Greater Nottingham Landlords’ Electronic Newsletter

Issue 15 - August 2009

Welcome to the August 2009 edition of the Greater Nottingham Landlords' Electronic Newsletter.

Dates for your diary

The Broxtowe Landlord Forum - Thursday 15th October at the Council Offices. Contact Deborah Bloomfield, Private Sector Housing Team on 0115 917 7777 to book your place

Question From a Reader - "What charges are made when a rental property became empty for a period of time?"...
Nottingham City Council's Annual Private Sector Landlord Conference - Nottingham City Council's Annual Private Sector Landlord Conference was held on Wednesday 6^th May 2009 at the Council House, Nottingham...
Minutes from Nottingham City Council Landlord Liaison Panel meeting June 2009
Nottingham City Council - Background Information Regarding Their Focus on Houses in Multiple Occupation - Nottingham City Council recognised many years ago that it was necessary to focus resources on Houses in Multiple Occupation...
EMPO Voluntary Code for Lettings Boards - Following on from the voluntary code issued by Nottingham City Council for the use of letting boards, below is an alternative proposal drawn up by EMPO...
HMO Licensing Prosecution - A Derby landlord has become the first in the city to be prosecuted for not having an appropriate licence...
£30,000 Bill for Landlord after Tenant Broke his Neck While Escaping from Fire - Landlords across Derbyshire are being warned to take their responsibilities for fire safety seriously after a judge ordered one landlord to pay £30,000 in fines and costs for breaches of safety legislation...
Housing Standards and EHOs Explained!

Question From a Reader

"What charges are made when a rental property became empty for a period of time?" The following replies have been received from Gedling Borough Council, Nottingham City Council and Broxtowe Borough Council:

Gedling Borough Council

If the property is empty for over 6 months and unfurnished, the owner will have to pay 50% Council Tax after 6 months.
If the property is furnished, the owner will have to pay full Council Tax.

The Council Tax charge relates to the property and not the owner so, if a person buys a property that has already been empty for 6 months, they will not be exempt from Council tax and will have to pay the 50% charge for as long as the property is empty

Nottingham City Council

Some properties are exempt from Council Tax and some properties, depending on occupation, receive a discount.

Properties that are empty (unoccupied):

unfurnished property is exempt for up to 6 months. If the property is still empty after then, Council Tax reverts back to the full charge until it is occupied or sold.
Property requiring or undergoing major repairs to make it habitable, or where structural alterations are taking place which are not complete, (exemption is time limited to 12 months after the exemption commences or 6 months after work was completed whichever is the sooner).
An unoccupied annex which cannot be let separately, because it is part of the main dwelling and where its letting is restricted under planning regulations is exempt.
A furnished property would receive a 10% furnished empty discount (90% Council Tax to be paid all the time it is empty).

Properties that are occupied:

Where all residents are qualifying students, the account will remain in the landlords name and a student exemption would apply.
Exemption also applies when a property is occupied by a student and where the spouse of a student is not a British Citizen and who is prevented by the terms of their entry visa from taking paid employment or from claiming benefits.

Broxtowe Borough Council

If a landlord has a property that is unoccupied and unfurnished, it will be exempt from Council Tax for six months, after which the full amount must be paid.

If, however, the landlord has a property that is unoccupied, but it remains furnished, the property may be classed as a second home and a discount of 50% will be given for an indefinite period.

If you own a property in Broxtowe and require further clarification or have any queries, please contact the Council on 0115 9177777

If you would like to ask a question it may be answered in the next issue

Nottingham City Council's Annual Private Sector Landlord Conference

Nottingham City Council's Annual Private Sector Landlord Conference was held on Wednesday 6^th May 2009 at the Council House, Nottingham.

The day was packed full of guest speakers, workshops, exhibition stands and a buffet lunch, along with the chance for landlords to network with other landlords and speakers.

Joseph Harwood from Spencer Birch provided the audience with a managing agent's perspective of the current letting market within Nottingham. Gill Callingham, Regeneration Co-ordination Manager, provided an insight into the regeneration of the Meadows area within Nottingham.

Landlords were able to participate in all four workshops that ran throughout the day. The workshops covered empty homes and enviro-crime, the housing aid bond scheme, energy efficiency and fire safety. Andrew Vickers and Chris Hardwick from the Council's Public Health section gave a detailed and informative insight into the issues involved with empty homes and enviro-crime. Guy Goulding, Nottingham Fire and Rescue Service, outlined the importance of carrying out a fire risk assessment for each individual property to enable landlords to provide the correct fire safety measures within their rentable properties.

