- New regulations aim to improve Rented Sector for landlords and tenants
- European Parliament adopts equal rights for temporary workers
- Sale and rent back sector ‘should be regulated’
- Court ruling provides more patent protection for software developers
- EU wants to simplify rules on mergers and divisions
- Estate agents must now be members of an approved redress scheme
- Public need ‘more protection’ when buying newly built homes, says OFT
- Preparing for the vulnerability of old age to become ‘simpler and cheaper’
- Divorce among over sixties rises but overall level drops
- Courts not ‘biased against fathers’ over child contact arrangements
New regulations aim to improve Rented Sector for landlords and tenants
The Government is considering a wide ranging set of proposals designed to improve the Private Rented Sector for both landlords and tenants.
It could lead to greater protection for vulnerable tenants with landlords having to comply with a “light touch licensing system” and letting agents facing mandatory regulation.
The proposals are put forward in a Review commissioned by the Government and carried out by Julie Rugg, a member of the Centre for Housing Policy at York University. The brief was to look at the problems faced by landlords and tenants in the private sector. It focused on the professionalism of landlords and the quality of properties available.
The Review, which began in January this year, recommends the creation of an independent complaints and redress procedure to protect tenants and prevent long, drawn out disputes. There would also be more help for people on lower incomes. The Review suggests that one way to achieve this would be to provide more support for landlords who are prepared to house vulnerable tenants.
It also recommends tax changes, including changes to stamp duty, to encourage good landlords to expand their portfolio of properties. Local authorities would be required to develop a better understanding of the market and to support good landlords at the same time as tackling those who perform badly.
The Housing Minister Margaret Beckett welcomed the Review’s recommendations and said the Government will now consider them carefully before deciding what steps to take.
Mrs Beckett said: "The private rented sector plays a really important role in the housing market. Many of us have rented a house at some stage of our lives and it's crucial that we have a high quality sector that works well for both landlords and tenants, and encourages mobility.
"Whilst the majority of people are satisfied with their experience of renting, there is still much more to do to protect the most vulnerable tenants from the minority of unscrupulous landlords.
At the same time, this report shows we need to look at how we can raise standards and improve services across the board in the private rented sector."
Any changes introduced as a result of the Review are likely to have implications for both landlords and tenants. We shall keep clients up to date with developments.
European Parliament adopts equal rights for temporary workers
The European Parliament has voted to give temporary workers the same rights as permanent staff.
It’s estimated that eight million workers across Europe will benefit.
The Temporary Agency Workers directive provides for equal rights in terms of basic working and employment conditions including pay, annual leave and maternity entitlements.
These rights apply from the first day of the worker’s employment unless individual governments negotiate alternative arrangements with their trade unions and business organisations.
Last May, the British Government reached agreement with unions and the CBI that temporary workers will be entitled to equal treatment after 12 weeks. At the time, the three parties said the agreement would protect the rights of workers while maintaining flexibility for employers.
They issued a statement saying that the equal treatment to which agency workers will be entitled after 12 weeks “will be defined to mean at least the basic working and employment conditions that would apply to the workers concerned if they had been recruited directly by that undertaking to occupy the same job.”
Although agreement on the 12-week qualifying period was reached in the summer, the Government could not implement it until the directive was adopted by the EU. Now that has happened, the UK Government says it will move to implement the agreement as soon as possible. The directive will then come into effect within three years.
In the meantime, there will be further negotiations between the Government, the unions and the CBI to find mechanisms for resolving disputes regarding the definition of equal treatment and compliance with the new rules.
They will also be looking at anti-avoidance measures with particular reference to such things as repeat contracts for the same worker.
Sale and rent back sector ‘should be regulated’
The sale and rent back sector should be subject to statutory regulation to protect consumers from serious and permanent harm, according to a report by the Office of Fair Trading (OFT).
The report revealed that homeowners were finding themselves in unfamiliar and highly pressurised situations which made them vulnerable to misleading statements from sale and rent back firms.
