Posts with tag: letting agents

Agency forced to pay out as students win deposit case

Published On: February 23, 2017 at 9:56 am

Tags: deposit,inventories,landlords,letting agents

A group of students in Bristol have been successful in a court case, after a letting agency acting on behalf of a landlord took money from their deposit.

The six students in question received a letter from Digs letting agency, telling them that a total of £756 would be taken from their deposit. This included £200 for redecoration and more than £500 for cleaning costs.

Evidence

However, one of the students gave photographic evidence proving that the apartment was left in a better condition than when they moved in. What’s more, the same student also found that only some of the promised redecoration had been carried out.

This further highlights the importance of a comprehensive inventory at the beginning of a tenancy agreement.

The Independent reports that these students also questioned charges made for removal of rubbish and mattress covers, for which Digs could not provide receipts.

Steven Harris, managing director of Digs, said on the matter: ‘We’re extremely disappointed that the deductions charged to Ed Straw and his fellow tenants led to him taking the landlord to court, and in all instances we work towards a more amicable solution. Whilst the court system is there to be used Digs hope that their tenants do not feel the need to go down this route. Having managed 8,000 tenancies in total it is the first time this has happened and we firmly believe it will be the last.’[1]

Agency forced to pay out as students win deposit case

National Union of Students president Malia Bouattia has pledged support for a series of rent strikes across different locations of Britain. In addition, she slammed what she coined as ‘extortionate fees’ being levied on some students.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/2/agency-hands-over-865-after-students-win-deposit-court-case

Chartered Institute of Housing calls for tougher legislation for agents

Published On: February 21, 2017 at 1:01 pm

Author: Em Morley

Categories: Property News

Tags: Chartered Institute of Housing,legislation,letting agents,private rental sector

The Chartered Institute of Housing has called on the Government to introduce new legislative measures, including a further regulation of letting agents.

Many features outlined in the recent Housing White Paper has brought support from the firm. However, many in the private rental sector believe the Paper has imposed serious challenges for letting agents, investors and landlords.

Standards

In its submission to the Treasury ahead of the Budget next month, the Chartered Institute of Housing wants the development of an easy-to-understand set of standards. These will cover both the conditions of properties and property management in the rental sector.

What’s more, it has called for councils to receive more funding in order for them to proactively enforce existing and future standards. This is vitally important given recent alterations to licensing schemes, the Chartered Institute of Housing warns.

However, the Institute wants to see letting agents regulated most.

Chartered Institute of Housing calls for tougher legislation for agents

Rents

Included in the submission to Chancellor Phillip Hammond will be a 2010 survey from the Department of Communities and Local Government that shows 79% of landlords received less than one-quarter of their income from rent. This is evidence that, according to the firm, being a landlord is, ‘is a side-line activity for most.’[1]

It says therefore that a greater reliance is put onto letting agents. The submission goes on to say: ‘There is widespread agreement, including among organisations representing against themselves, that regulation is needed to stamp out poor and exploitative practices. This could most easily be implemented by extending the arrangements already in place to regulate estate agents, to the lettings industry.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/2/trade-body-wants-much-stricter-regulation-on-letting-agents

One Third of Letting Agents in Milton Keynes Fined for Not Displaying Fees

Published On: February 20, 2017 at 10:49 am

Author: Em Morley

Categories: Property News

Tags: displaying fees,letting agent fees,letting agents,Milton Keynes

Around one third of all letting agents in Milton Keynes have been fined by the council’s Trading Standards department for not displaying fees, as required by the law.

The 30 agents were fined thousands of pounds for failing to display the fees they charge to landlords and tenants.

All of the letting agents in the town were initially contacted and reminded of the law on displaying fees, but, worryingly, many did not know they are legally obliged to do so.

One Third of Letting Agents in Milton Keynes Fined for Not Displaying Fees

Rightmove currently lists 108 sales and letting agents in Milton Keynes, which is broadly in line with the 105 contacted by Trading Standards.

The department acted after new legislation in 2015, under the Consumer Rights Act, requires letting agents to display the fees they charge both in their offices and online.

Throughout the past year, Trading Standards officers carried out research to check if agents in the borough were displaying the required information. They found that many of the agents were not aware of the legislation and what it means for them.

Trading Standards then wrote to all of them, with an explanation of their responsibilities and a warning of financial penalties if they failed to comply.

Two months later, officers followed up the letters with visits to the letting agent offices.

While most – 75 – had displayed their fees correctly, 30 agents were still breaching the law on displaying fees.

Councillor Mick Legg, the Cabinet Member responsible for Trading Standards, comments: “In these days of very high mortgage costs, many people are renting, and many of them really are in the hands of letting agents.