Various companies exhibited at the conference including solicitors, insurance companies, builders and mould growth consultants. This gave landlords an opportunity to see what services were available to them and to find out further information.

The landlords who attend the bi-monthly Landlord Liaison Panel Meeting are asked for suggestions on topics to be covered at each annual conference. The Council endeavors to cover the topics raised.

The next bi-monthly Landlord Liaison Panel Meeting is on Tuesday 18^th August 2009 at 17:15, EMPO Office, 78 Lenton Boulevard, Nottingham. Landlords wishing to contribute to either the meeting or the next conference are welcome.

All feedback is taken into consideration for future events and, if you have any ideas you would like to put forward, please contact us at public.health@nottinghamcity.gov.uk or on 0115 9156798.

Minutes from Nottingham City Council Landlord Liaison Panel Meeting June 2009

EMPO Office, 78 Lenton Boulevard

Present: Keith Rose, Bob Broughton Irfan Ahmed, Lorraine Raynor, Ivan Bleakley, Ian Mitchell, Simon Powell, Chris Read, Jonathan Potter, Angela Lyons, Kate Proctor, Mike Cole, Christine Darvill, Peter Grill, Norman Kybert

1. Apologies - John Cockcroft, Shad Ali, Jeff Somers

2. and 3. Minutes of the meeting held on 16th April 2009 and matters arising - Nothing to add.

4. The new build team - Kate Proctor and Simon Powell.

A spatial strategy was adopted in March 2009 and 20,000 properties will be built in the city over 20 years, ending in 2026. This will average out at 1,000 per year. Consultation is currently taking place on Core Strategy document that covers planning policies. It is looking at issues and options and asking for people's views. It also includes various surrounding areas including Gedling, Rushcliffe, Hucknall and Erewash. It covers all types of tenure including private and social housing.

Consultation up until 31 July 2009 - www.nottingham.gov.uk/corestrategy - make sure your views are heard.

After that date the planning team will work up the preferred options, it will then be consulted upon again and in 2012 the Strategy starts. Building sites will be allocated at the next stage.

An important point to note is that the Council is not able to refuse planning unless there are issues such as loss of light, privacy, etc.

Mike Cole - Use Classes Order - white paper

Mike explained about a white paper that is currently being consulted upon. It is a consultation open to Local Authorities, Landlord Organisations, NUS, etc and must be in by 7 August 2009. The proposal is that landlords would need planning permission to convert a property into an HMO.

5. Council tax exemptions - Ian Mitchell

Ian clarified that receipt of benefit is not an exemption for council tax purposes, but they are instead receiving assistance. With regard to Council Tax, it is the property that is exempt not the person living in it. If a mix of students and people on benefits live in the same property, then Council Tax is payable by the landlord. Nottingham CC interpreted the legislation to always make the owner of a property liable if it is an HMO. There has been High Court cases that back the Council's rights to charge council tax if there are locks on the doors.

If a property becomes empty and unfurnished then there is an exemption for the first six months. After that the full council tax is payable. If left furnished, then 90% of Council Tax is payable as it is charged as a second home.

6. Accreditation

Nottingham CC is considering whether to join EMLAS and is preparing a report for consideration although no decision has been made yet. Unipol, EMLAS and First Lets are looking to expand the systems that they already have.

Licensing fees

The fees are currently being reviewed but no decision has yet been made, however, it is likely that the main fee will not increase dramatically. It is possible that it could be weighted so that landlords who do not apply for the license and the CC have spent time and effort tracing them, may have to pay more. The fee is currently £600 for a licence and £60 for second or subsidiary licences. Visit www.nottinghamcity.gov.uk and go to Executive Committee dated 20 March 2007 as this explains what was recommended to the committee to justify the fee.

Lorraine suggested continuing these topics at the next meeting.

8. Review of the Landlord Conference held 6 May 2009

Keith is to include a review of the Conference with these minutes.

9. Cleansing Service update

No one attended to give an update.

Sustainable communities legislation

NCC is putting forward suggestions to change the law. Lorraine Raynor to provide link with more information.

AOB

Bob Broughton mentioned that his tenants had been fined £500 for a property where the bins were left on the street and not emptied on the right day. This contrasts with the minutes from our last meeting where it was stated that it would be a fine of £100 per property, not £100 per student. Lorraine said she would look into this for Bob

Angela Lyons suggested that Landlords meet at 4.30pm before the next meeting to discuss any issues that may come up and for a general networking session.

