RLA launches new-look Local Authority Network

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The RLA has launched its new-look Local Authority Network site, a unique and easy-to-use resource that helps bring landlords and local authorities closer together. With local and national government rules changing in what seemS like the blink of an eye, it is not surprising that many landlords are confused about their obligations. This is where […]

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Landlord landed with £3.5k court bill over Rent Smart Wales offences

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A Cardiff landlord who ignored the Rent Smart Wales scheme faces a bill of more than £3,500 for non-compliance. Landlord Shelley Bailey of Eastwood Park, Wotton-Under-Edge, Gloucestershire was prosecuted under the Housing (Wales) Act 2014 for breaking the law requiring all private landlords with properties in Wales to register and all self-managing landlords and agents […]

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Making Tax Digital delayed and changed…

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Landlords’ Taxation:

The Government has delayed and changed its tax plans that would have made some small businesses and landlords have to file up to nine VAT and tax returns per tax year, and meeting six payment deadlines.

The “Making Tax Digital” plans have now been delayed until April 2020 for many businesses.

Those smaller business and landlords with a turnover of less than £85,000 will now no longer be required to report tax online.

Those over this threshold will only have to keep online records from 2019 and only for VAT purposes.

The original deadline prior to the last election was April 2018.

The Treasury has said that for other taxes businesses can move to the new system “at a pace that is right for them” and can wait until the system has been shown to work well – no earlier than 2020.

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Housing Benefit Overpayment Case Study

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Caridon Landlord Solutions was set up with one purpose in mind; helping landlords secure solutions to any Housing Benefit (LHA) issues which might arise with local councils or DWP in relation to Universal Credit. Most landlords have encountered a problem where they have received a “Housing Benefit notification” stating the benefit claim has ended and… Read more

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Letting Agent Gone Bust – Ilford

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A local letting agent in Ilford, Essex has closed down his business and run off – no one appears to know where he has gone. A number of landlords including myself have been left in a position where we have tenants in our properties and don’t know how to evict them. The original tenancy agreements… Read more

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Government must work with landlords, not against them

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Councillor Joe Carter is the Liberal Democrat housing spokesperson on Cardiff Council. In an exclusive article for the RLA he shares his views on the problems faced by the PRS in Wales and why it is vital that the government works with landlords to solve them. As the dust settles on the general election and politicians both […]

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Deposit retained by tenant find only agent?

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Does anyone know what the legal position is regarding an agent retaining the tenants deposit when they have been employed for a tenant find only? I already have an agent that manages my property and protects the tenants deposits, however, this agent claims that their procedure is to protect the deposits themselves through the DPS… Read more

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Are you liable for a multiple deposit fine?

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Tenancy Deposit Fines:

The deposit protection rules introduced in April 2017 have proved to be something on a minefield for landlords and letting agents. One might think it would be a simple process to introduce rules which would allow tenants to have their tenancy security deposits protected during the course of a tenancy, so that repayment or deductions is a fair process between both parties, but this has proved to be far from the case in practice.

As numerous cases went to court over fines and disputes, several precedents were set and there has needed to be several amendments to the rules in various Acts of Parliament, since the original legislation appeared in the Housing Act 2002.

Experts argue that the original legislation was poorly drafted, and so it would seem, as it has created several serious anomalies, one of which led to the seemingly ridiculous situation where a deposit had to be re-protected, and the statutory information re-served on the tenant, every time the tenancy was renewed, or even when it became periodic.

A court ruling led to thousands of landlords and agents being in breach of the rules and subject to a fine, through no fault of their own – it was a shambles.  Superstrike Ltd vs. Marino Rodrigues [2013]

The situation was largely corrected (Deregulation Act 2015) and after this most people in the industry then reasonably assumed that there was no longer a need to re-protect a deposit on renewal, or re-served the statutory information, once the original tenancy deposit had been protected.

The is in fact the case, but, where the deposit protection rules on the original tenancy had not complied, to the letter, e.g., protecting within the prescribed period of time, then any subsequent tenancy would require the deposit to be properly protected in accordance with the rules.

It just goes to show how important it is to comply with these legal rules – to the letter – when you realise that any breach in this situation leads to not only a fine of 3-times the deposit, but this for every renewed tenancy where no further protection is made.  So, for example, an original tenancy with a deposit of £900, where the rules had been breached, and renewed, for example, 3 times, would lead to a fine of £1200 x 3 x 4 = £14,000.00

With the advent of the “ambulance chaser” style solicitors specialising in helping tenants win compensation for breaches of tenancy deposit rules on a no win no fee basis, there is a big incetive for them, and many landlords could find themselves paying out these stunning fines.

Just such a case came to light recently, as reported in the Letting Update Journal of July 2017 where a fine of £18276 was due from a landlord.

The solicitor asked for immediate settlement from this landlord pending court, and he was indeed liable. The landlord’s agent had failed to protect the deposit of £2030 and would no doubt be liable in negligence to the landlord for failing to protect the original deposit within the then 14 days window allowed, and subsequently on 3 renewals. The fine would have been even higher had not the original tenancy been time barred under the Statute of Limitations Act 1980.

