The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
ChronicleLiveMean betrayal: Woman who burgled her neighbour's home was caught red-handed by husbandChronicleLiveMartin fled but was later found to have stolen the man's wallet, containing £100 cash, a credit card, driving licence and identity card. She finally admitted her guilt as the couple were on their way to court to attend her trial and claimed she did it ...
Evening StandardMoney expert defends the spending habits of woman, 30, who struggles on £40k salaryEvening Standard“It's far better that Sian minimises her reliance on expensive credit if she has parents who are obviously comfortable and happy to support the daughter they love. "I'm glad to hear she doesn't want to use a credit card, though any money that could be ...and more »
Telegraph.co.uk'I paid £954 for a deposit on a new kitchen then the company went bust. Have I lost it all?'Telegraph.co.ukPF, South West England. Had you paid by card it would have been so much easier to get your money back either via a “chargeback” for a debit or credit card or a claim under section 75 of the Consumer Credit Act, had it been a credit card. Unfortunately ...and more »
Bournemouth EchoMartin Lewis: Credit scoring explained (and 10 ways to improve your credit worthiness)Bournemouth EchoGet a special credit (re)build card from www.aquacard.co.uk or www.marbles.com cards, even though it'll have a hideous 34.9% type APR. Spend £50-£100 a month on it (never withdraw cash) and ALWAYS REPAY IN FULL each month so you don't pay the ...
Have you met...
Latest Members:


farhafawwaz


situs2poker


bin diesel


michealjordan


Air jordon


Dorothy3


antivirus897

 

‘Accidental landlords’ are taking unknown risks

So called ‘accidental landlords’, a new breed of landlord who lets out their property to avoid selling at a loss, are providing a welcome boost to the supply of housing at a time of very high demand for private rented homes, according to buy-to-let specialist Paragon Mortgages.
 
However, Paragon Mortgages’ managing director John Heron warns that many of these landlords may be ignorant of the large number of regulations involved in letting property. It is estimated that there are more than 50 Acts of Parliament and 70 sets of regulations governing the private rented sector1. Landlords risk fines if they let out their property without complying with the necessary legislation.
 
Heron says: ‘The onus is on the landlord to make sure they comply with all regulations and they are liable if something goes wrong, even if they employ the services of a letting or managing agent. Ignorance of legislation is not a defence.’
 
‘People who are letting out property they have been unable to sell are unlikely to have a detailed understanding of the legal requirements they have to comply with. For example, do they have an Energy Performance Certificate for the property or do they have a Gas Safety Certificate? What have they done with the tenant’s deposit and have they got adequate insurance in place? Failure to comply with certain regulations could not only result in heavy fines, it could also mean a custodial sentence.’
 
In addition, owner-occupiers could contravene their mortgage conditions if their lender does not know they are letting their property, which could have a knock-on impact on tenants if the property was repossessed.
 
Heron concludes: ‘The only solution is for landlords – accidental or experienced - to ensure they have a thorough understanding of relevant regulations. Getting help with this is not difficult. It would make sense to join the National Landlords Association, which provides a wealth of information and advice to their members. Also using the services of a professional letting agent, preferably ARLA registered, will make sure that an experienced individual is on hand to guide you through the process.’
 
Common regulations in the private rented sector include:
 
Gas and electricity: Boilers must be checked annually by a Corgi-registered tradesman, who will issue a Gas Safety Certificate. Tenants should be given a copy when they begin the tenancy and within 28 days of an annual check. All electrical items and fittings should be checked regularly as landlords could be liable if a tenant is harmed by an electrical item provided.
 
Fire safety: If the property was built after June 1992, tenants must have an adequate means of escape and a mains-operated inter-connected smoke alarm should be fitted on every floor. It the property is a furnished let, furniture and furnishings made after 1950 must meet fire resistance regulations. The National Landlords Association has produced a Fire Safety Logbook, available from its www.landlords.org.uk website.
 
Regulator Reform (Fire Safety) Order: Landlords who own flats in a block are required to liaise with the managing agents and other homeowners to ensure that a fire risk assessment of the common parts is carried out.
 
Energy Performance Certificates: From October 2008 it became a legal requirement for landlords to make an Energy Performance Certificate of the property available to prospective tenants when letting a property. Failure to do so can result in a £200 fine and the landlord being prevented from marketing the property until the EPC is obtained. For further information on EPCs visit www.paragon-epcs.co.uk.
 
Tenancy deposit protection:From 6 April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, must be protected by a tenancy deposit protection scheme.
 
HMOs: Rental homes spread over three stories or more and occupied by at least five tenants in two or more households are classed as Houses in Multiple Occupation and require a license by the local authority. A comprehensive guide on HMOs is available to download from the Literature section of the www.paragon-mortgages.co.uk website. 
Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks