The British Property Federation (BPF) have produced a voluntary code of conduct for their residential landlord members. Although aimed at BPF members, LandlordZONE recommend that the code should be followed by all residential landlords and letting agents.

Download here: Residential Letting Code of Conduct

This code of conduct is designed to formalise what BPF believe is best practice in relationships between landlords or agents and their residential tenants.

It can be used by members of the British Property Federation, but is not a requirement. Landlords and agents who sign up to the code agree to abide by its provisions and commit to the actions set out in the ‘Status of the code’ section at the end of this leaflet.

The code has a supporting document, the British Property Federation standard assured shorthold tenancy agreement, available at www.bpfagreements.org.uk. It is not a requirement of the code that members use the BPF standard agreement, but we strongly encourage its use, or the use of other plain English agreements wherever possible.

The Work & Pensions Select Committee has published its Fifth Report – Local Housing Allowance – on 22 March 2010 on its examination of LHA. Members should be able to access this at a cost of circa £15 on the UK Parliament’s website. Look for Select Committee Reports – http://www.publications.parliament.uk/pa/cm/cmworpen.htm

I’ve only has a cursory read so far but as far as I can see there’s nothing remarkable in any of its findings or recommendations. Direct payments will continue to be paid to tenants although the Committee did acknowledge that the system needs to be improved and urges the DWP and Councils to work harder with landlords and tenants to make the scheme’s administration simpler and more universally applied.

Here’s 3 paragraphs which might be of most interest to members of LandlordZONE.

LHA Direct – First payment to Landlord

72. In terms of the first payment of LHA paid in arrears, Mr Irvine of the Scottish Landlords Association suggested it would increase landlords’ confidence if “the [first] Cheque could be made payable to the landlord, given to the tenant. If that was to happen, it would reduce a lot of the arrears that currently happen. For some reason, this does not happen”.

72 The Minister told us that “in Leeds the first benefit cheque is made out to the landlord, but given to the tenant and that means that their systems work much better than in places where the first cheque is also made out to the tenant, but again that is a question of the local authorities’ administrative capacity”.73

Committee Recommendation

73. The fact that the first LHA payment is paid in arrears makes it difficult for some to manage their finances and has been the subject of concern to some landlords. We recommend that it should be standard practice for local authorities to give the first cheque to the tenants, payable to the landlord. We believe this will give the tenant time to get used to the new scheme and provide the landlord with some confidence in receiving the payment.

Committee’s – 8 Weeks Rule Recommendation

104. The evidence on the eight week safeguard rule suggests that it is not fully
understood and that implementation varies across local authorities. We strongly believe that it is the Department’s responsibility to ensure that local authorities understand the rules and implement them correctly. The rules need not change if eight weeks arrears remains the upper limit for when payments must go to the landlord and include the first payment, which is usually paid in arrears. However, local authorities should liaise with landlords and financial advice services to identify those clients at an early stage who are likely to run into arrears and put safeguards in place.

Full Conclusions & Recommendations here:

http://www.publications.parliament.uk/pa/cm200910/cmselect/cmworpen/235/23511.htm

Article provided by Bill Irving of  www.hbadvice.co.uk

Hipag’s seminars offer lifeline to independent estate agents and high street solicitors
“How HIPs (Home Information Packs) will impact local businesses”

London, 23 May 2006 — Hipag Services www.hipag.co.uk the leading supplier of Home Information Packs to independent estate agents and solicitors, is holding a series of nationwide Seminars explaining the impact of the Packs that will become compulsory from June 2007 under the Housing Act.

“The introduction of HIPs”, says Rob Hailstone, Hipag’s CEO, “will change the way residential conveyancing is carried out beyond all recognition. Our Seminars are an information lifeline to the local estate agent and the local solicitors practice to tell them exactly what HIPs mean and what the impact will be on their businesses.”

“Our aim in Hipag is to bring together local solicitors, estate agents, surveyors and home inspectors, working in partnership, to achieve faster completions, reduce stress and impress clients.”