Next meeting 17.15 Tuesday 18th August 2009, EMPO office

Nottingham City Council - Background Information Regarding their Focus on Houses in Multiple Occupation

Nottingham City Council (NCC) recognised many years ago that it was necessary to focus resources on Houses in Multiple Occupation (HMO) to address the issues of poor housing conditions and management found in this type of property in the City.

In the early 1990's a Team of Officers was established to deal with this type of property.

In 1995 the City adopted a notification only scheme of HMO registration (the forerunner to licensing) and, in 2001, a registration scheme, with control provisions, both of which were adopted at times when this was not a duty to do so.

In 1995 the City established, with surrounding local authorities and the Universities, the Greater Nottingham Student Accommodation Accreditation scheme to improve the quality of accommodation in this predominantly HMO sector of the housing market.

In 1996 the City established a Landlord Liaison Panel, which meets every two months, to allow Landlords and Officers of the Council to interact and develop a working relationship for the benefit of both landlords, tenants and residents.

In 1999 the City held its first annual landlords conference which provides a venue for speakers on current housing topics. The next conference is due to be held in May 2010.

In 2007 the City established three HMO Action Zone teams, each of five officers in areas of the City where HMOs predominate, to deal with management and housing condition problems. Considerable success has been achieved particularly in respect to the appearance of the areas.

In 2007, with funding from the City Council and Unipol - a student housing charity took on the role of promoting and operating the student accommodation accreditation scheme in the city and to date has accredited 1452 properties in the City

In 2009 the City has adopted a voluntary code of conduct dealing with the proliferation of 'To Let' sign boards which blight parts of the City particularly at times when students can be expected to be looking for accommodation for the next academic year.

The City already works with partner organisations including landlords organisations, local Neighbourhood groups, Decent & Safe Homes, other core cities, other cities with high student populations, Unipol, and the HMO Network to share best practice and training across the HMO field, but there are still problems affecting this sector of the housing market and prosecution of some landlords continues to be necessary to improve matters.

EMPO Voluntary Code for Lettings Boards

Following on from the voluntary code issued by Nottingham City Council for the use of letting boards, below is an alternative proposal drawn up by EMPO.

We feel that the code we are proposing is workable. If landlords do not respond on this issue, the voluntary code being offered by Nottingham City Council will eventually become mandatory and will hit landlords very hard.

This document is to provide a code of practice for advertising that is easily understood and effective. The intention is to provide an outline for advertising in the marked areas on the map of Nottingham. This will enable landlords to market their properties whilst minimising impact to the surrounding area.

The key criteria are as follows:

Annually from the 1^st September to the 30^th November, boards will not be erected and any existing boards will be taken down. This is to ensure that boards are not left up continuously. During this period boards will be permitted for Professional lets and any properties that are vacant.
Only one letting board will be permitted per property. In the case of flats boards will be located in compliance with the relevant leasehold agreement.
Boards will be removed within 14 days of the signing of a tenancy agreement.
Boards marked by "Let By", "Let", "More wanted" and other similar wording are to be prohibited.
Boards will be of a standard size of 0.5 square metres. They will be permitted to have a logo and any colour scheme provided fluorescent colours are not used.
Boards are to be mounted flat to the property with a suitable mounting. Boards erected at right angles to the property are not permitted. The boards must be mounted to the main building. If the boundary is greater that 7m from the main building, boards may be mounted here.

HMO Licensing Prosecution

A Derby landlord has become the first in the city to be prosecuted for not having an appropriate licence under recent housing laws. Ayub Khan was found guilty of not having a licence for the property he rented out and was fined £1,200 plus £200 costs by Southern Derbyshire Magistrates' Court. Licences have been required since April 2006 for properties of three or more storeys, housing at least five occupants in at least two households. The Council had warned landlords and letting agents that it intended to prosecute those who were not licensed. It took Mr Khan to court for not having a multiple occupancy licence. Landlords without licences can be fined up to £20,000 and be required to refund up to a year's rent to tenants. Licences in the city currently cost £880 for five years, with a discount of £60 for members of East Midlands Property Owners (EMPO).

£30,000 Bill for Landlord after Tenant Broke his Neck While Escaping from Fire

Landlords across Derbyshire are being warned to take their responsibilities for fire safety seriously after a judge ordered one landlord to pay £30,000 in fines and costs for breaches of safety legislation.

A tenant broke his neck when he had to jump from his bedroom window on the upper storey of his rented accommodation to escape a fire that had broken out.

The full story of the drama unfolded at Derby Crown Court which heard that landlord Dharmendrasinhji Chauhan, aged 44, had not taken the necessary actions to fit smoke alarms, fire doors and fire extinguishers.

