Westcountry Landlords Association

Latest News

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   Tenant Fees Act 2019

    Introduced 1st June 2019
  The Tenant Fees Act 2019 (the Act) is part of a Government scheme to make residential letting fairer and to reduce the "hidden" costs that many tenants face when renting in the private sector. Tenants can see at the outset of a tenancy what the real cost of renting that property will be.
  
  The main provisions of the Act came into force on 1st June 2019 and apply to all assured shorthold tenancies (ASTs), tenancies of student accommodation, and licences to occupy housing in the private rented sector in England, granted on or after 1st June 2019.
   
  It will apply to all ASTs (including those predating the Act) with effect from 1 June 2020....
  To see full article click here
  
   
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    New blacklist will be a ‘valuable tool in protecting tenants’ 

    The new blacklist of rogue agents and landlords, introduced as part of the Housing and Planning Bill, will go a long way towards improving standards in the letting industry in England, according to PayProp.
    The list, which came into play at the start of this month, gives local authorities powers to ban consistently bad landlords and agents, and impose civil penalties, as well as publish their names in a blacklist available to central and local government.
    
     
    
    t’s been a long time in the making, but we hope that this new development will help local authorities keep track of those acting unlawfully in the private rented sector,” said Neil Cobbold, chief operating officer of PayProp in the UK.
    “Provided there are the resources available to manage and maintain the database, it could prove a valuable tool in protecting tenants from sub-standard rental accommodation and criminal operators,” he added.
                                                 
    However, the decision to keep database private and only accessible to the Department for Communities and Local Government (DCLG) and local authorities remains controversial, and has been criticised by several trade bodies.
    
    But while some people believe that the information should be made widely public, others argue that it should also include rogue tenants. 
    
    
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      Theresa May – “I will take charge to solve the housing crisis”

      heresa May’s grueling speech to the Tory party conference pledged to fix the broken housing market and to fulfil the “British Dream” for you people to own a home, but it was light on new policy details and money.
               
      On the PRS May said that she wanted to give redress to tenants where landlords did not adequately maintain their homes. Another nod to the compulsory Redress scheme  for private landlords muted early October 2017.
                              
      On the housing market, May restated that it was the Tories who introduced Help to Buy but “the election result shows that is not nearly enough” to redress the generation inequality that the average house price is now 8 times average earnings.
                                      
      She also confirmed that there will be an additional £2bn for affordable housing, increasing the budget to over £9bn. However, there was no mention of the number of additional homes this would create, but new homes for social rent at below market rates need to be built where the need is the greatest.
      Mrs May told, or warned, developers that the government will make land available, but it they must take the responsibility to build homes people need.
      Unlike recent Prime Ministers though she told the conference that it was her mission to solve the housing crisis and she would take personal charge.
      
      Will this be sufficient compared to Jeremy Corbyn’s promise to build a million new homes if Labour were to get into power?
      
      
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        RICS Surveyors concerned about Landlords leaving the PRS

        The Royal Institution of Chartered Surveyors (RICS) conducted a survey of its members which highlighted their concern over landlords leaving the PRS when demand for rental property is already outstripping supply.
        Member Surveyors surveyed thought on average over the next five years rental price inflation would be 3% where as they thought house price inflation would only average 2%.
        61% of Surveyors thought more landlords would exit the market than enter the market over the next year and only 12% predicted the reverse.
                                         
        Over the next 3 years 52% predicted there would be a net loss of landlords to the PRS and only 17% thought there would be a greater number (some may still not fully understand the consequences of Section 24).
                                              
        Paul Bagust, of RICS, expressed concern over this prediction of landlords exiting especially when current house price inflation would normally mean the reverse.
        Paull said: “A functioning private rented sector is crucial to a healthy housing market and it’s predicted that over 20% of all households will be PRS by 2020. The sector is extremely diverse, including many one home landlords.
        
         
        “RICS is part of a sector wide collaboration developing a revised industry led PRS Code of Practice, to raise standards for both consumers and landlords, bring clarity to those already in the market on various policy measures, and encourage landlords back into a professionalised market.”
        
