Firth said: “Landlords and lettings agents are as worried by bad tenants as
tenants are by bad landlords and letting agents – but both sides can be assured that they’re
dealing with a completely impartial dispute service should they need to use it.
“The DPS’s track record is solid – we consider all the evidence provided in the case carefully, and
make an unbiased decision, as demonstrated by these latest figures.
“As long as a claim is substantiated with conclusive evidence, tenants as well as landlords should
be warned they can’t expect to default on rent, cause damage to properties or fail to fulfill tenancy
conditions and then look for a deposit pay-out.
“Our adjudicators work hard to weed out false claims.”
Agents raise funds for Macmillan nurse in Leeds
Estate agents Manning Stainton have once again rallied to the cause of Macmillan. The firm
is aiming to raise £50,000 this year to fund a specialist breast cancer support nurse at St James’s
Hospital in Leeds.
Russell Manning’s wife Amanda died of the disease in 2011.
The following year, Manning Stainton raised £70,000 to fund a specialist nurse.
Manning said: “We were so proud of this incredible achievement that when Macmillan told us
they had an urgent need to appoint another nurse, we felt we had to respond positively. “Consequently, we have launched Mannings for Macmillan 2014.”
He added: “From first-hand experience I can assure you I understand only too well how
dedicated these special people are and the absolutely incredible work they do, always with deep
compassion, dignity and care.”
A host of fund-raising events is planned for this year, including a walk by Manning and his fellow
directors covering all 15 Manning Stainton branches in Leeds – with two teams each covering a
round distance of some 16 miles.
The firm has set up a page here: www.justgiving.com/board-walk
The Network - Summer 2014
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Taxman tightens the screw on landlords
HMRC has sent out a second batch of letters to 40,000 landlords whom it suspects have either
undeclared or under-declared rental incomes.
Part of the Let Property Campaign, landlords who have already received letters and who have not
made a voluntary disclosure could face severe penalties and the possibility of criminal prosecution.
Although HMRC generally goes back six years, the law allows it to go back up to 20, warns
chartered accountancy firm Jeffreys Henry.
The firm says that any landlord with undeclared rental income, or who has been under-declaring it,
should come forward to make a voluntary disclosure before they receive a letter.
The firm says that anyone making an unprompted voluntary disclosure will be able to negotiate
lower penalties and affordable payment plans.
For the thousands of landlords who have already received letters, it is too late. Any disclosure they
now make will be regarded as “prompted”. Interest will also be charged from the date the tax is due
until the date it is actually paid.
HMRC is using a wealth of information to identify landlords who have not declared their rental
income.
These include records from other government agencies and local authorities, and also the tenancy
deposit schemes and Land Registry.
www.gov.uk/let-property-campaign
ARREARS DOWN BUT EVICTIONS RISE
There has been a drop in serious tenant arrears, a receiver of rents has reported.
However, court orders for evictions have risen.
Compared to a year ago, 35,000 fewer tenants are facing rental arrears of more than two
months, according to Templeton LPA.
Reporting on the second quarter of this year, the firm says that those more than two months
behind on their rent now number 67,000. This compares with 102,000 last year.
As a proportion, it means that just 1.5% of private tenants are in serious arrears.
Despite fewer tenants falling into the most severe arrears, the number actually facing eviction
has continued to rise.
As of the first quarter of this year – when the latest figures are available – 33,000 tenants faced
potential eviction via court order, up 5.9% from Q4 2013.
Meanwhile, landlords have continued to benefit from both the improving financial position of
tenants and a mainly beneficial mortgage market.
Landlords’ own mortgage arrears have fallen for the sixth successive quarter, with just 14,700
buy-to-let mortgages in arrears of more than three months in Q1 2014, down 10.9% from the
previous quarter.
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*NatWest is clamping down on buy-to-let lending by introducing a loan-to-income cap of 4.99
times income. The lender is not changing its maximum loan to value for buy-to-let mortgages of
75% and will still use rental cover as its main benchmark in assessing loan applications. While
residential mortgages are regulated, buy-to-let loans are not. However, a spokesperson said:
“This change of policy is being introduced to create greater consistency between buy-to-let and
residential lending policy.”
The Network - Summer 2014
The Network - Summer 2014
15
Do you know another landlord?
If so, tell them about the benefits of the Leeds
Landlord Accreditation Scheme (LLAS).
From as little as £45 per year, they can:
• Become accredited
• Gain elite recognition
• Have distinct market advantage
• Get discounts on parking, HMO and
licence fees
• Receive waste disposal concessions
The scheme has been in place for a number of years now and is seen nationally as a shining example of how accreditation
can improve and maintain property standards. LLAS is the largest accreditation scheme of its type outside of London and
is growing all the time. The Leeds City Council scheme, which is administered by the Residential Landlords’ Association
Accreditation Scheme (RLAAS) is a voluntary scheme that private residential landlords are encouraged to join.
The aims of the scheme are to encourage, acknowledge and actively promote good standards of privately rented accommodation. LLAS considers management standards and landlord knowledge an important part of being a good landlord.
Landlords, tenants and members of the community will enjoy the benefits of good property conditions, competent
management standards and considerate, neighbourly behaviour.
So if you’re aware of other landlords who would profit from such benefits, then why not let them know?
Being an LLAS member will help any landlord achieve their goals for less
than a week’s rent! Membership starts from as little as £45 a year and
may be cheaper still if you are a UNIPOL member
Leeds Landlord Accreditation Scheme (LLAS)
1 Roebuck Lane, Sale, Manchester M33 7SY
Email: [email protected] • www.leedslas.co.uk
Tel: 0844 887 1406 • Fax: 0845 665 1845
Landlords can apply to join the scheme
online at www.leedslas.co.uk/apply.shtml