Campaign Update - November 2011

Council Tax & Empty Homes

As if voids were not a big enough headache for landlords trying to refresh that post-tenancy property and find new tenants, all while keeping on top of mortgage payments, the Government is consulting on Council Tax charges for empty property.

Under the guise of 'localism' the Department for Communities and Local Government (DCLG) has published proposals to remove the existing Council Tax exemptions and reliefs applicable to empty residential property.

Under the proposals, local authorities will be given greater 'discretion' to offer the level of Council Tax relief they deem appropriate. This means that, if the proposals are adopted, the default six month exemption from Council Tax for unfurnished properties will be replaced with a discretionary discount of between 0 and 100 percent.

Where a property is both empty and furnished local authorities already have the option of discounting the charge by between 10 and 50 percent. Under these proposals this range will be increased to provide the option of charging 100 percent of the relevant band.

These proposals have the potential to have a significant impact on landlords wishing to refurbish property between tenancies, or who are having difficulty sourcing a new tenant.

The NLA will be of course be ensuring that landlords' collective voices are heard, however individuals are also welcome to contribute to the consultation process.

If you would like to comment on the proposals you may do so my emailing:

counciltax.consultations@communities.gsi.gov.uk

or by writing to:

Technical Reforms of Council Tax Consultation

Local Government Finance Directorate

DCLG

Zone 5/D2 Eland House

Bressenden Place

London

SW1E 5DU

If you would like further information, the full consultation can be found here: http://www.communities.gov.uk/documents/localgovernment/pdf/20192051.pdf

Squatting

At the opposite end of the spectrum from empty homes, illegal occupation has also been the focus of Government attention in recent months. Less than three weeks after the close of a consultation which attracted more than 3,000 responses (including the NLA) the Ministry of Justice (MoJ) has published its plans to criminalise squatters in England and Wales.

By amending the Legal Aid, Sentencing and Punishment of Offenders Bill, the Government intends to create the offence of 'squatting' in residential property – punishable by a fine of £5,000 and up to 51 weeks incarceration.

Squatting is certainly a politically charged issue and no property owner who has suffered at the hands of squatters will have a great deal of sympathy for the newly criminalised offenders. However, the NLA has some significant concerns about the effect that the introduction of this offence will have on landlords' ability to regain speedy possession.

Currently an application for a possession order is a civil matter which may be expedited (in most cases) relatively quickly. However, an accusation of the new offence of squatting will necessarily be  treated as a criminal matter and could potentially delay proceedings.

In discussions with the MoJ and other interested Government departments the NLA has emphasised the need, irrespective of whether or not a criminal offence is committed, to ensure that the rights of the property owner to legitimately regain vacant possession of his property is made the highest priority. Any other sanction should be a secondary consideration – once possession is returned to the proper owner. 

Caron Monoxide Awareness Week 

Granted it seems like every week is reserved for one cause or another, but Carbon Awareness Week is one which every landlord should pay special regard to. Fortunately incidences of CO poisoning in the PRS are relatively few but landlords have a legal and practical responsibility to ensure that their properties are safe and not placing tenants at unnecessary risk. 

Carbon Monoxide Week 2011 runs from 21 November. 

Please visit http://www.covictim.org/ to find out more about CO Awareness Week and to learn how to reduce the risk across your portfolio.  

Housing Benefits should be "more like a salary"

The NLA's campaign to restore tenants' choice to have housing benefit payments made directly to landlords received a blow in the House of Lords in October. Minister responsible, Lord Freud, told the Chamber that a tenant's experience of receiving housing support should replicate that of being paid a salary. He justified this view by repeating his earlier assertion that to pay benefits directly to private landlords strengthened the 'imbalance' of power that exists between the two parties.

Despite calls from the industry, and an unsuccessful attempt at judicial review on equality grounds DWP appears determined to plough on with little regard for the impact that non-payment of rent can have on a landlords business security. 

Fire Safety before Parliament

The issue of fire safety in the PRS has once again been raised in the House of Commons in the form of a Private Members Bill. To help the NLA represent your business better please take a minute to answer the following three questions: