|
Stories included:
- Review of private rented sector could lead to more changes
- Ministers ‘lost their nerve over HIPs’
- Marketing campaign heralds clampdown on hiring illegal workers
- Companies in administration to be exempted from empty property rates
- Director disqualified for failing to report frauds
- Financial limits for employment tribunal awards are raised
- Battle of wills divides family after grandmother’s death
Review of private rented sector could lead to more changes
The Government has commissioned a review of the private rented sector which now comprises of 2.5million homes and half a million landlords.
The review is in response to a report last year by the Citizens Advice Bureau which found that one in five tenants were dissatisfied with the quality of repairs carried out by their landlords but feared retaliatory action if they complained to the authorities.
At the same time, landlords reported problems with issues such as anti-social behaviour and tenants not paying rent.
The review will focus on how the rise in buy to let accommodation has impacted on the private rented sector and recommend ways to improve the system for both landlords and tenants. The move shows the importance the Government places on the sector which has already seen the introduction of the Tenancy Deposit Scheme and various new regulations affecting homes of multiple occupation.
The Housing and Planning Minister, Yvette Cooper, said: “Too few people are aware of their rights and responsibilities, either as tenants or landlords. We have seen a big increase in the private rented sector and particularly in buy to let. It is important we review the impact of this.”
The review will be carried out by Julie Rugg and David Rhodes from the Centre for Housing Policy at York University. Their report is expected to be published at the end of October.
Ministers ‘lost their nerve over HIPs’
The Government delayed the introduction of Home Information Packs (HIPs) last year because ministers lost their nerve, according to a report by an influential committee of MPs.
HIPs are now compulsory when selling homes of all sizes in England and Wales. The seller has to provide potential buyers with a pack containing certain information such as the results of local searches and an official assessment of the property’s energy efficiency.
They were due to be introduced for homes of all sizes last June but then had to be phased in gradually over several months because of administrative problems such as the lack of inspectors to carry out energy assessments.
The Department for Communities and Local Government was responsible for introducing the system.
Now the committee of MPs which monitors the department’s performance has produced a report criticising the delays and the lack of proper organisation.
The report says: “We can only conclude that decisions to delay the introduction of Home Information Packs and then to phase them in for homes of different sizes across a period of months were taken on political rather than economic grounds, owing more to a failure of nerve in the face of vocal opposition from the press and others than to the general conditions prevailing in the housing market itself.”
HIPs have been compulsory when selling homes of all sizes since 13th December last year. Please contact us if you would like more information about any aspect of buying or selling a property.
Marketing campaign heralds clampdown on hiring illegal workers
The Government has launched a marketing campaign to alert firms to the tough new penalties for employing illegal workers.
The measures, which come into force on 29th February, mean employers could face up to two years in prison or be fined up to £10,000 for each illegal worker they negligently hire.
Employers who break the law could also be banned from recruiting from outside the European Union. An intensive radio and newspaper campaign is underway to alert employers to the changes. Immigration Minister Liam Byrne said: "The message is clear for employers - we will not tolerate illegal working.
"This highly visible marketing campaign will ensure employers have no excuse for breaking the rules."
The law will be enforced by the Border and Immigration Agency.
The tougher penalties are a new development but the new measures do not significantly change an employer’s responsibilities as firms are already obliged to check a prospective employee’s right to work in the UK.
The present law already provides employers with a statutory defence if they check and record certain specified documents belonging to potential employees.
Under the new measures, employers will similarly be able to obtain a statutory excuse from payment of a civil penalty by checking their prospective employees' documents.
However, if employers wish to retain the statutory excuse they will be required to undertake repeat document checks at least once a year for employees who have limited leave to enter or remain in the United Kingdom.
As is currently the case, the excuse will not apply where an employer knows that they are employing an illegal migrant worker.
Companies in administration to be exempted from empty property rates
The Government has announced that companies in administration are to get a permanent exemption from empty property rates.
The Local Government Minister John Healey said the move will bring such companies into line with those in liquidation and with individuals subject to bankruptcy proceedings who already enjoy exemptions. "We are committed to the promotion of a rescue culture which provides opportunities for insolvent companies that have viable underlying businesses to be rescued wherever possible. A permanent exemption will remove any potential for decisions about whether to enter administration to be distorted by differences in rates liability."
Mr Healey says the Government has decided against bringing in new rules to tackle deliberate dereliction by unscrupulous owners to avoid empty property rates although he promised the situation would be monitored carefully.
The department for Communities and Local Government is now drafting the relevant legislation to give effect to the reforms on empty property relief, including introducing the new six month exemption from empty property rates for vacant industrial and warehouse properties which was announced in the Budget last year.
The Government wants the reforms to come into effect on 1st April.
Director disqualified for failing to report frauds
A director who neglected to report two incidents of fraud within his firm has lost his appeal against being disqualified from being a director of a new company.
The High Court was told that within a week of returning from holiday, the director discovered that two frauds had been perpetrated against the bank while he had been away. He didn’t inform the bank of either incident.
The company later built up substantial debts and an administrative receiver was appointed. In the meantime, the director had acquired another company. He became sole director of this new company but then found that disqualification proceedings were being brought against him for failing to report the frauds.
The day before the trial, he gave an undertaking that he had discovered the frauds within a week of returning from holiday and that he would not become a director of another company for 10 years without permission from the court. He then applied for court permission but swore in an affidavit that he had not discovered the frauds until after the receiver had been appointed and when it was too late to inform the bank.
The court refused his application. It said the way he retracted his admission that he knew about the frauds within a week of returning from holiday showed that he did not appreciate the seriousness of his conduct and so there would be a risk to the public if he were allowed to continue as a director. He appealed but the ruling was upheld by the High Court.
The case illustrates the serious consequences of failing to comply with company law. Anyone in doubt about the correct procedures to follow should seek legal advice.
Financial limits for employment tribunal awards are raised
The limits on awards that can be made by tribunals in employment rights cases rose on 1st February in line with the annual index linked formula.
The new limits affect statutory redundancy payments, compensatory awards for unfair dismissal, the payment guarantee when employees are not provided with work and the minimum award for unfair dismissal in health and safety cases and certain other cases.
The limit on the amount of compensation that can be awarded for unfair dismissal rises from £60,600 to £63,000. The maximum nominal “week’s pay” used when calculating awards for redundancy payments or compensation for unfair dismissal rises from £310 to £330.
The limits in other categories rise by similar proportionate amounts.
Battle of wills divides family after grandmother’s death
The Court of Appeal has had to decide which of two conflicting wills drawn up by a grandmother was the most recent and therefore the one that should decide how her estate is divided between members of her family.
When the woman died her will showed that she had left her estate to her son. Probate was granted but then the woman’s grandson discovered another will which left the estate to him and another relative.
The grandson applied for a declaration that the second will was his grandmother’s last true will and that the grant of probate of the earlier will should be revoked. The case proved complicated and the judge considered that there was some inconsistencies in the evidence.
Nevertheless, the court decided that it was reasonable to conclude that the grandmother knew and approved of the second will and it should therefore be accepted as representing her true wishes. That ruling was then upheld by the Court of Appeal.
It is not uncommon for disagreements to emerge within families because a close relative did not make a will or failed to update an existing will to reflect a change of opinion as to how their estate should be divided.
This case, like many others, illustrates the need for people to ensure their wills are drawn up properly and kept up to date. It is also important to let your family know where your will is and the name of the solicitor that helped you to draw it up.
|
Back to legal articles 