Greater Nottingham Landlords Electronic Newsletter - www.nottslandlordinfo.co.uk Partner logos

Issue 6 - February 2008

Welcome to the February 2008 edition of the Greater Nottingham Landlords' Electronic newsletter.

Dates for your diary

7 April 2008 - Housing Benefit Reform: introduction of the Local Housing Allowance (see below).

10 April 2008 - 8th annual Nottingham Landlord Conference at the Council House from 9am to 4.30pm.

18 April 2008 - 10.00 to 18.00 and 19th April 2008 - 10:30 to 17:30 - Landlord & Buy-to-Let Show at London Olympia. The industry's premier show, where landlords and buy-to-let investors do business. Book your free tickets now and gain access to the best advice and information, over forty free seminars and over 80 exhibitors: all under one roof!

October - Energy Performance Certificates become mandatory for all privately rented properties - look out for more information in future newsletters.

Contents

  1. Unlicensed Nottingham Landlord goes to Court - A landlord has become the first person in Nottingham to be prosecuted for renting out a shared house without a licence...
  2. Local Housing Allowance - What is it? The Local Housing Allowance (LHA) is a new Housing Benefit Scheme for tenants of privately rented accommodation...
  3. Baby death highlights thermostat fault risk - A recent inquest has heard that a fault with a thermostat in a hot water system that caused a baby to be scalded to death could affect up to 3.5million homes...
  4. Retaliatory Eviction - The issue of retaliatory eviction has been repeatedly raised over the last few months and has now reached the heart of Central Government...
  5. Private rented sector to be focus of independent review - A major review to improve the private rented sector was today announced by Housing and Planning Minister Yvette Cooper...
  6. National Landlords Association Welcomes Independent Review of Private Rented Sector - The National Landlords Association (NLA) has broadly welcomed the Government announcement that there will be an independent review of the private rented sector...
  7. Free entry for all to the Landlord & Buy-to-Let Show - With five free to attend shows planned for this year, the Landlord & Buy-to-Let Show will be coming to a venue near you soon...

Unlicensed Nottingham Landlord goes to Court

A landlord has become the first person in Nottingham to be prosecuted for renting out a shared house without a licence.

Nottingham City Council officials were called to investigate after a kitchen on the landing caught fire on Christmas Day 2006. Some of the residents were taken to hospital suffering from the effects of smoke inhalation. It was found that a majority of the rooms being rented out in the converted pub were taken by migrant workers.

The fire service found the property to be using butane gas cylinders in many areas and an unacceptable steep racking ladder fire escape. This was confirmed by Council officials visiting the property during the investigation.

Barry James from the City Council said: "Had the fire service not been able to get to the property when they did then there could have been very serious consequences."

In court on Monday 10th December 2007 Mr De Vos admitted breaking the law. He received a conditional discharge and was told to pay £750 costs.

It has been a requirement under the Housing Act 2004 Part 2 since April 2006 for certain Houses in Multiple Occupation (HMOs) to be licensed. Licensable HMOs are those comprising of 3 or more storeys with 5 or more people in two or more households. The maximum fine for failing to obtain a licence is £20,000.

A number of Councils throughout England have taken prosecutions against landlords for failing to apply for a licence which has resulted in a positive result. A landlord in Warwick was fined £12,000 for failing to obtain a licence, £6,000 for breaches of the HMO Regulations and costs of £2,070.30 making a total of £20,070.30.

There may be around 3,000 shared houses in Nottingham being illegally rented. Nottingham City Council is actively taking action against landlords who fail to apply for a licence.

To obtain an application form please contact the HMO team at Lawrence House, Talbot Street, Nottingham, NG1 5NT, telephone 0115 9156798.

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Local Housing Allowance

What is it?

The Local Housing Allowance (LHA) is a new Housing Benefit Scheme for tenants of privately rented accommodation. The scheme has been designed to be a fairer and simpler way of working out benefit for people on a low income. Local Housing Allowance comes into effect on 7 April 2008.

Who will be affected?

Who will not be affected by Local Housing Allowance?

How many rooms can a tenant claim for?

This will depend on the number of people living with the tenant. For people with children or non-dependants, the Local Housing Allowance is based on the number of rooms to which they are allowed.

One bedroom is allowed for the following:

Living rooms:

If a tenant qualifies for more than 6 rooms the Rent Service will provide figures to the Council on request.

Persons with disabilities

People with disabilities will only be entitled to claim for the number of rooms allowed under the rules. There are no provisions in the rules to allow additional rooms for persons with disabilities.

The area a tenant lives in

This means that tenants with the same circumstances will be entitled to the same rate of LHA. It is intended that tenants will then have the choice to trade between quality and price in their accommodation.

You can find out more about Broad Market Rental Areas on The Rent Service website.

