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

Issue 8 - June 2008

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

Dates for your diary

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.

Contents

  1. Is your House in Multiple Occupation (HMO) Licensed? - From 6th April 2006, under the Housing Act 2004, HMOs of a "prescribed description" are required by law to be licensed...
  2. Rushcliffe Landlords' Forum - In April, Rushcliffe Borough Council held a forum for local landlords. The event gave landlords an opportunity to get up to date with current issues and imminent changes affecting their properties and business...
  3. EMPO (East Midlands Property Owners) Training Programme - EMPO has been awarded a grant to develop a training programme which could greatly benefit all landlords in the East Midlands...
  4. East Midlands Landlord Accreditation Scheme (EMLAS) - The East Midlands Landlord Accreditation Scheme (EMLAS) is a new region-wide accreditation scheme that encourages and rewards good property standards and management practice in the private rented sector...
  5. Recent Article from Nottingham Evening Post Regarding Student Housing - The following article was printed recently in the Evening Post and will be of particular interest to Landlords with students: NOTTINGHAM MUST ADDRESS ITS STUDENT HOUSING PROBLEMS...
  6. Risks from Redundant Solid Fuel Back Boilers - The HSE has issued a safety alert for the attention of individual homeowners, tenants, landlords and the plumbing/heating industry...
  7. Tax Break for Green Landlords - The National Landlords Association (NLA), the UK's leading representative body for landlords, has urged private residential landlords to use the Landlord's Energy Saving Allowance (LESA) - a tax break allowing landlords to claim on their tax return against the cost of buying and installing energy saving items...

Is your House in Multiple Occupation (HMO) licensed?

From 6th April 2006, under the Housing Act 2004, HMOs of a "prescribed description" are required by law to be licensed. These are HMOs of 3 or more storeys occupied by 5 or more people in two or more households. "Storeys" can include basements and loft conversions, but not usually cellars or attics.

It is a criminal offence to operate an HMO of a prescribed description without a licence, and penalties include a maximum fine of £20,000 for failure to apply. Nottingham City Council is targeting HMOs within their boundary that have not applied for a licence which may lead to the Council instigating prosecution proceedings.

Application packs can be downloaded from the Nottingham City Council website. Click on the HMO licensing section and all the forms and guidance can be downloaded from this page. Otherwise, contact the HMO Team on 0115 9156798 and ask for a pack to be sent by post or e-mail. You will need to complete and return the application form with the fee and supporting documents such as proof of address. You will also need to advise anyone else that has an interest in the property (e.g. co-owners, mortgage lenders) that you have made an application.

Further information about licensing can be found at www.propertylicence.gov.uk

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Rushcliffe Landlords' Forum

In April, Rushcliffe Borough Council held a forum for local landlords. The event gave landlords an opportunity to get up to date with current issues and imminent changes affecting their properties and business. With over 25 attendees, landlords were taken through a packed programme with a variety of topics being covered including talks on energy efficiency, First Lets and Housing Options, the changes to the Housing Benefit system (Local Housing Allowance) and a very well received talk from Nigel English from Nottinghamshire Police on how to spot cannabis growing in rental properties. All of the speakers were available for questions at the end of the session and it was a great opportunity for landlords to meet with each other.

Feedback from the event was positive with landlords suggesting topics for discussion which will help to shape future events:

"These events are extremely well organised and very much appreciated"

"The LHA talk was very informative"

"I thought the drugs stuff was very well presented"

"I enjoyed the presentation on EPC - helps me to develop my own timetable in response to legislative and climate change. Also enjoyed the police presentation on drug cultivation"

"I found it informative and very useful"

Rushcliffe Borough Council will be organising further forums during the year. If you would like to receive details of these events, or presentation notes from the April forum, please contact asmith@rushcliffe.gov.uk

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EMPO (East Midlands Property Owners) Training Programme

EMPO has been awarded a grant to develop a training programme which could greatly benefit all landlords in the East Midlands.

Three courses are currently running. These are:

  1. Landlord Development Course (July 9th 2008) - Based on the ANUK/IDeA (Accreditation Network UK / Improvement and Development Agency) manual, this course is a comprehensive entry level course that provides landlords with key information to improve their property and tenant management.
  2. Hazard Awareness Course (July 15th 2008) - This provides landlords with an awareness of the HHSRS (Housing Health & Safety Rating System) to enable landlords to identify and eliminate hazards from their properties, ensuring landlords can be confident in offering safer homes and meeting the needs of tenants.
  3. HMO Licensing Course (September 11th 2008) - An essential course for all landlords of licensable HMOs. This course covers all aspects of licensing from application to compliance with housing conditions.

The training is available free to:

  1. Any landlord who is operating within the city of Nottingham; and
  2. Any landlord who is considering purchasing property within the city of Nottingham; and
  3. Any landlord outside the Nottingham city boundary may undertake any of the training programmes for a fee of £30.00 per course.

