Homespage UK

February 2007

Tenancy Deposit Schemes (TDS's) are soon to be introduced, with the main aims being to safeguard monetary deposits made by tenants as part of an Assured Shorthold Tenancy, and to facilitate any disputes which may occur from these deposits.

The schemes will take two main forms:

Custodial The tenant pays the deposit to the landlord in the usual way. The landlord then pays the whole amount of the deposit into a ‘scheme account’, administered by a third party organisation appointed by the government.

Insurance-based The tenant pays the deposit to the landlord in the usual way. The landlord then retains the whole amount of the deposit, only submitting it into a ‘scheme account’ if there is a dispute with the tenant at the end of the tenancy. The scheme will then hold the deposit until a resolution is reached.

In all schemes, an Alternative Dispute Resolution (ADR) must be in place. This is intended to provide landlords and tenants with an option to resolve disputes without having to take matters to court

For further information, please visit: http://www.communities.gov.uk/index.asp?id=1152038#P21_1779

March 2006

On 6th April 2006, the Housing Act 2004 regulations regarding Houses of Multiple Occupancy (HMO’s), will come into force.

Any house which contains two or more ‘households’ is classed as an HMO. Under new guidelines, any property which has three or more storeys, and contains 5 or more unrelated tenants, will have to be licensed.

The HMO license will last for 5 years, and the cost will vary between local councils. It is expected to be anywhere between £300 and £1200. Discounts may be available for multiple applications. Please check with your local council to find out the level which has been set. It is important to remember the Government has stipulated that the price of a license can only cover costs, and no profit can be made.

There is a 2 month grace period for a license to be obtained. Any Landlord however, who does not have either a license or an outstanding application in place by June 2006 could face a fine of up to £20,000.

For more information, please visit: http://www.communities.gov.uk

November 2005

The Housing Act 2004 came into force on 18 November, and contains several significant changes from previous acts relating to legislation covering housing.

New standards have been set to assist tenants, and create a fairer market for landlords and home owners.

During 2005, the Housing Fitness Standard, which assesses potential health and safety hazards, will be replaced by the HHSRS (Housing Health and Safety Rating System). This system will provide a risk assessment based on 29 issues which have been identified as potentially hazardous.

Home Information Packs will also be introduced, to make the process of buying and selling a property both clear and easier to understand.

Tenancy deposit schemes are to be put into place. Once implemented, this will mean that when a deposit is required, it will have be lodged with a secure organisation, potentially alleviating issues with the return of deposits at the end of a tenancy.

The above are a selection of the key points. You can find full details of the Act on the ODPM (Office of the Deputy Prime Minister) website http://www.odpm.gov.uk