As of midnight on the 6^th April 2012, the changes to the Localism Act come into force.

Landlords must now protect a tenancy deposit in a government approved tenancy scheme. The Localism Act gives landlords thirty days to protect the deposit after they receive it from their tenant. This has been increased from fourteen days, and the change to the law applies in England and Wales.

Landlords must also provide tenants with required prescribed information. The prescribed information is defined by the deposit protection scheme the landlord uses and includes information about the tenancy, the property, the landlord and tenant’s personal information and the deposit protected. The tenant must also be provided with a Deposit Protection Certificate as proof that the deposit is securely protected within the 30 day period that follows receipt of the deposit.

The changes have been made to the Localism Act to close a legal loophole through which some landlords were able to appeal successfully against penalties incurred for not protecting a deposit.

Now, if a landlord fails to protect a deposit, they could be taken to court by their tenant and fined between one and three times the amount of the deposit. During this time they will be unable to file for a possession order for the property and the fine incurred will be at the court’s discretion. The new changes will also enable tenants to make a claim against a landlord up to six years after they’ve moved on from the property as opposed to the thirty day period they previously had to take action within.

A tenancy deposit is defined, in relation to a shorthold tenancy as any money intended to be held (by the landlord or otherwise) as security for: the performance of any obligations of the tenant, or the discharge of any liability of his, arising under or in connection with the tenancy. In effect if money is paid to the landlord for those reasons and is intended to be repaid at the end of the tenancy, it is considered a deposit and must be protected.

Please see the links below to the three government approved deposit protection schemes.

http://www.depositprotection.com/

http://www.mydeposits.co.uk/

http://www.thedisputeservice.co.uk/

Stamp duty land tax (SDLT) is a tax on the purchase price of land and buildings. SDLT operates on a sliding scale: the greater the purchase price of the property or land, the greater the rate of SDLT that must be paid. The buyer of the property or land is responsible for completing documentation and paying the stamp duty. In practice this is usually handled by a solicitor working on your behalf to complete the sale.

This table shows the scale upon which Stamp Duty Land Tax is applied to property in the United Kingdom.

The higher rate of tax on property over £2,000,000 is applied to corporate bodies and investment schemes purchasing residential properties.

In some areas of the UK stamp duty land tax is calculated slightly differently. Areas that are deemed to be “disadvantaged” by the government afford a higher price at which the tax is first applied. In these areas property worth up to £150,000 is stamp duty free. Any properties above this value has the same rate of stamp duty applied to it as those in other areas.

It is also possible to gain stamp duty relief through the purchase of a zero-carbon home. Zero-carbon properties worth up to £500,000 are exempt from this tax and those worth more than £500,000 have their tax bill reduced by £15,000.

The criteria for a property must be met for the stamp duty relief and they are as follows. The property must be very well insulated and built to a high standard. It must also incorporate renewable energy technologies that produce enough power to cover the average consumption of a house over the course of one year.

A property is known as a house of multiple occupancy or HMO if you are currently letting, or if you plant to let to at least three tenants who form more than one household within the property. The tenants will also share a toilet, bathroom or kitchen facilities.

Licensing for HMO properties varies between the local councils, but generally speaking if the house has three or more storeys or if there are to be five or more tenants in the property forming more than one household, then the property is considered a large HMO and a license is mandatory.

Some local councils also require licenses for smaller HMOs and in some areas all HMOs must be licensed. The best place to find information regarding the licensing in your area is to speak to your local council about it. Generally the fee for a license will be non-refundable and the amount of the fee that you are required to pay will be set by the local council for your area.

An HMO license will normally be valid for five years, but the license must be renewed before the end of this five year period. If the council feels it is necessary, they can also reduce the length of time your license will be valid for.

If the local council grants you a license for your HMO there are certain conditions that must be met, which will be set by the local housing authority. These may include producing an annual gas safety certificate; ensuring all electrical equipment and furniture is safe; installing smoke alarms and giving the tenants a copy of the statement of terms for living in your property. Generally the conditions that are set by your local housing authority will be to make sure that you maintain your HMO to a good standard and manage the tenants and property well.

If you are refused a license for your HMO the local council will try and resolve any issues with you. If a license is still refused you have the option of appealing to a Residential Property Tribunal regarding it. If the council has refused a license they must make a management order which enables them to take over management of the property for a maximum of 12 months. If there is no license granted after this period, they must make a final management order which puts in place long-term management by the council for the property, which may last to a maximum of five years.

When it comes to marketing your property for sale or to let the first thing you need to consider is your property description. Alongside your all important images this description will be responsible for enticing potential buyers or tenants to arrange a viewing so it is well worth spending time composing it.

A well written property description should impart useful information, it is best to keep it professional in tone and think about what buyers or tenants will want to know. Details such as the total square footage, council tax band and local authority should be included whenever possible. Try to keep your description concise, yes you need to convey information but there is no need to list every tiny detail of the property, taking this strategy runs the risk of potential viewers becoming bored and skim reading which may mean they miss vital information.

If you are unsure where to start why not browse the large property portals such as rightmove.co.uk for property descriptions you find appealing and write yours in a similar way. Phrasing really is important so think about the words you use, for example “well proportioned accommodation” sounds far more attractive than “good sized flat”.

Top things to mention within your property description are:

Transport links: Listing nearest stations or other transport information is essential.

Road position: Google map is a great function, still it never hurts to write that the property is “situated on a quiet residential street” for example.

Period features: Period properties often do not retain their original fireplaces and plasterwork, if your property has these kind of advantages list them and photograph them too.

 Recent renovations: Have you recently had the property re decorated or the garden landscaped? These kinds of renovations are highly attractive especially within the lettings market.

Local amenities: Is there a local park or common nearby if so be sure to mention these open spaces as an additional benefit to the property. This point is especially valid where the property offered to the market has little or no outdoor space.

Parking: Does the property benefit from off street parking? If so be sure you let potential viewers know about it.

Property benefits: Does your property have under floor heating or a brand new bathroom suite? Are all bills included within the rental price? Unless you make these benefits clear your potential viewer won’t know about them so why not boast a little!

Converting a basement is a great way to provide extra living space without drastically altering your house. Unlike loft space which is good for creating extra bedrooms in a property, a basement is a wonderful way to introduce extra family living space or to create a self contained unit for use as a home office or even an entirely separate dwelling.

When you convert an existing basement into a habitable space this involves a “change of use” and does not require planning permission. Of course, if you plan on reducing the floor level to make the room bigger this will be considered an extension and may need planning permission. It is, however, unlikely that a local authority would refuse planning permission on a basement, especially if the work is not altering your building’s appearance. Remember, if you do decide to chang e the depth of your basement and you share a wall with other properties you will need to abide by the Party Wall act and consult your neighbours about your renovations.

Regardless of whether you’re just changing the use of your basement or creating a new or larger one, you will require building regulations approval. These are minimum construction standards that ensure buildings are safe, hygienic and energy efficient. They will also make sure that there is good ventilation to the space, appropriate fire escapes and that the ceiling height is 2.4 metres or greater.

There are also a few further things to consider. Try and get as much natural light into your basement conversion as possible. You could use windows near ground level, light wells and stair wells to do this. The lighting and decor in your basement conversion are also important things to take into consideration. Try and make your rooms feel light and airy with ceiling spot lights and pale colours on the walls.

One thing to bear in mind with your basement conversion is the cost. Typical costs to convert an existing basement are £850-£1,150 per square metre and if you’re digging out a new basement this can be around £3,000-£4,000 per square metre. A good basement conversion, however, will increase the value of your property, especially in areas like London where plenty of family living space is a valuable commodity.