Can I advertise 'No DSS'? Is it illegal or discrimination?

It is up to a landlord to decide who they let their property to.

'DSS' is a defunct term that refers to the Department for Social Security, which hasn't existed since 2001. Within the context of housing, it is understood to refer to tenants who claim any kind of state benefit - especially housing benefit (or Universal Credit).

As such, writing 'No DSS' on an advert is, in a way, meaningless, since no one claims benefits from the Department for Social Security anymore.

The issue is not the wording, but whether the landlord/agent is universally rejecting all applications from tenants who claim benefits.

There have been no cases of landlords being successfully prosecuted for including terms such as 'No DSS' in their adverts. But there have been out-of-court settlements where tenants won large sums before the case was tried.

One line of thought is that advertising 'No DSS' (or similar) constitutes a form of discrimination which may be found to be illegal. For example, women are more likely to be recipients of child care benefits, and so advertising 'No DSS' may be found to indirectly discriminate against women, as described in the Equality Act (2010).

In early 2018, Rosie Keogh won £2,000 in private settlement over an advert blanket-banning benefit claimants.

The government says it wants “an immediate change” in the policy of some letting agents and landlords who advertise ‘No DSS’ when renting out private flats and houses.

Minister for Family Support, Housing and Child Maintenance, Justin Tomlinson says: “Everyone should have the same opportunity when looking for a home, regardless of whether they are in receipt of benefits.

“With Universal Credit, payments can be paid directly to the landlord, and we continue to listen to feedback and work with landlords to improve the system.

“Landlords can already receive rent from tenants on Housing Benefit and Universal Credit – meaning payments can be paid directly into their accounts.

“This helps strengthen the choices and opportunities available for those on benefits to secure the homes they and their families need.”

And a statement from the Ministry of Housing, Communities and Local Government says housing minister Heather Wheeler has made it clear that letting adverts which potentially discriminate against would-be tenants on Housing Benefit “should end.”

Out of 4.5m households living in private rental accommodation, 889,000 receive housing benefit to help pay their rent.

However, the MHCLG says latest figures show around half of landlords said they would not be willing to let to tenants on Housing Benefit – ruling out thousands of vulnerable people and families.

“In the coming months, ministers will meet leading industry representatives, including mortgage providers, landlord associations, tenant groups, and property websites to clamp down on blanket exclusions in adverts – with a view to stopping them altogether” says the statement from the MHCLG.

New Energy Efficiency Rules for Landlords

New energy efficiency rules for landlords of rental properties in England and Wales are now in effect.

The changes detail the costs that landlords legally face in improving any of their properties that have an Energy Performance Certificate (EPC) rating below E.

The Statutory Instrument to introduce the new rules was made somewhat quietly on 15^th March 2019. It will have gone unnoticed for many landlords and letting agents, as the industry focuses on the legal requirement also coming into force today for agents to have Client Money Protection (CMP), ahead of the tenant fees ban.

However, the Energy Efficiency (Private Rented Property) (England and Wales) (Amendment) Regulations 2019 do put important new responsibilities onto landlords from today.

The new regulations focus on the Minimum Energy Efficiency Standards (MEES) for letting domestic property. This requirement has been in force for a year now, on new or renewed tenancy agreements.

The amendment made on 15^thMarch introduces a new self-funding element for residential landlords, which takes effect if landlords are unable to access third party funding to improve any rental properties with F or G ratings.

The self-funding element is capped at £3,500 including VAT per property. It means that a landlord without funding must spend up to this amount sufficient to improve the property to a minimum E rating. A landlord with third party funding may have the full costs covered. If there is no funding, the £3,500 maximum goes on both purchasing and installation. 

Another possibility is that the landlord tops up third party funding, to total £3,500 maximum.

The landlord can choose to make any improvements that they wish, including those made in an EPC report, “so long as they are confident that the measure(s) will improve their sub-standard property to a minimum of EPC E”.

If the landlord decides to make improvements that are not “relevant energy efficiency improvements” and the property is still below an E rating, then the landlord will have to make further changes.

A landlord who has made all of the “relevant energy efficiency improvements”, but the property is still below an E, will be able to apply for an exemption.

