Another week, another Newsround. What have the Landlord Law team has found in the housing news this week?
Letting agency found in breach of the law after charging tenants £1,000 holding deposit
After a tenant took her letting agency to Tribunal when they failed to refund her holding deposit, it was found that she had also been charged an incorrect amount.
She had been charged £1,000 although the monthly rent was £1400. The Tenant Fees Act requires holding deposits to be limited to one week’s worth of rent.
The agent also failed to provide a draft contract, as the ‘sample contract’ provided contained errors including citing the wrong dates and claiming a deposit sum which was in excess of the amount allowed.
The Tribunal held that the agents must return the remaining deposit, saying:
It was not reasonable for the landlord/letting agent to delay issuing the tenancy agreement and when it was issued, just before the deadline, for it to be in a form that could not be signed by the tenant. The tribunal finds on the evidence provided by the tenant that she took reasonable endeavours to enter into the tenancy agreement.
New Labour MP is the biggest landlord in the House of Commons
With the change in the composition of the House of Commons comes a change in the number of MPs who are landlords.
A Financial Times analysis of data from the UK parliament’s register of members’ interests has found as follows:
In total there are 85 MPs who declare themselves as landlords, representing 13 per cent of parliamentarians — and they own 184 rental properties between them.
Labour has 44 landlords, 11 per cent of its 404 MPs, and the Tory party has 28, a quarter of its 121 MPs. The Liberal Democrats have eight of their 72 MPs. So all parties contain at least some landlord representatives.
New MP Jas Athwal, MP for Ilford South, is now the largest landlord owning 18 rental properties. He rents out 15 residential properties and three commercial properties, all co-owned with a family member.
Tenants organisations are worried that the increase in landlord MPs in the Labour Party could derail the proposed legal reforms.
However landlords, many of whom are selling up in advance of what they believe will be hostile legislation, should be grateful that they have some voices which can speak up for landlords’ interests.
North Yorkshire Council adopts new housing enforcement policy
North Yorkshire Council was created last April after the former county council and seven district and borough authorities were merged into one single unitary authority. It will now be the main enforcement authority for housing and has adopted a new focus on housing standards.
Combining the smaller authorities into one means that a new consistent way of dealing with complaints can be implemented.
Executive member for housing, councillor Simons Myers said:
A new policy will give us a balanced approach to housing enforcement work and ensure that privately rented homes are well-managed, properly maintained, safe and habitable. It also gives us the ability to fine landlords, letting agents and property managers and use any income generated to further improve the service.
This could mean fines of up to £30,000 for non-compliant landlords, letting agents and property managers.
Note that landlords struggling to deal with properties with damp and mould may find our new Dealing with Damp kit useful (see the page for a free checklist)
Government to step up plan to crackdown on short-term lets
Government in England is looking to restrict short term lets by giving Local Authorities greater powers to bring in planning consent. Plus a new mandatory national register for short term lets is proposed.
In Wales, councils already have a similar register, known as an “Article 4 Direction” – but the policy extends to second home ownership as well as holiday lets. Northern Ireland has long had a registration scheme in place.
But some analysts are warning against a local registration scheme which they say has backfired in Edinburgh. Sophie Lang, of ARLA Propertymark, said:
Similar measures elsewhere have led to operational issues for landlords regarding the short term lets market, which in turn driven up prices and damaged tourism in some areas that depend on it.
It’s vital to have a fair balance that encourages landlords back into the long-term rental market while still supporting local economies that rely on tourism.
Why landlords leave letting agents
Finally, an excellent article from solicitor landlord Suzanne Smith on what landlords want from their letting agents and why they leave.
We have had many landlords come to my Landlord Law service after a bad experience with letting agents, and the reasons cited are pretty much the same as those described by Suzanne.
Landlord Law includes a special section on dealing with problem letting agents. This explains the laws which apply and gives guidance on how to deal with a letting agent who is being obstructive when landlords wish to leave.
As Suzanne says, some of those ‘small print’ clauses will be unenforceable against ‘consumer’ landlords under the unfair terms rules in the Consumer Rights Act.
Other landlords may be able to end the contract without worrying about contract clauses, if the agents are found to be in breach of contract.
Note that our monthly training webinar for September (open to all Landlord Law members) will be with Justin Bates KC, specifically on the unfair terms rules and we will be asking him about the enforceability of these aggressive termination clauses.
Snippets
Tenant remanded in custody after landlord’s death
Landlords’ massive contribution to regional economy in the North West
Jurisdiction of the FTT on referrals of rent increases
Council slammed for breaking property licencing scheme rules
Male UK university students are ‘less macho’ when sharing flats with women
Rogue landlord and agent first to be banned from PRS in Essex
Cosy, quiet and efficient: how New York is pioneering eco-friendly apartments
See also our Quick News Updates on Landlord Law
Newsround will be back again next week.