Section: Private Sector

New Regulations

Source: Office of Public Sector Information

Tenancy Deposit Protection Scheme Delayed

The Government announced that the Tenancy Deposit Protection would not come into force until 6 April 2007. It was originally intended that the scheme be introduced in October 2006.

The revised launch date will enable the Government time to deal with concerns raised during the consultation process by key stakeholders - including tenants, landlords and letting agents - over the release of deposits where there are rent arrears and abandonment of tenancies. It will also give more time to inform stakeholders about tenancy deposit protection.

Citizens Advice and the National Union of Students welcomed the opportunity to have more time to prepare for the change and to inform students in England and Wales about the benefits of the scheme.

The Government will be introducing the Tenancy Deposit Protection alongside other Housing Act 2004 provisions, such as HMO and Selective Licensing, the Housing Health and Safety Rating System and Empty Dwelling Management Orders.

Information Notes

Statutory tenancy deposit schemes will apply to all assured shorthold tenancies, where a deposit is taken, in England and Wales.

There will be two types of scheme:

Each scheme will offer an alternative dispute resolution service.

The Government is currently negotiating with potential suppliers to run a single custodial scheme and one or more insurance-based schemes. It is expected contracts will be awarded in the autumn.

Home Information Packs Update

The Government announced plans for the introduction of Energy Performance Certificates as part of the phased rollout of Home Information Packs (HIPs), to help consumers cut costs and waste when buying a home and help the environment too.

In light of the plans for testing and concerns about the readiness of industry, the Government announced new proposals to phase the introduction of HIPs, prioritising the delivery of energy efficiency information with further testing later this year on the other aspects of HIPs.

This means HIPs will be introduced in June next year with searches and energy performance information, enabling buyers and sellers to get A-G ratings on their homes - similar to fridge ratings - as well as a list of practical measures to cut their fuel bills and carbon emissions at the same time.

The Energy Savings Trust estimates that by following the proposals in the Energy Performance Certificate, the average homeowner will save £300 a year on fuel bills. Government also believes that the information could be used to support the growth of green mortgages and other incentives.

On the basis of detailed consultations with industry and the latest market and testing information, the government has decided to phase the roll out of other aspects of Home Information Packs, introducing the rest of Home Condition Reports on a market-led basis in the first instance, in order to ensure a smooth implementation with clear benefits for consumers.

Minister for Housing and Planning, Yvette Cooper said: "HIPs can deliver great benefits for consumers and the environment. But it is important that they are implemented in a sensible way, based on proper testing. That is why we will begin with the most important element - energy efficiency ratings for homes. This will mean practical information for homeowners on how to cut their fuel bills and carbon emissions. People should be backing HIPs to help everyone respond to the global challenge of climate change."

Housing Monthly Diary

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Issue: September 2006 Reporting on July-August 2006

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