Possible third party funding sources are: a Green Deal finance plan, local authorities, or an Energy Company Obligation.

From 1^stApril 2020, the minimum E rating will also apply to properties that have been let since before April 2018.

New Government guidance states: “Landlords are encouraged to take action as soon as possible to ensure that their properties reach EPC E by the deadline of April 1, 2020.”

The guidance also gives examples of how landlords can pick-and-mix energy improvements.

For example, recommended measures might be to improve loft insulation, install floor insulation, low energy lighting, internal or external wall installation, and solar panels. This would cost over £15,000. However, the landlord is only required to choose the measures that total less than the cap.

Local authorities have been tasked with enforcing the MEES, which only apply to private rental housing, not the social rental sector.

Welsh Tenant Fee Ban is Coming!

The tenant fees ban is due for introduction in Wales in September, subject to the new law receiving royal assent.

The ban on charging fees by landlords and letting agents to tenants in Wales will be introduced on 1^stSeptember 2019.

From this date, landlords and agents will no longer be able to charge tenants fees to set up, renew or continue a standard occupation contract, except those explicitly permitted by the new law.

Many landlords may not yet be familiar with standard occupation contracts, but they will replace Assured Shorthold Tenancies (ASTs) in Wales when the Renting Homes (Wales) Act 2016 is introduced – possibly later this year.

The Welsh tenant fees ban passed its final stage in Parliament last m month. 

The law will make it illegal for landlords and agents to charge anything other than permitted payments, which include: rent, security deposits, holding deposits, utilities, communication services, Council Tax, Green Deal charges, and default fees.

Under the tenant fees ban, holding deposits will be restricted to one week’s rent, with provisions to ensure their prompt repayment.

The law in Wales greatly reflects the Tenant Fees Bill being introduced in England on 1^stJune 2019. 

Landlords, if you let properties in Wales, you must be aware of the upcoming tenant fees ban and its implications on your Rental income. 

It is wise to start preparing for how you might be affected now and put processes in place for the future, when you can’t charge fees to tenant.

YOUR AGENT can help you maximise your returns by relieving you of the financial and time consuming burden of referencing, credit checking and assessing potential tenants.

Contact us today for an informal discussion on 03452 606 440 or at info@your-agent.co.uk

Gas Safety Week: Tips for staying gas safe

Landlords are being reminded this week that they are responsible for the safety of their tenants, as part of Gas Safety Week.

The annual event, which takes place 17-23 September, aims to raise awareness of gas safety and reminds us to have our gas appliances safety checked annually by a qualified Gas Safe registered engineer.

A number of organisations across the country will be working together alongside the Gas Safe Register to raise awareness of the dangers of poorly maintained gas appliances, and responsibility for safety of tenants is something that all landlords should be aware of.

Here are some tips from the Gas Safe Register to keep your tenants safe and warm in your property.

+ Only use a Gas Safe registered engineer to fit, fix and service your appliances. You can find and check an engineer at GasSafeRegister.co.uk or call 0800 408 5500.

+ Check both sides of your engineer’s Gas Safe Register ID card. Make sure they are qualified for the work you need doing. You can find this information on the back of the card.

+ Have all your gas appliances regularly serviced and safety checked every year. Make sure are able to provide your tenants with a copy of the current Gas Safety Record, upon request.

+ Make sure your tenants know the six signs of carbon monoxide (CO) poisoning – headaches, dizziness, breathlessness, nausea, collapse and loss of consciousness. Unsafe gas appliances can put your tenants at risk of CO poisoning, gas leaks, fires and explosions.

+ Check gas appliances for warning signs that they are not working properly e.g. lazy yellow flames instead of crisp blue ones, black marks or stains on or around the appliance and too much condensation in the room.

+ Fit an audible carbon monoxide alarm. This will alert your tenants if there is carbon monoxide in your property.

Zoopla rental listings are now available to view on Facebook

With the majority of people’s property searches beginning online, most landlords would naturally expect to see their rental properties listed on the main property websites, dominated these days by Rightmove & Zoopla, but how about Facebook?

In a bid to attract the widest possible range of prospective tenants, Zoopla have done just that.

As of the 5th September, the rental listings listed by Zoopla letting agents are now available to view on Facebook Marketplace.

