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Call for land reform in Scotland to be transparent and workable
Scottish Government proposals for land reform need to be coherent, clear and workable, according to the Law Society of Scotland. Submitting its response to the consultation on the future of land reform in Scotland, the society said that careful consideration should be given to ensure that pre-existing legislation it taken into account. While the Scottish Government has laid out proposals for a potential Land Reform Bill and the setting up of a Land Reform Commission, it is unclear at this stage what the remit or structure of such a Commission would be. ‘A new Scottish Land Reform Commission seems an appropriate way forward for progressing land reform in Scotland,’ said Paul Connolly, convener of the society’s property and land law committee. ‘We would suggest that if this proposal were to move forward, that there should be further engagement with stakeholders. Any such Commission must also ensure that it remains independent from executive influence and represents the interest of all stakeholders, such as agricultural tenants, crofters and charities,’ he added. The consultation also considers improving the transparency and accountability of land ownership in Scotland by limiting those who can own or take a long lease over land to legal entities registered in a European Union Member State. ‘We are concerned about this proposal. Restrictions such as these could be easily by-passed by non-EU companies setting up shell companies in the EU, for example a non-EU company could set up a UK registered company,’ said Connolly. ‘This would not necessarily fulfil the Scottish Government’s policy objectives of achieving greater transparency regarding the real land owner. It could also affect not only commercial land, but residential and agricultural land as well, thus having a potentially serious impact on business, and reducing investment,’ he explained. The consultation also proposes to impose further obligations on charities that own land, such as imposing a duty to consult with the local community before taking a decision on the management, use or transfer of land under their control. Stephen Phillips, convener of the society’s charity law committee, pointed out that there are already a number of regulatory obligations that are imposed on charities. ‘We see no reason why further obligations should be imposed on them,’ he added. ‘Under the proposals, a high street charity shop, for example, may be under an obligation to consult with the local community before it undertakes everyday repairs, such a roof repairs. This just seems wholly unnecessary and cumbersome in practice, and potentially expensive for charities without proportionate benefit to local communities,’ he concluded. Continue reading
Tenant survey reveals the secrets they keep from landlords
The most common secret that tenants in the UK don’t want revealed is making excuses to try and avoid paying the rent, followed by keeping pets without permission, a new survey has found. Some 63% said they have tried to avoid paying rent and 45% have pets without letting the landlord know while 45% have damaged walls by knocking nails into them, according to the report from online letting agent Property Let By Us. The research also reveals that nearly a quarter of tenants confessed that they have rarely, or never cleaned their oven, 18% haven’t mowed the lawn regularly, 11% have dumped rubbish at the front and in the garden and 6% have sublet a room. When it comes to expensive damage to property, 4% admit to burning holes in floor coverings and concealing them with mats. ‘Our research shows that large numbers of tenants have made excuses to avoid paying the rent, which is worrying. The latest industry figures show that tent arrears are on the rise again, up by 7.2% in 2014, an increase of 4,600 tenancies compared to the same quarter in 2013,’ said Jane Morris, the firm’s managing director. She pointed out that one way that landlords can ensure they protect themselves from arrears and potentially bad tenants, is by conducting thorough tenant reference checks. ‘These background checks on tenants are so important. Picking the right tenant can save a long, costly eviction process further down the line,’ said Morris. ‘Landlords need to be thorough in conducting background checks and reference gathering, including bank statements for the past three months, previous landlord references to check the tenant paid rent on time, credit checks, incorporating fraud indicators and employer references. It’s important to also check identity and proof of current address, ideally tax or insurance documents, and talk at length to a prospective tenant,’ she explained. She added that landlords should also make regular checks on their property during the tenancy, so they can spot any breaches. In addition, landlords should also check each rental property thoroughly for signs of common damage, which can often be missed at the end of the tenancy, potentially costing landlords hundreds of pounds. Continue reading
UK starter homes initiative could create infrastructure shortfall
UK Government plans to create 100,000 cut-price homes for first time buyers risks creating a shortfall in local infrastructure, according to the British Property Federation (BPF) has warned. In its response to a government consultation on its ‘Starter Homes’ initiative, the BPF said that exempting developers from providing necessary infrastructure could mean that other sites in the area will find themselves under additional pressure to cope with a resulting shortfall in amenities. While praising the government for its ambitious approach to increasing the supply of housing, the trade body said the overall effect of the proposals may hold back development in surrounding areas. The BPF suggested that there should perhaps be the option for developers to provide some of the necessary infrastructure in exceptional circumstances, over and above the contributions suggested for site-specific development mitigation. The initiative proposes to bring forward 100,000 homes for first time buyers. Developers will be encouraged to see the homes at a discounted rate in return for building on brownfield sites and being exempt from infrastructure requirements. ‘While the Starter Homes initiative is welcome and holds a lot of potential, the detail does need to be worked through more carefully if it is to work in practice,’ said Melanie Leech, chief executive of the British Property Federation. ‘Infrastructure is vital for places to succeed – not only transport infrastructure, but space for people to work and relax, and the right social infrastructure for a healthy society. Many brownfield sites are lacking in amenities, so we would urge government to act carefully to make sure that starter homes do not hamper the wider growth of their surrounding areas,’ she added. Meanwhile, the property industry has today backed Labour’s plans to consider designating large scale housing as national infrastructure. Labour’s draft remit for a new National Infrastructure Commission (NIC) sets out 10 national infrastructure goals. It includes making sure that the enabling infrastructure is in place to support rapid housing development and that housing investment is integrated with investment in transport and utilities. The British Property Federation has consistently lobbied government to include residential into the Nationally Significant Infrastructure Plan (NSIP) regime, repeatedly pointing out that the National Planning Policy Framework (NPPF) advocates mixed-use development, and that sustainable communities need to include a mix of both commercial and residential units. Including a provision for residential in the NSIP regime could help unlock significant amounts of much needed housing development. ‘If we are to deliver housing at scale at the same time as creating commercial hubs that will drive economic growth, we need to encourage the development of well connected, mixed use communities where people can both live and work. Including residential within the NSIP process would be a significant step forward in this respect, and we hope that whoever is in power after the next election takes this forward,’ said Leech. Continue reading
