Private Sector Housing Rob Watson Private Sector Housing Manager Private Sector Housing Team • Duties include: • HMO Inspection & Licensing • Advice and assistance for both landlords and tenants on standards, fire safety, HHSRS • Empty Property Loans given for up to £10k • Unauthorised encampment management and eviction • Energy Efficiency Advice and projects • Harassment/unlawful eviction • Mobile Home Site Licensing • Informal approach to PRS tenant complaints unless serious threat to Health and Safety or Category 1 Hazard. Current Issues Current politics Legal changes ranging from April 2017 to cover the following: .Extension of mandatory HMO licensing – likely 200% increase .Introduction of civil penalties .Banning Orders .Rogue landlord database .Fit and proper persons test .Electrical Safety Regulation .Ban on energy inefficient properties April 2018 Extension of HMO Licensing • Current criteria for HMO’s only 3 storeys & above to be removed • Any HMO or flat operating as such with 5 or more occupiers will need a licence • New HMO Amenity Standards & Fees subject to consultation over next two weeks • No grace period – Effective from 1st October 2018 • Set a minimum room size of 6.52m2 in line with existing overcrowding standard (Housing Act 1985) for single rooms and 10.22m2 • Applications can be made now, no need to wait until October • New licence conditions – specify occupiers per room • Fit and Proper Person Test Civil Penalty Charges • Alternative to prosecution of rogue landlords • Same process and charging structure applied across all of Warwickshire • Minimum of £5000 up to maximum of £30,000 • Council get to keep all costs and recycle into services not Courts/treasury • Way of Appeal to the First Tier Tribunal • Huge fluctuations in Court fines give unfair advantage to Rogue Landlords Civil Penalty Amounts Failure to comply with an Improvement Notice £ 1st offence 5000 2nd subsequent offence by same 15,000 person/company Subsequent offences by same person/company 25,000 Offences in relation to licensing of HMOs £ Failure to obtain property Licence 10,000 Subsequent offence by same person/company 30,000 Failure to comply with management regulations £ 1st relevant offences 1000/offence Subsequent offences by same person/company for the same 3000/offence offence Minimum Energy Efficiency Regulations • A minimum EPC Band E must be achieved for new tenancies commencing after 1st April 2018 and for continuing tenancies after 1st April 2020. • Privately rented domestic accommodation which has an EPC Band F & G should not be let after these times. Landlords will need to undertake measures or enter the property into the PRS Exemptions Register. • A consultation which recently closed proposed a Landlord Cap of £2500, a consultation response is currently being compiled by government. • External training courses are available to cover this topic. Please ask for details. • The Council have access to all EPC data throughout Nuneaton and Bedworth and North Warwickshire. We will be writing to those rented properties which are within Bands F & G to encourage them to improve the property. Energy Efficiency Advice • The Warwickshire Authorities have introduced an energy Statement of Intent. This allow companies to use ECO funding to assist our residents. • Those who can qualify has significantly increased. No longer restricted to those on benefits. Open to private landlords also. • The Council have entered into a contract with EON to promote and install energy efficiency measures in the area. • ECO funding – loft, cavity, boilers, oil and LPG replacement • Typical contribution example – private tenant accessing funding to replace broken boiler, cost to landlord for: Semi-detached property £500. Terraced £1000. Warwickshire Switch and Save • A collective switching scheme run to ensure residents get a cheaper deal on gas and electric • Register to Switch to a cheaper deal • www.warwickshire.gov.uk/switchandsave • 0800 988 2881 Rogue Landlord database and Banning Orders • Database – To help Councils keep track of rogue landlords and target enforcement action • Banning Orders prohibiting landlords letting property or being involved in letting/management activities • Banning offences – likely to include fraud, harassment, failure to comply with Housing Act requirements BOTH NOW IN USE – NOT OPEN TO THE PUBLIC Mandatory Electrical Testing • Consultation recently closed on this – Await feedback • Suggested mandatory 5 yearly electrical check • This would link to being unable to serve section 21 if not in place (same as EPC, How to Rent Guide and gas safety record) • This would only apply to tenancies which commenced after October 2015. • Likely to be April or October 2019 if adopted Other News • Caridon Property Ltd v Monty Shooltz – London County Court – Feb 2018 • http://www.landlordlawblog.co.uk/2018/02/13/bad-news-landlords-section-21-gas-safety- certificates/ • Possession order refused on the ground that the section 21 notice was invalid due to failure to serve a gas safety certificate on the tenants before they moved in. • Although a gas certificate was served some 11 months later and before the service of the s21 notice, the Judge did not accept that this was sufficient to satisfy the rules. • How this affects you • Recommend you serve the Gas Safety Certificate on your tenants BEFORE they are given the keys. • Serve these documents in a way that can be proved later – ideally by getting the tenants to initial and date a copy of the documents or you may be able to prove service via an electronic signature process. • Whatever method you use, make sure you keep full details so you can prove service later should this be necessary. Fire Safety • Independent Review of Building Regulations and Fire Safety led by Dame Judith Hackitt, delivered its Final Report – Building a Safer Future in May 2018. • Implications suggest a more simplified and streamlined system for regulation encompassing Fire service, Building Regulations and Environmental Health. • New Joint Competent Authority (JCA) may follow for use by designers, owners and contractors. • Implications may spread beyond typical high rise stock. Contact us: Private Sector Housing Team 02476 376 376 [email protected].