“It is important that information about fees is absolutely transparent from the start, and our Trading Standards team tried to work with local agents when the Consumer Rights Act came into force to ensure that they were aware of their responsibilities, to enable would-be tenants to receive the information they are entitled to when choosing which agent to use.”

He expresses: “It’s disappointing that, despite warnings from our Trading Standards team, some letting agents still failed to comply with the new Consumer Rights legislation. However, we hope these fines will send a strong message to letting agents across the borough to get their house in order.”

All 30 letting agents received fines from Trading Standards for their continued failure to comply with the law on displaying fees, two of which appealed to the First-tier Tribunal, but were dismissed earlier this month by the hearing judge.

The judge also ordered them to immediately start displaying fees and display which redress scheme they belong to and whether they offer Client Money Protection, which is also required under the same law.

Letting agents, remember that you must comply with the law on displaying fees or face hefty fines.

Rightmove to Share Property Market Insights with NAEA and ARLA Members

Published On: February 6, 2017 at 9:25 am

Author: Em Morley

Categories: Property News

Tags: estate agents,legislation,letting agents,private rental sector,property market

The National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA) have announced that they are working with property portal Rightmove to deliver property market insights to their members.

Rightmove to Share Property Market Insights with NAEA and ARLA Members

In a bid to offer more help and support to letting and estate agents, Rightmove will work alongside the organisations to bring the latest property market insights to their members.

The two membership bodies also believe that the partnership will help to keep agents up to date with any changes to legislation.

The Managing Director of the NAEA, Mark Hayward, and the Managing Director of ARLA, David Cox, issued a joint statement: “The invaluable research and data Rightmove provides helps build the knowledge of our members, which they can then use and implement into their own business model effectively.”

Miles Shipside, the Commercial Director of Rightmove, also comments on the partnership: “We’ll be working with the NAEA and ARLA throughout the year to enhance the support that we can offer estate and letting agents by providing insights using our research and whole of market data. We’ll be speaking at their national conferences and regional meetings, and we’ll be hosting free webinars that anyone in the industry can sign up to.”

If you think you can benefit from Rightmove’s property market insights, sign up for training and webinars from the NAEA and ARLA on the Rightmove Hub, at hub.rightmove.co.uk.

Upcoming webinars include:

February 14^th with Miles Shipside, with content from the ARLA national conference
February 22^nd with Mark Hayward
April 4^th with David Cox

Upcoming events include:

February 9^th at the NAEA national conference
March 28^th at the ARLA conference

Landlords, you may find the property market insights and updates from Rightmove and the NAEA/ARLA useful for your lettings business. Sign up to the webinars to help you understand your responsibilities.

Important Changes to Lettings Legislation for 2017 and Beyond

Published On: February 3, 2017 at 11:22 am

Author: Em Morley

Categories: Landlord News

Tags: landlord law,letting agents,lettings law,tax changes

Lettings legislation has been making the headlines over the past year, so what can we expect for 2017 and beyond?

From the 3% Stamp Duty surcharge on buy-to-let properties, to the Right to Rent scheme, these ongoing changes to lettings legislation mean that it is more important than ever for landlords to fully understand their responsibilities.

Romans letting agent has reviewed the recent changes and highlighted some key lettings legislation changes for 2017 and beyond:

Buy-to-let tax restrictions – April 2017-2020

From April 2017, mortgage interest tax relief will start to be restricted to 20% for buy-to-let landlords. The restriction could affect investors who are both basic rate and higher rate taxpayers. The changes will have the greatest impact on higher rate taxpayers, and landlords with high mortgage costs and low rental incomes. Due to the changes, some landlords could also be forced into the higher tax rate.

Important Changes to Lettings Legislation for 2017 and Beyond

The change will be gradually phased in from this April:

From 6^th April 2017 – The existing system can still be claimed on the first 75% of landlords’ finance costs, including mortgage interest. The remaining 25% will have the new system applied (basic rate of tax).
From 6^th April 2018 – The amount of tax relief that landlords can claim on the existing system will drop to 50% of their finance costs. The remaining 50% will have the basic rate of tax applied.
From 6^th April 2019 – The tax relief using the existing system can only be applied to 25% of landlords’ finance costs. The remaining 75% will be at the basic rate.

From 6^th April 2020 – Landlords will only be able to claim tax relief using the basic rate of tax. The tax relief will be given as a reduction in tax liability instead of a reduction to taxable rental income.

Housing and Planning Act 2016 – April 2017

This piece of lettings legislation became law back in May 2016, and is expected to come into force by April 2017 – once the second legislation has been drafted. The purpose of the act’s rogue landlord and letting agent database is not to ban property managers from operating. The idea is to enable local authorities to monitor the activity of rogue landlords and letting agents, and effectively target enforcement action. The act covers four areas: electrical safety requirements; Client Money Protection; rent repayment; and banning orders.

Electrical safety requirements – Regulations will require portable appliance testing (PAT) and an electrical safety check of wiring. Timeframes have not yet been confirmed, or which tenancies these regulations will apply to. There will be penalties for non-compliance.
Client Money Protection (CMP) – This will mean that all letting agents must have CMP, which will protect landlords and tenants. A date has not yet been agreed.
Rent repayment – If a landlord is convicted of not having a license for a House in Multiple Occupation (HMO) under the Housing Act 2004, they could be ordered to pay the tenant or a local authority up to 12 months’ rent. The tenant or local authority will make the application to the First-tier Tribunal. An order may be made if the landlord: fails to comply with an improvement or prohibition order; unlawfully evicts or harasses a tenant; does not comply with a banning order.
Banning orders – If a local authority believes that a landlord or letting agent should be banned from letting or managing a property, it should apply to the First-tier Tribunal for a banning order. The ban will last for a fixed term of 12 months. It will be a criminal offence if the ban is breached – landlords/letting agents could be imprisoned for up to 51 weeks or be fined up to £30,000. The rules are expected to be in force by April 2017.

Further guidance is expected from the Government before the database of rogue landlords and letting agents is implemented, which is expected from 1^st October 2017.

Minimum energy efficiency standards – April 2018

Tenants are already able to request consent from their landlords to carry out energy efficiency improvements on their rental properties. Landlords are not able to unreasonably refuse consent.

However, from 1^st April 2018, rental properties entering into new lets or renewals will be required to have an Energy Performance Certificate (EPC) rating of E or above. A penalty of up to £4,000 will be imposed for breaches. The regulations will affect all existing tenancies from 1^st April 2020 onwards.

Stay on top of lettings legislation

With so many changes to lettings legislation over the past and coming years, it is vital that landlords and letting agents stay on top of their obligations.

The easiest way to understand your responsibilities is by keeping up with the latest updates from the sector. Our online news portal is completely free to use, while our handy monthly newsletter is also free and includes the important changes that you need to be aware of. Sign up here: www.34.207.192.121/register/

Landlord and Letting Agent Hit with £26,000 Fines for HMO Breaches

Published On: January 30, 2017 at 10:11 am

Author: Em Morley

Categories: Landlord News

Tags: HMO's,landlord law,letting agents,rogue landlords

A landlord and their letting agent have been hit with fines over £26,000 after being found guilty of HMO breaches on two properties in Luton, following a multi-agency operation.

Landlord and Letting Agent Hit with £26,000 Fines for HMO Breaches

Adrian Simion, 30, and his letting agent, Altavon Property Management, were found guilty at Luton Magistrates’ Court of a series of management regulation breaches relating to the safety and organisation of illegal Houses of Multiple Occupation (HMOs).

Neither Simion nor the letting agent attended the hearing, but were convicted of the HMO breaches in their absence.

Magistrates imposed fines totalling almost £7,000 on Simion for two offences of failing to licence a HMO and nine separate management regulation breaches. He was also ordered to pay £500 in costs and a £110 victim surcharge.

Alvaton Property Management was fined £10,000 for the HMO breaches, £2,500 for each of four management breaches, along with £500 costs and a £120 victim surcharge.

Luton Borough Council, which brought the prosecutions, reported the occupants found at the address, and was supported by the Romanian Embassy, Bedfordshire Clinical Commissioning Group, Citizens Advice Luton and various charities.

Councillor Tom Shaw, the Portfolio Holder for Housing at Luton Borough Council, says: “We hope that this prosecution sends a very strong message that we will act on information we receive, especially if we suspect that people are being exploited.

“Our rogue landlord project, in partnership with the police, fire and rescue service, and other organisations, is taking action against these landlords who expect people to live in overcrowded and unsafe conditions.”

Superintendent David Cestaro, the Bedfordshire Police Lead for Modern Slavery, also comments on the HMO breaches: “While no offences under the Modern Slavery Act were identified from this particular operation, we have managed to safeguard people who were taken advantage of by being provided substandard living arrangements.

“We continue to ask members of the public and professionals in public-facing roles to trust their instincts and report anything which they believe could be a sign of someone being exploited, whether that be for labour, domestic servitude, sex or crime.”

Landlords, remember that HMO breaches carry significant penalties – Always stick to the law and protect your tenants.