Posts with tag: regulations

Thousands of Landlords Face Unlimited Fines for Heat Network Negligence

Published On: September 28, 2017 at 9:35 am

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Tens of thousands of landlords and developers could face unlimited fines because of a lack of awareness of the regulations surrounding heat networks, a leading compliance expert has warned.

Thousands of Landlords Face Unlimited Fines for Heat Network Negligence

Thousands of Landlords Face Unlimited Fines for Heat Network Negligence

Around 17,000 heat networks have gone through the process of registering sites with multiple tenants, but Michael Gallucci, the Managing Director of MPGQS, says that many more individuals and organisations have missed the deadline for notification.

“It is pretty clear that people are perplexed by the requirements for metering,” says Gallucci, whose company advises major residential property owners and managers on notification and boiler/MEP issues. “I would urge people to seek professional advice.”

He adds: “Although regulations are an administrative headache for agents and an unwelcome cost burden for landlords, managing the process well could help reduce energy bills and develop more efficient buildings.”

Gallucci warns that shifting deadlines, which create a “moving target” for compliance, did not help confusion in the sector.

He explains: “Managing agents must ensure their clients comply by reporting information about properties where residents are supplied with heating, cooling or hot water. They may also be required to install meters at occupier level, an obligation that’s set to roll out more widely in 2017, spreading the net of those who can be caught out. It’s complex but cannot be ignored. Non-compliance with any of the requirements to notify, meter and bill is a criminal offence that can lead to civil and criminal sanctions, including unlimited fines, not to mention damage to reputation.”

Driven by an EU target to cut greenhouse gas emissions from their 1990 levels by a fifth by 2020 and to raise standards in heat networks, the Government hopes that giving end users data should encourage them to reduce energy consumption.

Under the Heat Network (Metering and Billing) Regulations 2014, even a building owner or manager with a small sub-let is classed as a heating supplier if the tenant is charged for heating, cooling or hot water, whether it’s billed separately or included in the rent.

Such suppliers were required to notify the National Measurement and Regulation Office (NMRO) by the end of 2015. NMRO can impose civil sanctions for non-compliance with the notification requirements, including compliance notices or enforcement undertakings and financial penalties.

Gallucci warns that you could face substantial fines if:

  • You haven’t already completed the notification
  • You are involved in a new development or a major refurbishment and haven’t installed meters at occupier level
  • You haven’t installed meters at building level on all existing properties that you manage or own

Landlords, make sure to check whether you have complied with these regulations!

Nationwide assembles Industry Alliance to support sector

Published On: September 18, 2017 at 1:53 pm

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Nationwide Building Society has moved to assemble what it is calling ‘an industry alliance,’ in order to support the troubled private rental sector.

The Nationwide Partnership Board is backed by:

  • Association of Residential Letting Agents,
  • Countrywide
  • The National Landlords Association
  • Nationwide Foundation
  • Shelter

Private Rental Sector

The Nationwide, coordinating the group, says that it will monitor the health and development will assess the health and safety of the private rented sector. In addition, it pledges to discuss issues of concern and provide policy suggestions to the Government.

Joe Garner, Chief Executive of Nationwide Building Society, observed: ‘With a Draft Bill on letting agent fees already in progress, and greater powers for local councils beginning to take effect, it is clear that reappraising the private rental sector is already firmly on the government’s agenda and so we look forward to working with the housing minister to help influence a future that works for all. By coming together we can help deliver somewhere decent for everyone to call home.’[1]

In addition, new research from Nationwide suggests that landlords are struggling to keep up with the financial impact of tax and regulatory changes. It is feared that these changes could lead to increased rents, reduced spending and more landlords leaving the sector.

Nationwide assembles Industry Alliance to support sector

Nationwide assembles Industry Alliance to support sector

Changes

A YouGov survey of 1,000 landlords- commissioned by The Mortgage Works- discovered that many landlords are shielding their tenants from the financial impact of the changes. 29% have never increased their rent.

44% however are now considering increasing their rents, while 10% said they will cut the amount they spend on property maintenance. 14% of landlords said that they will start to manage the property themselves, as opposed to using an agent.

22% noted that they are considering selling their property.

 

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/9/countrywide-and-arla-in-industry-alliance-to-support-lettings-sector

 

 

Majority of People Want the Lettings Industry to be Regulated

Published On: November 18, 2016 at 10:34 am

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Categories: Landlord News

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The majority of people want the lettings industry to be regulated, according to a survey for the BBC’s popular Victoria Derbyshire show.

76% of people believe the lettings industry should face tougher regulation, including controls over letting agent fees, lengths of tenancies, deposits and inventory checks.

Majority of People Want the Lettings Industry to be Regulated

Majority of People Want the Lettings Industry to be Regulated

In addition, 74% want rent controls in the private rental sector.

Yesterday’s Victoria Derbyshire programme discussed the lettings industry and the results of its study.

The survey, of 1,002 people, also found that 69% believe rent rises when a tenancy is renewed should be capped, while 63% want the standard minimum lettings term to be increased to 12 months.