The case against him was brought by the Derbyshire Fire and Rescue Service and it was the first of its kind under new safety legislation.

Chauhan pleaded guilty to nine offences under fire safety legislation and in his defence the court heard that he was a relatively new landlord having turned to the rental market after the post office he ran was closed down. He has since refurbished the property.

Following the fire, investigating officers from Derbyshire Fire & Rescue Service discovered there was no fire alarm or any other basic fire safety measures provided in the premises.

During sentencing, His Honour Judge Burgess referred to poor management and cutting corners that had put people at risk. He fined Chauhan £20,000 with around £10,000 in costs.

He said: "I want to send a message to others that let properties for money. I will hit you hard in the pocket. Any other landlord who thinks about cutting corners in this way should realise it is not economically viable. Landlords have got to take these responsibilities very seriously indeed."

Brian Tregunna, Chief Fire Officer, for Derbyshire Fire & Rescue Service said: "Landlords are reminded of their legal responsibility to protect their guests from fire. We will take action against anyone found to be in serious breach of fire safety legislation.

"This was the first prosecution that Derbyshire Fire & Rescue Service has taken under the new Fire Safety Order and it is reassuring to know that the courts will support our actions in order to maintain public safety."

The nine charges Chauhan pleaded guilty to were:

That he failed to take any general fire precautions as were reasonably required in the circumstances in order to ensure that the premises were safe.
That he failed to make a suitable and sufficient assessment of risks to persons at Abbey Street in order to identify the general fire precautions needed.
That he failed to provide any and/or appropriate fire detectors or alarms as required.
That he failed to ensure a quick and safe evacuation of persons from Abby Street in that six internal doors were not fire doors and did not restrict the spread of smoke and fire.
That he failed to ensure a quick and safe evacuation of persons from Abbey Street in that six internal doors did not have self closing devices and did not restrict the spread of smoke and fire.
That he failed to ensure a quick and safe evacuation in that six internal doors had no smoke seals and did not restrict the spread of smoke and fire.
That he failed to establish, and where necessary give effect to appropriate procedures to be followed in the event of serious danger to persons at Abbey Street.
That he failed to implement a proper system of maintenance and/or properly maintain equipment in efficient working order provided at Abbey Street in that the dry powder extinguisher had not been tested for 12 years.
That he failed to implement a proper system of maintenance and/or properly maintain equipment in efficient working order.

Housing Standards and EHOs Explained!

EHO stands for 'Environmental Health Officer' and these people have completed a recognised degree and passed professional exams and interviews in order to qualify with the Chartered Institute of Environmental Health. EHOs often work for local Councils, but in a variety of roles. They can work for...

the Food Safety team inspecting restaurants and investigating food poisoning;
the Health and Safety team inspecting businesses and investigating accidents;
the Public Health team investigating blocked drains and filth and verminous properties;
the Pollution Control team investigating noise complaints and monitoring air quality; or
the Housing Standards team inspecting rented properties and advising landlords.

EHOs can also work in the private sector, for example, for large businesses ensuring health and safety / food safety standards are maintained throughout all branches.

The Housing Standards Team

The Housing Standards Team at a local Council will generally be made up of a Manager, some EHOs and some Housing Standards Officers/Technical Officers (numbers will depend on the size of the department). Once a complaint is made to the department about poor living conditions in a property, the case officer will visit to carry out an inspection under the Housing Health and Safety Rating System (HHSRS) and Housing Act 2004. This assessment will take account of 29 different hazards, including 'damp and mould', 'excess cold', 'overcrowding', 'falls' 'fire', 'electrical' and 'carbon monoxide' to name the most common. The officer will rate any hazards found within the property and produce a schedule of works in order to rectify the problems. If the landlord does not carry out the required work within a reasonable timescale, the case officer will be required to take formal enforcement action, likely an enforcement notice, which will carry an associated charge. The Housing Team at the Council is happy to work with landlords to achieve safer properties, so always ring the team if one of your properties has been inspected to discuss timescales for completion or any difficulties you may have in carrying out the works.

Although the Council has the power to take the same action in owner occupied properties as it does in rented properties, this is often far less likely due to the power of the owner to decide on their own living conditions. Tenants do not hold this same power over the properties they live in.

Local Housing Standards Teams

If you have a query about your property please call the local Housing Standards Teams on the following numbers...

Broxtowe Borough Council - 0115 917 7777

Gedling Borough Council - 0115 901 3972

Nottingham City Council - 0115 915 6798

Rushcliffe Borough Council - 0115 981 9911

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