Greater Nottingham Landlords’ Electronic Newsletter

Issue 11 - December 2008

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

Dates for your diary

5 February 2009 - Rushcliffe's Landlord Fourm. For information call Adam Smith on 01159148415

Do You Have Tenants Aged Over 70 or on Benefits? - If so, your tenant will qualify for free loft and cavity wall insulation...
News From Broxtowe Borough Landlords' Forum - A well attended second successful Landlords' Forum was held on 25 September 2008...
Protect Your Property and Belongings! - Over the holidays properties will be standing empty and this is an opportunity for burglars to strike...
The Residential Property Tribunal Service (RPTS) - The RPTS is an independent, fair and accessible tribunal service in England for settling disputes involving private rented and leasehold property ...
Letting Agents: What You Need to Know - Many landlords choose to let and manage their properties themselves, whilst some prefer to use an agent...
Reluctant Landlord' Are Major Risk to Rental Market - The National Landlords Association (NLA) has said that the new breed of "reluctant landlords" poses a major risk to the overall health of the British rental market...
Review of the Private Rented Sector by Dr Julie Rugg - Review marks major watershed in attitudes to PRS: renting is not second best...
Happy Christmas to all our Readers!

Do you have tenants aged over 70 or on benefits?

If so, your tenant will qualify for free loft and cavity wall insulation! Free insulation will reduce fuel costs for your tenant and will improve your property. In Nottinghamshire the scheme is administered by Greater Nottingham Healthy Housing Service. One call to 0115 9472207 will put your tenant on route to lower fuel bills this winter.

News From Broxtowe Borough Landlords' Forum

A well attended second successful Landlords' Forum was held on 25 September 2008, at the Council Offices on Foster Avenue in Beeston.

The presentation included:

A talk about First Lets, a partnership project offering assistance to landlords and tenants alike to let and find suitable properties;
A presentation regarding Broxtowe Borough Council's own deposit guarantee scheme, which assists tenants with a written guarantee for the deposit, to secure a suitable home of their choice;
A presentation from the Energy Performance Group Limited advised the audience about the need for Energy Performance Certificates from 1 October 2008;
Finally, a solicitor from Rothera Dowson gave an interesting talk on the creation and determination of tenancies, which as you would have thought provoked a lively debate.

Any Broxtowe Borough landlords interested in any of the above issues or interested in attending our next forum which will be held in early spring, please contact the Private Sector Housing Team on 0115 9173554.

Protect Your Property and Belongings!

The festive season shall soon be upon us with the students leaving their rented accommodation for the Christmas holidays. Over the holidays the properties will be standing empty and this is an opportunity for burglars to strike. Will laptops be sitting on view in the windows? Will doors and windows be locked securely?

The crime figure released by Nottingham City Police for the end of year (1 April 2007 to 31 March 2008) show recorded crime has fallen significantly. Burglary recorded offences have fallen by 15% resulting in 1,300 crimes compared to last year, with dwelling burglaries fallen by 800. However, positive action to prevent further burglaries still needs to be taken.

Reduce your chances of being burgled by taking the following simple steps:

Always ensure you lock windows and doors, leaving the property secure
Ensure laptops and valuable items are kept out of sight
Try to avoid routine when leaving or entering the house, especially during dark nights
Ensure your security alarm is activated
Make a list of your valuable items, including their serial numbers and descriptions
Consider investing in a time-switch which will operate lamps and other appliances
Use an ultra violet pen to mark items with your home postcode (SmartWater)
Register your valuables on www.immobilise.com (Completely secure and free of charge)

Further information can be found at www.easily-done.co.uk

The Residential Property Tribunal Service (RPTS)

The RPTS is the umbrella organisation for the five regional offices called Rent Assessment Panels which provide an independent, fair and accessible tribunal service in England for settling disputes involving private rented and leasehold property through:

Rent Assessment Committees (disputes relating to fair and market rents)
Leasehold Valuation Tribunals (disputes relating to leasehold property)
Residential Property Tribunals (disputes relating to refusal of the Right to Buy and to Housing Act 2004 issues)

The Residential Property Tribunals have the following jurisdictions arising out of the Housing Act 2004 and have the equivalent status to the County Court:

Determine appeals in respect of Improvement Notices
Determine appeals in respect of Prohibition Orders
Determine appeals in respect of Emergency Remedial Notices and Emergency Prohibition Orders
Determine appeals/applications in respect of Demolition Orders
Jurisdiction in respect of Houses in Multiple Occupation, Licensing, Management Orders and Empty Dwelling Management Orders

More detailed information on the service provisions is available on the RPTS website where you will also find the contact details for the regional offices.

You can also read detailed accounts of the decisions that have been made by the RPTs and view frequently asked questions.

Letting Agents: What You Need to Know

Many landlords choose to let and manage their properties themselves, whilst some prefer to use an agent. Before you make a decision on whether to work with a particular agent you should consider:

Is the agent a member of a recognised trade association?
Do they have a published Terms of Trading?
Do they work with landlords with similar needs to yours?
Remember that you are liable for any actions the agent undertakes on your behalf.

