LETTINGSnews
TENANCY DEPOSITS
Government to clarify Deposit Protection Law
A year of uncertainty due to court decisions about deposit protection in the PRS has ended with the new
Localism Act 2011, which has just received Royal Assent. The law has been clarified following four significant court cases over the rights of a tenant to sue for a breach of the deposit protection legislation or when deposit money has been protected immediately before a court hearing. The changes which are
expected to come into effect at some time next year have been welcomed by the Tenancy Deposit Scheme (TDS) as clear and fair. The revised legislation will allow
for penalties worth between one and three times the value of an unprotected deposit to be awarded to a tenant at the court’s discretion. This is instead of a mandatory penalty of three times the deposit. In addition, it has now been made clear that the landlord
GOVERNMENT POLICY PRS is central to UK housing
Speaking at the National Landlords Association’s (NLA) annual conference, Terrie Alafat, Director of Housing Growth and Affordable Housing at Communities and Local Government (CLG), said that the PRS will play an increasingly important role in providing housing and is becoming the tenure of choice. “It is an exciting time for the private rented sector. Housing is definitely at the top of the government’s agenda and the PRS is in the middle of that. “We know that demand is
growing and the sector has responded to that, expanding
to 3.4 million households in England, an increase of 1 million since 2005. “There is recognition about
the flexibility of the sector. It isn’t a last resort, it is actually a sector which is the choice for people who do want that flexibility, who may want to move to work. It provides housing for those who can’t access other forms. We know social housing is hugely under pressure and home ownership is more and more difficult for first time buyers.” David Salusbury, Chairman, NLA, said, “It was encouraging to hear such positive comment from Terrie about the important part the PRS plays in the housing solution.”
or letting agent will have 30 days to protect a tenant’s deposit compared to the current 14 days. For all agent and landlord
members of the TDS, the new legislation will also mean that the tenant must have received the prescribed information including an explanatory leaflet and the TDS Deposit Protection certificate and the deposit must have been registered on the TDS tenancy database within the 30 day limit. Chief Executive of the TDS,
Steve Harriott, said, “I am pleased the Minister, Grant Shapps MP, found parliamentary time to get these amendments through. “The recent court decisions were
causing confusion about tenancy deposit protection regulations. These amendments make it clear that tenancy deposit protection is here to stay.” The changes have yet to come
into force and publication of the commencement order is awaited. New guidance notes issued by the Tenancy Deposit Scheme can be seen on
www.tds.gb.com.
HEALTH & SAFETY Huge fire risk in rented homes
People living in rented or shared accommodation are seven times more likely to have a fire in their home, so agents and landlords need to check their responsibilities to ensure that their tenanted properties are safe. A recent blaze, which
threatened to destroy a seven- storey block of flats in St John’s Wood London and which is thought to have started from a faulty fridge-freezer, highlights the need to change the law in order to make it mandatory to install smoke alarms in all rented homes. Michael Portman,
MD of Let Insurance Services says that not having a working smoke alarm doubles the risk of death, “with over 27,000 fires a year across the UK, there needs to be a change in legislation. Of 50 people killed in house fires in West Yorkshire over the past five years, 48 were in rented accommodation. “What’s more, one fire brigade
said that they do 60,000 home safety checks a year and find many alarms that are not working. “Landlords and agents have a
‘common law’ duty to ensure that their properties are kept free from hazards for the health and safety of their tenants, including fire hazards. We urge all landlords and agents to check that every smoke alarm is in working order and there are an adequate number of smoke alarms are installed. “Particular attention should be paid to blocks of flats, where it is essential that smoke alarms are fitted in each flat and not just in the common areas.”
Currently, the only specific fire regulations relating to tenanted residential properties relate to furniture and furnishings. The Smoke Detection Act 1991
made it mandatory to fit electric mains-powered smoke alarms in new residential buildings but it doesn’t apply to older buildings. If alarms are fitted the alarms should conform to the latest BS standards and be fitted in the circulation spaces, i.e. stairways and corridors. The alarms should be in full working order prior to any tenancy, have new batteries and be tested. Landlords of
•Fit smoke alarms. Show tenants
•Check if tenancy agreement requires tenant to ensure the
•At regular property inspections smoke alarm is working •Check that any working •Check the inspection
check smoke alarms work. If not working, produce a new battery at the inspection to fit to the smoke alarm and ask the tenant to pay for the battery there and then
•Make sure the insurance for both the building and the contents
chimneys have been swept
is up to date and appropriate for a tenanted property. This includes notifying your mortgage lender
requirements under your policy if the property is untenanted.
www.letinsurance.co.uk
PROPERTYdrum JANUARY 2012 55
how to test them, change the batteries between tenancies and demonstrate to new tenants that the alarm works
Houses in Multiple Occupation are required to ensure that adequate fire precautions are provided and maintained. A checklist:
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