Among speakers giving presentations at the Seminars will be, Jeff Whiteway, chief executive of OyezStraker, Hugh Dunsmore-Hardy, former NAEA President, non-executive director of Hipag, chairman of NALHI, Lesley Sorridimi of OneSearch Survey and Rob Hailstone chief executive of Hipag Services.

Seminar dates are planned for: Bristol (01.06.06), Birmingham (09.06.06), Brighton (20.06.06), Manchester (27.06.06), Leeds (28.06.06), Newcastle-upon-Tyne (04.07.06) and Norwich (11.07.06) — see below for further details.

Topics covered will include :
- Home Inspector numbers and certification scheme
- The regulations
- HIPs – the estate agent’s perspective
- NALHI (National Association of Licensed Home Inspectors)
- Selling HIPs in a non-compulsory market
- How working together will ensure the survival and
growth of independent estate agents and high street
solicitors when HIPs are compulsory

Roadshows venues:

Bristol Novotel 01/06/06

Birmingham Crowne Plaza 09/06/06

Brighton Seafront Holiday Inn 20/06/06

Manchester Palace Hotel 27/06/06

Hilton Leeds City 28/06/06

Newcastle Upon Tyne Thistle Hotel 04/07/06

Norwich Ramada Jarvis Hotel 11/07/06

About Hipag Services Ltd.

Hipag Services Ltd (www.hipag.co.uk) has been formed to assist independent estate agents and high street solicitor practices in England and Wales produce HIPs quickly and efficiently. Hipag currently has over 1,000 registered members, from Cornwall to Cumbria, who it will work in partnership with to produce HIPs rapidly, enabling property sales to proceed without delay.

Hipag’s membership includes local independent estate agents, high street solicitors practices and future Home Inspectors who will prepare the Home Condition Reports.

Hipag Services has the financial backing of the OyezStraker Group, the UK’s leading independent office products and business services company with 1,500 staff and £160m turnover.

Hipag Services believes its HIP will be superior to others for two main reasons. Firstly, because it will provide to the seller and the estate agent a HIP quickly that complies with legislation so that the property can be marketed without delay. Secondly, by working with its member firms it will ensure the HIP becomes comprehensive while the property is being marketed, and not after a buyer has been found, thereby providing a smoother, less stressful transaction and a quicker exchange of contracts.

Hipag can achieve these goals because its members – solicitors, estate agents and home inspectors will be local to the property being sold and will be working closely together. Their local knowledge and easy accessibility will make it easier for the property seller to meet and discuss potential problems with the professionals who will be working for them.

This local approach contrasts with that of many large HIP providers who plan to offer a service based on large centralised “call centre” -style HIP factories to prepare packs.

About The OyezStraker Group Ltd.

The OyezStraker Group Ltd (www.oyezstraker.co.uk) is the UK’s leading independent office products and business services company with 1,500 staff and £160m turnover.

The Group was formed in 1997 through the merger of Oyez and Straker, two well-known companies with strong brands in the office products and stationery market. Companies in the Group consist of: OyezStraker, Stat Plus, Lynch McQueen and Whitegrove. The Oyez brand name is synonymous with the supply legal office supplies, legal software, forms publishing, speech solutions, document production and company formations.

For further information:-

Rob Hailstone, CEO, Hipag Servies Ltd
M: 07817 630714
E: rob@hipag.co.uk
www.hipag.co.uk

or

Jacqui Green, JGMpr
M: 07885 270 349
E: jacqui@jgmpr.com
www.jgmpr.com

MENTION SITTING TENANTS AND MOST LANDLORDS would reel in horror!

A friend of mine recently asked me how they should be dealt with. His friend had purchased a property and not realised the consequences of his actions. His solicitor must have been inept. He had bought the property with the promise that it could be vacated, only to learn about protected tenancies the hard way. I’m sure this is not an isolated incident.

In these days of assured shorthold tenancies, it is easy to forget that there are still a lot of tenancies around that are either regulated or statutorily protected.