The sector has grown considerably during the current economic downturn. The OFT estimates that there have been more than 50,000 transactions involving more than 1,000 firms and an unknown number of non-professional landlords.
The OFT study says that some homeowners enter into sale and rent back arrangements when it is not really the best option for them.
Others have been misled about the value of their home and the level of security they would have as tenants. Some people were told they could stay in their homes for several years when in fact the tenancy was only guaranteed for six to 12 months. There were cases where firms had imposed large rent increases or even evicted tenants after a brief tenancy period.
The study also highlights the fact that some people are evicted because they can’t afford to pay the agreed amount of rent. This suggested that the agreement was not sustainable in the first place.
The study concludes by saying the sector should be subject to statutory regulation by the Financial Services Authority. It would be up the FSA to decide how such regulation would work but the OFT believes it should include an obligation on the sale and rent back firms to be more transparent about valuation and sale prices, and the terms of the resulting tenancy.
It also believes that it may be necessary to provide a redress scheme for consumers.
The OFT Chief Executive, John Fingleton, said: “Our research shows that sale and rent back deals have potential to cause serious and permanent harm to often vulnerable homeowners. The unfamiliar and highly pressurised situations that these people find themselves in may leave them particularly vulnerable to misleading statements or valuations from sale and rent back firms looking to make a deal.
“Even those customers for whom sale and rent back might be the best option could be unaware they are currently bearing almost all the risks.
“Recommending statutory regulation is not something we do lightly or often, however in this case we consider it necessary to put a stop to the unacceptable behaviour of some sale and rent back operators and to ensure consumers are better protected.”
EU wants to simplify rules on mergers and divisions
The European Commission wants to introduce new measures to reduce the administrative burden on public limited-liability companies relating to mergers and divisions.
Company law, together with accounting and auditing, are considered priority areas for relaxing regulations and the new measures are intended to help reach the target of reducing red tape by 25% by the end of 2012.
The proposals would reduce the reporting requirements placed on companies in relation to mergers and divisions, particularly in cases where shareholders feel that certain reports are unnecessary, and with simplified mergers and divisions involving parent companies and their subsidiaries.
The measures would remove the need for double reporting in cases where other EU rules may also apply, and would introduce the opportunity for companies to use the internet and email to publish the draft terms of the merger or division and provide shareholders with the required documentation.
The Internal Market and Services Commissioner, Charlie McCreevy, said: “The directives that we want to modify date back about 30 years. If we want to keep administrative burdens for EU companies to a minimum we must make sure that these rules are brought in line with today's technological possibilities and business processes.”
Court ruling provides more patent protection for software developers
Technology companies that develop software programmes should now find it easer to get patent protection following a ruling by the Court of Appeal.
The case involved a company called Symbian which developed a programme enabling computers and devices such as mobile phones and ipods to work faster. The UK Intellectual Property Office refused to grant a patent because it considered that such software did not qualify as being patentable under the Patents Act 1977.
That decision was overturned by the High Court which ruled that the company should be granted a UK patent. The decision has now been upheld by the Court of Appeal.
It’s thought the ruling should bring the UK into line with Europe which has taken a less restrictive view when considering applications about software. Technology firms should now find it easier to safeguard their innovations because the ruling makes it clear that software innovations are patentable.
Estate agents must now be members of an approved redress scheme
Estate agents now have to become members of an approved redress scheme or risk being banned from practising.
The requirement, introduced by the Consumers, Estate Agents and Redress Act 2007, became effective on 1st October. It means buyers and sellers of residential properties now have a free and accessible way of airing their complaints about unsatisfactory estate agency work.
The Office of Fair Trading has approved two schemes - the Ombudsman for Estate Agents Company Ltd and the Surveyors Ombudsman Service. If they uphold a complaint against an agent they will be able to award compensation.
Trading Standards Officers can impose a penalty charge notice on agents who fail to join an approved scheme and they could be banned from practising by the Office of Fair Trading.
Mike Haley, OFT Director of Consumer Protection, said: “It is important that agents are aware of their obligations and the possible consequences if they fail to comply. Agents who fall short could be fined and risk a ban from estate agency work in future.”
Public need ‘more protection’ when buying newly built homes, says OFT
Consumers can face unfair terms and conditions when buying newly built homes and need more protection, according to a report by the Office of Fair Trading (OFT).
The report found that the homebuilding sector is broadly competitive but warned that buyers can experience problems with “the sales process including reservation fees, the clarity of information provided to homebuyers and potentially unfair terms and conditions in contracts”.
There could also be issues relating to faults in new homes and delays to moving in dates.
Following the study by the OFT, representatives of the homebuilding industry have agreed to form a body to draw up a code of conduct and provide a redress scheme which it hopes to have in place by 2010. If the industry fails to deliver on its promise then the OFT will look to create a statutory redress system.
The OFT Chief Executive John Fingleton, said: “We have found the homebuilding market to be generally competitive, with no evidence that individual homebuilders have the ability to restrict supply in order to inflate prices or to hoard land for anti-competitive reasons.
“However, we have concluded that homebuyers need more protection when buying a new home and we have worked hard with the industry to help it develop a new approach to self-regulation that will improve consumer protection.”
The findings of the OFT show that the public can be at risk when they enter into contracts with builders for the delivery of homes that may cost hundreds of thousands of pounds. The move towards drawing up a code of conduct and redress scheme is welcome but doesn’t offer any protection at the moment.
It is still important that homebuyers should seek legal advice before signing contracts to ensure everything is fair and that the project will be managed according to their wishes.
Preparing for the vulnerability of old age to become ‘simpler and cheaper’
People who want to protect themselves in their old age by registering a Lasting Power of Attorney (LPA) while they are still fit and healthy may soon find the process simpler and cheaper.
LPAs were introduced as part of the Mental Capacity Act 2005 which came into force in October last year. They replaced Enduring Powers of Attorney which were less broad in scope.
There are two kinds of LPA. The property and finance LPA is similar to the old system in that it allows you to appoint someone to look after your financial affairs if you become incapable of doing so yourself. The personal welfare LPA introduced new possibilities because it lets you grant an attorney authority over your health and personal welfare.
The broader scope of the new LPAs has made them very popular, resulting in a threefold increase in the number of registrations over the last 12 months. This has led to delays in registration for many people, prompting widespread criticism of the Office of the Public Guardian (OPG) which administers the system.
Now the OPG hopes to make significant improvements by carrying out a review of how the Mental Capacity Act is working. The first stage of the review will look at LPAs and a consultation process is now underway on a number of proposals.
These include:
- reducing the cost of registering an LPA from £150 to £120
- making the form and guidance notes clearer and more logical, with the guidance notes being incorporated within the form
- introducing more supervision of court appointed deputies to provide more support and scrutiny when needed
The Public Guardian, Martin John, said: “We have listened to our customers and brought forward these proposals to make real improvements. But this is just the first phase of our wider work to review how effective the implementation of the Act has been and what else we can do to make a real difference to our users.”
The consultation ends on 15th January 2009 and some of the changes will be introduced next April.
We shall keep clients up to date with developments and are happy to offer advice on Lasting Powers of Attorney. Please contact us if you would like more information.
Divorce among over sixties rises but overall level drops
The overall number of divorces in the UK has fallen to its lowest level in 26 years - but by contrast the number of marriage break-ups among the over sixties has reached a record high, according to figures released by the Office for National Statistics.
There were a total of 128,534 divorces in 2007- a 3% drop compared with the 2006 total of 132,562. This is the lowest figure since 1976 when there were126,694 divorces.
For the sixth year running couples in their late 20s had the highest divorce rates suggesting that if people get through the first few years of marriage then they are more likely to stay together over the coming years.
However, that then seems to change once couples reach their sixties. This was the only age group to see a rise in the figures. There were 13,678 divorces among the over sixties compared with 12,636 in 2006.
