Responses to government tenancy deposit consultation

DCLG News Release 2006/0036

23 June 2006

Tenancy Deposit Protection (TDP) is another step in the Government’s determination to improve conditions in the private rented sector. The responses to the Government’s Consultation on how the TDP arrangements will operate have been positive, and have given backing to the information requirements to be placed on landlords and tenants at the beginning and end of a tenancy.

 The summary of responses, published today by the Department for Communities and Local Government, reflects complex issues and includes concerns expressed by landlords and letting agents about the issue of rent arrears and abandonment of tenancies. The Government has therefore agreed to look at these aspects again.

Housing Minister Baroness Andrews said the Department was committed to working with stakeholders to get the new measures right.

“We are determined to ensure that proposed Tenancy Deposit Schemes do the job that they were intended to do; that is: to protect nearly 1.5 million assured shorthold tenants and an estimated £768m of tenancy deposits currently held in England and Wales.  We are therefore giving further consideration to stakeholders’ concerns expressed in the consultative process and we are reviewing the commencement date for the Tenancy Deposit Protection Legislation, which was set for 1 October this year, in that light.�

The measures will help drive up standards in the private rented sector, alongside other Housing Act 2004 provisions such as HMO and Selective Licensing, the Housing Health and Safety Rating System and Empty Dwelling Management Orders.

The Government will confirm a commencement date for Tenancy Deposit Protection before Parliament rises in the summer.

Notes to editors

1. The consultation paper, Tenancy Deposit Protection: consultation on secondary legislation was published by the then Office of the Deputy Prime Minister. The consultation paper provides further background information on Tenancy Deposit Protection as well as setting out options for secondary legislation.
2. The consultation paper can be downloaded at:
http://www.communities.gov.uk/index.asp?id=1500987
The website also contains links to other related information, including the Housing Act 2004. The relevant provisions of the Act are contained in Part 6 (Chapter 4) and Schedule 10.
3. Section 213 of the Act provides for regulations to be made prescribing information to be given by landlords to tenants when they receive the deposit from the tenant.
4. The consultation closed on 1 February 2006 and responses were considered with a view to formulating the secondary legislation prescribing this information.
5. The majority of consultation responses from landlord and letting agent representative organisations mentioned rent arrears and abandonment as a major issue at the end of a tenancy. The concern arises where a deposit is safeguarded by a custodial scheme and one party cannot obtain the agreement of the other as to how to divide up the deposit, going to the courts would be the only option to have the deposit returned/released by the custodial scheme administrator.  However, this does not put the party who is genuinely entitled to the deposit in any better position than a tenant under the existing system. Landlords and agents wish to see the party wishing to make a claim on the deposit being able to do so on their own. If these concerns are to be alleviated, an Order will need to be made to amend some of the provisions of Schedule 10 to the Act.
An updated list of more frequently asked questions is on the DCLG website at:
http://www.communities.gov.uk/index.asp?id=1163530

Media Enquiries: 020 7944 3049
Out of Hours: 020 7944 5945
E-mail: press.office@communities.gsi.gov.uk
Public Enquiries: 020 7944 4400
DCLG website: http://www.communities.gov.uk/

Government launches compulsory energy rating for homes.

DCLG News Release 2006/0028

14 June 2006

Energy ratings similar to consumer-friendly fridge ratings will have to be produced for every home bought and sold in England and Wales from next June, the Government announced today. 

Housing Minister Yvette Cooper today launched the new Energy Performance Certificate (EPC) which will be an essential part of the Home Information Packs to be introduced next year. 

The certificates will give home buyers and sellers A to G ratings for their home’s energy efficiency and carbon emissions.  They will tell them current average costs for heating, hot water and lighting in their home as well as how to cut costs with energy efficiency measures.

The reports, prepared by qualified home inspectors, will advise consumers on which energy measures - ranging from thicker loft insulation right through to solar panels - could cut carbon emissions from their home and improve their energy rating. 

Yvette Cooper said

“Given the growing challenge from climate change and rising energy costs, I think people should be entitled to this kind of information about the home they buy.  You can get this kind of consumer information on fridges and washing machines, so why not on a home where the emissions - and the savings - are so much greater?

“By providing people with sound advice on how to improve energy efficiency this will help sellers and buyers who want to do their bit to cut carbon emissions as well as cutting their fuel bills too.�

The energy ratings will be included in Home Condition Reports (HCRs) which will set out important independent information on the condition of the property as part of the Home Information Pack. 

Paul King, UK Campaigns Director of the WWF, said:

“Our homes account for 27% of the UK’s CO2 emissions contributing to global climate change.

“The introduction of the Energy Performance Certificate represents a very positive step forward. It means that for the first time people will be given the kind of user-friendly information they need to reduce both the environmental impact of their homes and their energy bills.”

European agreements require that from 2009 all homes for sale should have energy certificates.  Including certificates within the Home Information Packs is a fast and cost effective way to give consumers the most up to date information without them having to pay for additional surveys.  It also means England and Wales will be among the EU front runners, introducing energy certificates 2 years earlier then the deadline set out in the EU directive and linking energy measures to a report on property condition.

The EPC will include practical information about a range of changes which will be viable for that home including things like cavity wall insulation or double glazing.  It will also list measures to cut carbon emissions even further such as solar panels or wind turbines, where possible. 

The Home Information Packs will be introduced in June 2007 in response to many years of campaigning by the consumers association Which?  Energy Performance Certificates are one of the main new elements in the Pack, which predominantly includes information already needed and paid for when homes are bought and sold.