It is important to remember that landlords are ultimately responsible for their agent’s actions and landlords and agents should note that:

1 – There is no need to re-protect a deposit and re-serve the prescribed information (s213 Notice) when the tenancy is renewed or becomes statutory periodic, when otherwise the tenancy remains the same, providing the correct procedures were followed for the first tenancy.

2 – Even though (1) applies, it may still be necessary to follow specific deposit scheme rules, such as informing the scheme of a change, or paying a renewal fee.

Tenancy Deposit Schemes – UK Parliament

Tenancy Deposits, Superstrike and the Deregulation Act

The New Tenancy Deposit Rules

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Citizens Advice claims tenants in fear of eviction

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Repair Issues:

Two sides to every story: whilst a survey by the Residential Landlords’ Association (RLA) finds that the majority of tenants asked where satisfied with their landlord and their rental accommodation, a recent Citizens Advice survey finds that many low-income tenants still fear retaliatory eviction.

According to a new report issued by Citizens Advice (CA)*, private tenants are reluctant to ask for repairs to their homes, despite the recent introduction of retaliatory eviction legislation introduced in the Deregulation Act 2015, due to their ‘fear of retaliation’

Tenants’ fears about potential retaliatory eviction, or blacklisting and rent increases, are preventing four out of ten private tenants from making complaints to their landlords or requesting repairs, according to the CA report.

The report refers to an ‘entrenched culture of fear’ among private tenants, which they argue, explains why tenants with properties in poor and sometimes unsafe condition are turning to the CA charity for help.

The CA report claims that in the last 4 years there are around 1.85 million UK households that have waited longer than they should have done for the landlord to carry out repairs, and that the CA has helped tenants cope with more than 16,000 problems in private rented homes that were in poor or unsafe condition.

The CA say that private landlords in the private rented sector (PRS) have a legal responsibility to respond to requests from their tenants within 14 days and fix problems within a reasonable time, with urgent issues needing to be dealt with within 24 hours.

When renters wait longer they can approach their local authority to inspect and if necessary to have them serve a repairs ‘enforcement order’ on their landlord, or award financial compensation. In some cases the tenant could receive both. But the CA claims that this process is not working as it should because many low-income tenants don’t hold their landlord to account due to fears they could lose their home, or following improvements, would be faced with a rent hike.

In some cases tenants said that rather than pursue repairs issues with their landlords they would rather carry our DIY repairs or pay for the repairs to be done themselves rather than risk any form of retaliation from the landlord.

Gillian Guy, chief executive of Citizens Advice, had said:

“Renters should be able to ask for repairs to their home without fear of retaliation.

“Homes in poor condition are the most common private rented sector issue people turn to Citizens Advice for help with. Issues such as broken fittings, faulty electricals or leaks can make life hard for renters and can even lead to ill health. But renters aren’t pursuing their rights to repair because they are worried their landlord will put up their rent or evict them. To add to this, formal routes to redress aren’t being used either because they’re too difficult and expensive.

“Rent is the most expensive costs households face, but protections for renters simply don’t reflect this. The new government needs to make it easier for people to have their rights enforced when their home is in poor condition.

“The redress process also needs to give renters protection from retaliatory action, so they feel confident reporting a problem in their home and don’t feel like their only option is to dip into their own pocket.”

Bur, argues the RLA, different story emerges from the 2015/16 English Housing Survey:

This government funded study finds that private tenants are more satisfied with their rented accommodation than those housed in the social rented sector, council and housing association tenants.

The English Housing Survey shows that 82 per cent of private sector tenants are satisfied with their current accommodation, ahead of the 81per cent who said the same about the social sector. Rates of dissatisfaction, it says, were higher in the social sector, with 13 per cent of tenants dissatisfied with their accommodation compared to just 10 per cent in the private rented sector.

In addition, 67 per cent of private sector tenants said they were satisfied with their current tenure status, with the average length a private sector tenant had been in their property reported as over four years.

This survey says the RLA “bursts the myth peddled by some that tenants should be living in fear of eviction.”

According to these housing statistics, 73 per cent of tenants in the sector left their last property because they wanted to, with just 11 per cent did so because they were asked to by a landlord or an agent. Just two per cent of tenants moved because of rent increases by their landlord.

RLA Chairman, Alan Ward, says:

“Whilst today’s data clearly shows that many challenges remain for the sector, it is clear that the picture is one of significant improvement.

“With only a very small minority of tenancies ended by a landlord or because of increased rent, it is time that those who suggest that landlords spend their time looking for ways to evict tenants or make profits at their expense replaced fearmongering with facts.”

The English Housing Survey data can be accessed at: https://www.gov.uk/government/collections/english-housing-survey

*Citizens Advice is an operating name of the National Association of Citizens Advice Bureaux

The RLA represents over 50,000 private sector residential landlords in England and Wales.

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5 things Sheffield’s student HMO landlords should consider this summer

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1. Security No one likes to think too much about their property being burgled. As unpleasant a thought as it may be, your property’s security should always be reassessed each summer. Whilst Sheffield has seen a reduction in burglaries, reported cases remain high compared to similar demographic areas nationwide. In Broomhill, a thoroughly student heavy… Read more

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