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16/05/2009  National register for English landlords proposed
National register for English landlords proposed
The government has published its long-awaited response to the Rugg Review of the private rented sector. Proposals include:
• National register for all English landlords
• Mandatory regulation of letting and managing agents
• Raising standards through training and accreditation
• Encouraging institutional investment in rented property
The proposed national landlord register would be run by an independent body. Landlords would have to register their name, home address and all rental addresses every twelve months.
The details of this scheme and the other proposals have yet to be published. The government has indicated that it will publish draft legislation later this year, but how the economy and the impending General Election may affect this remains to be seen?


16/05/2009  New Rules??
The private rented sector: professionalism and quality - The Government response to the Rugg Review Consultation

The Housing Minister, Margaret Beckett, announced on 13 May new proposals to improve consumer protection for tenants living in private rented accommodation. The suggested improvements come as a result of the Rugg Review that was published in October 2008 and related recommendations made by the Law Commission.

The overall aim is to improve the quality of private rented sector and the Government believes that this can be achieved by increasing the professionalism in the sector and drive out landlords with ‘bad’ practises. Part of the proposals is also to change the law for tenants living in properties being repossessed by giving them a minimum of two months’ notice that they have to leave.

The following proposals will be taken forward for consultation:

* Introducing a light-touch national register of every private landlord in England to increase protection for both vulnerable tenants and good landlords. Landlords will need to include their registration number on all tenancy agreements and could be removed from the register for persistent poor performance like failing to carry out essential repairs, or not protecting tenants' deposits.

* Full regulation for private sector letting agents. Letting and managing agents do not currently need to have professional credentials. This means that both tenants and landlords have no realistic redress when things go wrong. To tackle these problems, the Government proposes creating an independent regulator for all letting and managing agents.

* An improved complaints and redress procedure for tenants. For the first time, the Government will look to set up a mechanism whereby tenants are able to register official complaints about sub-standard landlords, and if these complaints are substantial and proven then landlords may be removed from the national register.

Greater local authority support for good landlords. Local authorities will be encouraged to create 'local lettings agencies' to better facilitate tenancies in the private rented sector for those in housing need, including Housing Benefit recipients.

Some of the proposals will require implementation of primary legislation but the Government believes that much of the work can be started already now by, for example, creating more training and better accreditation. The landlord register will be web based and simplistic in regards to information required to avoid it becoming an “unnecessary burden on the market”.

The consultation will close 31 July 2009 and more information can be found at:
http://www.communities.gov.uk/publications/housing/responseruggreview




HMO consultation

Another consultation document that has received less publicity is that the Government is looking at three options for addressing the impact of high concentrations of houses in multiple occupation (HMOs). This comes as a result of a number of towns and city’s throughout England reporting problems such as anti-social behaviour (for example noise), litter, parking problems, reduced opportunity for low cost ownership or closure of under-used community facilities.

The options are:
* Non legislative option (local management option)
* Amend the Use Classes Order to allow tighter planning controls over HMOs
* The use of an article 4 direction (claim compensation for planning permission being turned down) to remove powers for properties to convert to HMOs.

This consultation ends 7 August 2009 and more information can be found on: http://www.communities.gov.uk/publications/planningandbuilding/housesmultipleconsultation
11/04/2009  Is your property a cannabis factory?
Could your property be housing a cannabis factory?
The BBC has reported a sharp rise in the number of 'cannabis factories' found in rented property throughout the UK. Properties targeted are usually terraced or semi-detached houses.
Landlords should look out for the following signs:
• Strong smell of de-odourisers or air fresheners to disguise the smell of drug production
• Lights being left on all day and night and curtains and blinds drawn
• A sudden jump or fall in electricity
• Possible rewiring
• High humidity in the property
Anyone who suspects that a premise is being used as a cannabis factory should telephone the police on 0845 8 505 505 or Crimestoppers, anonymously on 0800 555111.


11/04/2009  Housing Benefit. Local Housing Allowance
Local Housing Allowance is causing problems.

Historically Housing Benefit was paid in two forms; Rent Allowance for private sector tenants and Rent Rebate for council tenants. As from April 2008, a third system, Local Housing Allowance (LHA) was introduced. Contrary to common belief, the former systems remain and are still used. For example, Rent Rebate is still paid to private sector tenants who live in mobile homes and also to all claimants whose original unbroken claim was prior to April 2008.

What makes LHA different from Rent Allowance is that LHA ignores the open market value of a property and simply pays benefit based on the entitlement of the claimant. The level is now capped at no more than £15 per week above the contractual rent. The second difference, and the one causing the most concern, is that with limited exceptions, the payment is made directly to tenants.

This direct payment has been a major cause of concern since it was announced and for some landlords and letting agents, it is now creating a lot of extra work collecting rent. Many tenants don’t actually want to be paid directly and then have to pay their landlord, but they no longer have any choice.

The core of the problem lies in the new rules which means that there is no ability for the council to pay LHA directly to landlords and agents just because the tenant requests it. Direct payments can be made when 8 weeks of rent is outstanding and/or the tenant is classified as vulnerable, but the chance of the arrears ever being recovered is slim.

A closely related problem being reported is that where the tenant receives the payments of LHA, the landlord or agent is no longer informed about council decisions. Under direct payments with the old system the landlord or agent was sent copies of the amounts being paid and also notifications if the payments were to stop. Under the new scheme they get no information which makes helping the tenant manage the rent account even more difficult.

The landlord or agent will not be aware of any problems related to the rent payment until the payment suddenly stops, i.e. no money transfer has taken place or the tenant does not turn up to pay the rent. It can then take considerable time and effort to get in contact with the tenant and find out the reasons why rent is not paid on time.

Many landlords are now so unhappy with the problems related to the new LHA system that they are threatening to withdraw from providing accommodation to tenants in receipt of benefits.
11/04/2009  New HMRC Tax compliance rules
New HMRC Tax compliance rules
From April 2009 HMRC will have new powers covering PAYE, VAT, Income Tax, Capital Gains Tax and Corporation Tax permitting them to:
• Visit businesses to inspect premises, assets and records
• Ask taxpayers and third parties for more information and documents
The new legislation will also provide:
• Greater flexibility in setting record keeping requirements
• New time limits for assessment and claims
For more details visit the HMRC website and speak to your tax adviser. Landlords who are self-employed can call the HMRC Self Assessment Helpline on 0845 900 0444.