People searching for property on Facebook Marketplace will be able to filter by property type, price range and bedrooms to browse the rental listings provided by Zoopla.

Charlie Bryant, managing director of the ZPG Property Services, which owns Zoopla, said: “This is great news for our agent members who will now get wider distribution of their listings as well as increased brand exposure with people looking for property to rent on Facebook Marketplace.

“This integration extends our position as the best value digital marketing partner in the UK for agents. We will continue to provide our agent partners with maximum exposure for their listings and brands along with the widest range of services to help them generate additional leads and revenues.

“We’re pleased to be working with Facebook and look forward to the value this integration will bring to our partners.”

Cleaning is still the biggest cause of deposit disputes

Cleaning has once again been identified as the most common cause of a tenancy deposit dispute in the private rented property sector, according to new research.

Fresh data released by The Deposit Protection Service (The DPS) reveals that cleaning tops the list of reasons why a deduction was made to the tenancy deposit.

Over the past 12 months, 63% of landlords that entered The DPS’ Dispute Resolution Service cited cleaning amongst their reasons for a claim. 

Damage caused by tenants is the second most cause of disputes at 53%, followed by the need to redecorate at 37%, and rent arrears at the end of a tenancy at 23%.

Other costs cited by landlords include gardening (16%), replacing missing items (16%) and outstanding bills (4%).

Julian Foster, Managing Director at The DPS, said: “These statistics give an indication of the types of issues that landlords can face when tenants move out – and of the need for a system of tenancy deposits to protect both parties.

“Many of the problems that lead to deductions can be avoided when both tenant and landlord are aware of their responsibilities and stay in regular communication throughout the tenancy.

“Around 98% of tenancies end without any dispute between landlord and tenant over the deposit, but in the rare occasions they cannot agree, access to a free, impartial dispute resolution process helps ensure that everyone is treated fairly.”

landlords optimistic about the future of the BTL market

Going by press headlines, it would be easy to imagine that buy-to-let landlords in the UK are struggling to keep going and possibly only in the buy-to-let market because they haven’t found a way to exit it.

But in actual fact research shows that over half of UK landlords feel optimistic about market conditions with a further third being indifferent to them. When you look beyond the headlines, there are solid reasons for this.

Legal changes cannot overturn the age-old law of supply and demand

Over recent years, it’s hard to escape the impression that governments have been eager to be seen to be “doing something” in the housing market. As a result, they have brought in measures which may look good to impressionable younger adults, looking to “get on the housing ladder”, for example adding a stamp-duty surcharge to investment purchases, while making it less likely that first-time buyers will pay stamp duty on purchases.

The simple fact remains, however, that the UK housing market, like every other market, is driven by the laws of supply and demand and it is no secret that there is a shortage of residential housing in the UK, both to buy and to rent.

Even if this imbalance is addressed, there is still the fact that the UK has a substantial percentage of people who are natural renters, for example, young adults, which is likely to fuel demand for rental property long into the future.

Brexit may slow housebuilding projects a lot more than it reduces demand

Only a third of landlords cited Brexit as a major concern. It may be that these landlords had their properties in areas where there is a significant population of EU citizens.

Overall, however, it is entirely possible that the main impact of Brexit on the property market will be to reduce the rate at which new homes can be built far more than it decreases the demand for residential property.

Since the A8 accession in May 2004, the UK’s construction industry has become used to having access to labour, both skilled and unskilled, from these A8 countries, later joined by Bulgaria, Romania and Croatia. If this pool of labour dries up, then property developers will be forced to work at a slower pace.

Property is an investment class for people who think and act long-term

Perhaps the slew of financial and regulatory changes in the buy-to-let market will actually be of long-term benefit to committed property investors by shaking out people who understand that there’s profit to be made in property, but who don’t really have any great interest in buy-to-let itself. These would include, for example, so-called “accidental landlords” and other casual investors. This has the dual benefit of reducing competition between landlords and making for a more professional environment, which reassures both the public and regulators and could make it easier for landlords to make their voices heard.

At the same time, those exiting buy-to-let as landlords could find other opportunities to invest in the property market, or even continue to participate in buy-to-let through buying shares in companies active in the market.