Upping the energy game in Scotland

David Kendall, the NLA’s National Representative for Scotland, shares the latest energy efficiency developments for those north of the border.

David Kendall, the NLA’s National Representative for Scotland, shares the latest energy efficiency developments for those north of the border.

You’ve probably noted that energy efficiency is on the UK’s political agenda at the moment. Both home owners and landlords are being encouraged to up their game when it comes to energy efficiency through the Green Deal and other green schemes.

In fact, as of the 9^th January, it is a legal requirement that all properties to let and for sale in Scotland are advertised with their Energy Performance Certificate (EPC)  included. For more information, visit
http://www.landlords.org.uk/news-campaigns/campaigns/epc-changes-9-january-2013

And there’s no excuse for landlords who are concerned about their EPC rating. Under the Green Homes Cashback Scheme, the Scottish Government is offering owner occupiers, private and social tenants and private sector landlords up to £500 towards energy efficiency measures that are recommended in either the Energy Performance Certificate (EPC) or Green Deal assessment.

For landlords, condenser boilers and electric heating Band A gas boilers are both eligible for the funding, if mentioned in the EPC. A range of other energy efficiency measures including loft insulation and cavity wall insulation are also included in the scheme.

And if money towards the improvements isn’t enough, the Green Homes Cashback Scheme also offers £100 towards the cost of an EPC or Green Deal assessment being completed before and/or after installation. To find out more, visit
http://www.energysavingtrust.org.uk/scotland/Take-action/Find-a-grant/Green-Homes-Cashback-Scheme

The Scottish Government is also offering private sector landlords up to £500 towards replacing old, energy inefficient products with new, energy efficient appliances. Appliances including fridges, freezers, fridge-freezers, washing machines and dishwashers are eligible for the funding. The grant value will depend on the appliance being installed and its energy rating. For example, an energy rated A+++ washing machine will receive £290 where as an energy rate A++ machine will receive £170.

Landlords can apply for multiple appliances up to the £500 limit per property. However, these must be different appliances and only one voucher can be applied per property; in essence, a landlord cannot apply for two washing machines for the same property.  But hurry, funds are limited and available on a first come, first served basis.

For more information on the Landlord Green Appliance Scheme, visit
http://www.energysavingtrust.org.uk/scotland/Organisations/Business-services/Free-resources-for-housing-professionals/Private-Sector-Landlords/Landlord-Green-Appliance-scheme
and to apply for the funding, contact your local Energy Saving Scotland advice centre on 0800 512 012. So far, I have replaced several items in my own properties and the tenants are delighted!

There’s also support available if your boiler isn’t as efficient as it should be.

From experience, it really is worth making energy efficiency improvements; warm, happy tenants with lower energy bills stay in the property for longer.

Here’s to a warmer, greener Scotland!

What a difference a year makes

What a difference a year makes

Many will look back on 2012 with rose-tinted spectacles as a year of incredible sporting success. Some may view it as the year of the double dip recession and European economic uncertainty. For landlords, 2012 has provided much insight into the future of the sector.

We began the year with an alert to so-called “accidental landlords”. With many people struggling to sell their properties, they may be considering becoming landlords. But it’s essential that they protect their tenants and themselves – a little knowhow goes a long way!

A leading theme for landlords in 2012 was energy efficiency. In March we spread the news of energy efficiency changes for landlords and as of April, landlords and letting agents have seven days after they start to market the property to produce an Energy Performance Certificate (EPC). On the energy theme we then supported Big Energy Saving Week and promoted the benefits of the Green Deal to both landlords and tenants. The Green Deal is set to be a continuing theme for landlords and tenants into 2013 and beyond as the Government’s energy-saving initiative becomes fully available.

Another key theme for the year was additional and selective licensing. The NLA vocalised its concerns over borough-wide selective licensing in the London borough of Newham in an open letter to the Sir Robin Wales, the Mayor of Newham, stating that targeted enforcement has the strong potential to be a far more effective solution to the Borough’s problems than blanket licensing.

July saw tenancy deposit protection law launch in Scotland. In Scotland, deposit protection is free for all landlords, letting agents and tenants. By protecting a tenant’s deposit in one of three Government-licenced tenancy deposit protection schemes, landlords and letting agents will be keeping tenants’ deposit funds safe until the tenant vacates the property. Should a dispute arise, a free dispute resolution service is offered by all the schemes.  For further guidance, visit the my|deposits Scotland Resource Centre, designed for landlords, agents and tenants.

In August, the Department for Communities and Local Governments published the Montague report. The NLA welcomed Sir Montague’s recommendation to increase investment in the private-rented sector.

September saw the criminalisation of squatting in the UK. The NLA welcomed the Government’s attempts to end the distress to property owners caused by squatters. However, it feels that the new law does not address the central issues of owners being able to regain possession of their property.

With more people renting than ever before record demand has meant landlords have been overwhelmed by prospective tenants looking for a place to live. Many enjoy the flexibility that private renting provides in an uncertain mortgage market and indeed, at the NLA’s National Conference in October, Lord Freud thanked landlords for their role.

The NLA also celebrated the success of women in property in October with the NLA’s Property Women Awards. The awards saw Yvonne Hall awarded Property Woman of the Year 2012.

In November, the NLA’s Chairman, David Salisbury announced that he would stand down as Chairman of the NLA during the summer of 2013. We will of course miss David’s leadership, but we look forward to welcoming Carolyn Uphill to the role of Chairman in 2013.

Looking to the year ahead, there are many challenges on the horizon. It’s nothing new, but Welfare Reform is causing concern among landlords and tenants alike. This certainly looks set to be a key theme in 2013 – and not just within housing.

Perhaps the biggest challenge will be stimulating further investment in buy-to-let. But with tenancy deposit protection arriving in Northern Ireland, national accreditation on the cards for Wales and the eagerly-awaited arrival of the Green Deal, it’s safe to say that 2013 is set to be both a challenging and rewarding year for many in the private-rented sector.

An energy efficient year for Birmingham landlords

David Cox, the NLA’s Senior Policy Officer, shares news of a new energy efficiency offer for landlords and tenants in Birmingham

David Cox, the NLA’s Senior Policy Officer, shares news of a new energy efficiency offer for landlords and tenants in Birmingham.

Great news for private landlords in Birmingham as the City Council offer 90 per cent ‘Go Early’ Green Deal grants.

The Green Deal is the Government’s vehicle to make all rental properties more energy efficient. In fact, any rental properties found to have a poor Energy Performance Rating (F or G rated) after 2018 will no longer be fit to let under the new legislation.

Under the Green Deal, the cost of energy efficiency improvements, such as loft and wall insulation, will be paid through a loan attached to the property’s energy bills. However, due to the energy savings achieved by the improvements, the energy bill will never be higher than it would have been if the work had not been carried out.

And with Birmingham City Council’s “Go Early” deal  tenants will see immediate and dramatic reductions in their fuel bills – likely to be £100s per year.

To take advantage of the 90% grant funding offered by the Council, the property needs to be within Balsall Heath, Bartley Green, Bordesley, Bournbrook, Edgbaston, Handsworth, Hodge Hill, Kings Heath, Ladywood, Moseley, Newtown, Northfield, Saltley, Selly Oak, Small Heath, Sparkbrook and Sparkhill. The Council is particularly keen to offer the grants to solid walled properties.

To apply for this offer or for help in deciding whether you would like to take advantage of this initiative, we are arranging five workshops to explain:

• How to improve the energy efficiency of properties
• The most cost-effective measures to install
• How to utilise the forthcoming Green Deal and £1.3bn per year  Energy Company Obligation to minimise, if not eliminate, the cost of energy efficient improvements
• How to take advantage of Birmingham City Council’s 90% grant-funding which will save tenants even more money

These events are open to both landlords and tenants and if possible, we would highly recommend you come together as it would then be possible to complete the referral process at the workshop. The events will take place on:

Tuesday 8 January 2013 at 12pm, 3pm and 6pm at Sutton Coldfield Rugby Club,160 Walmley Road, Sutton Coldfield, B76 2QA              

Wednesday 9 January 2013 at 12pm and 3pm at The University of Birmingham, Pritchatts Park Village, 9A Pritchatts Road, Edgbaston, B15 2QX.

And one more thing… Birmingham City Council is also offering a limited number of free Energy Performance Certificates to private landlords with homes in the City.

The offer is available until 31^st March 2013 and will be available on a first come, first served bases.

To apply for your free Energy Performance Certificate, call the ‘Stay Warm Stay Well’ hotline on 0800 0337967.

Switchback to the future

Chris Norris, Head of Policy at the NLA, reviews the DWP’s Direct Payment Demonstration Projects

Chris Norris, Head of Policy at the NLA, reviews the DWP’s Direct Payment Demonstration Projects.

After a great deal of speculation, the Department for Work and Pensions (DWP) has finally published data concerning the Direct Payment Demonstration Projects (DPDP) which have been running in one form or another since May.

The Demonstration Projects are designed to test direct payment of housing support to tenants of social landlords ahead of the introduction of Universal Credit next year in six selected demonstration areas.

While direct payment is the norm for the majority of LHA recipients in the private sector, it is rare for social tenants to receive housing benefit and subsequently pass on the housing benefit to their landlord. This is why these projects are so important to registered social landlords (RSLs), and in turn why they are important to the rest of us who need the support of RSLs to convince the Government that more must be done to secure landlord income.

Today, the DWP published the results of The Demonstration Project so far. The information released is not exactly a complete picture of the pilot projects and, rather unhelpfully, the information is provided in a number of different formats throughout a short report entitled; ‘Direct Payment Demonstration Project: Payment Figures’. However, what is clear  from the figures to-date is that all is not running as smoothly as the Department may have hoped.

Over the first four months of the project, during which the participating landlords were able to select those tenants most appropriate for switching to direct payment and exclude those which were likely to be more problematic, 316 tenants were ‘switched-back’ to payment to landlord as a result of accrued arrears – even though the switch-back rules varied between local authorities and some permitted 12 weeks of arrears to accrue before taking action.

Perhaps more worrying is that the authorities noted that late payments have become an increasing problem, driving up collection costs. One of the demonstration areas even went so far as to indicate that, in respect of the October 2012 rental period, 50 per cent of payments were up to two weeks overdue when eventually made.

Overall the Department states that the average collection rate is 92 per cent (ranging from 88 to 97 per cent across the project areas). If this stat is applied across all benefit recipients, this would suggest that more than 300,000 households will slip into acute arrears once Universal Credit becomes the norm. In addition, almost two million may suffer chronic late payments, assuming that the general, non-cherry-picked population are no more susceptible to rent arrears than the pilot groups.

Of course, the difference between this project and the full roll-out of Universal Credit from 2013 is that this pilot allowed households to switch-back to payment-to-landlord if arrears start to build up – before they precipitate tenancy breakdown.

Even with these safeguards in place, Wakefield District Council reported that it had begun more than 100 possession proceedings during the pilot period.

Given that more comprehensive data from the project is not expected to be published until late 2013 – around the same time new claimants will begin to receive Universal Credit – only time will tell how many more tenancies will fail if the Government does not see fit to retain a backstop to trigger direct payment to the landlord.

It is no surprise that so many landlords tell the NLA that they will no-longer accept benefit recipients post-2013.

Spread the safety message this Christmas

This Christmas, the NLA’s Representative for Kent, Marion Money, spreads her safety cheer.

This Christmas, the NLA’s Representative for Kent, Marion Money, spreads her safety cheer.

Christmas is a time of joy and happiness but it’s also a time of indulgence and mishap. In fact according to research carried out by Lloyds TSB, fire damage increases by more than two thirds over Christmas.

So when you go to spread the joy with your tenants this festive season, perhaps you could share these tips to help ensure a happy and healthy Christmas:

• Test your smoke alarm on a weekly basis, don’t neglect to do this over the busy festive season.
• Never remove the batteries from your smoke alarm, even if you have new toys waiting to be charged. Many rental contracts will state that you should not remove the batteries from safety alarms and some contracts even state that bonds will not be returned if batteries are removed.
• Be sure to keep trailing cables and wires tucked away neatly – knots in wires could lead to overheating.
• Renew old Christmas lights as newer lights meet much higher safety standards. Remember to check older lights for damages and check they have the correct fuse in place. You want to avoid Christmas tree fires at all cost.
• Always turn Christmas tree lights off when you leave the property and for at least half an hour before going to bed.
• Don’t leave candles unattended and be sure to keep them well away from decorations, cards and your Christmas tree.
• Never overload electrical sockets.
• If you are planning to have fireworks as part of your celebrations, always plan ahead and ensure the display is a fair distance from the property.

For more advice and guidance on health and safety, you’ll find chapters on fire safety, gas, electricity, furniture and personal safety in the NLA’s online library.

Cold and condensation – it’s that time of year!

This week, the NLA’s representative for Brighton, Tony Richard, offers advice and guidance on preventing condensation and mould.

This week, the NLA’s representative for Brighton, Tony Richard, offers advice and guidance on preventing condensation and mould.

Condensation and mould is said to be the curse of the landlord at this time of year. Understandably, tenants want warm properties but warm air carries water vapour which generates moisture when it cools and if left, can cause mould. To ensure a balance between heating and ventilation, it’s essential to maintain airflow.

Landlords can adopt the following measures to help minimise condensation and mould in their properties:

• Install extractor fans in the bathroom. These can be operated by a light switch or timer.
• Place ventilation units in the loft area to allow moisture to escape as it rises.
• If you’re having your roof insulated, be sure to ask the installers to leave a border around the roof area to allow a small amount of air to rotate. This gentle circulation of air will help reduce humidity levels.
• Install trickle ventilators above windows to guarantee air flow, whether windows are open or not
• For more information on ventilation products, visit the NLA’s recognised supplier page for ventilation.

It is also up to the landlord to educate their tenants to ventilate the property appropriately. After all, it’s in the interest of both parties to ensure the home remains mould free.

Why not share the following tips with your tenants to help avoid incidences of mould:

• Try to maintain a constant temperature inside the property ; keeping heating on a low and constant level throughout the day is the most cost effective means of heating a property
• Keep  a small window open on the latch to maintain a steady flow of air when you are in the room
• Avoid drying clothes indoors and do not dry clothes over radiators. If you need to dry clothes indoors then do so in a well-ventilated room.
• Open windows in the kitchen and bathroom after using
• Try to reduce moisture in the air by covering saucepans when cooking, drying clothes outside
• Ensure that the tumble drier is property vented or the condensate reservoir is regularly emptied
• Do not supplement heating with paraffin or gas type heating
• Place furniture next to internal walls if possible and leave a space between the wall and the furniture
• Open cupboards and wardrobes for a short time regularly to encourage air flow
• Do not disable any extraction units, these are in place to remove excess moisture from the atmosphere.
• Do not block vents and airbricks, particularly where there are gas fires or heaters

For more information on damp and mould and how to treat it, watch the NLA’s guide to Controlling Condensation and Mould Growth

 

Is your portfolio at risk?

It’s not every day that we think about insurance…

It’s not every day that I think about insurance. I know that my household cover is due in January, my car policy is sometime in the Spring and my life cover should see out my mortgage. It is relatively simple to keep on top of these personal policies – because let’s face it – there isn’t that much to consider.

But when you’re running a business, particularly one which involves as many valuable assets as your average letting portfolio, it gets a little complicated. The NLA tries to make this as simple as possible by providing NLA Property Insurance and NLA Rent Guarantee Insurance, however even this doesn’t necessarily take away all of the hassle of making sure that you’ve got adequate cover.

It can be difficult to identify all of the risks when you’re running a business, which is one of the reasons the NLA undertakes so much research about our members’ experiences and ways of doing business.

In our most recent Landlord Survey we asked a number of questions about the way in which landlords approach risk and, in particular, the kinds of insurance they hold. The responses we received were in many ways reassuring, but in no small part alarming when viewed in the context of risk.

For example:

Reassuringly, all but the three most daring per cent of  landlords surveyed have some form of relevant insurance. The majority (85 per cent) have buildings cover and it could be inferred that the remaining 15 per cent own leasehold property whereby the insurance is provided by the freeholder (we hope).

However, only half have landlords have contents cover – despite the fact that even an unfurnished property can contain thousands of pounds of contents in the form of white goods, floor coverings, curtains etc, which many of us simply overlook.

The potential consequences of being under-insured are even more apparent when you consider:

The Landlord Panel also indicated that 37 per cent had their property damaged by their tenants and 47 per cent had experienced rental arrears – despite only 13 per cent possessing arrears cover.

It’s up to every landlord to weigh up the risks of incurring  unexpected costs against the cost of insuring against it. However, the knowledge that one in three will have property damaged every year and almost one in two will suffer loss of rent may help sway that decision.

The information landlords share with the NLA through it’s quarterly surveys allows us to represent their interests to policy makers and ensure that the Association is well placed to support landlords in their businesses.

Please spare a few minutes to take part in the NLA’s Q4 Landlords Survey and enter the prize draw for the chance to win £50 to spend with John Lewis.