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LandlordLOG
Newsletter
LandlordZONE |
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Volume 1, Issue 3 November 2005 |
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www.LandlordZONE.co.uk
Rental Property Knowledge: a website for
Landlords, Letting Agents and Tenants. The site hosts the UK’s
busiest on-line rental property forum
See On-line:
LandlordLOG.com |
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Highlights:
The theme of this issue is the
new Housing Health & Safety Rating System (HHSRS) which comes
under the
Housing Act 2004
and its bundle of measures to be introduced April 2006
Our sponsor for this issue is “CoverLet.co.uk”
one of the leading insurers in the rental property field
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Housing Health & Safety Rating System - The Housing Act 2004
T he new
Housing Health and Safety Rating System (HHSRS)
is something that
landlords should now be aware of.
It comes into
force in April 2006.
Why the Change?
Under the new
system the focus will shift to whether a house in poor condition
is likely to damage the occupants’ health. This is thought to be
better than the old “fitness standard” which tended to look more
at issues just to do with the building.
What kinds of Properties Will Be Covered?
As before, the
HHSRS applies to all buildings not just those that are let out
or those which are HMOs.
For houses that
are not houses in multiple occupation (HMOs), the trigger for
the property inspection will be if the local council becomes
aware that there could be a problem with health and safety.
However, all HMOs
which need a license will also have to be inspected for hazards
within 5 years of an HMO license being granted.
How will it Work?
The local
authority environmental inspector will now look at the condition
of a building and give a score on any one of a long list of
potential health and safety hazards.
The score will
rate (1) how likely a risk (e.g. fire) is to occur within the
next 12 months and (2) how likely it is to have a severe impact
should it actually happen.
(The list of
hazards is longer than under the old health and safety regime
and includes things like fire, damp, overcrowding, poor
lighting, pests etc. It’s worth noting that it includes all the
things that are also part of the HMO fitness standard.)
This rough score
will then be put into bands and categories with the worst being
a Category One risk.
For houses in
multiple occupation inspectors will have to consider if there is
an increased risk because the facilities are shared. However,
the actual behaviour of the occupants won’t be taken into
consideration. Nevertheless, when assessing a hazard the
inspector
will have
to examine if the property is fit for the widest range of
occupants possible.
What this means
is, even if you let to students, the inspector will have to
consider risks on the basis that the occupiers
could be
elderly people or children instead. So, if you’ve got healthy 20
year olds in your house the inspector will look at the
likelihood of and potential severity of a fall happening to
someone who is say aged 70. |
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Our sponsor for this
issue is “CoverLet.co.uk”
one of the leading insurers in the
rental property field. |
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Inside this issue:
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Housing Health and Safety Rating System
(HHRS
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Welcome—the Editor
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What Powers will Inspectors Have
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Will it Affect Whether I Can Get an HMO
or Other License?
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Won’t This All Be Confusing?
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What Should I Do Now?
-
Book Review:
Debt Recovery by Mark Fairweather and Rosie Border
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Insurance advice from
CoverLet.co.uk
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Welcome
- Part 1 of
the new Act replaces the housing fitness regime set out in the
Housing Act 1985. The separate Houses in Multiple Occupation (HMO)
fitness test will also be replaced by this.
The test of fitness is to be replaced with a new evidence-based
risk assessment process, carried out using the Housing Health
and Safety Rating System (HHSRS).
HHSRS is a new approach to the assessment of risks to health and
safety in residential premises and is similar to processes used
in industry.
Local authorities will in future base residential enforcement
decisions on assessments under HHSRS.
The courses of action available to authorities are: serve an
improvement notice requiring remedial works;
make a prohibition order, which closes the whole or part of a
dwelling or restricts the number of permitted occupants; suspend
these types of notice; take emergency action; serve a hazard
awareness notice; make a demolition order or declare a clearance
area.
Landlords, as always, need to make sure they are exercising due
diligence by applying careful management and they should always
be adequately insured. Editor
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What Powers will HHSRS Inspectors Have?
What Powers will Inspectors Have?
Inspectors will
have a wider range of powers than they had under the old system.
Once they have identified a risk, the action they can take
depends upon how serious the risk is. If it’s a Category 1 risk
they must take certain enforcement actions whereas if it’s a
Category 2 risk there is more discretion.
Firstly, a
hazard warning notice
could be served.
Hazard warning notices have no time scale and there are no
penalties, but most good landlords would carry out improvements
to stop the problem developing into something more serious (as
well as trying to stay on the good side of the authorities!)
Secondly, an
improvement notice
could be issued. This would require that certain improvements
are carried out. If the work to start the improvement does not
start within 28 days or is not completed in a set time, fines
can be levied of £5,000.
Thirdly,
Prohibition orders
can stop or limit all or part of the property being used. Again,
there are fines for non-compliance.
Fourthly, if the
problem is so serious that it could cause immediate harm the
inspector can issue an
Emergency Remedial Action
or an
Emergency Prohibition Order.
