Posts with tag: landlord licensing

Another 8,000 Properties in Camden Require Licensing

Published On: December 11, 2015 at 9:54 am

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Landlords and letting agents in Camden are warned that earlier in the week, new licensing rules were introduced.

Another 8,000 Properties in Camden Require Licensing

Another 8,000 Properties in Camden Require Licensing

As of Tuesday 8th December, all Houses in Multiple Occupation (HMOs) must be licensed in the London borough.

This scheme extends property licensing to around 8,000 homes and applies to all private rental accommodation shared by three or more people that are not related, even if they moved in together on a single tenancy.

The new scheme also includes Section 257 HMOs. These are properties that have been converted into self-contained flats, but do not comply with the relevant building regulations.

Camden Council has restricted the licensing of this type of HMO to properties where at least 50% of the flats are privately rented.

The scheme has been enforced in a bid to push up standards in the private rental sector.

When gathering evidence to support its plans, Camden environmental health officers visited 391 HMOs in the borough, rating 19% as very poor or poor in regard to property management and condition.

During its 22-week consultation, the council received 1,400 responses to its online survey – the majority (70%) were in favour of the proposed licensing scheme.

To obtain a license, landlords must complete an application form, supply various supporting documents and pass a fit and proper person test. The application fee per property is £450, plus an additional £45 for each separate letting, for example, a bedroom, bedsit or studio flat, within the property.

Landlords accredited by a scheme approved under the London Rental Standard will receive a £95 discount.

The council insists that every property now subject to licensing will be inspected.

More information can be found here: http://www.londonpropertylicensing.co.uk/camden

 

 

 

 

 

 

 

 

 

 

 

 

 

Welsh Government Urged to Repeal Rent Smart Wales

Published On: December 7, 2015 at 9:56 am

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Welsh Government Urged to Repeal Rent Smart Wales

Welsh Government Urged to Repeal Rent Smart Wales

A new online petition has been published on the Welsh government’s website calling for the repeal of the Rent Smart Wales law.

The scheme requires all landlords and letting agents in Wales to register themselves and their properties and to obtain a license. Find out more here: /todays-the-day-for-change-in-the-welsh-private-rental-sector/

The petition suggests that instead, landlords and agents should join a recognised scheme.

Greg Roberts & Co, estate agents in Blaenau Gwent, brought the petition. The firm states: “The legislation proposes all landlords and letting agents are licensed to be able to let a property in Wales. This in principle does have merit. However, the scheme put forward is over-complicated and extremely costly.

“Making it illegal for individuals or agencies to let properties who are not members of a recognised organisation, i.e. ARLA [the Association of Residential Letting Agents], NAEA [the National Association of Estate Agents], RICS [the Royal Institution of Chartered Surveyors] or private landlords affiliations, would ensure the tenant is protected, as all the above have standards and criteria members have to adhere to.

“This is also backed up by the need to have Client Money Protection insurance and to be a member of an independent redress scheme, like say The Property Ombudsman [TPO]. Then there would be no need for any further costly Welsh government involvement.”1 

The petition is only open for a month, closing on 31st December 2015. Sign it here: https://www.assembly.wales/en/gethome/e-petitions/Pages/petitiondetail.aspx?PetitionID=895 

1 https://www.assembly.wales/en/gethome/e-petitions/Pages/petitiondetail.aspx?PetitionID=895

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ARLA Files Freedom of Information Request over Welsh Letting Agent Fees

Published On: November 26, 2015 at 10:01 am

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On Monday, the Rent Smart Wales scheme launched, applying to all Welsh landlords and letting agents.

ARLA Files Freedom of Information Request over Welsh Letting Agent Fees

ARLA Files Freedom of Information Request over Welsh Letting Agent Fees

Landlords and agents must register themselves and their properties and become licensed. This costs £3,728 for agents that apply online, but more for those using paper applications. The Association of Residential Letting Agents (ARLA) states that it was never consulted on these fees.

ARLA has filed a Freedom of Information request, demanding a breakdown of the figures from the Welsh government.

In an email to ARLA members, Managing Director David Cox expressed his irritation.

He wrote: “We are frustrated by the approach taken by the Welsh government in not making information available prior to the Rent Smart Wales launch date.

“This has jeopardised the goodwill of agents who are at pains to comply with the law and to continue to offer high quality service to landlords and tenants.”

Cox also addressed the other new legal requirement that was enforced on Monday, for all letting agents in Wales to display their fees.

ARLA insists that it knew nothing of this law until last week.

Cox continues: “Within this context, we urge our members to continue to work on the new requirement on displaying your fees.”

He adds: “The cost of licensing is far higher than expected. We are disappointed that ALRA was not consulted on these fees and are demanding under the Freedom of Information Act that the Welsh government provide a breakdown of the calculation of these figures.”

Cox believes that the license conditions will require agents in Wales to have professional indemnity insurance in place, offer Client Money Protection and belong to an independent redress scheme.

Cox told members that he anticipates “updating you on our discussions with the Welsh government soon”1.

The Welsh government says that its new regulations are a template for the rest of the UK.