The accompanying BBC news story looks at three case studies, including a family with three children who have moved ten times in the last 12 years, and a tenant who was given 28 days’ notice to leave his home of five years, but struggled to find the money needed for a deposit, rent in advance, and letting agent fees for his next rental home.

The Chairman of the Residential Landlords Association (RLA), Alan Ward, told the BBC that although the idea of rent controls may seem “attractive”, they would be a “disaster” in reality.

He adds: “All experience of them shows that they lead to landlords cutting investment or quitting the market, reducing both quality and choice for tenants. The way to moderate rents is to encourage investment and boost supply.

“There are already well over 400 regulations affecting the private rented sector, and the actions of successive governments is raising the cost of renting.”

He continues: “The problem is not about a lack of regulations, but proper enforcement of them, and we support local authorities in their efforts to root out criminal landlords.”

A spokesperson for the Department for Communities and Local Government also says: “This Government is committed to creating a bigger, better private rented sector, with up to £10 billion in Government-backed guarantees to build more quality homes for rent.

“We are doing this without the need for excessive state regulation that would push up prices and make it far harder for people to find somewhere to rent.”

The Government’s blacklist of rogue landlords, which will also be controlled by local authorities, will be in operation from autumn 2017: /blacklist-rogue-landlords-operation-autumn-2017/

The Valuation Office Agency released statistics on the private rental sector in England yesterday. It found that the median monthly rent over the past year was £650. London had the highest, at £1,473, while the North East is the lowest, at £480.

Landlords, Remember that it’s Gas Safety Week!

Published On: September 20, 2016 at 8:31 am

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Categories: Landlord News

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All landlords and homeowners must remember the importance of gas safety this week, as it’s Gas Safe Register’s Gas Safety Week!

Landlords, Remember that it's Gas Safety Week!

Landlords, Remember that it’s Gas Safety Week!

From 19th to 25th September 2016, Gas Safe Register is holding its annual Gas Safety Week for the sixth year running. It sees organisations from across the UK working together to raise awareness of the dangers of poorly maintained gas appliances, which can cause devastating gas leaks, fires, explosions and carbon monoxide (CO) poisoning.

Although gas safety is important all year round, it is not always a landlord’s or homeowner’s top priority. Gas Safety Week provides a platform for the gas industry, consumer organisations and individuals to focus on spreading the word.

Gas Safe Register reminds all landlords and homeowners to remember that unsafe gas appliances can put you and your tenants at risk of CO poisoning, gas leaks, fires and explosions.

You must:

  • Check your gas appliances every year
  • Check that your gas engineer is Gas Safe registered
  • Check your engineer’s Gas Safe ID card

If you are worried about gas safety in your area, you can use the Gas Safe Register’s simple postcode tool that will show you all the dangerous gas appliances that have been found in your area.

If you’re a landlord, we have a handy guide that offers all the advice and information you need on complying with gas safety regulations. With specialist tips from Gas Safe Register, our guide will ensure that you stick to the law and protect your tenants: /landlords-guide-gas-safety/

The Managing Director of the Association of Residential Letting Agents (ARLA), David Cox, reiterates the group’s support for Gas Safety Week: “ARLA wholly supports Gas Safety Week; conducting gas checks in any property is hugely important, but especially in rented properties, to minimise risks for tenants. Failing to arrange an annual gas safety check, which in the worst case can lead to injury or even death, is a legal requirement. Anything that can be done to increase tenant awareness and reduce the risk in rental properties is a good thing.

“ARLA regularly communicates the importance of gas safety to its members, reminding them of the importance of conducting annual checks with a Gas Safe registered engineer, but Gas Safety Week provides a great opportunity to further raise awareness of the risks associated with not conducting safety checks.”

Landlords, remember gas safety this week and every week, to ensure your tenants are safe and you comply with the law.

Landlord Rules You Must Not Break

With new landlord laws being introduced every few months, it’s easy for landlords to forget or overlook some of the legal requirements. So here are some of the most important rules and tips on how to avoid accidentally breaking them.

Have an annual gas safety check – This is top of the list, not only because it’s a legal requirement but, more importantly, it could save your tenants’ lives. Every gas burning appliance, including boilers and hobs, must be checked at least once a year by a Gas Safe-registered engineer and any faults repaired before the appliance is used again.

If you don’t, you are potentially risking your tenants’ lives and a fine of up to £20,000. Repeat offenders, or those who are found to have endangered their tenants, could be given a prison sentence. Also, landlords who haven’t got a valid gas safety record can’t evict their tenants.

How to avoid breaking the law – Tie a knot in a hanky as a reminder, or, better still, sign up to gassaferegister.co.uk for an email reminder when your annual check is due. The website also provides contact details for registered engineers.

The gas engineer will issue you with two copies of the Gas Safety Record: one for you and one for the tenant. You must keep your copy for two years and the other must be shown to existing tenants within 28 days of the check. New tenants must be given a copy when they move in.

Install smoke alarms – These became mandatory in rental properties from October 2015. Since then, it has been a legal requirement to have at least one working smoke alarm on every floor of a rental property. Landlords with solid fuel burning appliances must also install carbon monoxide alarms.

If you don’t, there’s a greater risk of your tenant being injured in the event of a fire or a carbon monoxide leak, and you face a fine of up to £5,000.