        
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          Just 31 Illegal Migrants Removed from the UK Through Right to Rent Rules

          Just 31 illegal migrants have been removed from the UK through Right to Rent rules, according to statements made by Government ministers.
          Following controversy over how effective the Right to Rent scheme will be at removing illegal migrants from the country, Labour’s Baroness Lister of Burtersett questioned the Government on how many landlords and tenants have been investigated under Right to Rent rules in the past year.
                              
          The Right to Rent scheme was introduced on 1st February 2016 in a bid to prevent illegal migrants’ access to the private rental sector.
          
           
            Many landlords have struggled to understand their responsibilities concerning the rules, with recent research suggesting that the scheme is causing a great deal of worry to investors.
           While landlords can now be imprisoned for failing to comply with Right to Rent rules, it appears that the scheme may not be proving as effective as the Government may have hoped.
          Responding to Baroness Lister’s request on how many illegal migrants have been identified and removed from the UK through the scheme, the Minister of State for the Home Department, Baroness Williams of Trafford, explained that the Home Office does not hold information about the overall number of illegal migrants found living in private rental accommodation.
          
           
          
           
          However, she did present some figures on how many illegal migrants have been identified through enforcement action.
          
           
          She explained: “Our records show that between the start of the scheme and 30th September 2016, 654 individuals were either named on a Civil Penalty Referral Notice served on a landlord, or encountered on an enforcement visit during which such a Notice was served, or encountered as a result of information provided through the Landlords Checking Service, or encountered as a result of other intelligence provided about property let to illegal migrants.
          
          “Of these individuals, 31 were removed from the UK over the same period. Other cases may be being progressed to removal, or have been made subject to reporting restrictions, or have sought to regularise their stay, or have left the UK voluntarily.”
          
          Baroness Williams then went on to defend the scheme: “The Right to Rent scheme is designed to restrict access to the private rented sector for illegal migrants in order to encourage voluntary departure from the UK and discourage illegal migration. The Home Office will always investigate information it receives about illegal migrants and take appropriate enforcement action according to the information available and the circumstances of the case. It is not always possible to attribute a return or other enforcement activity to the application of a sanction earlier in the case or to the route through which a particular individual was brought to the attention of the Home Office.”
          
          So has the scheme proved successful in rooting out landlords that knowingly let to illegal migrants?
          Between 1st November 2015 and 31st October 2016, when failure to comply with Right to Rent rules was still a civil offence, 75 initial civil penalties were issued to individual landlords.
          
          It appears that the Government’s attempts to deny illegal migrants access to housing in the UK may in fact be more effective at uncovering rogue landlords that provide rental housing to those unlawfully living in the country.
          
          
          
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            Date For Landlord Blacklist Revealed By Minister

            An official blacklist of bad landlords and letting agents will be introduced by the government from 1st October 2017.
            The database will cover property people who are convicted of housing offences in England.
                           
            These are mainly aimed at landlords with houses in multiple occupation (HMOs) who are found guilty of running a home without a licence and safety offences.
            The scope of the database may be widened to include letting agents who charge fees to tenants once a ban comes into force – no date has yet been suggested for this.
            The timetable for the blacklist was revealed by Under Secretary of State at the Department for Communities and Local Government Lord Bourne in response to a written question in the Lords from Baroness Grender, who asked whether letting agents would be blacklisted for charging fees.
                                                              
            
             
            She is sponsoring the Renters Rights Bill that proposed the letting agent fee ban before the details were announced by Chancellor Philip Hammond in his Autumn Statement 2016.
            
             
            
             
            Bourne told her that the government is still considering which offences to criminalise for recording on the black list.
            
             
            Lord Bourne wrote:
            
             
            "While most letting and managing agents provide a good service, a minority of agents offer a poor service and engage in unacceptable practices.
            
             
            “The government is keen to see tenants receiving a good service from their landlord and letting agent, and that is why we announced in the Autumn Statement a ban on letting agent fees paid by tenants in England. This will support better competition in the market and bring down overall costs.”
            
