The Housing Act explained (contains updated info on the Tenancy Schemes)
What you should know about the Housing Act.For updated info on the Tenancy Deposit Schemes, scroll down at the bottom of this page.
- Housing in Multiple Occupation Licensing
- Housing Health and Safety Rating System
- Codes of standards for halls of residence
- Tenancy Deposit Schemes
The Housing Act contains several new measures of interest to students living either in the private rented sector or in university/college accommodation in England and Wales.
The Housing Act contains provisions on:
(All the following provisions coming into force in April 2006)
1. Housing in Multiple Occupation Licensing:Mandatory licensing of houses with 5 people or more, 3 or more storeys (except university/college accommodation). The licensing is mainly about management standards.
The landlord must pay a fee to register. Not registering is a criminal offence, with a fine of £20,000. Breaching conditions of the license can incur a £5,000 fine.
We expect many student landlords will have to be licensed. Anybody can report to the local housing authority a house that they think ought to be licensed, or report the landlord to the local housing authority if he/she is not fulfilling the terms of the license.
What the landlord should do: be a fit and proper person (no previous housing offences).
Order free Tenants: Does your landlord need a licence? leaflets for your students' union.
This publication is available free of charge from ODPM Publications, PO Box 236, Wetherby LS23 7NB. Tel: 0870 1226 236, Fax: 0870 1226 237, Textphone: 0870 1207 405, Email: odpm@twoten.press.net. Please quote 05 HD 03398/tenant when ordering. Delivery will be 5 to 7 days from receipt of order. A maximum quantity restriction may apply.
2. Housing Health and Safety Rating System:New health and safety check in ANY buildings, with new powers of local authority to force landlord to act. This is applicable in university halls and with private landlords.
It is very important to remember that is you think the health of a student is in danger, you can always report the university/college/ private landlord to the local housing authority. From April 2006, local authority will have a DUTY to act if the health of tenants is in danger, and will have new powers to make landlords do repairs.
Too few students know they can contact the local housing authority about the health and safety standards of their accommodation. It is important you remind them.
3. Codes of Standards for halls of residence:New management guidelines for halls of residence (universities and colleges) Voluntary standards for institutions to follow.
Institutions could either sign up to the UUK Code, or the ANUK/Unipol Code. Most institutions are signed up to the UUK Code. For more information, go to:
For more information on the ANUK/Unipol Code, go to:
Only the university of Bradford, the University of Leeds, Leeds Met university, London Met university, University of Hertsfordshire, and Greenwich University have joined the Unipol/ANUK Code. However, most private providers such as Unite, Cosmopolitan, etc have joined the ANUK/Unipol Code.
It is important students’ unions know what Code their institution is signed up to. Institutions are supposed to be committed to higher standards of management. In practice, we will ask students’ unions where institutions are signed up to the UUK Code of practice to be vigilant, as we believe institutions will not actually enforce the standards present in the UUK Code. Breaches of the code should be reported through the institution’s complaints’ procedure, and signalled to: NUS research and policy officer (student welfare)
If you believe a university/college is behaving really badly and providing terrible accommodation to their students, it is CRUCIAL you inform NUS about it. NUS belongs to the UUK and ANUK/Unipol boards of management, and have the chance to rectify things for students.
PS: All private providers of hall of residence type accommodation will ALSO have to get an HMO license.
4. Tenancy Deposit Schemes:Coming into force 6th April 2007.
All private landlords in England and Wales with assured shorthold tenancies must protect their tenants’ deposit in some way, either by taking out a special insurance or by handing out the deposit to a third party. The Government is planning a national information campaign in April 2007. All new tenancies (starting during April 2007 and onwards) will be affected.
How do the tenancy schemes work?
Tenants
After 6 April 2007, when you are signing a new tenancy agreement with your landlord, ask how your deposit will be protected. Your landlord can provide you with the contact details of the scheme protecting your deposit.
Landlords
Landlords will be able to choose between two types of scheme: a single custodial scheme and two insurance-based schemes.
