Year: 2020

A landlord from Plymouth has been sentenced after failing to maintain gas appliances and failing to have landlord’s gas safety checks undertaken at his rental property in the city.

Plymouth Crown Court heard how, in August 2018, a concern was raised with the Health and Safety Executive by a previous tenant that no landlord’s gas safety checks had been carried out for three years.

The HSE made numerous attempts to contact the landlord,  Thomas Brumby, but received no replies or representations.

Having failed to provide HSE with a copy of any landlord’s gas safety records for his tenanted property, a formal Improvement Notice was served on Brumby requiring him to arrange for the gas appliances at his tenanted property to be checked and maintained.

He ignored this Improvement Notice and has now pleaded guilty to breaches under the Gas Safety (Installation and Use) Regulations 1998.

He has been sentenced to 15 weeks in prison for each offence, both suspended for 18 months, and ordered to pay costs of £1,500.

An HSE spokesman says the landlord “put the residents and other members of the public at risk of harm by failing to maintain gas appliances in a domestic property. He showed contempt of the law surrounding gas safety at a tenanted property. Landlords must ensure they obtain a landlord’s gas safety record and they maintain all gas appliances in accordance with the law.”

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Research within the 15 largest rental markets around the world has found that some tenants are asked to put down 10 months’ rent or £6,145 as a deposit.

The UK is one of the most affordable places to begin a tenancy, research among the world’s 15 largest private rental housing markets has discovered.

As well as the first month’s rent, tenants in the UK must pay an average deposit of £811 or a maximum of five weeks’ rent, as the law now requires.

Only New Zealand and Turkey have lower deposits, although in Sweden there are no renting deposits at all but, instead tenants must register with a central national database which holds their rental payment track record.

But elsewhere it’s a different story. In Japan tenants must pay a deposit equivalent to ten months’ rent or £6,145 and similarly South Korean renters must also pay ten month’s rent as a deposit, or £4,360, the research by alternative deposits provider Ome reveals.

In Denmark it’s three month’s rent or £4,432 while in the US tenants pay three-and-a-half months’ rents or £3,547. And Swiss tenants are required to pay as much as three months’ rent to secure a rental property, coming in at an average cost of £3,542.

But in 24 of the 51 states in the US, there is no statutory limit on security deposits and in these states, landlords and agents can legally charge whatever they see fit.

Only a handful of countries have average deposits similar to ours including Germany, Austria, Israel, Canada, Australia and France.

Co-founder of Ome, Matthew Hooker, says: “Landlords need security to feel comfortable letting someone else live in one of their largest assets. “That’s why we’re focusing on how we can provide the landlord with the exact same financial protection as a cash deposit, whilst reducing the upfront costs to tenants when moving home to improve their day-to-day cash flow and rental wellbeing.”

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The government has relaxed some provisions of the controversial Right To Rent regulations for the duration of the Coronavirus outbreak.

The temporary Right To Rent regulations change will mean the Home Office will not require agents, landlords and employers to see original documents and will allow checks to be undertaken over video calls.

This means that during the outbreak prospective renters and workers are now able to submit scanned documents, rather than originals, to show they have a right to rent or right to work.

A Home Office statement says checks continue to be necessary and it is an offence to knowingly employ or let property to anyone who does not have legal immigration status in the UK.

If a prospective or existing tenant or employee cannot provide any of the accepted documents, the landlord or employer should use the Landlord Checking Service or Employer Checking Service.

According to Home Secretary Priti Patel: “Once the temporary changes end, landlords and employers will be asked to carry out the full checks on existing tenants and employees who rented a property or started work during the pandemic.”

Right to Rent remains a controversial provision opposed by most lettings industry groups. Right to work checks are a requirement on employers to make sure a job applicant is allowed to work in the UK before employing them.

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The government issued further guidance on the private rental sector over the weekend on rent, evictions and maintenance.

The new 21 page document – a link to which is at the bottom of this story – pulls together for the first time the ad hoc information on various regulations that have changed in the past week.

Measures outlined in this new guidance are in force until the end of September.

On the subjects of rent, evictions and maintenance, it says until the end of September most landlords will not be able to start possession proceedings unless they have given their tenants three-months’ notice.

“Landlords can choose to give more than this three months’ notice” it adds.

