Press Releases
LETTINGS IN THE UK - May 2010
Throughout Europe, there are significant geographical differences with regards to the cost of renting. These differences include the numbers and types of properties available, the different types of landlords and tenants and the different rules, regulations and legislation.
A good example of these differences is the variation in the size of the market. It is estimated that in Germany, 60% of households rent within the private sector, in France it is 25% and in the UK 8%.
Legislation, economy, cultural trends and standards all account for the size variables.
It’s worth comparing the differences in legislation between England and each of the other three countries to provide an indication of general cultural variations;
The legislation in England and Wales has a few subtle differences, in that the English parliament writes the legislation (both England and Wales use the Housing Act 2004) and the Welsh assembly writes its own regulations within the legislative parameters. The Welsh Section 13 notice is slightly different to the English and must be written in the Welsh language if the AST is provided in Welsh.
More recently, England has changed HMO regulations by introducing the Class of Use Order, affecting three sharers or more, where planning requirements become mandatory. In addition, the AST threshold has been confirmed as rising from £25,000 to £100,000 in October 2010. At the time of writing this article, Wales has yet to adopt these changes although is considering them.
Under consideration by both countries is a landlord register, licensing of agents as well as standardised tenancy agreements.
Northern Ireland and England differ quite widely, with The Private Tenancies (Northern Ireland) Order 2006 defining much of the legislation in Ulster. Examples of differences include: in England, a rent book is a legal requirement for tenancies where the rent is paid weekly; under S5 of the PT (NI) Order, the provision of a rent book after 28 days is a requirement for all tenancies. Under the same Order, the Landlord is required to keep in repair appliances that are supplied as part of the tenancy, whereas under S.11 of the Landlord and Tenant Act 1985, appliances are specifically excluded, under S.11(b).
In addition, Northern Irish tenancies require four weeks notice to quit from either party and in English ASTs it’s two month’s notice from the landlord and no prescribed notice from the tenant (in a fixed term). Another difference is that tenancies in Northern Ireland also require six months certain for tenancy agreements, whereas an AST can be anything up to one hundred years, (although tenants are able to exercise a right to a minimum six month’s term).
Scottish and English legal systems also differ widely. For example, in England, when a fixed term Assured Shorthold Tenancy expires and the tenancy continues, the tenancy becomes Statutory Periodic, meaning it continues under the provisions of the original fixed-term agreement until either party serves notice. However, in Scotland, when a six month Short Assured Tenancy expires, it silently renews (Tacit Relocation) for another fixed-term unless notice is served or a new tenancy is drawn up.
Other differences in contract include the length of the fixed term, where the principle of time is measured differently between the two countries. Using the example of a fixed term six month AST in England that starts, say, the 14th of March, it would generally come to an end on the 13th September.
In Scotland, legislation uses ‘Ish Dates’, which is an traditional measure of contractual time. Using a similar example as above, a Scottish Short Assured Tenancy that begins on the 14th March would end on the 14th September because the first day of the tenancy is not usually counted. A tenancy that ran from the 14th to the 13th in Scotland would become an Assured Tenancy.
On a different note, England has had Deposit Protection legislation since 2007, introduced under the Housing Act 2004. Scotland is about to introduce a similar scheme this year.
More recently, Scotland has introduced Landlord Registration, where private landlords are charged a fee of £55 to become registered under the Registration Scheme. The aim is to raise standards for private landlords. Registration is a statutory requirement, where a breach can cause a penalty fee, a legal right for the tenant to withhold rent and a fine of up to £5000. In England, the proposal for registration is currently under consideration and may well become law within the next 12 months.
All areas are seriously concerned with the aim of raising housing standards across the board, although there are currently differences in the application of statute between regions. It is assumed this will become more congruent post-recession.
Dealing with regional variations between legal systems can be a headache, even for the most ardent of landlords and agents. Reasons for acquiring such knowledge can be properties owned or managed in more than one region (or indeed on the borders of regions), moving from one region to another for work, or professional diligence where explanation is required.
One of only a few ways of ensuring compliance is using an appropriate property management system that can not only deal with regional variations, but that can also provide the appropriate documentation. C.A.R.L. Communications produces software designed to enhance the operations of agents both in each corner of the UK and also for those operating on the borders. A significant part of owning the C.A.R.L. system is the legal documentation that comes as part of the package and which is consistently monitored and updated.
With systems installed in letting agent’s offices throughout the UK, C.A.R.L. strives to provide all of its customers the very best in property management systems.
For further information, please contact:
Wende Heaton, Manager
Sales and Training Department, C.A.R.L. Communications Ltd
Tel: 0845 345 5591
Email: wende.heaton@carlcomms.co.uk