1. www.landlords.org.uk National Landlords Association www.landlords.org.uk NLA NEWS and UPDATE Billy Gill

2. www.landlords.org.uk Contents ● Selective licensing: new regulations ● Deregulation Act ● Section 8 and Section 13 Notices ● 2015 - Budget ● Smoke / Carbon Monoxide Alarms ● “Right to Rent” Checks ● Roll out of Universal Credit ● New online tool for Water Bills: Landlord TAP

3. www.landlords.org.uk Selective Licensing Schemes Today Every rented property needs a license – In a given geographical area (a few streets, wards or whole council area) – Fees charged: huge range Targeted measure to deal with a specific problem: – Area of Low Housing Demand; and/or – Persistent and significant problem with Anti-Social Behaviour Problems with Selective Licensing: – Rogue landlords will just ignore the scheme – Significant additional costs, all of which will filter down to the tenants New regulations from 1 April ………….

4. www.landlords.org.uk Selective Licensing Schemes 1 April Housing Minister, Brandon Lewis MP, has written to all local authorities in England to draw attention to his plans to reform Selective Licensing of private rented housing. With effect from 1 April, local authorities will have to seek confirmation from the Secretary of State for any selective licensing scheme which would cover more than 20% of their geographical area or would affect more than 20% of privately rented homes in the local authority area. Not retrospective so schemes introduced before 1 April will apply

5. www.landlords.org.uk Selective Licensing Schemes from 1 April Statutory instrument (SI) tabled setting criteria which must apply to all schemes. Widens scope for but limits the extent of schemes and sets yardsticks for it to be measured Must have high proportion of rented properties (AST’s) PLUS one or more of following. Additional conditions in SL marked * – Low Demand – Anti Social Behaviour – Housing conditions :review identifies likelihood of significant number Cat 1 / 2 * – Migration levels * – Deprivation * – Crime *

6. www.landlords.org.uk Deregulation Act A double-edged sword for private landlords. Amendments to TDP legislation, lobbied for by the NLA Charalambous v Ng will be formalised All deposits taken before deposit legislation must be protected or returned before an s21 can be served Clarifies that all deposits must now be protected in a Government approved scheme

7. www.landlords.org.uk Deregulation Act A double-edged sword for private landlords: Section 21 Landlords will be prevented from issuing a Section 21 where a tenants has raised a legitimate complaint about the condition of the property and a Local Authority has issued a notice confirming that the repair needs to be carried out A section 21 notice cannot be brought during the first four months of a tenancy The introduction of a prescribed form notice for a Section 21. There will be a small period of time before it comes into force and landlords have to comply (likely 1 October). The NLA will keep members advised.

8. www.landlords.org.uk Section 8 and Section 13 Notices Landlords must follow strict procedures when seeking to end an Assured Shorthold Tenancy. New legislation came into force on Monday 6 April 2015 to change the wording of the Section 8 Notice that landlords in England must use. The latest version of the Section 8 Notice, using the correct wording, is now available www.landlords.org.uk/formswww.landlords.org.uk/forms The wording of the Section 13 Notice has also changed with effect from Monday 6 April 2015. The new Section 13 Notice is also available to download www.landlords.org.uk/forms www.landlords.org.uk/forms If your tenancy does not include a rent review clause, we recommend that you serve a Section 13 Notice if you want to increase the rent

9. www.landlords.org.uk 2015 Budget ● Intention to abolish the annual tax return and introduce an online system ● New legislation to prevent the use of clauses in private fixed-term residential tenancy agreements that expressly rule out sub-letting or otherwise sharing space on a short-term basis (will consider extending to statutory periodic tenancies). ● Intention is that tenants can request their landlord’s permission to sub-let or otherwise share space, on a short-term basis, and that landlords have to consider tenants’ requests reasonably.

10. www.landlords.org.uk 2015 Budget – Tax return People will be able to pay their tax at any point throughout the year. They will also be able to spread the cost by paying in instalments. Taxpayers will be given a secure login and password so they can submit tax information regularly. Online accounts will show how your tax is calculated, as HM Revenue & Customs updates information People who wish to continue filing an annual paper return can still do so. The switch is expected to start in early 2016. By 2020, businesses should be able to link their accounting software to their digital tax account, so they can feed in information directly. Later this year, the government will publish a ‘roadmap’ and consult on how it will deliver the changes needed

11. www.landlords.org.uk 2015 Budget – Sub-letting Sub-letting can already happen under current legislation unless the contract forbids it. The Government are only planning to legislate so landlords cannot insist on the clauses being there in the contract and hence not ‘reasonably’ consider any proposal. IF they happen even with these proposals the status quo will be retained – Any sub-letting must be with the landlords permission – Any sub-letting would only be temporary – A landlord can still reasonably withhold permission e.g. because of the increased risk of default.