Custodial scheme
- The tenant pays the deposit to the landlord;
- The landlord then pays the deposit into the scheme;
- Within 14 days of receiving a deposit, the landlord must give the tenant the prescribed information (to be set out in secondary legislation) about the scheme being used and the tenancy;
- At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided, they will tell the scheme which returns the deposit, divided in the way agreed by both parties;
- If there is a dispute, the scheme will hold the amount until the dispute resolution service or courts decide what is fair;
- The interest accrued by deposits in the scheme will be used to pay for the running of the scheme and any surplus will used to offer interest to the tenant, or landlord if the tenant isn’t entitled to it.
Insurance-based schemes
- The tenant pays the deposit to the landlord;
- The landlord retains the deposit and pays a premium to the insurer - the key difference to the custodial scheme;
- Within 14 days of receiving a deposit, the landlord must give the tenant prescribed information (to be set out in secondary legislation) about the scheme being used and the tenancy;
- At the end of the tenancy, if the landlord and tenant agree how the deposit should be divided, the landlord returns all or some of the deposit;
- If there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved.
- If for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it.
Example
A tenant pays a deposit of £1000. At the end of the tenancy, the landlord says he wishes to keep £200 to pay for replacing damaged furniture. The remaining £800 will be returned to the tenant.
The tenant disagrees, claiming the furniture was damaged when they moved in. Both agree to go to Alternative Dispute Resolution (ADR), so the disputed £200 will be transferred to the scheme administrator until the dispute is settled.
In each scheme, the deposit must be returned within ten days of the landlord and tenant agreeing how the deposit should be divided, or within ten days following notification of an ADR/court decision.
FAQs
Q.1 What sort of tenancies will deposit protection apply to?All deposits taken by landlords in relation to assured shorthold tenancies (AST) - the most common form of new tenancy - in England and Wales. Most universities have licenses type contracts, which means the protection schemes will not apply to them. However, some universities lease their halls of residence to private companies. These companies may let the accommodation on an assured shorthold tenancy (for example, Unite, UPP, Jarvis, Cosmopolitan, Liberty Living, type halls of residence).
Q.2 Does tenancy deposit protection apply to landlords who live overseas?
If a landlord lives overseas but lets a property in England or Wales on an AST and takes a deposit, he or she will have to comply with the tenancy deposit protection legislation.
Q.3 How can tenants find out if their deposit is protected?Within 14 days of receiving a deposit, landlords will have to provide tenants will details of which scheme is protecting the deposit. The scheme will be able to confirm if the deposit is protected.
Q.4 What happens if the landlord or tenant cannot contact the other party to agree how the deposit should be returned, or where one party is being un-cooperative?A 'single claim' can be submitted in these circumstances.
If the landlord is unable to contact the tenant, he can submit a single claim indicating the reason for the claim, including evidence.
If a tenant cannot contact the landlord and makes a single claim, no other reason is required as the deposit is the tenant's money.
A single claim can also be made, if both the landlord or tenant are contactable, but one party refuses to co-operate - either in agreeing deposit release or agreeing to resolve any dispute via ADR or court.
Q.5 What happens where a parent pays the deposit on a student tenant's behalf?
Where the deposit is paid for an assured shorthold tenancy, it would still need to be safeguarded in a scheme.
Q.6 How would the deposit be repaid once an overseas student returns home?
Schemes will be able to return deposits into foreign bank accounts. There would be a charge for this that would need to be paid by the tenant.
For more info, visit:ODPM website
All the latest information about Tenancy Deposit Protection answered in this briefing (updated 20th February 2007)
Order free material to publicise the schemes
Order free Tenancy Deposit Protection leaflets for tenants leaflets for your students' union.
You can also order landords leaflets to hand out to your local landlords commnunity: Tenancy Deposit Protection leaflets for landlords
Shelter has produced a deposit envelope to inform lanldords and tenants of their new obligations and rights. Basically tenants can hand out landlords their deposit money in that envelope, which has written on it what the landlord ought to be doing! Brilliant idea. To order bulk copies of between 20 and 60 telephone 0845 458 4590 or visit Shelter website
These publication are available free of charge from Prolog. Tel: 0845 609 0696. Delivery will be 5 to 7 days from receipt of order. A maximum quantity restriction may apply.
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