It is thought that empty nest syndrome may have something to do with the rising figures with couples finding they have nothing to keep them together once their children have left home and their careers are coming to a close.
One in five people divorcing in 2007 had a previous marriage which also ended in divorce. That is double the level in 1980 when only one in ten had been through a previous divorce.
Divorce is, of course, a traumatic experience for people whatever their age group. As well as the emotional upheaval there are numerous practical matters to consider such as finances and, for many couples, what arrangements will be made for the children.
In most cases, the most valuable asset will be the family home. Sometimes it may have to be sold so the proceeds can be divided; sometimes it’s possible for one party to remain there in return for concessions in other parts of the settlement.
There could be an issue if the family home is in only one partner’s name. If this is the case then your solicitor may need to register a caution against the property so that your partner can’t sell until the divorce proceedings are settled.
Joint bank accounts and credit cards will have to be cancelled and replaced by individual accounts. Wills should be revised as each party makes a clean break and reassesses how they want to provide for their loved ones in the future.
Some people try to get more than their fair share by squirreling money away in secret bank accounts. The other partner can try to counter this financial infidelity by keeping copies of bank statements and similar documents whenever possible. If they suspect that their partner is concealing assets they should inform their solicitor so those assets can be frozen and included in the divorce settlement.
Most couples try to reach amicable arrangements over the children but where this is not possible then mediation may help. A trained mediator can act as an honest broker enabling a couple to overcome stumbling blocks. If a couple still can’t agree then they may need to go to court.
It’s essential that both partners seek advice from a solicitor right at the outset. We can help clear away a lot of the confusion and anxiety so people can reach a fair settlement as quickly as possible and get on with the rest of their lives.
Courts not ‘biased against fathers’ over child contact arrangements
Contrary to many people’s perceptions, family courts are not biased against fathers and most men do manage to secure contact arrangements for their children.
That’s the conclusion of research specially commissioned by the Ministry of Justice.
The researchers found that nine out of ten contact arrangements are agreed between the parents themselves without any need to go to court. That leaves 10% of parents, usually but not always fathers, seeking a court order where it has not been possible to reach a voluntary agreement.
In these cases, the study found that there was no evidence to suggest that the courts were biased against the non-resident parent. Instead, it was clear that courts start from the principle that there should always be contact unless there are over-riding reasons to the contrary.
The researchers found that the courts were successful in most cases in securing contact for the non-resident parent.
Justice Minister Bridget Prentice said: “The well-being of children is at the heart of the family justice system. Courts should be the last resort for people involved in contact disputes, as mediation can be quicker and less stressful.
“Where contact cases do come to court, the child's welfare is always the paramount consideration. Clearly in some circumstances, such as where there is poor parenting or even abuse, contact can be very damaging.
“The government firmly believes that children should not be denied meaningful contact with their other parent, where this is safe.”
About three million children in the UK are affected by their parents’ divorce or separation. Nine out of ten of them end up living mainly with one parent, usually the mother. It is fathers, who are generally the non-resident parent, who make the majority of contact applications.
Parent who cannot reach a voluntary solution can apply for a contact order under the Children Act 1989. The Act adheres to the welfare principle, which means that it considers the child’s needs to be the paramount consideration.
The study was carried out by the Oxford University Centre for Family Law and Policy. Its brief was to look at the “perception that non-resident parents who go to court over contact arrangements following divorce or separation are awarded little or no contact for insubstantial reasons”.
Although no bias was found, the Government says it recognises the need to do more to help parents who cannot agree and who feel they have to go to court to resolve their contact dispute. The Children and Adoption Act 2006, now coming into effect, provides courts with new powers to enable parents to overcome obstacles to maintaining contact with their children. It also gives courts further flexible powers to enforce contact orders.
The new powers are welcome but as the Justice Minister Ms Prentice stresses, mediation is often quicker and less stressful than court proceedings. A solicitor who is also a trained mediator can help couples reach voluntary arrangements which are better for all concerned.
Please contact us if you would like more information
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