12. www.landlords.org.uk 2015 Emergency Budget ● Restrict Relief on Landlords Financial Costs ● Replace the 10% Wear & Tear Allowance ● Increase Rent-a-Room Relief – From £4,250 to £7,500 from April 2016 ● Freeze LHA for 4 years from 2016/17 to 2019/20 ● Reduces Rents in Social Housing by 1% – In England for 4 years ● Insurance Tax Premium from 6% to 9.5%

13. www.landlords.org.uk 2015 Emergency Budget ● Out of work 18/21 no longer automatically entitled to housing element – New UC claims ● Benefit Cap of £20,000. £23,000 in Greater London ● April 2016, HB claims backdated for max 4 weeks ● IHT – New nil-rate band up to £175K per estate – means IHT threshold will be £1m ● Freeze the nil-rate band £325K until April 2021

14. www.landlords.org.uk Smoke and Carbon Monoxide Alarms Changes to the law (from 1 October) would… require landlords to install working smoke and carbon monoxide alarms in all their properties No specific type Locations are specified Testing Free alarms Fines for non-compliance

15. www.landlords.org.uk “Right to Rent” Checks The Immigration Act places new restrictions on illegal immigrants accessing private rented accommodation Landlords will need to carry out checks to identify whether a potential tenant has the right to reside in the UK. The scheme was rolled out to areas in the West Midlands* from 1 December as a first phase. (Birmingham, Dudley, Walsall, Sandwell and Wolverhampton) An evaluation of this phase is currently under way and a decision whether and how to roll it out nationally will be taken by the next Government after the election.

16. www.landlords.org.uk Universal Credit Universal Credit is replacing six means tested Government payments into one In April 2013 UC was piloted in parts of Greater Manchester and Cheshire. In April 2014 the Government announced the expansion of Universal Credit to the rest of the north west of England and elsewhere, which began in June 2014 across England, Wales and Scotland. In April 2015: national expansion Direct payment of rent if two months in arrears NLA urges landlords to ensure they are aware of any tenants who may need to claim benefits.

17. www.landlords.org.uk Landlord - TAP Landlord Tenant Address Portal (https://www.landlordtap.com )https://www.landlordtap.com Provide water companies with details of those responsible for the payment of water and/or sewerage charges for their tenanted properties. Follows regulations coming into affect in Wales which make the Landlord jointly liable for bills if they have not informed water companies who their tenants are. This website allows you to: Add new properties to your portfolio; Tell the water companies about – changes to tenant details, including changes of tenancy; – when a property becomes empty and – if you sell or stop managing the property.

18. www.landlords.org.uk ● Rightmove House Price Index

19. www.landlords.org.uk ● Rightmove House Price Index

20. www.landlords.org.uk

21. Luton Property Sales The majority of sales in Luton during the last year were semi-detached properties, selling for an average price of £200,829. Terraced properties sold for an average of £164,049, with flats fetching £106,499. Luton, with an overall average price of £187,717, was similar in terms of sold prices to nearby Stopsley (£186,813) and Leagrave (£182,834), but was cheaper than Caddington (£318,701). Overall sold prices in Luton over the last year were 8% up on the previous year and 10% up on the 2008 level of £170,706.

22. www.landlords.org.uk

23. Luton Property Rents (Current asking) ● One Bed (pcm) – Houses £493Flats - £602All - £575 ● Two Bed – Houses £803Flats - £747All - £772 ● Three Bed – Houses £980Flats - £1001All - £982 ● Four Bed – Houses £1,264Flats - £1,299All - £1,226 ● Five Bed – Houses £1,538Flats - £1,428All - £1,515

24. www.landlords.org.uk Fun Facts, Highest Value Streets ● Green Acres, Lilley£867,459 ● Lawrence End Road, Peters Green£846.320 ● Millfield Land, Caddington£808,207 ● Peters Green£753,130 ● The Green, Peters Green£664,705

25. www.landlords.org.uk Thank You National Landlords Association 2nd Floor, 200 Union Street LondonSE1 0LX Tel: 020 7840 8900 Email: info@landlords.org.uk Web: www.landlords.org.ukinfo@landlords.org.ukwww.landlords.org.uk