            “Tenants will be better able to search around for properties that suit their budget and there will be no hidden costs. This may be preferable to tenants being hit with upfront charges that can be difficult for them to afford.”
            
            He added a consultation would start soon over which offences would be included on the database blacklist.
            
            
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              440,000 landlords forced up tax bracket from April 2017

              More than four hundred-thousand landlords (22 per cent)* who pay the basic rate of tax will be forced into a higher tax bracket from April next year (2017) as planned changes to landlord taxation come in to force.
              
               
               
              
               
               
              The changes, once fully phased in by 2021, will mean landlords will no longer be able to deduct mortgage interest payments or any other finance-related costs from their turnover before declaring their taxable income.
                                
              Currently, mortgage interest payments are one of a number of expenses that landlords can deduct as a business cost, including insurance premiums, letting agent fees, and maintenance and property repair costs.
                                              
              However, while 440,000 basic-rate tax payers will be forced into a higher bracket, all landlords could be at risk of seeing their tax liability increase regardless of their existing rate of tax, with landlords in Central London (31 per cent), the East of England (30 per cent), and the West Midlands (28 per cent) particularly hit. A full regional breakdown can be seen bel   mount by which landlords will be affected will depend on their personal circumstances, including whether or not they generate income from any other sources. 
              
               
              Landlords’ tax liability will increase depending on their existing annual mortgage interest payments, which are broken down by portfolio size below**.
              
               
              -       Single property - £3,600
              
               
              -       2-3 properties - £8,600
              
               
              -       4-5 properties- £16,300
              
               
              -       5-10 properties - £18,200
              
               -       11-19 properties - £24,900
              -       20+ properties - £38,000
              
              WLA advise that you obtain more guidance from your accountant regarding your own circumstances.
              
              
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                Ban on Tenant Fees

                Following the announcement recently made by the government regarding tenant fees, it is important to know how this affects landlords and tenants.
                The Chancellor of the Exchequer, Phillip Hammond, made the announcement during the release of the Autumn Statement (2016) stating that tenancy fees and administration fees would be enforced with a blanket ban.However, even though the ban has been announced, it has not been made law as of yet as it must be passed first by the House of Commons and the House of Lords before receiving royal assent to become statute.
                There have been many rows over the last week between landlords and Associations representing this proposal, stipulating that even though it might benefit tenants in the short term not paying agency fees, only to be struck with higher costs elsewhere. Early findings indicate that agencies will now have to look at alternate methods of generating revenue with the main option in many cases is to charge more fees directed at landlords for using agencies and the services they provide.
                                             
                This has caused problems for landlords as they will have to face higher charges for services such as a management service and will most likely take their business elsewhere to a cheaper agency to avoid higher hikes in prices.
                
                 
                Furthermore, this will lead to higher rental costs for properties as landlords will have to generate more revenue, if they are to pay for higher management costs from agencies.
                
                 
                
                 
                Letting fees have already been banned in Scotland and agencies have responded saying to counter the ban, landlords increased the rental periods per month for the properties.
                
                 
                
                 
                Findings suggest that this result is likely within the UK, creating a circle in which prospective tenants may no longer have to pay agency fees, but they will have to pay increased costs therefore in the long run the cost will work out to be similar.
                
                 
                
                 
                Landlords will also be struck with new tax implications in April, following the changes to the rates on buy to let mortgages, falling from a maximum of 45% to a flat rate of 20%, limiting profits further to landlords that own buy to let properties in their own name rather than a company name.
                
                 
                
                 
                Despite the ban however, landlords will be flexible in choosing an agent to manage their properties and can compare market prices, whereas prospective tenants are not afforded that luxury at they have to view properties that are available in their price range regardless of which agency advertises the property.
                
                 
                
                 
                It is clear that prospective tenants will benefit from the ban in the short term and for prospective tenants finding it easier to gather money for the first months’ rent and bond, although in the long term with landlords increasing rental periods, it will simply even out the total costs.
                
