Tenants' deposit protection schemes launched in Scotland

New schemes have been launched which require all Scottish landlords to protect tenants' deposits.
Landlords must now hand over deposits to an independent third party.

Three government approved schemes have been set up following the introduction of new regulations last year.

It is hoped the initiative - free for landlords and letting agents - will prevent agents holding on to money on false grounds.

Click here to read the full story Tenants' deposit protection schemes launched in Scotland

English Council to License All Landlords

The London borough of Newham is to become the first local authority in England to license all private landlords. The programme is due to come into force on 1 January, 2013.

The council claims it has consulted extensively with residents, stakeholders, private sector tenants, landlords and lettings agencies. Newham claims that seventy-four per cent of residents and 76 per cent of private tenants supported the borough-wide licensing scheme. Interestingly there appear to be no figures available on how many landlords support the scheme.

Private landlords will pay £150 for a five year license if they register before 1 January, 2013. Otherwise the full fee is £500. Landlords who fail to license face fines of up to £20,000.

As we have reported on this News Blog previously many other local authorities have been watching the Newham experiment carefully and many plan to introduce a similar scheme.

Newham have no plans to introduce any licensing of tenants, so the clear inference is that all the housing problems in the borough are the fault of landlords. Newham mayor Sir Robin Wales said: "This scheme shows that Newham is leading the country when it comes to tackling bad landlords who flout the law.

"We want to ensure that private sector rented properties are well managed and meet a good standard. We also want to deal with the crime and anti-social behaviour that is sometimes associated with bad private sector rented housing.”

This view was, unsurprisingly, supported by the charity Shelter who urged other councils to follow Newham’s lead. Kay Boycott, director of communications, policy and campaigns at Shelter, said: "We are delighted to hear that Newham Council will be introducing this scheme, which will help protect vulnerable tenants from rogue landlords who are making their tenants' lives hell.

"We urge other local councils to follow Newham's lead in sending a clear signal that enforcing the law against rogue landlords is a priority."

Kay Boycott failed to mention that Newham already has around 70 pieces of legislation it could use to tackle ‘rogue landlords’. Neither the council nor Shelter offered any explanation as to why they are not already using existing legislation to tackle the perceived problem.

So the real question is exactly why does Newham feel it needs to charge landlords? Could it be that Newham’s decision is a ‘nice little earner’ for the council? According to their own figures if every landlord registers before the 1^st January deadline Newham stand to raise in the region of £5.25 million. They will raise considerably more if landlords are late with their applications.

The Scottish Government already has mandatory landlord licensing and the Welsh Government has said it will also introduce landlord licensing. However, unlike Scotland or Wales, it seems that landlord licensing in England will come into effect council by council with each council able to set its own tariff.

Have your say about Newham’s decision:

click here to visit the NetRent Facebook page

or click here to visit the NetRent Forum.

Mandatory Licensing for Landlords Moves Closer

Mandatory licensing for landlords throughout Great Britain continues to move closer. Scotland already has mandatory licensing for landlords and now the Welsh Government has issued a White Paper which will require all landlords to register.

In England Newham Council has completed the first phase of its plan to introduce mandatory licensing throughout the borough – a plan that is being closely monitored by other local authorities.

The last Labour Government looked closely at mandatory licensing but chose not to introduce it. The current Government say that they have no plans to introduce such a scheme. But it now seems that many local councils will introduce mandatory licensing no matter what Government may think.

Sir Robin Wales, Mayor of Newham, said about the first phase of licensing: "We want this to be just the start. Good landlords have nothing to fear from this scheme. For the bad ones, this a clear message they must clean up their act”.

This is despite Newham already having access to around 70 pieces of legislation they could use against bad landlords. Newham have not explained why they are not robustly using existing legislation to tackle what they clearly believe is a serious problem of bad landlords.

Kay Boycott, director of communications, policy and campaigns at Shelter, said: "We are delighted to hear that Newham Council could be introducing this scheme, which would help protect vulnerable tenants from rogue landlords who are making their tenants' lives hell”.

Landlords will note the use of the emotive phrase ‘rogue landlords’ which ties in neatly with the current Shelter campaign called Evict Rogue Landlords.

At the same time landlords will note, without any surprise at all, that neither Newham or Shelter have announced any plans to help landlords deal with bad tenants.

Whilst everyone would agree that eradicating bad landlords would be of great benefit to the vast majority of good landlords throughout Great Britain, it is difficult to view these schemes as anything more than a money raising exercise for local authorities at the expense of landlords.

What Newham and Shelter seem to fail to recognise is that landlords will have to pass the cost of licensing on to tenants. They also seem to fail to understand that this will also put people off becoming landlords. Ultimately this will only serve to increase costs and reduce options for tenants. This is at a time when the country is crying out for more decent, affordable housing.