How to avoid breaking the law – Check alarms are working at the start of each tenancy and have this noted on the inventory. Also, you should insert a clause into the tenancy agreement to state that it’s the tenant’s responsibility to ensure the alarms are kept clear of dust and to replace spent batteries.

Landlord Rules You Must Not Break

Landlord Rules You Must Not Break

Protect your tenant’s deposit – You need to register the deposit with one of three Government-approved schemes, which is pretty straightforward. However, many landlords don’t realise that you must also give the tenant specific information about where and how their deposit is protected, plus information on what they must do to get a refund at the end of their tenancy. You must also cite the reasons why they might forfeit some or all of their deposit.

If you don’t, your tenant could take you to court and you might be ordered to compensate them up to three times the value of the deposit. Also, you can’t issue a section 21 notice to end a tenancy unless you have correctly protected the deposit, including issuing the tenant with the prescribed information. 

How to avoid breaking the law- Make sure you download the prescribed information forms from the scheme’s website, fill these in (carefully) and send them to your tenant.  Make sure you have double-checked that all the information is correct, because if there is an error, you could still be prosecuted.

Ask your tenants to sign a form to say they have received all the information and keep copies for your own records.

Check your tenant’s Right to Rent – Immigration checks on tenants have been obligatory for landlords since February 2016. This means you must check that every tenant has the right to live in the UK before granting them a tenancy.

If you don’t, you could be fined up to £3,000, and repeat offenders face the prospect of a prison sentence.

How to avoid breaking the law – You must check the right to rent of every adult who will be living in the property, even if they are not named on the tenancy agreement and even if they appear to be British or a member of another European Union state.

You should check their photo ID and, if they’re not a British, EU or Swiss citizen, you will need to check that they have a valid visa, a certificate or a permit to remain in the UK. A list of acceptable ID is available from the Home Office.

The law requires you to check the ID in the tenant’s presence and to take a copy, which you must keep for a year after the end of the tenancy. Visas must be checked within 28 days of the start of the tenancy.

In order to comply with Data Protection Laws, you must keep the ID safe and tell the tenant if you need to send it to the Home Office for verification.

Further information, including how to verify a visa, is available from the Home Office.

End a tenancy the right way – This is no longer as easy as writing a note to a tenant to tell them you’d like them to leave. You must issue what’s known as a section 21 notice (or section 8 if the tenant has done something wrong and they’re still within the fixed period of their tenancy agreement). You must issue a section 21, even if the contract is due to expire, otherwise the tenant is entitled to stay.

If you don’t, the tenant has the legal right to stay living in your property until notice is correctly served.

How to avoid breaking the law – Remember, you can’t issue a section 21 during the first four months of a tenancy – you must give the tenant at least two months’ notice (allowing three to four days for the notice to arrive if you are sending it by post) and the notice period can’t expire during the fixed period of the tenancy agreement.

Also, you can only serve a section 21 notice if you have given the tenant a valid Gas Safety Record, an EPC for the property, a copy of the Government-issued How to Rent guide and you have protected their deposit.

If you’d like to know more about the new landlord regulations, Upad and Direct Line for Business are running a free webinar Thursday 1st September at 7.30pm – Register here.

66% of BTL mortgage applicants unaware of regulations

Published On: February 5, 2016 at 11:37 am

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An alarming new report from Direct Line for Business shows that over half of new buy-to-let mortgage applicants are unaware of new and upcoming regulations.

Accidental landlords are least likely to be aware of any changes, according to the research.

Concern

66% of applicants were found to be unaware of either the alterations to Mortgage Tax Relief. This rose to 71% of accidental landlords. Mortgage advisors believe that these type of landlords account to 17% of new applications, with buy-to-let applications increasing by 29% during the course of the last year.

In addition, data from the report shows that just 7% of mortgage advisors believe that the Mortgage Credit Directive (MCD) will have a positive effect on the sector. This was in comparison to 59% who believe it will have a negative impact.

Alterations to mortgage tax relief are also set to be brought in from April 2017. As a result, landlords will no longer to be able to remove mortgage interest payments before working out their tax bill. Instead, they will receive a tax credit equivalent to 20% basic-rate tax on the amount. The changes in Stamp Duty from April 2016 are also set to test landlords and second-property owners.

66% of BTL mortgage applicants unaware of regulations

66% of BTL mortgage applicants unaware of regulations

Changing

‘The new EU legislation on mortgages, coupled with the Government’s increase in buy-to-let taxation, could significantly alter the buy-to-let market,’ said Nick Breton, Head of Direct Line for Business. He said his firm, ‘would encourage any mortgage applicants to think carefully about the new law and how this could impact on them as a landlord.’[1]

‘With house prices in the UK rising by 7% in the year leading to October 2015 and with the estimated average deposit standing at more than £61,003, it is imperative that landlords are able to maintain a suitable amount of property to house the population of young people saving up to buy their first property, or those seeking a temporary stay in a town or city,’ he continued.[1]

[1] http://www.propertyreporter.co.uk/landlords/71-of-accidental-landlords-unaware-of-new-regulations.html