Reluctant Landlord' Are Major Risk to Rental Market

The National Landlords Association (NLA), the largest national body for private residential landlords, has said that the new breed of "reluctant landlords" poses a major risk to the overall health of the British rental market.

Research published recently has shown that the number of new landlord instructions to let in quarter three 2008 has grown at the fastest pace since records began. 56% more surveyors reported a rise in new instructions than a fall, as compared to 45% in quarter two. The research also shows that the growth in new instructions was significantly stronger for houses than flats.

This glut of new landlords, letting out their own properties to avoid selling at a loss, enter the lettings business with some reluctance in the hope it will only be for the short-term. However, given the current economic outlook, it is quite possible that these "reluctant landlords" may have to rent their properties for a much longer period in order to see decent capital growth.

Before taking the plunge, potential landlords need to be well prepared. There are a number of serious issues which, if not investigated properly, could leave them in financial difficulties as well as risking the well-being of their tenants.

A landlord's responsibilities are wide and varied, but for the inexperienced new entrant they need to think about:

Do I have permission from my bank or building society to let out my property?
Does my current insurance cover letting out the property?
Do I need permission from my freeholder?
Do I use a reputable letting agent or try and manage the tenancy myself?
Do I need a written tenancy agreement?
Does my property comply with gas and fire safety requirements?
How do I provide an energy performance certificate?
How do I protect my tenant's deposit?

For any landlord who decides they are willing to put in sufficient time and effort to manage the tenancy themselves, the NLA can provide all the information, support and advice that is required including the NLA Advice Line and the major information resource, NLA Landlord Library.

Simon Gordon, Head of Communications, NLA, commenting on the rise of the "reluctant landlord", said:

"Becoming a landlord in this market is not for the faint-hearted. New landlords, especially those who hadn't planned on starting a lettings business, must make themselves aware of the rules and regulations so they can operate their tenancies successfully.

"The private rented sector provides accommodation for almost three million households and there is a major risk that inexperienced landlords, although well-meaning, are not fully up-to-speed with their responsibilities and problems can arise. The ultimate responsibility for operating the tenancy lies with the landlord and, although a good letting agent is worth their weight in gold, "reluctant landlords" are obliged to be on top of their game.

"If landlords are not properly prepared, the potential long-term wait for prices to come back up may prove to be a Pandora's Box for the private-rented sector."

Review of the Private Rented Sector by Dr Julie Rugg

Review marks major watershed in attitudes to PRS: renting is not second best

The National Landlords Association (NLA), the leading organisation for private residential landlords, has welcomed the publication of the Review of the Private-Rented Sector (PRS) written by Dr Julie Rugg and David Rhodes.

The Review marks an important watershed and a move away from myth-driven policy decisions towards evidence-based recommendations which acknowledge the important contribution small landlords make to the housing mix. It is a strategic assessment that does away with the claim there is some kind of crisis in buy-to-let or the wider PRS.

Key points:

The Review makes clear its doubts about build-to-let: "Much of this debate reflects the attempt to construe residential letting as commercial letting, when in reality the two sectors are very different."
The Review recognises that "smaller landlordism does not necessarily mean financial instability." There is also acknowledgement that many "cottage industry" landlords are lowly geared and have unmortgaged properties thus providing tenants with a high level of security.
The Review has identified that focused and targeted policies are needed to root out rogue landlords who do nothing but discredit good, smaller landlords. The Review highlights the critical role local authorities can play, with their existing and powerful tools, to manage the sector at a local level. This requires a level of prioritisation for councils.
A recognition that tenancies fail for specific reasons: rent arrears, anti-social behaviour etc. Policy must focus on the reasons why tenancies fail, not on manipulating the tenancy framework itself. The Review proposes an end to the assumption that PRS tenancies always end against the wishes of the tenant.
However, the Review�s proposals on "light-touch licensing" will need further examination. Much further work is now needed to determine how a model could work and there is unlikely to be a quick-fix solution. The NLA would wish to be at the centre of ongoing discussions.

David Salusbury, Chairman, NLA, said:

"The Rugg Review offers Government a number of policy options based upon sound and independent evidence. The rhetoric has gone and myths have been dispelled.

"It demonstrates and encourages a commitment to "grow the business of letting" for smaller landlords but also encourages larger-scale investment, where appropriate. This means tax incentives to encourage investment in quality housing across the board.

"The Review is clear about the positive elements within the PRS and also where the sector faces challenges in raising standards and the wider social contributions landlords could make, especially in "equalising the rental choice."

"Appropriate, focused and effective regulation of the sector is vital and supported by the NLA as a means of raising standards, improving the management of properties and cracking down on "rogue operators". The Review's recommendations about licensing will need careful consideration but the NLA has a major role to play in the development of PRS policy and we look forward, in the coming weeks and months, to ensuring that landlords up and down the country are represented as the decisions which affect them are made."

For more details of the Rugg Review, go to the National Landlords Association website

Happy Christmas!

The organisers and contributers of the Greater Nottingham Landlords' Electronic Newsletter would like to wish all our loyal readers a very Happy Christmas and a prosperous New Year!

As always, if you have any comments or suggestions, we are always eager to hear them. Please complete out short feedback form.

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