Single People aged under 25 years

A single person aged under 25 years, who does not have a non-dependant living with them, will be entitled to the standard rate of Local Housing Allowance for a room in shared accommodation. However, this will be based on a more generous definition than the existing Single Room Rent, which limits Housing Benefit entitlement to the rate for a room in shared accommodation. The new rate will be based on properties where the tenant has the exclusive use of only one bedroom and the tenancy provides for the tenant to share the use of one or more of a:

How much LHA will a tenant get?

There are no changes to the Housing Benefit entitlement rules. This is still based on the tenants financial circumstances and proof of a valid tenancy agreement. LHA is the maximum benefit that can be received towards a tenants rent. The amount received still depends on the money coming in each week, what savings are held and who else lives with the claimant. Once a claim has been assessed, the LHA figure will last for a year counting from the date the claim was made.

Payment of LHA

Payment of LHA will be different to Housing Benefit. This is because the payment will be made to the claimant in almost all cases. Payment cannot normally be made to the landlord, except in a very small number of cases. These will be where the tenant is vulnerable and unable to manage their rent payments. For more information on the LHA Direct Payment Policy please see The Rent Service website.

What happens if the rent being charged is less than the LHA amount?

If a tenant rents accommodation that is cheaper than the LHA amount they are entitled to, a maximum of £15 a week can be kept by the tenant.

What happens if the rent being charged is more than the LHA amount?

If the rent is more than the LHA amount a tenant is entitled to, they will need to pay the difference to the Landlord.

What happens if a tenants circumstances change?

If a tenants circumstances change and it affects the number of rooms they are allowed, then the LHA figure will change. The new allowance will last for a year counting from the date the change of circumstances occurred.

What happens if the Landlord increases the rent?

The Local Housing Allowance takes no account of the actual level of rent payable, it is purely based on room requirement. A rent increase would not normally be a change that would require a new LHA figure to be used. However, if the rent increase was in the tenancy agreement at the time the benefit claim was made, then a new LHA figure can be used in the benefit assessment from the date of the increase. It should be noted that this does not necessarily mean that there will be an increase of benefit because the Rent Service only changes the LHA rates if there is a change in the rental market.

Is it possible to appeal against the amount of LHA?

You cannot appeal against the level of the LHA that the Rent Service sets. The rate is used for everyone qualifying for that room requirement of LHA in that month. However, you will have the right to dispute any decision that the Council has made when calculating your claim. You can ask for an explanation of the calculation or you can make a written request for an appeal hearing. A leaflet about this and the time limits for a dispute will be sent with your decision notice.

More Information

You can find further information at the Department for Work and Pensions website and at The Rent Service website, or contact the Housing Benefits Section at your Local Authority.

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Baby Death Highlights Thermostat Fault Risk

A recent inquest has heard that a fault with a thermostat in a hot water system that caused a baby to be scalded to death could affect up to 3.5million homes. The HSE issued a safety alert on scalding risk from domestic hot water systems on 19 July 2007, the contents of which are reproduced below.

The Health and Safety Executive (HSE) is today issuing a safety alert aimed at homeowners, tenants, landlords and the plumbing industry following two strikingly similar fatal incidents in the last four years where a large volume of near boiling water poured through bedroom ceilings onto occupants sleeping below.

The purpose of the alert is to raise awareness of a rare but potentially serious scalding risk from domestic hot water systems which include a fixed all-electric or part-electric immersion heater in conjunction with a plastic cold water storage cistern or 'tank' located in the roof space.

Homeowners and landlords should pay particular consideration to those systems over ten years old, or where they may have concerns over the quality of the installation or repair work carried out. An overheating immersion cylinder will normally show warning signs so serious incidents are likely to be extremely rare. There are also a number of steps that can be taken to reduce the risk:

  1. Occupants should be aware of warning signs (such as excessive noise from the hot water cylinder) indicating possible thermostat failure and overheating of the water in the cylinder;
  2. Storage cisterns should be installed on an adequate supporting base. The incidents that prompted this alert occurred primarily because the plastic storage cisterns were not supported across their entire area. In other words, the base of the cistern protruded over the edge of the base support board. (See the alert for further information.)
  3. A safety cut-out feature, independent of the immersion heater thermostat, can be fitted to limit the temperature of the stored water, should the thermostat fail.

The risk is greatest when cisterns are located above bedrooms. This is most likely in houses built between 1945 and 1975. Often these homes have, or used to have, a back boiler. If the cylinder is located in a bedroom it is probable that the cistern may be directly above it. Whenever a galvanised (metal) cistern is replaced by a plastic one, the thermostat to the immersion heater should be examined and preferably replaced by one with a safety cut-out.

Specific information on British Standards for domestic cisterns and advice on warning signs, such as excessive noise coming from the hot water system, are included in the alert. It can be found on the HSE website

The two cases:

  1. A 30-year old woman died on 10 June 2002 after an incident on 30 May 2002 in Penzance, Cornwall. An HSE investigation took place as the incident occurred in housing association managed property. A coroner's inquest was held 1/2 July 2003 - Verdict: accidental death. HSE decided not to take any formal enforcement action.
  2. A ten month-old baby died on 12 December 2006 after an incident on 19 November 2006 in Taunton, Somerset. The HSE investigation is ongoing as the incident occurred in local authority managed housing stock. As a result of the investigation HSE served an Improvement Notice on Taunton Deane Borough Council. The Notice requires the Council to undertake action in relation to hot water systems at other similar council properties to verify that they comply with the relevant safety standards. The Council has been co-operating with HSE at all stages of its investigation and the Improvement Notice builds on some of the Council's own proposals for improvement.

For further information contact the HSE's InfoLine on 0845 3450055; Caerphilly Business Park, Caerphilly CF83 3GG

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Retaliatory Eviction

The issue of retaliatory eviction has been repeatedly raised over the last few months and has now reached the heart of Central Government. The Citizens' Advice Bureau (CAB) report 'A tenant's dilemma - Warning: your home is at risk if you dare complain' highlighted cases where some private landlords are using the Notice Requiring Possession under section 21 of the Housing Act 1988 to either threaten eviction or to actually evict tenants who complain about their living conditions.

Some cases where section 21 has been misused were documented in the report, but housing professionals also acknowledge that some tenants may resort to falsely accusing landlords of retaliatory eviction, when no such grounds exist, or the tenants themselves have acted in a way that would warrant the serving of a section 21 notice. A balance needs to be struck that prevents landlords from using section 21 for the purpose of retaliatory eviction, but respects a landlord's right to evict problem tenants quickly, or simply regain possession of their property should they wish to.

One solution is to follow the lead from Employment Law, where an employee cannot be dismissed for trying to enforce their statutory employment rights. Under this plan, a landlord's right to use a section 21 notice to evict a tenant where the tenant has recently taken steps to enforce statutory rights regarding disrepair or health and safety would be removed. There is a precedent for this in that the HMO licensing legislation prevents landlords from using a section 21 notice if they are not licensed and should be; and tenancy deposit protection legislation precludes the use of a section 21 notice if the tenants deposit has not been protected correctly. This type of retaliatory eviction legislation has existed in other countries, such as the United States, Australia and New Zealand for many years.

Central Government is currently considering advice from groups such as the Law Commission, and the campaign against retaliatory evictions is gathering pace. This may lead to legislative changes in the short to medium term, see a summary of the Law Commissions recommendations; something which landlords should keep an eye on.

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Private rented sector to be focus of independent review

Published 23 January 2008

A major review to improve the private rented sector was today announced by Housing and Planning Minister Yvette Cooper.

With almost 2.6 million homes in England being rented from over half a million private landlords, Yvette Cooper has commissioned an independent review to look at what problems tenants and landlords face and what works well in the sector.

A Citizens Advice Bureau report last year found 1 in 5 tenants were dissatisfied with the quality of repairs carried out by their landlord and feared retaliatory action if they complained to authorities. On the other hand, landlords can face problems with poor tenants not paying rent and anti-social behaviour.

The review will look at how the increasing number of buy to let accommodation and student tenants has impacted on the private rented sector, the quality of homes and who the users of the sector are. It will also examine the impact of demographic and social change on the future demand and supply in the sector.

The Government has already introduced positive legislation such as Tenancy Deposit Protection and action on houses of multiple occupation. The Government will consider the reviews recommendations to see what else can be done to improve the sector for both landlords and tenants. Julie Rugg and David Rhodes from the Centre for Housing Policy at York University will head the review. They will start work immediately and will deliver their final report by the end of October.

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National Landlords Association Welcomes Independent Review of Private Rented Sector

The National Landlords Association (NLA) has broadly welcomed the Government announcement that there will be an independent review of the private rented sector (PRS).

David Salusbury, Chairman of the NLA, in broadly welcoming today's announcement, said "The NLA hopes this review will further enhance the critical importance of the private rented sector in providing high standard and affordable housing to those who choose to rent. In a market where home ownership continues to elude many people, having appropriate residential accommodation is of the highest priority. With so many changes in the sector, a strategic review offers the chance to explore the impact of recent developments.

"Naturally, any review of the sector must include the opinions and views of the nation's landlords and the NLA looks forward to having the opportunity to contribute to this review. Furthermore, we look forward to having early sight of the terms of reference."

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Free entry for all to the Landlord & Buy-to-Let Show

Landlord and Buy to Let Show

With five free to attend shows planned for this year, the Landlord & Buy-to-Let Show will be coming to a venue near you soon.

The first in the series takes place at the easily accessible London Olympia on Friday 18 and Saturday 19 April 2008.

Now extended to two days in response to your feedback, the Landlord & Buy-to-Let Show offers access to an even wider range of topics, exhibitors and industry professionals - all at no cost to you.

Oliver Romain, managing director of Accession Exhibitions & Publishing who organise the show said "We welcome investors to our shows from all over the country, so we know they are serious about property investment. It's therefore important that they have access to the right advice and information, and that's where the Landlord & Buy-to-Let Show comes in: it really is the place where landlords and buy-to-let investors do business."

Further show dates in 2008 are:

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