Clock is ticking for Landlords to Protect Deposits 23rd JUNE 2015

Landlords are being warned that they have just a matter of weeks to protect tenancy deposits, or face thousands in fines.

The new Deregulation Act means more tenancy deposits are now under deposit protection law if received before 6 April 2007, and gives landlords until only 23 June to register them in a government approved scheme.

Otherwise they face a penalty of between one and three times the value of the deposit and restrictions on regaining possession of their property.

A series of controversial court rulings brought urgent need to clarify the law when consternation arose over which deposits must be protected and in what circumstances prescribed information documents must be given to tenants. If landlords do not give tenants full written information about their protection they still face the fine, even if the deposit is protected.

Deposits must now be protected by 23 June if received before 6 April 2007 and if the tenancy renewed on a periodic basis after that date. Government approved scheme, the Tenancy Deposit Scheme (TDS), has warned landlords that time is running out.

Chief executive Steve Harriott said: “Landlords have only a matter of weeks to comply before the amnesty ends and penalties take effect. A small number of deposits are exempt but I would urge any landlord who holds an unprotected deposit to register it online with Tenancy Deposit Scheme immediately to avoid any future problems.”

If a tenancy renewed on a periodic basis before 6 April 2007 deposit protection is not compulsory. However the landlord will still be prevented from regaining possession using the standard section 21 notice unless they protect or return the money.
Steve Harriott also said the act has highlighted that many landlords have failed to protect deposits even under the existing laws.

“We have seen a surge in landlords contacting us in recent weeks. Many have only just become aware that they should have already protected deposits; a stark reminder that thousands of landlords have been falling foul of deposit protection law, often unknowingly.”

The new law has also been the source of great relief for landlords and letting agents. The Court of Appeal decision in Superstrike v Rodrigues (2013) came with the implication that landlords could be penalised for not serving new prescribed information to tenants at every renewal even if no circumstances had changed. A requirement widely seen as straying from the intentions of the scheme, documents now only need to be issued a second time if there is a change in tenants, landlord, property, or tenancy deposit protection scheme.

www.landlordtoday.co.uk

Vulnerable homeless adults could be housed by local authorities

 

A Judgement of the Supreme Court given on 13 May 2013 has raised hopes that vulnerable homeless people currently denied access to social housing will now be housed. Prior to the Judgement in Kanu v LB Southwark [2015] UKSC 30, people applying to be housed under the homelessness legislation had to demonstrate that they were vulnerable when compared to the ordinary homeless person in order to qualify to be housed. Following the Judgement, applicants now only have to demonstrate that they are vulnerable when compared to the ordinary person if made homeless. This means that many homeless people suffering with mental health issues such as Anxiety, Depression or Post Traumatic Stress Disorder or physical health issues such as Diabetes or mobility problems, who would previously not have qualified to be housed by local authorities, could be entitled to accommodation.

It is currently unclear how local authorities will provide the extra accommodation needed, with the housing stock already stretched to the limit in many areas. In 2012 over 1.8 million people were assessed as needing social housing and placed on the waiting list accordingly. By 2014 this had been reduced to just over 1.3 million people, primarily by local authorities introducing stricter criteria backed by the government rather than the housing need being met. In the current climate, with the government announcing plans to introduce the right to buy for housing association tenants, it is unlikely that the increased demand for social housing resulting from this decision will be met by an increased supply of social housing. The more likely response to this judgement will be for the government to legislate as soon as possible to prevent vulnerable homeless people from accessing social housing, with local authorities making increased use of gate-keeping tactics to prevent homelessness applications from being processed whilst the new legislation is prepared.

Vulnerable homeless people are encouraged to make homelessness applications without delay to ensure they take advantage of the opportunity to access social housing. 

Written on 05/06/2015 by Blavo & CO's Adrian Smith

What does it mean to be Homeless

In recent months I have seen a huge increase in the number of Private renting tenants coming to me with S21 in hand claiming they will be homeless

Obviously my first job is to ensure the S21 is valid and all the admin is in place.

But this is the easy part.

 

My next challenge is to try and explain to a full-time employed couple, why the local council do not “HAVE TO” house them just because their current landlord has served them with notice.

My First question…..If you are currently privately renting, why don’t you just look for another private rented property?

The surprise answer “we cant afford Private rented”

I reply .... But you can afford the property you are currently in?

“Yes, but we want a council house as the rent cheaper and we are entitled to one"

                            "oh Joy"

I try to explain that the local council has a set of criteria for people to be eligible to be placed on the waiting list for a council property, I also explain our local figures

The council only has 10,200 properties in their housing stock 150 of those are private rented properties Let through the Help-to-rent scheme. There are currently 4,600 people on the active waiting list and a further 4500 on a deferred list waiting for their chance to get on the active list

I explain that this couples' chance of getting a council house are very slim with approx. a 7 year wait.

Then comes the mantra  “But we will be homeless!!”

 I then explain their legal right of remaining in the property until a warrant is finally obtained….. Nope they don’t want to hear this

So I then go through the 5 legal tests for homelessness

• Eligibility
• Definition of Homeless
• Priority Need
• Intentionality
• Local connection

Most people at this point fall down on Priority Need and/or local connection, I then throw in that if the council do have a duty to house you under Homeless Legislation, they can discharge their duty ANYWHERE in the UK…. So it is possible you maybe housed in Devon or Leeds or maybe even Central London, if there is not a suitable property locally for you

They then sit and pout because  they want to live in this area and they expect me to magic  the Perfect Property out of my desk drawer.

I have to tell them, that I am sorry but your best option is Private rented, nothing stopping you asking a new landlord for a 12, 24 or 36 month AST if that would give them peace of mind

It is at this point people usually leave my office telling me how unhelpful I am and that I only want to help people who shouldn’t even be in this Country and that they have worked all their lives and the Council "owe" them a house

But I just smile and say  “I’m sorry I cant help, but Private Renting isn’t that bad… after all you are doing it already”