                 
                
                 
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                  Legionella Deaths Slump To Lowest Level For 10 Years

                  Deaths from the deadly Legionella disease have dropped to the lowest level for a decade.
                  According to the latest data from public health England, 26 people died from the disease in 2015 from a reported 382 cases.
                  
                   
                   
                   Three times as many men (287/75%) contracted the disease than women (95/25%).
                  
                   
                  
                   
                   The regions with the most reported cases were the East and West Midlands.
                  
                   
                    Three out of every four patients also had a heart condition or smoked.
                  
                   
                  
                   
                  The disease was tracked to three main causes – 50% caught the disease in their local neighbourhood, 46% while travelling overseas and 4% from hospitals or other healthcare facilities.
                  
                   
                  
                   
                  Spain, Thailand and the United Arab Emirates were the countries linked to travellers who contracted the disease.
                  
                   
                  
                   
                  Legionella is a potential killer form of pneumonia caused by breathing in contaminated water droplets.
                  
                   
                  
                   
                  The main source of the disease is man-made water systems.
                  
                   
                  
                   
                  Landlords have a legal responsibility to risk-assess water systems in buy to let homes or houses in multiple occupation (HMO) and ensure measures are in place to reduce the risk of Legionella.
                  
                   
                  
                   The Health and Safety Executive (HSE) says the risk of infection is low in a buy to let or HMO where tenants flush the toilets and switch on taps every day.
                  
                  If a property has stood empty, the HSE recommends flushing the water system before tenants move in.“Where showers are installed, these have the means of creating and dispersing water droplets which may be inhaled causing a foreseeable risk of exposure to Legionella,” says the HSE.
                  
                  “If used regularly, the risks are reduced but in any case, tenants should be advised to regularly clean and disinfect showerheads. 
                  “Instantaneous electric showers pose less of a risk as they are generally cold water-fed and heat only small volumes of water during operation.”
                  
                  
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                    Immigration and Right to Rent: changes are coming - are you prepared?

                    It was announced that from 1st February 2016, all private landlords in England will need to carry out right to rent checks on all new prospective tenants and occupiers, to check they have the right to live in the UK.
                    
                     
                     
                    Failure to carry out all the checks properly, or not reporting back properly, could result in a fine of up to £3000 per illegal occupier.
                    
                     
                      
                                          
                    :
                    Immigration Bill
                    Read more at 
                    
                     
                     
                    
                     
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                      Changes in legislation for Landlords

                      New legislation came into force on the
                      1st October 2015
                      for Private Landlords in England regarding smoke and Carbon Monoxide (CO) alarms.
                      
                       
                       
                      Here is a summary of the legislation, passed through Parliament in September 2015:
                      
                       
                       
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                        Landlords must fit a smoke alarm on every storey
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                          Landlords must fit a Carbon Monoxide (CO) alarm in every room with a solid fuel burning appliance
                          •  
                            Alarms must be tested and working on the start of each tenancy
                            •  
                              Penalties of up to £5,000 for those that flaunt the rule. It is outlined that the relevant Local Authority will enforce
                              
                               
                              It should be noted that:
                              •  
                                There is no grace period
                                •  
                                  The regulations do not stipulate the type of alarm to be installed however the Q&A booklet states:
                                  
                                   
                                  ‘Landlords should make an informed decision and choose the best alarms for their properties and tenant’.
                                  •  
                                    Although the legislation refers only to solid fuel burning appliances in relation to CO alarms, the Q&A booklet states in relation to gas appliances that:
                                    
                                     
                                    ’we would expect and encourage reputable landlords to ensure that working carbon monoxide alarms are installed in rooms with these [gas appliances].’
                                    
                                     
                                    Best Practice
                                    
                                     
                                    Smoke alarms
                                    are life saving devices and each have their own British Standard (BS 5839-6:2013) that will tell you where to put the alarms. Building Regs, Local Authorities, HMO Licences and Installers fit to these Standards, and WLA recommends that landlords also fit to these Standards.
                                    
