Nla news and update what you didn t know you need to know
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NLA News and Update What you didn’t know you need to know!. Dave Offord Operations Manager. Kent Savers. Membership, Including tenants Initial £2.00 membership fee, Minimum balance of £3.00 at all times Community Budgeting Account Ringfencing LHA? Small Administration Charge to LandLords

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Nla news and update what you didn t know you need to know

NLA News and UpdateWhat you didn’t know you need to know!

Dave Offord

Operations Manager


Kent savers

Kent Savers

  • Membership, Including tenants

  • Initial £2.00 membership fee,

  • Minimum balance of £3.00 at all times

  • Community Budgeting Account

    • Ringfencing LHA?

    • Small Administration Charge to LandLords

  • Small Loans available

    • Typical £500 loan ,£10 per week for 57 weeks, The total repaid is £570 which is an APR of 26.8%.

    • Minimum Income £125.00 per week.


Hot news and the future of prs

Hot News and the Future of PRS

  • Government Policy and Hot News

  • Impact at the Local Level

  • Budget 2011

  • Minimise your Risks

  • Best Practice

  • Forthcoming events


Government policies

Government Policies

  • Greater use of existing housing stock

  • Green Deal

  • LHA changes. NLA Chairman gives evidence to House of Commons Committee, Welfare Reform Bill

  • ‘We have enough regulation authorities must target the rogues’.

  • Streamline HMO licence renewal.

  • Greater emphasis on local decision making.


Local impact

Local Impact

  • Cuts leading to greater income generation

  • Advice substituted with enforcement example

  • Less but more focused services

  • More use of Additional and Selective Licensing

  • Article 4* and HMO standards decisions must take account of the new pressures on the PRS

  • LHA cap etc. moving tenants away from London

  • *Explained next slide


Nla news and update what you didn t know you need to know

Planning Permission for Shared Houses

Use Class C4: Houses in Multiple Occupation

  • Came into effect on 6 April 2010

  • Planning Permission required for all residential property let to between 3 and 6 sharers

    Withdrawn:

  • From 1 October 2010

  • Planning Permission no longer required for HMOs

  • Watch Local : Article 4 Direction


Budget

Budget

  • Stamp Duty Land Tax (SDLT) to be calculated on mean (average) property value of portfolio purchase - not full bulk purchase price.

  • Existing: Purchase 5 properties at £200,000

  • Total Price £1,000,000 Pay 5% = £50,000

  • New: Pay on average value £200,000 x 5 properties

  • Total average price £1,000,0000 x 1% = £10,000


Reduce your risk

Reduce your Risk

  • The PRS is increasingly important supply for homes

  • Up from 2.1m (10%) in 2001 to 3.1m (14%) in 2008/9

  • Tenant Profile

  • Low to middle earners

  • In 1988 14%

  • In 2011 41%


Pick your tenants with care

Pick your tenants with care

Carry out proper checks on prospective tenants

Landlords reference?

Employers reference?

Character reference?

Credit check?

Electoral roll?

CCJ check?

Bank Statements

Carry out proper checks on guarantors


Regain possession when you want it

Regain Possession when you want it

  • Section 21: No Fault Route To Possession

  • Deposit: Is it protected?

  • HMO Licence

  • Written Tenancy Agreement


Unfair terms in tenancy contracts

Unfair Terms in Tenancy Contracts

The purpose of a tenancy contract is to lay down the rules, and ensure they are enforceable.

Unfair contract terms leave clauses unenforceable.

Can you take the risk that you cannot rely on key terms in your contract, just when you need them most?


What is the relevant law

What is the relevant law?

Unfair Terms in Consumer Contract Regulations, 1999

see http://www.opsi.gov.uk/si/si1999/19992083.htm

Covers ALL types of Business : Consumer Contracts, not just Tenancy Contracts

But has been specifically held to cover Landlord / Tenant contracts (and some Agent / Landlord contracts as well)


Key requirements

Key Requirements

Contracts must be written in non-legal, plain language

Must not reduce the tenants’ statutory rights

Must be “fair”……………..


Examples

Examples

Taken from case studies of actual contract reviews by Office of Fair Trading (OFT)

“Owners” of the contracts were required to give undertakings that contracts would be changed


Imposing penalties on tenants

Imposing penalties on tenants

Should not impose “penalties” on tenants, only rights to recover reasonable costs

Clause stated :

“Landlord can charge £25 if called out by tenant because of loss of keys”

(University of the West of England)


Penalties

Penalties

Revised to state that tenant would only be liable for “reasonable costs and expenses incurred” where the Landlord was called out.


Unreasonable restrictions

Unreasonable restrictions

Tenant must not:

Change electricity supplier

Keep pets

Sublet

Etc

(Ena Parkinson Property rentals & others)

All considered unfair, but ……


Unreasonable restrictions1

Unreasonable restrictions

Simple amendments can make them ok

Tenant must not:

Change electricity supplier

Keep pets

Sublet

Etc

WITHOUT FIRST OBTAINING LANDLORD’S PERMISSION WHICH WILL NOT BE UNREASONABLY WITHELD


Forthcoming national events

Forthcoming National Events

  • NLA Landlord Live and The Property Professional Show (PPS).

  • London Olympia: 10th - 11th May 2011.

  • NLA to host National HMO Network Conference 2011 in London


In conclusion

In Conclusion

  • You must ensure your voice is heard:

    • Join membership organisations such as the NLA

    • Attend events such at this

    • Respond to consultations

  • Join accreditation schemes to set yourselves apart from the rogues.

  • Local authorities must get serious about tackling the rogues and not waste scarce resources chasing the compliant majority.


Any questions

Any questions?

Membership joining Fee waived Tonight

On Line quote incentive code r16

National Landlords Association

Tel: 020 7840 8900

Email: [email protected]

www.landlords.org.uk


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