The whole landlord licensing exercise is one-sided. It assumes that there are only rogue landlords and that there are no rogue tenants. Only landlords need licensing according to councils like Newham and bodies like Shelter and the CAB. There is no initiative to license or regulate tenants.

As our Facebook campaign ‘The Damage that Some Tenants Do’ showed there is a significant minority of tenants who cause massive damage to rental properties costing landlords £ millions a year. This is ignored by councils like Newham and campaigns like Shelter’s Evict Rogue Landlords.

To help landlords and letting agents identify bad tenants NetRent will shortly launch a brand new service. Landlords and agents will be able to register good and bad tenants on a nationwide database which fully meets Data Protection and Human Rights legislation.

This database will be free of charge and open to every landlord and agent in the UK. We will also be working with our business partner to offer this service to every local authority in the country. We believe that this database will be of huge benefit to landlords, agents and tenants and will help start and maintain a partnership between good landlords and tenants that is so desperately needed.

Good landlords, good agents and good tenants working together – this is just what the UK lettings industry needs – not more cost and regulation. Our next newsletter will bring you full details of this exciting new service and how you can join to make the whole industry better for everyone involved in it.

Landlords "relieved" that squatting is a criminal offence

Landlords are "relieved" that squatting is soon to be a criminal offence in the UK.

In a statement issued by the Landlord Syndicate this week, the support centre welcomed the news that squatters will face up to a £5,000 fine and a six-month prison sentence from 1st September 2012.

Click here to read the full story Landlords "relieved" that squatting is a criminal offence

The woman who lives in a shed: how London landlords are cashing in

Maria's front door has a house number – 48 – screwed in to the wood and its own letterbox, but it isn't possible for a postman to get here to deliver anything. The healthcare assistant's home is a shed in the back garden of a shabbily converted bedsit property, only accessible via the main building and through the filthy, rubbish-strewn yard.

Her thrifty landlord has recycled the front door from another property, but Maria likes it; she likes having her own entrance and her own privacy. On balance, she thinks the shed is a better place to live than the crowded HMO (house of multiple occupation) she was in before. It has electricity and a tiny kitchen which leads into a bathroom, but there's no hot water, so when she wants to wash she needs to boil two huge vats of water on the stove.

Click here to read the full article The woman who lives in a shed: how London landlords are cashing in

Buy-to-let at risk as tenants demand to see mortgage permission

Tenants are increasingly asking to see the landlord’s permission from the mortgage lender to allow a residential property to be let.

This is a particular problem for ‘amateur’ landlords – for example, those who choose to let their property until they can find a buyer – many of whom do not ask the lender’s permission to let, as this would almost certainly involve an increase in their mortgage costs.

Click here to read the whoile article Buy-to-let at risk as tenants demand to see mortgage permission

Scottish government proposes clamp down on buy to let landlords who give tenants a poor deal

A consultation period regarding the Scottish Government’s proposals for the future of the private rented sector has begun and will run until Monday 28 May 2012.

The proposals follow the approval of a compulsory tenant deposit scheme by Scottish Housing Minister Keith Brown.

The first tenancy deposit scheme to be approved is the Letting Protection Service Scotland.

The scheme also aims to protect the reputation of the majority of private rented sector landlords who act professionally and responsibly.

Click here to read the full article Scottish government proposes clamp down on buy to let landlords who give tenants a poor deal

How can you spot a cannabis farm in your street?

Police say cannabis growers are moving away from commercial and industrial sites towards ordinary houses. But how can you spot a cannabis farm in your street?

Cannabis growing in the suburbs is soaring, with about 21 farms or factories being discovered every day, a new report by the Association of Chief Police Officers says.

The problem has persisted for a while, with insurer Aviva reporting a 30% year-on-year increase in cannabis damage claims last year as criminals turned to rented houses to cultivate plants.

Click here to read the whole article How can you spot a cannabis farm in your street?

National taskforce to end the problem of 'beds in sheds'

A new national taskforce will be set up to tackle the issue of "beds in sheds" by taking action against criminal landlords and removing illegal immigrants.

On Monday (30 April), Housing Minister Grant Shapps and Immigration Minister Damian Green will hold the first in a series of cross-Whitehall summits with representatives from the police, the UK Border Agency and local government.

The meetings will find ways to close down thousands of sheds and outbuildings being rented out illegally to migrants, including some with no right to be in the UK.

Click here to read the full story National taskforce to end the problem of 'beds in sheds'

Rental Britain - A Special Report

A major new report from agent Savills and property website Rightmove which analysis the rental market in the UK has been launched.

The report asks the question are we becoming a nation of renters and examines the opportunities and challenges facing the private rented sector.

Click here to read the report: Rental Britain - A Special Report