As landlords know, there's a huge demand for small self-contain units, especially in University towns. But as from the start of this tax year, landlords are faced with the necessity to have a building licensed for occupation if the property is on at least 3 floors and several unrelated tenants occupy it.
Whilst this represents a problem for those less scrupulous landlords, it will serve to help those landlords wanting to enter that market. That's because the tighter regulation will help to convince more mortgage lenders that these larger properties which are suitable for division into smaller units, are acceptable for a buy to let mortgage.
The licences introduced on 6th January this year are just one part of a three prolonged attack on properties in multiple occupation.
Licence for Multiple Occupation
These licences are a move to improve the standard of housing. The licences are issued by your Local Authority and are expected to cost around £100 for each occupant for a five-year license. The preceding inspection will be concerned about fire regulations and the size and arrangement of rooms and facilities. Even the landlord will be assessed with regards to the ongoing arrangements for the management of the properties. And what if a landlord tries to dodge this licence? That'll be a fine of up to £20,000!
Landlords will find more information about this at: www.propertylicensing.gov.uk
Housing Health and Safety Rating System
This regulation is concerned about how the building's condition can affect the health of its residents. Tenants will be able to call in inspectors who will be empowered to demand repairs and fine landlords £5,000
Tenancy Deposit Scheme
This forthcoming regulation affects the way deposits are held and administered. This results from research that showed that some Landlords refused to return deposits and some concocted dubious reasons for deductions. So from October all deposits will have to be held in official Tenancy Deposit Schemes. This basically means that the deposit must be held by a scheme administrator who is, in practice, neutral. Then at the end of the tenancy, both the landlord and the tenant have to inform the scheme administrator that either the whole deposit is returned to one party or part of the deposit returned to both parties and the scheme administrator must pay out in accordance with the agreement within 10 days of receiving notification.
If agreement cannot be reached between the landlord and the tenant the scheme administrator will retain the deposit until either the tenant or landlord obtains a final court order specifying the proportion of the deposit to which each is entitled. The scheme administrator will then immediately pay out in accordance with the court order.
Where a scheme administrator returns a deposit, they must do so with interest added at a rate yet to be specified by Government. Any interest additional to this will be retained by the scheme administrator and can be used to fund the administration of the TDS scheme.
The TDS Scheme is being introduced as an ammendment to the Housing Act 2004.
In our view, the short-term result of all these regulations will be that poorer standard properties will close as the landlord will be either unable or unwilling to comply. In the longer term, the number of properties may well rise again and be at a higher standard than the current stock of such properties.
Having said that, landlords are certain to increase rents in a move to offset the additional compliance costs they are faced with.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Rate increase choice
By: Michael | 06-07-2008
Why doesn't your Email on price increase "click here" show instructions for keeping existing price with phone only help? I keep getting the three "try these" items page! I've tried all over the AOL web and there is no keep same rate choice that you state is possible.
At&t PER MINUTE PHONE Rate to Bahamas
By: Joseph J Kusnell | 03-07-2008
My daughter is stuck in the bahamas. We both have ATT Cingular. What is the perminute cost for me to dial her direct.
I'm seeking people who are experienced in the ...
By: prophet | 29-06-2008
I'm seeking people who are experienced in the process of administrative remedies
What is Man's life? Is it only a span between ...
By: Just_pintu | 26-06-2008
What is Man's life? Is it only a span between birth and death?
Pregnancy tablets for daily sex
By: bipin Patel | 26-06-2008
Dear Sir, I am 25 yrs old, & my wife age is 20 yrs, I married before 6 months, & my sex life is happy. We used now CONDOMS for pregnancy protection, BUT we enjoy not much so We want plan to used pregnancy tablets for women , so advice us for best pregnancy tablets for daily sex & how to used this pregnancy tablets in our daily sex life.So please guide us ASAP? Thanks & Regards, Bipin ? Vadodara
When is per diem taxable?
By: sjs1125 | 25-06-2008
i have been offered a job for which per diem is payed, however because this job will last more then 1 year the company states that they must tax your per diem from day 1. i thought you had to be there at least a year before they started to tax the per diem. who is right?
Q&A Powered by:
Latest Finance Articles
Things To Do When Making Your Timeshares For Sale
By: Stephen Campbell | 19/07/2008
Selling of your vacation property is better known as timeshare resale. In selling your timeshares, there are lots of consideration that you must take to effectively do it.
Life Insurance Without Invading Your Privacy
By: Marilyn Katz | 19/07/2008
Protect your privacy, and save time with simple issue, no medical exam term life insurance policies.
Does My College Student Need Renter's Insurance?
By: Jim Waltrip | 19/07/2008
Find out the best way to protect your college-aged child's possessions while he is away at school. Are your college student's belongings covered by your homeowners insurance, or should you consider purchasing renter's insurance?
A Primer on Applying For Student Grants
By: Ron Subs | 18/07/2008
Student grants are one of the best financial resources available but some grants are left untouched at the end of the year due to few people applying for them.
Tips About Cash Advance For Everybody
By: Stephen Campbell | 18/07/2008
A lot of people opt for cash advance because they cannot afford to wait for payday. Thankfully, cash advance works for nearly everyone to get the cash they need until payday.
Using Automated Investment Strategies To Invest Wisely
By: Jim Pretin | 18/07/2008
If you are a novice investor and you can not decide when it is the right time to buy or cell a certain stock, talk to your broker about automated investment strategies like DCA and DVA
Good News For Income Investors
By: Steve Selengut | 18/07/2008
Admittedly, even if your asset allocation has been fine tuned for years, lower portfolio market values in this area make stock market valuation shrinkage feel even worse. But the value of stable cash flow becomes painfully clear for investors who misguidedly depend on capital gains for their spending money.
How Do You Magnetically Attract People To You
By: Jackie Khor | 18/07/2008
Would you like to become wealthy working from home, pay off your debts, spend more time with your family, and retire in style? Would you like to have a multi-million dollar investment portfolio, live a life of abundance and eventually leave a rich legacy for your children?
More from Michael Challiner
Life Insurance - What Price Privacy?
By: Michael Challiner | 15/03/2007 | Finance
There was a time when people were entitled to their privacy, unless they had committed a criminal offence. Sadly those days are long gone and most unlikely to return. It may have started with the Government authorising the taxman to enter your home, and denying you any right of refusal.
It...
Endowment Policy - Careful Cancellation Essential
By: Michael Challiner | 15/03/2007 | Finance
Back in the 1980s word went around that there was a wonderful new way to pay your mortgage. In those days the process of getting and running a mortgage was almost sacrosanct, and little variation was available. A fairly common route to take was to open an account at the...
Life Insurance – What Price Privacy?
By: Michael Challiner | 05/03/2007 | Insurance
Insurance companies are trying to push back the boundaries on private information to which they believe they should have free access.
Endowment Policy – Careful Cancellation Essential
By: Michael Challiner | 05/03/2007 | Insurance
You may be better off keeping your endowment policy. If you want to sell, get expert help to ensure the best price.
Incautious Borrowing
By: Michael Challiner | 05/03/2007 | Loans
Debt is climbing in the UK at an alarming rate. Before you enter into a loan agreement make sure that you have complete information, to ensure a pain free exit if the need arises.
Find a Great Remortgage Deal
By: Michael Challiner | 05/03/2007 | Mortgage
Could you be paying over the odds for your mortgage? Maybe you’re not aware of the fact that there may be better deals around? For most people, there are big savings, check them out.
Mortgages - Ad Infinitum
By: Michael Challiner | 05/03/2007 | Mortgage
The Japanese do it. The Swiss do it. Now it’s the turn of the UK. Find out more about the inter-generational mortgage.
Life Insurance - When You Are Gone
By: Michael Challiner | 27/02/2007 | Finance
Immortality is no big deal. Just imagine getting up on a Monday morning 52 times a year for the rest of eternity. Really only two advantages of eternal life spring to mind - you could start reading 'War & Peace' and know that you would have time to finish...
Finance 