However, by providing the information at the beginning of the process rather than the end, Home Information Packs can cut waste and duplication and so prevent many sales falling through - providing added benefits for consumers. 

By transferring many of the same costs from buyers to sellers Home Information Packs will also make a big difference to first time buyers without impacting on most people who are both buyers and sellers at the same time. 

The regulations prescribing the content of Home Information Packs are expected to be laid later this week following extensive consultation.

Notes to editors

1. A sample, giving an indication of what an Energy Performance Certificate could look like, can be viewed via the link below:

Energy Performance Certificate - Sample

2. A Department for Communities and Local Government (DCLG) survey last week revealed that many local authorities are now including in their local development plans on-site renewable energy measures for new developments.  The Government also wants to reduce planning restrictions on small-scale microgeneration equipment for people’s homes. A review of planning permission rules aims to make it even easier for people to do their bit to help the environment.
http://www.communities.gov.uk/index.asp?id=1002882&PressNoticeID=2167

3. The Government is working with stakeholders to ensure sufficient numbers of trained inspectors are available to support a phased programme of implementation and ensure all requirements of the EU Directive on the Energy Performance of Buildings are in place by January 2009.

This programme includes the introduction of the Home Information Pack that becomes mandatory from 1 June 2007 together with the training of Home Inspectors to cover requirements for energy certificates on the sale of dwellings.

4. About Home Information Packs
As from 1 June 2007, homeowners will be required to provide a Home Information Pack when marketing their homes for sale throughout England and Wales. This will help reduce the estimated £1 million which is wasted each day because of failed transactions. The Pack will include a Home Condition Report, terms of sale and any search details. An energy effiency rating will be included in the report, giving consumers the choice to assess the likely running costs of a property before they buy. 

Consumer Benefits
HIPs will:

• Provide transaction improvements by reducing the abortive costs to consumers and the industry attributable to failures caused by survey or valuation inspection findings. 

• Improve the condition of the housing stock by reducting the incidence of unexpected repair bills and encouraging better maintenance of homes. 

• Provide greater consumer choice by reducing the entry costs to first time buyers and creating a market of serious sellers.

Cost of Home Information Packs:
Estimates of the cost of the components of HIPs in the current market suggest an average cost of around £600-700 plus VAT to compile.  Most of this cost is not new and is being met at present by both sellers and buyers.  Some providers have already said they would offer HIPs at reduced cost or even free.

Further information on the Home Information Pack programme is available at http://www.communities.gov.uk/homeinformationpacks

Media Enquiries: 020 7944 3049
Out of Hours: 020 7944 5945
E-mail: press.office@communities.gsi.gov.uk
Public Enquiries: 020 7944 4400
DCLG website: http://www.communities.gov.uk/

NALS welcomes TDS consultation outcomes

28 June, 2006

As an industry wide accreditation scheme NALS is open to any agent who meets its strict criteria which include the necessity to have in place client money protection insurance and to adhere strictly to defined service standards.

-Ends-

Landlord Action appears on ITV’s Tenants From Hell

Twelve years of hell is resolved in just five months after Landlord Action is called in.

LANDLORDS get a terrible press. They’re seen as the bad guys, the enforcers; but what about when tenants turn bad?

Tenants From Hell (ITV Thursday 6th July 2006) is back on screen with a programme of seven stories including that of landlord Gordon McGuiness who suffered 12 years of hell with a tenant who continually stopped paying his rent, leading to debts of more than £18,000.

Mr McGuiness suffered extreme bad health and a sleep disorder and had debt counselling. His problems were compounded by solicitors who mishandled his case as he tried in vain to evict his tenant and recoup his lost rent.

Salvation came only when Mr McGuiness discovered Landlord Action, the market leaders and longest serving independent company specialising in fixed fee property recovery and tenant eviction in England and Wales.

Within just five months Landlord Action secured a successful eviction.

Landlord Action director and co-founder Paul Shamplina, who appears in the ITV documentary, says: “The effect that a bad tenant has on a landlord can be terrible. We are like the Samaritans for landlords. We are all landlords ourselves here, so we know exactly how they are feeling.

“We are very blunt, to the point and very pro-active, we don’t sit on our backsides. Our mentality is that 80% of tenants won’t pay back the arrears so we need to get them out as quickly as possible so that landlords can try and re-let or resell. It’s a damage limitation process.�

Mr Shamplina gives advice to landlords in the programme. Landlord Action has helped thousands of landlords around the country with cases including: individual rent arrears of up to £80,000; rent arrears owing for up to three years; properties with up to 40 illegal tenants in residence; tenants who are prostitutes, drug dealers and violent criminals.

Landlords just need to access www.landlordaction.co.uk or call
0870 765 2005 for immediate help.

Note to News Desk:

One
This press release, the background to the case, further information on Landlord Action and pictures of Mr Shamplina are available on the Landlord Action website at www.landlordaction.co.uk

To access the Media Centre for press releases and Image Library:
Username: press   Password : monday1231

Two
Please contact LLA Head of Communications Heather Jan Brunt
Tel: 07940 560465  Email heather.jan@landlordaction.co.uk

For:

1. An interview with director Paul Shamplina about this case.

2. Further information about Landlord Action

3. Case studies from your region

Three
For more information about Tenants From Hell and access to images from the programme please contact: ITV Press Officer Sarah Ellis on 020 7 737 8966 or email sarah.ellis1@itv.com