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Landlord Accreditation Scheme and Landlord Licensing

An e-newsletter for private landlords

Issue 1 | April 2011

The next Landlord Forum

The next Landlord Forum is happening on Tuesday 24 May at Salford Civic Centre.

It will be held over two sessions in the Salford Suite and guest speakers will include Jane Deane, Programme Director, MediaCityUK Public Sector Partners and Bev Connor, Manager Benefits Processing and Investigations, Salford City Council.

Jane will be presenting the MediaCityUK project, investment it has attracted into the areas and the implications this project may have on the local economy and in term the private rented sector in the area.

Bev will discuss government benefit changes and timeframe for implementation including Local Housing Allowance (LHA) reductions. This will also provide an opportunity for you to ask any questions you may have.

If you would like to register your attendance or find out more about the forum please contact the team on 0161 793 3270 or email landlord.accreditation@salford.gov.uk.

Venue: Salford Civic Centre
Date: Tuesday 24 May 2011
Times: 2.30pm to 4.30pm and 6.00pm to 8.00pm

Put it in your diary! 

Are you licensed?

All landlords and managing agents responsible for letting properties in selected areas of Salford now need a licence.

There are three schemes actively running in Salford.

Seedley and Langworthy

The scheme, which was the first selective licensing scheme in the country, was introduced in May 2007 for five years. Since then, 445 licences have been issued, a number of unscrupulous landlords have been tackled and there’s been six successful prosecutions and a rent repayment order.

For further details of the area covered by this scheme, including a map and street list visit the council website.

Broughton

This scheme was introduced in November 2009 and will also run for five years. 590 licences have been issued and work is ongoing to secure the remaining 51 applications which are currently outstanding.

Visit the council website for a street list and map of the area covered by this scheme.

Charlestown and Lower Kersal

This latest scheme went live on 1 January 2011. We are currently advising all landlords with privately rented properties in the area that’s covered to licence their properties. So far we have secured 122 applications.

Go to the council website for a street list and map of the area covered by this scheme.

Free testing for electrical goods in licensed areas

£10,000 funding is available for tenants to get their electrical goods tested with 50% coming from the Electrical Safety Council and 50% from the council. Free testing is only available to Seedley and Langworthy tenants living in licensed properties.

If eligible, your tenant can now apply for free testing on up to ten portable appliances per property, to ensure that the items are safe and not likely to cause your tenant any harm. Items include fridges, freezers, washing machines, tumble dryers, kettles, toasters, televisions, microwaves, the list goes on.

The testing will be carried out by NICEIC approved contactors and as the funding is limited, applications will be considered on a first come first approved basis. If your tenant would be interested in taking this offer up, please ask them to contact Landlord Licensing on 0161 793 3344 or email landlord.licensing@salford.gov.uk.

Catching sharks in Salford

Did you know that more than 1,500 families are affected by loan sharks in the North West every year? Victims are often charged astronomical rates of interest and face violence, intimidation or blackmail if they fall behind with repayments.

If you think your tenant has borrowed money from a loan shark, it can have damaging effects on them which may mean they’re not able to pay their rent money to you. If you know of a loan shark operating in your area, contact Trading Standards in strict confidence. You don’t have to give your name or sign a statement.

Reporting them will not get you or your tenant into trouble.

Remember the loan is illegal and, after prosecution, probably does not have to be paid back – but we need to know about it.

Changes to Housing Benefit from April 2011

From April 2011, the government is making changes to Housing Benefit. This will affect tenants renting a property from a private landlord and receiving Housing Benefit which is based on the Local Housing Allowance. These changes may mean that the amount of Housing Benefit your tenants receive may go down.

What is changing?

From April 2011:

  • There will no longer be a five bedroom Local Housing Allowance rate. The maximum level will be for a four bedroom property.
  • The excess payment of up to £15 per week Housing Benefit that some people get will end.
  • Local Housing Allowance rates will reduce to lower amounts, this is due to changes in the way the rates are calculated. 
  • Non-dependant deductions will increase

If your tenants are going to be personally affected, they will be contacted but it may be easier for you to take changes into account at the earliest opportunity. If you receive direct payments of Housing Benefit you will be informed about any changes in the amount you receive.

For more information, visit www.salford.gov.uk/landlordinformation

When will this affect my tenants Housing Benefit?

Claims where a non-dependant deduction applies will affect Housing Benefit claims from April 2011.

The Local Housing Allowance changes will affect claims for Housing Benefit received on or after 1 April 2011.

