Green Deal cashback will cover residential landlords

Posted: November 8, 2012 | Author: | Filed under: Bury & Walkers, Landlords, Leasehold Property, Property Law, Residential Property | Tags: , , , , , | Leave a comment

On 19 October 2012, the Department of Energy and Climate Change (DECC) announced a Green Deal cashback scheme. DECC hopes that the cashback scheme will incentivise homeowners, landlords and tenants to sign up for energy efficiency improvements (such as loft insulation, solid wall insulation and replacement windows) under the Green Deal.

The Green Deal:

  • Is the coalition government’s flagship initiative for improving the energy efficiency of buildings in Great Britain, by removing the up-front cost of such measures.
  • Uses a new “pay as you save” financing mechanism to attach the liability to pay the Green Deal finance plan to the improved property’s energy bill.
  • Was legally established on 1 October 2012. It will be possible for both domestic and non-domestic properties to take out Green Deal plans to pay for energy efficiency measures from 28 January 2013.

The cashback of up to £125 million will be available from 28 January 2013 on a “first-come, first-served” basis for households in England and Wales. To be eligible for the cashback, households must have a Green Deal assessment carried out on their property and then install some or all of the improvements recommended within a specified period.

The level of cashback that households receive will depend on what energy efficiency improvements are installed. The cashback rates that apply to the various different energy saving measures are published in DECC: Quick guide: Green Deal: Cashback for energy-saving home improvers but will be capped at 50% of the householder’s contribution to costs. The cashback is separate and additional to any other incentives offered by Green Deal Providers.

 The cashback is available to:

  • Owner-occupiers.
  • Tenants in privately rented or social housing.
  • Private and social landlords paying installation costs, up to certain limits.

The British Property Federation (BPF) has confirmed with DECC the following additional details about how the cashback scheme will operate in respect of landlords:

Residential landlords will be able to claim a cashback either where they pay for energy efficiency works up-front, or where they put in place Green Deal financing when they are the energy bill payer. This will be the case even if the landlord is only temporarily the energy bill payer at the time the energy efficiency improvements and Green Deal financing are arranged (for example, because the property is not let (known as a void period)).

Landlords can claim the cashback on multiple properties but the total amount they can each claim will be restricted by state aid limits. This means that landlords cannot receive more than approximately £160,000 in public funds over a rolling three year period. When applying for a cashback, landlords will have to certify that receiving the funds would not result in them breaching the state aid threshold (which could include funding from other government schemes).

Gas safety: changes to concealed flue requirements

Posted: October 26, 2012 | Author: | Filed under: Dilapidations, Disrepair, Houses in Multiple Occupation, Housing Act, Landlords, Leasehold Property, Property Law, Residential Property, Tenants | Tags: , , , , , | Leave a comment

From 1 January 2013, technical instructions to Gas Safe registered engineers will change in relation to concealed flues.

Landlords may need to take action now to avoid boilers being turned off after the deadline. Concealed flues run through voids in buildings, so the change will mainly affect landlords who own flats and apartments.

The Gas Safe Register is the gas safety registration scheme that replaced CORGI. Landlords have duties to keep gas appliances and flues safe, and ensure that gas appliances are checked every 12 months by a Gas Safe registered engineer. For more information the HSE has published answers to tenants’ FAQs on gas safety on their website.

The Gas Safe Register has made the following recommendations:

-Landlords should fit inspection hatches as soon possible to enable inspection of concealed flues. Inspection will ensure flues are correctly fitted, and safe from dangers such as carbon monoxide leaks.
-Hatches should be at least 300mm square and positioned within 1.5m of any joint in the flue system.

From 1 January 2013, if the engineer cannot view a concealed boiler flue along its length, it will classify the installation as “At Risk” for the safety of the occupants (the previous classification was “Not to Current Standards”). The engineer will formally advise occupants that the boiler is “At Risk”, turn it off with their consent and advise them not to use it until inspection hatches are fitted.

A tenant who is advised to turn off a boiler after 1 January 2013 might argue that its landlord is in breach of its repairing covenant or refuse to pay rent. It follows that landlords may need to act promptly, both as a matter of good practice and to avoid future conflict.

Private rented housing: inquiry announced

Posted: October 24, 2012 | Author: | Filed under: Bury & Walkers, Houses in Multiple Occupation, Housing Act, Landlords, Leasehold Property, Letting Agents, Property Law, Residential Property, Tenants | Tags: , , , | 1 Comment

The Communities and Local Government Committee is conducting an inquiry into the private rented housing sector. The inquiry will focus on the quality and regulation of private rented housing, and the rent levels within the sector.

The Committee is interested in submissions from interested parties and suggests that the following topics are relevant to its inquiry:
• Steps to ensure that all housing in the private sector is of an acceptable standard.
• Rent control and the interaction between housing benefit and rents.
• Regulation of landlords, and how to deal with rogue landlords.
• Regulation of letting agents, agents’ fees and charges.
• Regulation of houses in multiple occupation (HMOs).
• Terms of tenancy agreements, their length and security of tenure.
• How local authorities are discharging their homelessness duty by placing homeless households in the private sector.

Housing supply is not a topic for consideration in this inquiry. The closing date for submissions is 17 January 2013.

This inquiry demonstrates that the government is alert to the housing crisis, particularly acute in London and evidenced by long council housing waiting lists and rising rents. However, although regulation of the private rented sector is overdue, the inquiry is unlikely to quieten calls for an increase in home building, rent capping and increased housing benefit.

Residential service charge not due until landlord’s address provided

Posted: June 21, 2012 | Author: | Filed under: Bury & Walkers, Freehold Property, Landlords, Leasehold Property, Leasehold Valuation Tribunal, Managing Agents, Property Law, Residential Property Tribunal | Tags: , , , , | Leave a comment

Following a lovely family break on the Isle of Anglesey, it’s time to post some recent news regarding service charge recovery.

Under Section 47 of the Landlord and Tenant Act 1987 service charge demands must contain an address for the landlord. The Upper Tribunal (in Beitov Properties Ltd v Elliston Bentley Martin [2012] UKUT 133 (LC).) have now said this means that this must be the landlord’s own address. It cannot be a C/O address; nor can it be the agent’s address. Unless this requirement is complied with the demand for payment is bad. As such, a fresh demand for payment would have to be issued with the correct address on it before the money can be legitimately collected.

Some landlords and managing agents have fallen into a practice of incorporating the address of the managing agent into demands, rather than that of the landlord. This decision will provide a cautionary reminder of the strict requirements of Section 47 and landlords should check that their practice accords with its provisions. If existing demands for outstanding service charges do not comply then the correct information should be supplied.

It is worth noting that the requirement for the landlord to provide an address for service pursuant to Section 48 of the Act differs insofar as this address can be a C/O address or an agent’s address, provided that this address is in England or Wales.