Courses run between 10 a.m. and 3 p.m and will take place at the Rushcliffe Arena, Rugby Road, West Bridgford, Nottingham.

For more information visit the EMPO website or contact EMPO at 78 Lenton Boulevard, Lenton, Nottingham, NG7 2EN. Tel No: 0845 094 0386

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East Midlands Landlord Accreditation Scheme (EMLAS)

The East Midlands Landlord Accreditation Scheme (EMLAS) is a new region-wide accreditation scheme that encourages and rewards good property standards and management practice in the private rented sector.

Any residential landlord in the region can join the scheme and enjoy not only a market advantage, but also briefing sessions on new legislation, resource material and guidance, professional development courses and inclusion on the EMLAS property database and EMLAS website.

Accredited landlords should be personally rewarded for their hard work and commitment to good standards, and are therefore eligible for an impressive range of discounts on goods and services.

What Does EMLAS Achieve?

How Will Tenants Know That a Property is Accredited?

Using our distinctive logo, we are able to market the scheme to new and existing tenants, allowing them to identify responsible landlords. EMLAS provides landlords with information for tenants about the scheme and how it operates. EMLAS is also committed to a continuous programme of publicity to promote brand awareness amongst tenants.

What Do I Need to Become Accredited?

You must own at least one residential rented property in the East Midlands, and on application you must declare:

Landlords are then invited to attend two training courses. The first is a one day property management course based on the ANUK/IDeA landlord development manual, and the second is a half day course on the Housing Health and Safety Rating System (HHSRS).

Once accredited, landlords must follow the EMLAS code of management. This document sets out minimum standards in relation to property management, physical condition and appearance. A full copy of the Code is available on the EMLAS website

To promote both tenant and landlord confidence in the scheme, at least 10% of properties will be inspected for compliance with the current statutory minimum standards. This will be accompanied by a free Property Improvement Plan to help landlords bring their properties up to standard if required.

How do I Find Out More?

A detailed landlord information leaflet is available from EMLAS. This leaflet gives further information on the Code of Management and tenant and landlord complaints procedures. To obtain a copy of this leaflet, to view the scheme manual in full, or to ask any questions that you may have regarding EMLAS, please contact us on 01332 256478, email dash@derby.gov.uk or visit the EMLAS website

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Recent article from Nottingham Evening Post regarding Student Housing

The following article was printed recently in the Evening Post and will be of particular interest to Landlords with students.

NOTTINGHAM MUST ADDRESS ITS STUDENT HOUSING PROBLEMS

Houses in multiple occupation (HMO) are becoming increasingly frequent in some parts of Nottingham. Lenton resident Maya Fletcher says the rise in student accommodation should be a concern for everyone.

HMO is the name given to what is more commonly known as a "shared house". It is difficult to know how many HMOs there are in Nottingham, though it is believed the proportion is over three times the national average.

With two popular universities and a population of over 40,000 students needing accommodation in the private rented sector, it is hardly surprising there has been a significant amount of buy-to-let activity aimed at the student HMO market.

Given the location of the two universities, it is also not surprising that the majority of these HMOs are to be found in areas such as the Arboretum, Dunkirk, parts of Wollaton Park and, of course, the archetypal student village, Lenton.

It is in fact the clumping together of HMOs in particular neighbourhoods that exacerbates the social and environmental problems which in Nottingham and other cities with large student populations has been dubbed "studentification".

However, people who immediately assume that anyone who talks about studentification is also anti-student need to understand that the problems associated with student HMOs - noise, litter, inadequate management of waste, lack of proper maintenance and so on - in essence are no different from those caused by HMOs occupied by benefits recipients or migrant workers.

All tend to be young and highly transient. In the case of students tenants, it is not unusual for an established resident to have a new set of neighbours every nine months.

It is all of these factors brought together that have such a devastating impact on what politicians and social scientists call "community sustainability and cohesion".

Given the emphasis put on communities by successive governments, it is somewhat ironic that it is only now that politicians are finally realising that 'something has to be done' to ameliorate the problems caused by HMOs.

We can but hope that the recently announced government review of HMOs will result in at least a change in legislation so that conversion from family home to HMO will need planning permission.

It is also a hopeful sign that Iain Wright MP, Under-Secretary of State in the Department for Communities and Local Government is to visit some of Nottingham's studentified neighbourhoods next week.

He will meet residents and hear first hand about how HMOs are affecting their lives and what they believe needs to be done in order for their neighbourhoods to be places where they want to keep on living, and where future families will want to settle.

To achieve this aim - to have neighbourhoods where families want to live, not leave - is not just important to those neighbourhoods with high numbers of HMOs, it is important for the future of Nottingham itself.

