| A tightening of regulations regarding the | | | | are less than scrupulous and on the other |
| letting of larger properties containing three | | | | hand, some tenants are slightly less than |
| or more storeys, converted into smaller self | | | | perfect! As soon as TDS comes in, all |
| contained residential units, came into force | | | | refundable deposits will be held in a Tenancy |
| at the beginning of April 2006. Further | | | | Deposit Scheme. A scheme administrator, |
| information on the Licence for Multiple | | | | acting as a neutral "referee", will hold the |
| Occupation is available on but here are the | | | | deposit. At the end of the tenancy the |
| basic facts: | | | | administrator will pay back the deposit to |
| | | | the tenant if all has gone well on both |
| The licences will be issued by the Local | | | | sides. If there are any adjustments to be |
| Authority after an inspection regarding room | | | | made, they should be agreed at this time and |
| arrangements and sizes, facilities included | | | | then the administrator should be informed of |
| and fire and safety regulations. The landlord | | | | the situation. Payment should be made by the |
| will also have to satisfy the Local Authority | | | | administrator within 10 days of this |
| that acceptable arrangements have been made | | | | notification. |
| for the management of the properties. The | | | | |
| costs of these licences are expected to be | | | | If it is impossible to reach an agreement and |
| around £100 per each tenant and will be | | | | it proves necessary for either party to |
| renewable every 5 years. | | | | obtain a final court order deciding the |
| | | | proportion of the deposit to be paid to |
| It's felt that the tighter regulations may | | | | either party, then the administrator holds |
| help genuine landlords wishing to enter the | | | | the deposit until this stage is reached and |
| market, by assuring mortgage lenders that | | | | will then pay out the money accordingly. |
| these properties are to be converted and | | | | |
| managed in such a way that they could be | | | | When an administrator returns a deposit, |
| favourably considered as suitable for buy to | | | | interest must be added. The decision on the |
| let mortgages. | | | | rate will be announced by the Government. Any |
| | | | balance of interest will be retained by the |
| Unscrupulous landlords may be less than happy | | | | administrator and may be used to fund the |
| with the new rules, which carry a fine of up | | | | running of the scheme. |
| to £20,000 if they don't conform! | | | | |
| | | | Secondly, the Housing Health and Safety |
| Typically the property we're referring to | | | | Rating System - If a tenant is concerned that |
| would be student accommodation. If you live | | | | the condition of the property is affecting |
| in or near a University town you'll be aware | | | | their health, they can call in inspectors to |
| of the huge demand for such accommodation. | | | | make a judgment on this. These inspectors |
| | | | will have the power to demand any repairs |
| Here are a further two rules designed to | | | | which they think are necessary. The fine for |
| protect tenants in multiply occupied | | | | landlords not complying with these conditions |
| properties: | | | | will be up to £5,000. |
| | | | |
| · Tenancy Deposit Scheme (TDS) | | | | Obviously, there will be a cost to landlords |
| | | | in complying with these new rules and this |
| · Housing Health and Safety Rating System | | | | will have to be recouped. Not all landlords |
| | | | will have the means to carry out the work and |
| First, TDS - This regulation comes into force | | | | in the short term some of the properties in |
| in October 2006 and is being introduced as an | | | | really poor condition may close. The end |
| amendment to the Housing Act 2004. | | | | result, though, should be a better standard |
| | | | of accommodation and a fairer deal overall, |
| It has been found that a source of contention | | | | making it more tempting for shrewd investors |
| between landlords and tenants is the | | | | to enter this type of market via a buy to let |
| refundable deposit situation. Some landlords | | | | mortgage! |