ARLA’s Freedom of Information request can be found here: http://i.emlfiles1.com/cmpdoc/6/9/5/5/4/files/336151_foi-request-rent-smart-wales-nov-2015.docx.pdf?dm_t=0,0,0,0,0

1 http://www.propertyindustryeye.com/arla-slaps-in-freedom-of-information-requests-after-not-being-consulted-on-wales-charges/

Today’s the Day for Change in the Welsh Private Rental Sector

Published On: November 23, 2015 at 9:55 am

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Today's the Day for Change in the Welsh Private Rental Sector

Today’s the Day for Change in the Welsh Private Rental Sector

The day has arrived for landlords and letting agents in Wales to join up to the Rent Smart Wales scheme.

The Welsh private rental sector will experience many changes from today, including the requirement for letting agents to display fees. This was only announced last week, despite being mandatory.

Everyone renting out accommodation in Wales must register themselves and register details of their rental properties from today.

All managing agents and landlords that manage or conduct maintenance on their properties must also apply for a license, pass a fit and proper person test, participate in a training course and adhere to a code of practice as part of Rent Smart Wales.

Landlords that are registered but unlicensed must appoint a licensed agent to manage their properties.

Landlords and agents have one year to comply with the regulations before enforcement begins on 23rd November 2016.

Although the Rent Smart Wales scheme has been known about for a while, the obligation for letting agents to prominently display their fees in their offices and on their websites could come as a shock. The Association of Residential Letting Agents (ARLA) was not aware of the rule until last week.

If you let property in Wales, ensure that you are not caught out by either of these regulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Landlord Fined £70,000 for Breaching HMO Regulations

Published On: November 22, 2015 at 12:43 pm

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A landlord in west London has been fined over £70,000 for breaching House in Multiple Occupation (HMO) regulations.

Landlord Fined £70,000 for Breaching HMO Regulations

Landlord Fined £70,000 for Breaching HMO Regulations

Ealing London Borough Council brought the case against Balwinder Singh Kahlon. He was charged for 18 offences of failing to comply with the Management of Houses in Multiple Occupation (England) Regulations 2006 (Section 234(3) and (5) of the Housing Act 2004 and one offence breaching Section 72(2) of the Housing Act 2004. He pleaded guilty to all of the offences.

The 19 fines totalled £69,100 and Kahlon was also ordered to pay council costs of 33,180.43 and a victim surcharge of £120, making the total £72,400.43.

The breaches regard the management of a property on East Avenue, Southall. They were uncovered after an unannounced inspection of the home in January by regulatory services officers.

The licensed HMO for ten people in seven households was found to have numerous serious management breaches, including a blocked escape route, dirty and unmaintained bathrooms and kitchens, unclean communal areas and poor maintenance of the emergency lighting.

A warrant was granted to enter the property. When officers arrived in February, they found 20 people living there, including two babies, making up ten households. Some individuals were living in windowless rooms, unsuitable for residential occupation.

Kahlon had ignored the terms and conditions of his HMO license by overcrowding the property with double the number of tenants he was allowed to house. The council brought the prosecution against him for offences relating to his failure to comply with management regulations of the HMO and one for allowing more occupants or households to live in the property than permitted by the license.

Councillor Jasbir Anand, Cabinet Member for Housing at Ealing Council, says: “We make every effort to ensure residents in the borough have decent living standards and are well protected from greedy slum landlords. Mr. Kahlon showed scant regard for his license conditions and endangered the lives of his tenants in order to make as much money as he could. I have nothing but contempt for his actions and welcome this substantial fine that has been imposed on him, which I hope will be a considerable deterrent to other unscrupulous individuals.”1

The court has enforced a collection order for the fine, demanding Kahlon to pay £25,000 by 27th November and the remaining balance within three months, by 26th February 2016.

1 https://www.landlordtoday.co.uk/breaking-news/2015/11/southall-landlord-fined-70k-for-hmo-regulation-breaches

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welsh Letting Agents Given Just Days to Comply with New Law

Published On: November 20, 2015 at 12:46 pm

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Letting agents in Wales must be aware that from Monday (23rd November 2015), they must display the fees they charge.

Welsh Letting Agents Given Just Days to Comply with New Law

Welsh Letting Agents Given Just Days to Comply with New Law

All agents are under a legal obligation to display their fees. It is believed that many will struggle to comply with the new law, as there has been no prior warning and they are subject to a tight deadline.

The obligation forms part of the Consumer Rights Act 2015, which required a ministerial or commencement order to become law in Wales.

The legal requirement for letting agents to display their fees only applies in England at present, after enforcement on 27th May this year.

The Welsh government made the announcement of the new law with under a week before implementation.

It should also be reiterated that on Monday, landlords and letting agents must register and become licensed as part of the Rent Smart Wales scheme.

Previous communications on the new scheme did not mention the compulsory advertisement of fees or the Consumer Rights Act.

The Managing Director of the Association of Residential Letting Agents (ARLA), David Cox, advises agents to display a list of all the fees they charge, including any additional fees, charges or penalties.

Fees should be displayed including VAT, and agents must advertise fees at each office and on their website.

ARLA has produced a fees template for its members.

The announcement can be found here: http://i.emlfiles1.com/cmpdoc/6/9/5/5/4/files/334662_consumer-rights-act-2015—duty-of-letting-agents-to-publish-fees—november-2015-2-002.pdf?dm_t=0,0,0,0,0

From Monday, landlords and agents have 12 months to register and become licensed under Rent Smart Wales.

Additionally, the Renting Homes (Wales) Act was passed this week. It introduces two new types of occupational contract, replacing the majority of existing tenancy agreement types. It also requires landlords to make repairs and hopes to offer extra protection for tenants. Landlords must provide their tenants with written statements of their rights.