The city not only needs to retain its families. It also needs to attract new families into the city. To do this it needs good-quality, good-sized family housing. Paradoxically, it is just that sort of family housing that has either already been converted into HMOs or is still a target for buy-to-let investors and parents of students.

So taken to the extreme, graduates of Nottingham's two universities who wish to remain here, put down roots and bring up families are probably going to have to go outside the city to find the sort of houses they want.

Not exactly what is wanted - the city puts resources into managing the problems caused by HMOs, but it is other local authorities which reap the rewards in terms of a qualified and affluent population. What do you think? Is studentification a problem for Nottingham?

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Risks from redundant solid fuel back boilers

The HSE has issued a safety alert for the attention of individual homeowners, tenants, landlords and the plumbing/heating industry. This is to raise awareness of the potential dangers of lighting a solid fuel fire when a redundant solid fuel back boiler has been left within the fireplace.

The alert follows several incidents in the last five years, three of which resulted in serious injury, and sadly in one case, a fatality. The redundant solid fuel back boiler had been left in a sealed condition and sometime later, when a coal or wood fire was lit in front of the boiler, the unit heated up sufficiently for the internal pressure to cause the boiler casing to explode.

Situations to consider will include where a solid fuel back boiler has been drained down over winter in vacant premises, or where it may have been left in place after conversion of the property's heating system - often to a gas or oil fired system with a new remote central heating boiler. Due to the disruption of removing a back boiler from the fireplace they may have been left in place for the decorative effect of the fire-grate, or covered by a panel or other feature.

What causes the problem?

The back boiler unit typically consists of a fire grate, which carries the combustible material e.g. coal, and a water chamber 'surrounding' it. This water 'jacket' is generally behind the fire but may also be at the sides and partially above the grate with the flue passing through it. Thus heat input to the water is gained from the hot flue gases as well as radiated from the 'coals'. As the units are difficult to drain completely there is likely to be residual water in the redundant boiler which will turn to steam when heated. This exacerbates the pressurisation if the unit was left in a sealed condition.

Industry recommended action to control the risk

Previous advice recommended that a redundant back boiler left in situ must be in a condition such that an unsafe level of pressure cannot build up in the unit. Thus, at the decommissioning stage the system should have been drained and redundant pipework removed along with, ideally, the back boiler itself. If not removed the boiler should have been left in a 'vented' or 'open' condition. If the pipe connections were plugged, at least one 6mm diameter hole should have been drilled in the water jacket, preferably in a vertical or near vertical face.

In some cases the decommissioning may have been carried out by an individual, or heating or building organisations that were unaware of the potential problem, or had not seen the advice.

Other longer term potential dangers can arise with continued use of a fireplace and redundant back boiler even if appropriately vented:

  1. If connected pipework is left in situ, corrosion/cracking of the water jacket sidewalls may allow flue gases to enter the pipework and be conveyed to other areas of the property with potentially dangerous consequences. The high temperature of the pipework may also present a fire risk.
  2. Continued use of an open fire has potential for structural damage through repeated expansion and contraction of the boiler casing, which is significant due to the high temperatures involved.

Additional note: the flue of a retro-fitted gas fire must not pass through the redundant water jacket.

Landlords

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Tax Break For Green Landlords

The National Landlords Association (NLA), the UK's leading representative body for landlords, has urged private residential landlords to use the Landlord's Energy Saving Allowance (LESA) - a tax break allowing landlords to claim on their tax return against the cost of buying and installing energy saving items.

Landlords are able to claim a maximum of £1,500 per property against the cost of installing draught proofing, loft insulation, floor insulation, cavity wall insulation, solid wall insulation or insulation for hot water systems.

For example, if a landlord has installs insulation at a cost of £1,500 the saving could be as much as £600 for higher rate income tax payers and £300 for those who pay basic rate income tax.

From 1 October 2008, all rental properties with a new tenancy in England and Wales will be required to have an Energy Performance Certificate (EPC). Prospective tenants will be able to see at a glance how energy efficient prospective rental properties are. Given a choice of properties, tenants may opt for one which is more energy efficient and could present them with lower bills.

David Salusbury, Chairman, NLA, highlighting this tax break for landlords, said:

"The NLA encourages its members to invest in maintaining and improving the quality of their properties. LESA is a welcome incentive for landlords to encourage them to make the necessary energy efficiency improvements.

"As well as contributing to the overall efforts by society to combat climate change, landlords may see an increase in the value of their investment as a result of energy efficiency improvements. We are pleased that the Government has chosen to offer incentives to landlords instead of regulation and would urge landlords to use the tax break or, perhaps, risk losing it in the future."

Christine Darvill
Regional Representative for East Midlands
M: 07939 520808
E: christine.darvill@landlords.org.uk
www.landlords.org.uk

National Landlords Association Limited (by guarantee) registered in England number 4601987 at 22-26 Albert Embankment, London, SE1 7TJ.

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