30th April 2008
A Landlord Action Essential Seminar - June 8th 2008, London

Landlord Action has gathered together leading industry experts to guide us through this current market downturn. The essential one-day seminar has sessions covering many areas. For more information click here

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IMPORTANT
17th April 2008
TENANCY DEPOSIT CASE - STANKOVA v. GLASSONBURY

TENANCY DEPOSIT CASE (S213 HA 2004)Stankova v. Glassonbury 10th March 2008, Gloucester County CourtThe claimant Ms Stankova is from Bulgaria and took a private tenancy with Mr Glassonbury on 1.8.07. She was a joint tenant with her daughter and another tenant (unknown to her before start of tenancy).

The tenants jointly paid a deposit of £600 in order to move in. The landlord did not notify any of the tenants that he had deposited the money in any of the statutory Schemes at any time.There were various problems with the landlord and he served notice on 2.10.07. The notice was defective.

The third tenant moved out of property shortly afterwards and the three tenants made arrangements about how the deposit would be dealt with on its return.On 28.10.07 the landlord entered the property and removed a carpet and the fireplace from the lounge making it unusable and also pulled the extractor fan out of kitchen leaving a hole in roof. The Council dealt with the harassment.

The landlord promptly served a further notice November 2007 under s21 which was on the face of it a valid notice.Ms Stankova moved out in Feb 2008. She made a claim under the Housing Act 2004 against the landlord for his failure to notify her within 14 days of how he would deal with the deposit and which scheme he was using.

The landlord submitted various arguments against the claim; that the tenant owed some rent arrears, that he had now placed the deposit in a scheme and that there was damage at the property for which he would wish to withhold some or all of the deposit.

At the hearing of the matter District Judge Singleton ordered the landlord to pay £1800 +£75 costs in respect of three times the deposit plus the court fee.In awarding the monies, the judge accepted the tenant’s argument that the award was a strict liability penalty, and that consequently there was no provision for counterclaim for outstanding rent arrears or other arguments about the return or retention of the deposit on the basis that a statutory scheme included arbitration for disputed about returning or retaining deposit monies.

Comment: In giving his decision the judge expressed concern that ‘it goes against the grain’ and advised the landlord to take legal advice as to whether he could delay the 14 days in which he must pay the claimant.

The case doesn't make it clear if the tenant moved out because of the Section 21 served in November which may actually not have been valid if the landlord hadn't protected the deposit before service.

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28th February 2008
OFT seeks court order against letting agent Foxtons

The OFT has issued High Court proceedings against Foxtons Limited seeking a declaration on the application of the Unfair Terms in Consumer Contract Regulations 1999 (UTCCRs) to certain terms in Foxtons' lettings agreements with landlords. The OFT is also seeking an injunction against Foxtons preventing it from using the terms.

The action taken by the OFT is in response to consumer complaints. If successful in this case the OFT intends to enforce compliance with the law, as declared by the Court, throughout the letting industry wherever similar terms are being used.

The terms to which the OFT objects in Foxtons' letting agreements can potentially require landlords to pay Foxtons substantial sums in commission, where a tenant continues to occupy the landlord's property after the initial fixed period of the tenancy has expired - even if Foxtons plays no part in persuading the tenant to stay, and no longer collects the rent or manages the property. Foxtons' terms can also require the landlord to pay these sums after the landlord has sold the property. The terms also demand commission where the landlord sells the property to the tenant, even where Foxtons has played no part in negotiating that sale.

Foxtons contends that its agreements with landlords are not unfair and continues to use these terms, and accordingly, the OFT has issued proceedings so the courts can decide the matter.

NOTES
1. The OFT is seeking an enforcement order against Foxtons Limited under the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs).
2. The UTCCRs apply to standard contract terms with consumers. The UTCCRs protect consumers against unfair standard terms in contracts they make with traders. The OFT, and certain other qualifying bodies (such as local authority trading standards, national regulatory bodies, and Which?) can take legal action to prevent the use of potentially unfair terms. A term is likely to be considered unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers. The regulations say that a consumer is not bound by a standard term in a contract with a trader if that term is unfair. Ultimately, only a court can decide whether a term is unfair.
3. It is estimated in the lettings industry that there are at least 15,000 letting agency businesses in the UK, including a number of national and multi-national companies in addition to many smaller businesses.

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28th January 2008
(CLG) Private rented sector to be focus of independent review

A major review to improve the private rented sector was today announced by Housing and Planning Minister Yvette Cooper. With almost 2.6 million homes in England being rented from over half a million private landlords, Yvette Cooper has commissioned an independent review to look at what problems tenants and landlords face and what works well in the sector.

A Citizens Advice Bureau report last year found 1 in 5 tenants were dissatisfied with the quality of repairs carried out by their landlord and feared retaliatory action if they complained to authorities. On the other hand, landlords can face problems with poor tenants not paying rent and anti-social behaviour.

The review will look how the increasing number of buy to let accommodation and student tenants has impacted on the private rented sector, the quality of homes and who the users of the sector are. It will also examine the impact of demographic and social change on the future demand and supply in the sector.

The Government has already introduced positive legislation such as Tenancy Deposit Protection and action on houses of multiple occupation. The Government will consider the reviews recommendations to see what else can be done to improve the sector for both landlords and tenants.

Julie Rugg and David Rhodes from the Centre for Housing Policy at York University will head the review. Yvette Cooper said:
"Most of us have rented a flat or house at some stage in our lives and the private rented sector is, at its best, a vital provider of good
housing. But too few people are aware of their rights and responsibilities, either as tenants or landlords. We have seen a big
increase in the private rented sector and particularly in buy to let. It is important we review the impact of this.

"I would like to take this opportunity to thank Julie Rugg and David Rhodes for taking on this important role and look forward to their final report towards the end of the year."

Julie Rugg said: "Many people experience renting privately at some point in their lives, but private renting as a sector isn't well understood. This is a good time for a review."

Julie Rugg and David Rhodes start work immediately and will deliver their final report by the end of October.

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21st January 2008
Nation urged to "Pull your finger out!" and stay safe from fire

A new campaign launched on  15 January 2008 by Communities and Local Government is delivering the stark message to 'Pull Your Finger Out' and check your smoke alarm. Although 80 per cent of homes in England have a smoke alarm, new survey results from the Fire Kills campaign and TNS show that an alarming four in five of those polled don't follow advice to test their alarm every week. Not checking smoke alarms regularly puts loved ones and homes at unnecessary risk.

Checking a smoke alarm only takes minutes but the reasons given for failing to take this simple precaution are disturbing, with general apathy stopping many people from being fire safe. Reasons given for not testing smoke alarms enough include: 'not remembering' (23 per cent), 'don't think about it' (14 per cent), 'too busy' (8 per cent) and 'can't be bothered' (7 per cent). This is despite the fact that if you don't have a working smoke alarm you are more than twice as likely to die in a fire. 

The 'Pull Your Finger Out' national advertising campaign, fronted by Julie Walters, highlights the devastating and potentially fatal consequences of not testing your alarm often enough. Running in England from 15 January 2008 to early March, the advert shows the horrific aftermath of a fire in the home with a burnt out kitchen providing the backdrop to the scene. 

Fire Minister Parmjit Dhanda said: "The harsh truth is that unless a smoke alarm is regularly maintained it could be rendered useless in the event of a fire. Clearly it is not enough to simply own a smoke alarm and hope that loved ones and homes will be protected. Maintaining a smoke alarm takes moments and this simple precaution can save lives.

"The impact of fire can be devastating and potentially fatal, so I would urge people to take immediate action by obtaining a smoke alarm and checking it weekly - these simple steps could save lives".

Make your home fire safe and keep it that way with the Fire Kills campaign 5 step plan:

Step 1 - Fit a smoke alarm on each level of the property. When a fire starts, you only have a few minutes to escape so an early warning is vital. Make sure you replace battery operated smoke alarm units after 10 years. Alternatively consider installing a 10-year battery smoke alarm or mains powered alarm.

Step 2 - Test it weekly. A working smoke alarm can buy you valuable time to get out, stay out and dial 999.

Step 3 - Plan your escape route. Make sure you and your family knows the quickest way out in the event of fire. Consider an alternative route in case your usual one is blocked.

Step 4 - Stay safe in the kitchen. This is the area where most house fires start. It only takes a minute to check electrical appliances are switched off. Also, never leave cooking unattended.

Step 5 - Ask the experts. Fire and Rescue Services in England offer free home fire risk checks to identify potential fire risks and advise what to do to reduce or prevent them. Find out more at www.fire.gov.uk

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13th December 2007
Local Housing Allowance:important changes

From 7 April 2008 Housing Benefit for people who rent properties from private landlords is changing. The new benefit is called Local Housing Allowance (LHA).LHA is the new way to calculate Housing Benefit.. These changes are:

1. The Local Housing Allowance rates will be based only on the number of bedrooms a family needs, not bedrooms and living rooms. This is to reflect the way property for rent is advertised
2. The way the Rent Service works out the Local Housing Allowance rates will change. The calculation of the Local Housing Allowance rates will be based on a wider range of local rents than they are at the moment
3. If the Local Housing Allowance rate that applies to a tenant is more than their rent, the maximum amount of benefit they can get is their rent plus £15. This is to ensure that Local Housing Allowance does not become a disincentive for people moving into work.

Existing claimants will not be affected by LHA unless they change address or have a break in their claim after 7 April 2008.

LHA is not applicable if:

1. A person is a council or housing association tenant
2. A person has a tenancy that started before 1989
3. A person lives in a caravan, hostel or houseboat
4. A person lives in board and lodgings.

The amount of LHA a person gets depends on:

1. Who they live with and the number of bedrooms your family needs
2. The area in which they live
3. The amount of money you have coming in
4. The amount of savings you have

The LHA rates vary depending on the size of the property. These rates are set by an independent rent officer, based on local rents. 
LHA will be paid directly to the tenant, who then pays the landlord. As a tenant will know their entitled before searching for property, letting agents and landlord Knowing the amount of LHA will allow a tenant to search for a property they can afford.  Tenants cannot choose to have LHA paid direct to the landlord. 
Some tenants may struggle with the responsibility of paying their rent and so safeguards have been put in place to make direct payments to landlords in certain circumstances for vulnerable tenants.
The Council has discretion in identifying tenants where LHA will be paid direct to the landlord. Examples include:

1. The tenant is likely to have difficulty managing their own affairs. This could include tenants with learning disabilities, in severe debt or with drug or alcohol problems that would mean they may have difficulty managing a budget.
2. The tenant is unlikely to use their LHA to pay their rent.
3. The tenant has built up rent arrears of 8 weeks or more.
4. The tenant is having deductions from their Income Support or Jobseeker’s Allowance to pay off rent arrears.

Further Information
Department of Work & Pensions website at http://www.dwp.gov.uk/housingbenefit/lha/