Welcome to National Landlord Day Conference and exhibition 6 November 2012

1. Welcome toNational Landlord DayConference and exhibition6 November 2012 Sponsors:

2. Welcome and introductionsStephen PeasnallChairman, Scottish Association of Landlords &Louise BatchelorConference guest chair National Landlord Day 2012

3. National Landlord DayConference and exhibition6 November 2012 Sponsors:

4. Keynote speechMargaret Burgess MSPMinister for Housing and Welfare National Landlord Day 2012

5. National Landlord DayConference and exhibition6 November 2012 Sponsors:

6. Tenancy Deposit SchemeRebecca Johnston & Alison MacDougallSafeDeposits Scotland Sponsors:

7. Tenancy Deposit ProtectionRebecca JohnstonOperations ManagerSafeDeposits Scotland

8. 5working days

9. A not-for profit partnership of landlord, agent and tenant organisations, based in Scotland

10. From this…

11. To this…

12. Fair wear and tearAlison MacDougallDepute Head of AdjudicationSafeDeposits Scotland

13. An adjudicator’s experience of fair wear and tear…

14. Definitions • ‘reasonable use of the premises by the tenant and the ordinary operation of natural forces’ • the level of change expected by everyday use of a property throughout the length of the tenancy

15. Factors to consider Tenant’s obligation is generally to return the property in the same/similar condition at the end of a tenancy ‘fair wear and tear excepted’ Interpretation of reasonable use is not fixed • Length of tenancy • Type and number of occupants • Location • Quality

16. Fair wear and tear and betterment ‘A landlord is not entitled to charge his tenants the full cost for having any part of his property, or any fixture and fitting,….put back to the condition it was at the start of the tenancy’ Not a ‘new for old’ insurance policy The most appropriate remedy

17. What the adjudicator looks for…. • Evidence of condition (age and quality) at the start of the tenancy; • Evidence of condition at the end of the tenancy; • Length of tenancy; • Number and type of occupants; • Appropriate remedy – replacement, cleaning, compensation

18. Examples • Scuffs on walls; • Drawing on walls; • Spots on carpets; • Shading and fraying to carpets; • Wooden floors and stiletto heels; • Fading to curtains and upholstery; • Unclean shower; • Cracks in plaster; • Burns or marks on worktops

19. To help you….

20. National Landlord DayConference and exhibition6 November 2012 Sponsors:

21. Universal CreditGraham MowatDepartment forWork and Pensions Sponsors:

22. Universal Credit - Budgeting SupportScottish Association of Landlords Graham Mowat, UC Programme, DWP

23. Welfare Reform • Universal Credit is part of a broader Welfare Reform programme • I will not be covering other changes today but they are also important and many of them impact before UC e.g.: • The Work Programme • Sector size criteria • Localised Council Tax • Housing Benefit Cap • Main Benefit Cap • Social Fund moving to Local Authority administration

24. Preparing for Universal Credit What is Universal Credit? The Universal Credit service Piloting, testing, pathfinder Universal Credit implementation Supporting claimants

25. What is Universal Credit? that tackles welfare dependency, poverty and worklessness by making work pay A policy that replaces a complex system of working-age benefits and credits with the Universal Credit and a single set of rules A benefit that together with our employment support programmes, helps people into work A gateway that will help us deliver an internet-age service whilst continuing face-to-face support for those who need it A platform An ambition transforming lives and society through work

26. Housing costs under Universal Credit • This is primarily about narrowing the gap between depending on benefits and being self-supporting in work: • The Government wants people to manage their own budgets, including paying the rent, in the same way as other households. • The introduction of Universal Credit is an opportunity to encourage more people to take control of their own housing costs. • The Government believes that the benefit system should not treat people in a way that is materially different from the situation that they would experience whilst working. • The greater the difference between the two, the more of a barrier there is to returning to a normal working life.

27. Universal Credit – a 21st century service • Universal Credit will be ‘digital by default’ with most claims made and managed online. • Achieving ‘digital by default’ by: • Designing a compelling and easy to use service • Working across government, private & voluntary sector to get more people online, e.g. with digital champions • Supporting online channel through telephony, high street access • Online service will be supported by a network of face-to-face and telephony support: • A national service offering with targeted local flexibility from October 2013 – but ultimate goal remains a fully integrated Universal Credit service offering

28. Digital by Default as part of channel strategy Claimants of DWP will become increasingly self-sufficient and prepared for the labour market, enabled through delivery of self service on every channel Claimants to be supported towards self-sufficiency over time • Assisted Self Service • - Telephony support for online transactions • High Street access • Support for online Online Self Service Telephony Self Service Access to online Self Service provided by friends/family, High street 3rd Parties or Jobcentres Claimants Self - service Supported Service - Face to Face & Telephony 2013 Time 2017

29. Direct Payments Demonstration Projects Six local authorities & housing associations are now trialling direct payments of Housing Benefit to selected tenants Edinburgh Wakefield Shropshire Oxford Torfaen Southwark

30. Local Authority-led Pilots Key: LA-led pilots Pathfinder preparation projects Direct Payment Demonstration Projects 2013 focus pilots -Twelve pilots will run from autumn 2012 to September 2013 to explore how local expertise can support residents to claim Universal Credit.2013 focus pilots will look at:- encouraging claimants to access online support independently; - improving financial independence and managing money;- delivering efficiencies and reducing fraud & error; and- reducing homelessness.Post 2015 focus pilots – onthe longer term role for local authorities in supporting Universal Credit claimants. North Lanarkshire West Dunbarton Edinburgh Dumfries & Galloway Wakefield Oldham Wigan West Lindsey Rushcliffe Shropshire Melton Birmingham Oxford Torfaen Southwark Caerphilly Newport Lewisham Bath & NES North Dorset