Under the Emergency Remedial Action, the local authority can
enter the house and do the work, charging the cost back to the
owner.
For improvement
notices, prohibition orders and remedial actions there is an
appeals process that can be used.
In really bad
cases, the local authority can make a demolition order or a
compulsory purchase order, as is the case now.
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Inspectors will have a wider range of powers than they
had under the old system. |
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Useful Links:
LandlordZONE—Legal
Briefing
ODPM—Housing,
Health and Safety Rating System |
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Will it Affect Whether I Can Get an HMO License?
Will it Affect Whether I Can Get an HMO or Other Licence?
Some people are
concerned that if they have an HMO that is going to be subject
to licensing
and they
also have a hazard identified under the HHSRS, this could mean
they won’t get their licence.
The good news on
this is that local authorities can’t use licence conditions, to
deal with a hazard that’s been identified under the HHSRS.
The government
has made it clear that HMO applications depend upon the person
applying being a fit and proper person, the management of the
building being OK and the property being suitable for the number
of occupants (see previous article for more information on
licensing)
So whilst it’s
possible that a condition of a licence may involve the landlord
doing something that also happens to correct a health and safety
hazard,
the actual fixing of the hazard cannot be used as a condition of
granting a licence. |
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Local authorities can’t use license conditions, to deal
with a hazard that’s been identified under the HHSRS.
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Won’t This All Be Confusing?
Won’t This All Be Confusing?
Possibly, yes.
It’s easy to see how the granting of licences for HMOs could be
confused with the HHSRS inspection, especially where the local
authority, to save cost, do the assessment for the HMO licence
application
at the same time
as doing an HHSRS inspection.
As well as the
possible confusion between licensing and HHSRS, some landlords
associations have expressed worries that the opinion on what
constitutes a health and safety threat will vary widely between
different boroughs and different inspectors.
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The granting of licenses for HMOs could be confused with
the HHSRS inspection |
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What Should I Do Now?
What Should I Do Now?
As well as
complying with the existing regulations on gas, electricity and
soft furnishings, landlords should keep their property in a good
state of repair.
There’s a lot to
know about—so do a bit of reading up—you will find all you need
on the LandlordZONE web site.
In particular,
it’s possible that lots of landlords may not be familiar with
the new electrical safety requirements (Building Regulation Part
P) which only came into force on January 1st
this
year.
This says that
almost all domestic electrical work should be carried out by
electrician authorised by a body such as NICEIC.
If you want to do
it yourself and you are not an authorised electrician, this
means that you are now limited to just replacing light switches
and sockets on existing circuits (as long as they are not in
dangerous areas like kitchens and bathrooms) and you must obtain
a Building Control Certificate from your local authority if any
major electrical work is undertaken.
In summary, HHRS
could mean major changes and we will have to watch and see how
it works out in practice. |
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There’s a lot to know about—so do a bit of home work—you
will find all you need on the LandlordZONE web site.
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Debt Recovery is an important part of the
Landlording process. Although successful landlords avoid debts
by selecting their tenants very carefully, this happens to all
of us eventually.
The small claims system is a user-friendly and quite inexpensive
way of collecting debts, so long as you are prepared to do it
yourself.
But you must go about it the right way if you are to be
successful. This book will show you exactly how to do it.
The Pocket Lawyer series includes several books of interest to
landlords which are designed for lay people who want 'how to'
guidance in situations that would normally require expert
advice.
Each title is written by experts in their field - in this case a
practising solicitor —providing all the information you need in
one concise book .
The Pocket Lawyer books have an accessible and user-friendly
structure and they are supported by a companion website which
provides free updates and ready-to-use documents and letters .
From gentle reminders, through to obtaining and enforcing a
court judgment, all the way to bankrupting an individual or
forcing a company into liquidation, this book will ensure that
you clear the legal hurdles and avoid the traps.
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Multiple
Insurance Quotations are just a click away!
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Insurance brokers, who have arranged over
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· Visit
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Fill in
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CoverLet.co.uk uses a panel of insurers, selecting the most
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CoverLet.co.uk is able to offer terms for:
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Save time and money – use CoverLet.co.uk, specialists in
landlord property insurance.
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Parkmatic Publications
Limited 2005 all rights reserved |
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Phone:
0845 260 4420
Fax: 0870 131 3437
E-mail: editor@landlordzone.co.uk |
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Articles contributed to this issue by David Lawrenson
who is a London-based landlord, property investor,
freelance journalist and author of
“Successful Property
Letting.” |
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Volume 1, Issue 3
November 2005 |
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LandlordZONE.co.uk |
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LandlordZONE.co.uk - Established in 1999 - a vertical portal
for landlords, tenants & agents - a knowledge-base for
practitioners, and a marketplace for buyers and suppliers. Free
access to all - with around
75,000
visitors each
month the site is a key focal point for the rental property
industry.
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