If you know what you are doing these can make good reversionary investments. With a sitting tenant in place, the property, depending on its condition and the life expectancy of the occupier, is worth a fraction of its vacant possession value. But if you are prepared for a wait – and of course it’s a gamble -these investments can pay off handsomely.

TENANTS’ EXTRA

The story of private residential tenancies throughout much of the 20th century is one
of rental market decline. It’s a perfect example of how well-meaning, socially motivated legislation can have the exact opposite effect of what was intended.

Instead of protecting tenants’ interests it resulted in the virtual destruction of the market. It also detracted from the aim of a flexible, mobile workforce by creating tenants that never move.

It is hard to believe that giving security of tenure for life – and for the lives of spouses and offspring – while controlling rents through the ‘fair rents’ system, at uneconomic levels, could ever have been contemplated. No landlord in his or her right mind would buy and supply property to let under these terms.

Most tenancies before 15 January 1989 are governed by the Rent Act 1977. It is not possible to change them, unless the tenant can be persuaded without duress to move. Grounds for possession or eviction are discretionary and very limited. The protected shorthold tenancy, which kicked off the buy-to-let revival, was first introduced by the Housing Act 1980.

It applies to tenancies that were granted on or after 28 November 1980. These had to be for a fixed term of between one and five years and, before the start of the tenancy, the landlord had to give notice in a specified form that the tenancy was a protected
shorthold – a section 20 notice.

The tenant has fair rent protection as long as it does not break the terms and the landlord has the right to get its property back, provided these conditions are met. Evidence of service of the section 20 notice is critical, otherwise it is a protected tenancy.

The Housing Act 1988 introduced assured tenancies: either ‘full’ assured tenancies or assured shorthold tenancies, thereby giving landlords a choice.

Tenancies starting after 15 January 1989 gave assured tenants security of tenure but with no restriction on how much rent could be charged. Assured shortholds gave no security of tenure after an initial six months, but did provide some rent protection. Again a prescribed notice had to be served, otherwise the tenancy would default to a ‘fully’ assured one with protected status.

The legislation was changed again by the Housing Act 1996, which made the default tenancy the assured shorthold for any tenancy commencing after 28 February 1997.
Most tenancies will now fall into this latter category.

There is therefore little risk to the landlord, even if the tenancy was created without a proper written agreement, although the tenant has a right to one within 28 days.

This article by Tom Entwistle, editor of the rental property website LandlordZONE originally appeared in Property Week 5 May 2006.

See also: Directory – Sitting Tenants

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The LandlordZONE Journal – “LandlordLOG�
November 2005 – Issue 003

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The UK Housing Act 2004 involves one of the biggest changes for landlords for many years and most of its provisions will be enacted in April 2006. We continue this series on the Housing Act with a primer on the new Housing Health and Safety Rating System (HHSRS). This new system replaces both the housing fitness regime set out in the Housing Act 1985 and the Houses in Multiple Occupation (HMO) fitness test.

This issue is wholly sponsored by www.Coverlet.co.uk – one of the leading providers of insurance for the rental property market.

This issue addresses the HHSRS regime. The next two issues will address the implications of the new Tenancy Deposit Scheme

Current content includes:
• Housing Health and Safety Rating System (HHRS)
• Welcome—the Editor
• What Powers will Inspectors Have?
• Will it Affect Whether I Can Get an HMO or Other License?
• Won’t This All Be Confusing?
• What Should I Do Now?
• Book Review:
• Debt Recovery by Mark Fairweather and Rosie Border
• Insurance from www.CoverLet.co.uk
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Download LandlordLOG as a web page, or in Adobe .pdf format:

http://www.landlordzone.co.uk/BlogNews/newsletterNov05.htm or

http://www.landlordzone.co.uk/BlogNews/LandlordLOGNov05.pdf

The links to the journal are also posted at:

http://www.landlordzone.co.uk/BlogNews/newsletter-archive.htm and

www.LandlordLOG.com

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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