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2012 has been a wonderful year for both the landlords and tenants. Landlords are providing homes for tenants and tenants providing income for the landlords. But there’s always a third party that makes and breaks this relationship – new set of rules and regulations – laws that should be followed. As letting agents in Newport, we have gathered information that will help you face 2013 prepared on some of these changes.
The Localism Act 2011 which became law on April 16, 2012 has its good side: where landlords are given longer time – from 14 days to 30 days – to protect their deposits, and a bad side: where landlords are expected to pay more.
The Homelessness (Suitability of Accommodation) Local housing authorities offer homeless applicants properties from private landlords that will fit their household. Applicants can re-apply for an alternative accommodation after two years if they want to. Landlords may now consider accepting DSS applicants as housing benefits are directly paid to them.
On the other hand, Housing benefits has new weekly limits on the amount paid according to the size of a property – £250 for a one bedroom property, £290 for a two bedroom property, £340 for a three bedroom property and £400 for a four bedroom property irrespective of whatever the local median figure (lowest 30% of the rents charged in any given area) may be.
On the 1st of April 2013, tenants renting from a local authority, a registered social housing association or other social landlord will also face a new rule that restricts the area) may be. Tenants will now have to plan a new budgeting scheme for this.size of property (specifically the number of separate bedrooms) they can claim housing benefit for, depending on the number and age of people in the household.
Universal credit will replace the current benefits system in April 2013. Under this new system most benefits, including Local Housing Allowance (LHA), will be rolled into one monthly payment. When that change comes into effect, direct payment of LHA to landlords will cease.
Licensing of landlords is likely to become more prevalent during 2013 as well. Landlords who comply with such changes need not fear with the regulations but will definitely add to their burden.
These new set of laws may be such a big weight to carry the whole year round, but a positive perspective will greatly help. All the best for all the landlords and tenants for 2013!