Greater Nottingham Landlords’ Electronic Newsletter

Issue 7 - April 2008

Welcome to the April 2008 edition of the Greater Nottingham Landlords' Electronic Newsletter.

Dates for your diary

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

18 April 2008 - 10.00 to 18.00 and 19 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!

June - The East Midlands Landlord Accreditation Scheme, organised by DASH, will be launched.

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

Unipol Student Homes Nottingham - As many of you will already know, October 2007 saw the opening of Unipol Student Homes' Nottingham Accommodation Bureau on the University of Nottingham's main campus...
Sub-Standard Homes in the Private Rented Sector - The latest English House Condition Survey revealed 4.7m homes failed to meet the Decent Homes Standard in 2006 and that the worst conditions were in the private rented sector, where 50% contained potentially life-threatening hazards...
'To-Let' and 'For Sale' Boards - Issues over the display of "To-Let" and "For Sale" boards is one covered by the Town and Country Planning (Control of Advertisements)(England) Regulations 2007, which came into force on 6 May 2007...
Now is the Time to Come Forward if You Own or Manage a Licensable HMO - Landlords who fail to do so risk fines of up to £20,000 and can be forced to repay up to 12 months rent...
Update on Insurance Based Tenancy Deposit Protection Scheme - mydeposits.co.uk, a Government-authorised insurance-based tenancy deposit protection scheme protecting over £177 million of deposits, has published its figures marking the first anniversary of the legislation...
General Reminders for Landlords - All landlords need to be aware of certain legal requirements and good practice standards. Here is a reminder of some of these with links to further information...

Unipol Student Homes Nottingham

As many of you will already know, October 2007 saw the opening of Unipol Student Homes' Nottingham Accommodation Bureau on the University of Nottingham's main campus.

Unipol is a national student housing charity based in Leeds with some 30 years experience in student housing. It also operates a national code for Large Developments, such as those found around Nottingham.

With financial support from Nottingham City Council, the University of Nottingham and the Students' Unions of both Nottingham universities, Unipol has been contracted to improve the quality of student housing in Nottingham by providing a central database of student vacancies and taking over the running of the council's accreditation scheme. The hope is that this will assist students in finding good quality accommodation and put accreditation at the centre of their decision making.

In the short period Unipol have been operating in the city, significant strides have been made towards achieving the two core objectives. By March 2008 the Unipol Nottingham website had displayed a total of 14,402 bed spaces and more than 300 landlords had registered to use the site. These landlords have already benefited from a wide variety of services including feedback on market data (via Owners' Briefings), access to an online tenancy agreement generator and case specific advice from the Unipol Nottingham team. Amongst students the site has also quickly become a recognised source of information on housing, with over 80,000 property searches being made in the first 5 months of the site's operation.

A number of significant developments have also taken place with regard to accreditation. Firstly, Unipol has joined forces with DASH (Decent and Safe Homes) to develop the Unipol DASH Code and this is currently being reviewed in consultation with a wide range of stakeholders. Secondly, Unipol has moved away from accreditation of individual properties, to accreditation of individual landlords. This new approach means that the Nottingham team will be able to cover a far greater proportion of the Nottingham student accommodation market, whilst at the same time, through random sampling, maintaining the robustness of the scheme. Inspections are progressing well with over 290 having taken place within the first 6 months of operation and to date 83 landlords have become fully accredited under the new scheme. Managing agents are also catered for in the Unipol DASH Code through a separate declaration.

It is anticipated that the Unipol website will become the primary source for students looking for accommodation in Nottingham and, through continual review, the Code will be an effective mechanism for improving standards of student accommodation in the city. Alongside this work Unipol will also be working closely with both Universities' Student Unions to ensure that students are fully aware of their responsibilities as good tenants and members of the wider community.

Registration with Unipol is currently FREE for landlords with properties smaller than 15 bedspaces but this introductory offer is coming to an end on the 21st April 2008. With this in mind if you are considering registering with Unipol you are urged to contact them at the earliest possible opportunity either by visiting the Unipol Nottingham website by or telephoning 0115 846 8599.

Sub-Standard Homes in The Private Rented Sector

The latest English House Condition Survey revealed 4.7m homes failed to meet the Decent Homes Standard in 2006 and that the worst conditions were in the private rented sector, where 50%; contained potentially life-threatening hazards.

"Excess Cold" in hard-to-heat homes and "Risks of Falls" in poorly maintained homes were the most common hazards despite the fact that many of the hazards can be remedied with minimal expenditure.

It is essential that landlords assess their properties in respect of the 29 Hazards detailed under the Housing Health and Safety Rating System and carry out any necessary works to reduce the risks to their tenants. Failure to do so could result in the Local Authority taking action.

Landlords Guides to the 29 hazards and the Decent Homes Standard can be obtained from DASH East Midlands.

To-Let and For Sale Boards

Issues over the display of "To-Let" and "For Sale" boards is one covered by the Town and Country Planning (Control of Advertisements)(England) Regulations 2007, which came into force on 6 May 2007.

Schedule 3 of the above mentioned Regulations states that such boards have "deemed consent" and as such can be displayed. However, they are subject to certain conditions:

Not more than one advertisement board (or two joined boards) is permitted
Sale or letting boards relating to residential use or development must not exceed 0.5 square metres in area (or 0.6 square metres if two boards are joined together to form one advertisement.
Where a board is attached to a building it must not extend more than one metre from the building.
No character or symbol on the board can be more than 0.75 metres in height
No part of the board may be higher than 4.6 metres above ground level.
Illumination of the board is not permitted.
The advertisement is to be removed 14 days after completion of sale/grant of tenancy

If any of these requirements are not met then the board does not have "deemed consent" under the Regulations and should be removed immediately.

Failure to remove the board may result in action in the form of prosecution for the illegal display of the board under Section 224(3) of the Town and Country Planning Act 1990. Maximum penalty for displaying an illegal board is £2,500 per board upon summary conviction. This can be increased by £250 per day for each day following conviction that the board is displayed. Under Section 224 of the Act, the occupier of the land on which the advertisement is displayed can be liable, as well as the owner of the advertisement.

Now is the Time to Come Forward if You Own or Manage a Licensable HMO.

On 11 February 2008, LACORS (Local Authority Coordinators of Regulatory Services) published national good practice guidance on tackling unlicensed Houses in Multiple Occupation (HMOs).

Since April 2006, landlords of properties comprising three or more storeys, occupied by five or more people, forming two or more households have had to obtain a licence from their local council. Landlords who fail to do so risk fines of up to £20,000; can be forced to repay up to 12 months rent; and the council has the power take over the management of the property.

The comprehensive good practice guidance from LACORS contains tips on how to identify and deal with unlicensed HMOs. It contains guidance on how councils can raise awareness of HMO licensing and carry out survey work to identify unlicensed properties. It includes examples of joint working with many organisations including the Police, Fire and Rescue service and the Gangmasters Licensing Authority. Later chapters also provide guidance on the collection of evidence and the full range of sanctions available to target non-compliant landlords.

Please contact your Local Authority immediately if you have an unlicensed property.

Update on Insurance-Based Tenancy Deposit Protection Scheme

mydeposits.co.uk, a Government-authorised insurance-based tenancy deposit protection scheme protecting over £177 million of deposits, has published its figures marking the first anniversary of the legislation.

Out of 200,000 individual deposits protected throughout the year by over 31,000 landlords and letting agents, there were only 341 actual disputes notified to the scheme.

From these 341 disputes, only 20% (64 cases) of the more intractable cases needed to be adjudicated through Alternative Dispute Resolution (ADR). This process relies on evidence provided by all parties in order to reach a final and binding decision on how much, if any, of the deposit should be returned to the tenant.

In 86% of these more serious disputes, the ADR has found in favour of the tenant: 45% will have received their full deposit and 41% will have received a proportion of their deposit as determined by the adjudicator. In 11% of these cases landlords and letting agents have been able to withhold the total deposit.

David Salusbury, Chairman, National Landlords Association and mydeposits.co.uk, said:

"After only 12 months, it is quite clear that tenancy deposit protection has clarified the rights and responsibilities of tenant, landlord and letting agent. With so few disputes actually being notified and only 20% of these requiring external adjudication, it seems that this kind of self-regulation is proving to be extremely effective."

General Reminders for Landlords

All landlords need to be aware of certain legal requirements and good practice standards. Here is a reminder of some of these with links to further information.

The annual gas safety certificate is a legal requirement for privately rented dwellings. The inspection must be carried out by a registered CORGI engineer, and a copy of the certificate must be provided to the tenant. Only appliances provided by the landlord are required to be tested. Further information can be found on the CORGI website

Periodic electrical safety certificates are required by law for any HMO. However, it is recommended good practice to obtain one for any rented property, and to provide the tenant with a copy of the certificate. Landlords must be aware that certain types of electrical certificates are not accepted by some Local Authorities. NICEIC certificates are universally accepted however, so if in doubt, either contact your Council for advice or appoint an NICEIC registered electrician to carry out the inspection. The certificates are valid for five years and should provide a good level of detail regarding the electrical installation. You can find registered NICEIC electricians in your area by visiting the NICEIC website. This website also provides detailed information on landlords responsibilities, particularly in relation to part P of the Building Regulations.

Fire safety risk assessments should be carried out by all landlords, but they do not have to be recorded unless the property is licensable. It is good practice to have a record of your risk assessment however, so DASH have produced a fire safety risk assessment form for landlords with properties that are three storeys or less. The form contains guidance notes to make completion as easy as possible and provides a good written record of your actions that you can present to the authorities in the event of a fire in the property.

With the introduction of the Tenancy Deposit Schemes in April 2007, property inventories have become even more important. If there is a dispute between the landlord and tenant, the Alternative Dispute Resolution (ADR) service will request an inventory, signed by both landlord and tenant when considering the dispute. DASH have prepared an inventory form that can be used at the start and end of the tenancy. There is also a completed example for your benefit.

The amenities and space guide has recently been revised by DASH in light of legislative changes, and landlords need to be aware of the changes. While these standards are enforced by the majority of East Midlands Local Authorities, all landlords should contact their respective councils to confirm the guidance applies in their area.

Finally, DASH have produced a buy-to-let guide aimed at people who are considering entering the buy-to-let market. The guide gives an overview of tax liability, mortgage options, managing agents and where and what to buy. The document also contains links to other useful information.

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