The guidance confirms the suspension of housing possession cases currently in the courts for 90 days.

“We strongly advise landlords not to commence new notices seeking possession during this challenging time without a very good reason to do so” it says.

And finally on maintenance it calls for everyone across the sector to adopt “a pragmatic, common-sense approach to issues that may arise in the current circumstances”.

However it adds that tenants “have a right to a decent, warm and safe place to live” and calls for strict adherence to social distancing.

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The Guild of Letting and Management has thrown helpful light on the responsibilities and recommended approach of letting agents faced with mandatory checks on properties rented by tenants who are self-isolating because of Coronavirus.

“The Guild of Letting and Management are grateful to clients who are calling the advice line to share their experiences  so that other letting agents and property managers can be made aware of the situations that they may have to deal with” says a guidance note from the GLM.

Yesterday Letting Agent Today reported that the ARLA was concerned agents may find themselves inadvertently breaking the law by not conducting mandatory safety checks on properties that are effectively out of bounds because the tenant has the virus.

Now GLM has thrown light on this by posing a scenario – a property where the Gas Safety check is due, but in a property where the tenant self-isolates – and asking the appropriate authorities for advice.

GLM says: “We spoke to the Health and Safety Executive Gas Safety advice line who advised the following:

– keep records of any discussions that take place with tenants who are self-isolating;

– save all email correspondence from the tenants in question;

– advise contractors that they should not be putting themselves in a position of danger even though they have a Duty of Care.”

In addition, GLM checked with Public Health England which advised that contractors or letting agents must not put themselves in situations where they could be on contact with someone who is self-isolating

“We spoke to the Gas Safe Register advice line this morning, who advised that all reasonable steps must be shown to demonstrate that appointments have been made to carry out the gas safety certificate and that records of any correspondence or communication with the tenant must be kept on record. Please, note this applies to ALL situations where access is not possible.”

GLM says that obvious questions which agents and contractors should ask of tenants or applicants include:

– have you travelled overseas since the beginning of the year?

– have you been been in contact with anyone who has been tested positive or in the process of being tested for the virus?

“If you are notified by a tenant or landlord or contractor that they are self-isolating, make a record and rearrange appointments” advises the GLM.

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Typical private UK rental deposits, often considered high in this country, is thought to be relatively low by international standards according to a new study.

Deposit replacement scheme Ome has looked at comparative deposits from 15 nations.

In England and Wales a tenant currently pays an average of £1,139, although across the UK as a whole (so including Scotland and Northern Ireland) the UK rental deposits reduce to £811.

The tenant fees ban means that agents and landlords can now only charge five weeks’ rent as a deposit in most circumstances.

Ome says that while this might still seem high, there are tenants around the globe with a much larger financial obstacle.

For example in Japan, where 38 per cent of the population rent, tenants pay 10 months rent as a deposit, meaning an upfront cost of £6,145.

In Denmark deposits are based on three months’ rent, with a further three months paid upfront, so requiring £4,432.

Like Japan, South Korea also requires tenants to pay 10 months’ rent as a deposit, costing £4,360 on average.

US tenants face paying as much as three and a half months’ rent upfront £3,547, with some states allowing agents and landlords to charge what they want with no statutory limit on deposit size.

Swiss tenants are required to pay as much as three months’ rent to secure a rental property, coming in at an average cost of £3,542.

The full list is as follows:

Japan, 10 months’ rent: £6,145;

Denmark, three months’ rent and three month deposit: £4,432;

South Korea, 10 months’ rent: £4,360;

United States, up to 3.5 months’ rent: £3,547;

Switzerland, up to three months’ rent: £3,524

Germany, three months’ rent: £1,860;

Austria, three months’ rent: £1,839;

Israel, two months’ rent: £1,598;

Canada, two months’ rent: £1,488;

Australia, six weeks’ rent: £1,269;

France, two months’ rent: £1,146;

UK, five weeks’ rent: £811;

New Zealand, up to four weeks’ rent: £743;

Turkey, up to three months’ rent: £527;

Sweden, usually no deposit, £0.

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One of the biggest hurdles for renters to overcome when trying to secure their home is the rental deposits. Depending on where you are in the country and who your landlord is, this could potentially run into the thousands.

Rental deposits replacement scheme, Ome, has compared the average cost of a rental deposit in the UK with 14 other nations who have the highest percentage of renters across the world.

Ome looked at the wide variety of rental deposit calculations across 15 nations and what this meant financially for tenants.

In England and Wales, the average tenant currently pays £1,139, although across the UK this is marginally more affordable at £811. The latest changes as a result of the tenant fees ban means that landlords and agents can now only charge five weeks’ rent as a deposit (where the annual rent is less than £50,000). While this might still seem high, there are tenants around the globe with a much larger financial obstacle in front of them.

In Japan where 38.3 per cent of the population rely on renting, tenants are required to pay an eye-watering 10 months rent as a deposit, meaning that the average tenant is required to find an upfront cost of £6,145.

In Denmark, deposits are based on three months’ rent, with a further three months paid upfront, this, therefore, costs the average tenant £4,432 to secure a property.

Like Japan, South Korea also requires tenants to pay 10 months’ rent as a deposit, costing £4,360 on average.

Across the pond, US tenants face paying as much as three and a half months’ rent upfront (£3,547). However, in 24 of the 51 states, there is no statutory limit on security deposits and in these states, landlords and agents can legally charge whatever they see fit.

Switzerland is the fifth most expensive nation in terms of rental deposits and the only other nation to see the average tenancy deposit exceed £3,000 on average. Swiss tenants are required to pay as much as three months’ rent to secure a rental property, coming in at an average cost of £3,542.

Germany (£1,860), Austria (£1,839), Israel (£1,598), Canada (£1,488), Australia (£1,269) and France are also home to some of the highest proportion of renters and an average tenancy deposit higher than that found in the UK.

In fact, just New Zealand (£743) and Turkey (£527) are more affordable and in Sweden, it’s common practice to take no rental deposit at all!

Matthew Hooker, Co-founder of Ome, commented: “Affordability is an emotive word that implies whether or not someone can have the product or service they want. When you compare renting in the UK with other countries our deposits are actually “more affordable”, however, that doesn’t help our squeezed renters feel any better. The reality is that renting in the UK can be expensive. Saving up your first months’ rent and paying the five weeks’ deposit means moving home can set you back 10 weeks’ worth of rent – excluding moving costs! And that can be all whilst waiting for your previous deposit to be given back to you.

Unfortunately, it’s not as easy as renting without any sort of deposit or security. Look to the Swedes, whilst they do not use deposits they do have central registers of tenants and rent payment histories to protect landlords. Landlords need security to feel comfortable letting someone else live in one of their largest assets. That’s why, at Ome, we’re focusing on how we can provide the landlord with the exact same financial protection as a cash deposit, whilst reducing the upfront costs to tenants when moving home to improve their day-to-day cash flow and rental wellbeing.”

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The chief executive of a new lettings sector body is to address his first conference next month, giving an indication of the objectives of the new group.

The National Residential Landlords Association was given the green light early last autumn by the two previous trade organisations, the National Landlords Association and the Residential Landlords Association.

However, a proposed formal launch date for the new lettings sector body – January 1 this year – proved to be seriously over-ambitious and the former groups blamed technicalities for a delay.

Now it appears the merger process is back on track and the new NRLA chief executive, Ben Beadle, is to lead the body which will represent over 80,000 landlords, owning and managing half a million properties, equivalent to about 10 per cent of the private rented sector in England and Wales.

He is to make his first major speech at the Property Investor Show at the Excel Centre in London on April 3 and April 4.

Beadle is billed as discussing how the NRLA’s not-for-profit status ensures the savings that occur from the merger will be invested into providing greater assistance for its members.

“Our new, bigger organisation is the largest landlord association in the country and now provides an even more powerful resource for them. We are a loud voice in the property industry, the media and in lobbying government – particularly important at this challenging time for the sector” says Beadle.

“Our new, bigger organisation is the largest landlord association in the country and now provides an even more powerful resource for them. We are a loud voice in the property industry, the media and in lobbying government – particularly important at this challenging time for the sector” says Beadle.

“At the Property Investor Show I’ll be laying out why being a member of the NRLA is important, what we offer to landlords in terms of advice, products, services, support and the value that we provide for just 20 pence per day – and that may be set to become even better value still.”

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