31. Pathfinder Key: Pathfinder LA-led pilots Direct Payment Demonstration Projects Pathfinder will take place from April 2013.It will test new payment system with local authorities, employers and claimants in a live environment – before national roll-out.Will target single, unemployed people, with or without rented housing costs, in specified areas in Tameside, Wigan, Oldham and Warrington local authority areas. North Lanarkshire West Dunbarton Edinburgh Dumfries & Galloway Wakefield Oldham Wigan West Lindsey Warrington Tameside Rushcliffe Shropshire Melton Birmingham Oxford Torfaen Southwark Caerphilly Newport Lewisham Bath & NES North Dorset

32. Implementing Universal Credit Universal Credit will go live in the Pathfinder area in Greater Manchester in April 2013. We are planning to begin the introduction of Universal Credit across Britain from October 2013. It will be introduced in stages – as is right and appropriate for such a large programme. The transition from the current system of benefits and tax credits is expected to be completed by the end of 2017.

33. Claimant Preparation PERSONAL BUDGETING STRATEGY Work Focus Housing Costs Claimants Channels Single payment Financial Monthly Payment

34. Why change the way we pay claimants? • Simplification • Removal of barriers to work • Tackling the poverty premium • Working towards personal financial responsibility

35. Supporting claimants – financial inclusion • Financial Products • working with financial product providers • calling for a range of suppliers to explore feasibility of budgeting accounts • Specific key features to support budgeting • Tailored Support • working with advice sector to ensure claimants are able to access appropriate budgeting support • Exceptions • developing an exceptions framework for those not able to manage Universal Credit, even with support Exploring more accessible financial services and accounts Supporting better budgeting Differentiation to recognise and respond to varying needs

36. Budgeting Account - Service proposition • Our key requirement is to ensure claimants have access to a range of suitable financial products that enable and support them to budget successfully. • Essential features: • Ability to receive money from both UC and wages • Availability to people after they cease to receive UC • Direct debit and standing order facilities • ATM access • Clear transparent charge • No penalty charges (within reasonable parameters) • No overdraft

37. Illustrative & draft Segmentation

38. Matching support to services & channels Illustrative & draft

39. Suppliers 3. Local Support Orgs 2. Agents & Appointees 4. Housing 1. Friends and Family Trusted intermediaries - Carers, POA, etc Third sector organisations such as CAB, CPAG, Gingerbread, MAS Etc Landlords Housing Associations Local RSL services Supported Accom Hostels etc. Family Carers Other Claimants – Word of mouth Etc Libraries Debts Advice Services On line schemes General benefit support services One stop shops Tell us Once 5. Local Authority DWP, HMRC Jobcentres Work Programme UC Services inc Telephony and F2F 10. Govt. GP Local NHS services Health workers Addiction / support schemes Gas Water Electric Etc E/Rs Local Education services Careers advice services Etc PO Banks & Building Societies Credit Unions Etc 9. Utility Companies 6. Health & Social Care 8. Financial Orgs 7. Work & Education

40. Payment Exceptions - Vulnerability & Risk Factors • Housing Costs for Payment Exceptions are built on the existing LHA guidance used by LA Benefits administration team today • The framework, process and guidance has been developed in partnership with the Local Authorities and Housing Associations from the 6 Direct Payment Demonstration Projects and the Support & Exceptions Working Group, our external advisory group • Private landlords are represented on the SEWG by the Scottish Association of Landlords/RLA partnership and the NLA.

41. High Level Process Triggers – External Decide Assess Review Implement Exception Review until moving to BS Decision Making Exception Yes or No? 1 Claimant Apply for PE Joint data gather for assessment Risk Scoring -Above Threshold Score? Y/N yes yes …of most interest to landlords… 2 Claimant Representative No No Budgeting Support 3 Creditor e.g. Landlord or Utility Co. Triggers - Internal Refer for PE 4 Business Knowledge – DWP, HMRC, LAs

42. Financial Support Summary - a differentiated support proposition

43. What this means for private landlords • In many ways you have already made the change via the Local Housing Allowance (LHA) • Housing Costs for Payment Exceptions are built on the existing LHA guidance used by LA Benefits administration team today, based on enhancement agreed as part of the Direct Payment Demonstration Projects • Arrangements as to how Landlords will be able to contact UC are yet to be finally determined – we are clear there will be a requirement for this e.g. in cases where the arrears trigger is reached

44. Next Steps • Scottish Government have recently set up a Scottish equivalent of the SEWG I mentioned previously • This is being administered by the SG’s Welfare Reform Division and supported by DWP • Its inaugural meeting was on the 26th of October • We are arranging for SAL to join this group to make sure you are engaged moving forward

45. Universal Credit - Budgeting SupportScottish Association of Landlords Graham Mowat, UC Programme, DWP

46. National Landlord DayLunch is served in the Stratosphere areaProgramme resumes 13.30hrsPlease visit our exhibitors stands Sponsors:

47. National Landlord DayConference and exhibition6 November 2012 Sponsors:

48. Review of PRS marketDan CooksonCitylets Sponsors:

50. Today: • Brief summary of independent research Citylets commissioned on PRS • Key Findings from our Quarterly Reports • Brief summary of Optilet our Web based research and analysis tool • A review of Citylets growth