                                     
                                    
                                     
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                        A major drafting error in Government regulations affecting the private rented sector risks undermining confidence in new legislation being applied to the sector.

                        The Deregulation Act, passed prior to the General Election, provides Ministers with the power to introduce a new standard form for landlords to complete and provide to a tenant when seeking to regain possession of a property on a no fault basis, known as a Section 21 notice.
                              
                        The form became legally binding from the 1st October 2015, the Residential Landlords Association (RLA) has written to the Housing Minister, Brandon Lewis MP, to seek a delay following the revelation of a serious drafting error.
                        
                         
                         
                        The standard form, as currently drafted, notes that where a fixed term tenancy ends and then turns into a rolling or periodic tenancy the Section 21 notice would only be valid for four months from the date that it is served on the tenant*.
                        
                         
                         
                        
                         
                        This contradicts the Deregulation Act, which makes clear that the required period to regain possession of a property where a tenancy is a rolling or periodic tenancy, should instead be four months from the date the Section 21 notice expires**.
                        
                         
                        
                         
                        Despite having engaged thoroughly with the Government on its proposals, the final version of the standard form, published at the end of last year, had not been shown to the RLA.
                        
                         
                        
                         
                        The RLA is warning that the drafting exposes landlords to a legal minefield, and is calling for the implementation of the plans to be delayed to give more time to get them right.
                        
                         
                        
                         
                        RLA policy director, David Smith, said:
                        
                         
                        “The RLA continues to share the Government’s ambitions to ensure that all landlords understand and properly implement their legal responsibilities and obligations."
                        
                         
                        
                         
                        “In light of the major changes being introduced for the sector it is vital that all documents published by the Government are clearly understood. This drafting error will serve only to dent the confidence of landlords in the legislation."
                        
                         
                        
                         
                        “Whilst Ministers are understandably eager not to let these new measures drift, it would make more sense not to rush their implementation than face the potential legal difficulties that will now arise for landlords.”
                        
                         
                        
                         
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                          When do Landlords have the right to raise the rent?

                          Many landlords feel guilty raising the rent. But the costs of running a property business - finance, repairs and administration certainly don't go down over time, so you may need to revise your rent every few years.
                                   
                          Landlords can't just go round increasing their rents whenever they want. You do, however, have a right to adjust the rent at certain intervals. The way in which you can go about increasing the rent will depend on whether the tenancy is fixed or periodic.
                          
                           
                           
                           
                          Remember that choosing to raise the rent may lose you a good tenant.
                          
                           
                          
                           
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                            Local authorities that charge landlords for licences solely to collect information on the number of landlords in an area have been exposed for doing so without reason.

                            A letter sent to all councils in England from the Department for Communities and Local Government has made it clear that they already have the power to ask tenants for information about a property’s tenure and landlord identity. This enables every local authority to build a register of landlords.
                            
                             
                             
                            The Residential Landlords Association (RLA) argues this exposes the expensive folly of licensing. Under licensing schemes operated by some councils, they ask landlords to register and charge them a fee for doing so. These serve only to increase rents as landlords pass the costs on to tenants. The Housing Minister has previously dubbed them a: “tenants’ tax.”
                            
                             
                             
                            The RLA has long campaigned for tenants to be asked to identify their landlord on council tax registration forms as a more effective way of finding all landlords, including criminal landlords who would never come forward to be licensed.
                            
                             
                             
                            
                             
                            Commenting, Alan Ward, Chairman of the RLA has said:
                            
                             
                            “The RLA is calling on councils to now drop the tenants’ tax that licensing has become. They should use the powers they already have to identify all landlords and go after the criminals."
                            
                             
                            
                             
                            “Councils have always had the power to identify all landlords. This letter is a reminder from the Government that they should use it instead of creating bureaucratic licensing schemes which tenants ultimately have to pay for.
                            
                             
                            
                             
                            “Asking tenants to identify their landlords is far more effective in finding and rooting out the criminal landlords who never willingly make themselves known.”