If your tenant is already getting Housing Benefit they will normally have more time before their benefit changes. The timing of when this will affect your tenants benefit will depend on their specific circumstances and we will write to let them know how and when they will be affected.

If you receive direct payments of Housing Benefit you will be informed about any changes in the amount of Housing Benefit in respect of those tenants.

What do I need to do?

It is important that you discuss how these changes could affect your tenants before you agree to renew their tenancy. The council will have more discretion from April 2011 to pay Housing Benefit to landlords but only if this would help the customer secure a new tenancy, or remain in their current home at a reduced rent.

Discretionary Housing Payments

The council receives a set amount of funding from the Government to provide claimants with further help with their housing costs. This is known as Discretionary Housing Payments.

Discretionary Housing Payments can be made where there is entitlement to Housing Benefit and there is a shortfall in the amount of rent that they pay and the amount of Housing Benefit they receive.

Requests for Discretionary Housing Payments are considered on a case by case basis and there needs to be a good reason why this additional help is needed. Your tenant’s would need to request a Discretionary Housing Payment and provide details of their circumstances.

The amount of funding available is cash limited and will not make up the full losses resulting from these changes. Most Discretionary Housing Payment awards are made only for a short period of time to allow the customer time to review their circumstances.

Where can I get more information?

There is more information about these changes and general benefit information available on the council’s website www.salford.gov.uk/benefits

If you want to know what the Local Housing Allowance rates are now, visit the council’s website or the LHA Direct website. These rates change every month, so keep checking.  

Changes to your council tax discount

From 1 April 2011 the amount of council tax discount awarded to long term unoccupied properties has been reduced to 10%. Council tax discounts for second homes have also been reduced to 10% from this date, unless the second home relates to a contract of employment where a 50% discount may apply in some cases.
If your records are not up-to-date, please contact the council tax team by calling 0161 909 6502 or email revenues@salford.gov.uk

Competitive tenant reference rates for members

The tenant reference service is changing. From the 1 March 2011 accredited landlords will be signposted to landlords’ organisations that provide an in-depth reference service at competitive rates. The service previously provided by the scheme will no longer be available from March 2011.

There are many landlord organisations that can offer you a tenant referencing service for competitive rates. One organisation is the Residential Landlords Association (RLA). Below is some information about them. You can also visit their website www.rla.org.uk or call them on 0161 962 0010.

The RLA offer a comprehensive online service to both members and non-members. They extensively check prospective tenants and guarantors to ensure that the risk to you, the landlord, is minimised as much as possible.

They can usually send you a full reference report in 48 hours and they also offer a service to check limited companies with a response time of four working hours.

Each tenant reference includes:

  • Written confirmation of employment/income from employer/accountant 
  • Previous tenancy reference or home ownership check 
  • Residency confirmation 
  • Identity confirmation 
  • Rent affordability calculation 
  • Full credit history search (up to six years) 
  • Easy to read, comprehensive report sent by email without delay.

RLA members are charged £22 for a full tenant reference, non-members are charged £29. To start using RLA, you need to register with them. Signing up is free.

* Please note, any company mentioned in this e-newsletter is not endorsed by Salford City Council. Other suppliers and products are available.
 

Empty property group

Empty properties are a major concern for the council and we need your help.

Not only do empty properties mean the owner is losing out but it can also be a blight to an area and is an easy target for anti-social behaviour. Of course there are many genuine reasons why a property is left empty but reducing the number of empty homes is a key priority for the council and we are committed to bringing properties back into use.

To do this during these difficult financial times, it is vital that we work together with a range of stakeholders. One way to cut back on empty homes that the landlord accreditation scheme has been leading on is by forming an empty property group. If you are interested in coming to the next meeting on Thursday 14 April at the Salford Suite, Civic Centre or would like to get involved in the challenge of reducing empty properties, please contact the empty property team on 0161 793 3270 or email emptyproperties@salford.gov.uk.

A problem shared

Shimran Butt is the dedicated officer for dealing with any anti-social behaviour problems and to give you advice and support.

As we move to into a new financial year, the antisocial behaviour surgeries in Seedley, Langworthy and Broughton are to be replaced with an appointment based service. This transition has been put in place to facilitate better use of resources whilst still providing a dedicated one-to-one service for you to meet Shimran at the Salford Civic Centre or contact him by phone or email to discuss or make other suitable arrangements for a meeting.

Get in touch with Shimran by: