The recent disturbances across London and other cities in England have shocked us all over the past few days. Very significant damage has been caused to property, both the fabric of buildings as well as contents of shops, warehouses and private dwellings. Whilst things seem to have settled down a little in London overnight (Tuesday 9th August), we can only guess if this situation will continue or if further disturbances will occur in the next days/weeks.

In the circumstances, we urge you to consider the information below, both for those of you that may have suffered damage already or those that have property which continues to be at risk.

Policy coverage for such incidents may fall under any of a number of headings e.g. Fire, Riot, Civil Commotion, Malicious Damage and Theft. These perils will generally be included in most ‘comprehensive’ policies although cover for unoccupied properties may be restricted to the perils of Fire, Lightning, Aircraft and Explosion.

Your policy may contain a condition that you notify the police within a specified timescale e.g. 7 days of the occurrence (specifically for riot damage and sometimes for malicious damage). If your property is damaged as a direct consequence of these disturbances you should notify the police and keep a written copy of that notification and also obtain an incident number from them as evidence for the insurer/appointed loss adjuster.

You should also notify your insurer/appointed loss adjuster of the loss as soon as practicable and certainly within the notification period provisions stated in your policy. You will also need to provide them with full details of your loss. Your insurer will handle the claim in the usual way and seek to recover any insured losses from the relevant police authority in the event that a riot is declared.

Under the Riot (Damages) Act 1886 (RDA), the local police authority has a legal responsibility to reimburse persons who sustain damage but any claim for compensation must be made in writing and received by the local policy authority wihin 14 days of the alleged incident. The law defines a riot as “12 or more persons must be present together and use or threaten unlawful violence for a common purpose and the conduct of them (taken together) is such as would cause a person of reasonable firmness present at the scene to fear for his/her personal safety”.

Compensation under the RDA does not apply to personal injury, damage to property outside of buildings including vehicles left on public highways, goods left for repair and consequential losses.

To date, we do not believe that a riot has been declared in any of the disturbance areas in London or the other affected parts of England and the police will be reluctant to take this step as the financial consequences will then fall on them. Claims are more likely therefore to be dealt with under the headings of Fire, Malicious Damage and Theft by insurers, with little opportunity to recover their outlay.

If you wish to discuss any specific aspects relating to insurance coverage for loss or damage resulting from these disturbances or have any other queries, please contact your usual Gallagher Heath contact.

Gallagher Heath – Real Estate 10th August 2011

Gallagher Heath is a trading name of Heath Lambert Limited, which is authorised and regulated by the Financial Services Authority. Registered Office: 9 Alie Street, London E1 8DE. Registered No.1199129 England and Wales. www.gallagherheath.com

A television licence is required to watch any television programme “as they are being shown”. Therefore a licence is not required if a computer is being used solely for watching pre-recorded television programmes such as programmes on i-player, youtube etc.

If a landlord provides a TV in let property, is the landlord liable?

[amember_protect levels='keywee' user_action='error' user_error='amember_error_default_user' visitor_action='error' visitor_error='amember_error_default_guest']No, it is the person who uses or intends to use the apparatus to watch a programme as it is being shown that requires a licence. As the landlord is not intending to use the apparatus to watch programmes, the landlord is not liable. However, it should be noted that it is essential to have a term in the tenancy agreement that the tenant will obtain and pay for a TV licence because it is an offence under section 363 Communications Act 2003 to “install” a TV that is to be used without a licence. If the tenant argued they thought the landlord was supplying a licence without proof to the contrary, an offence could be committed under this section.

On a joint tenancy is one licence need for the whole premises or one per person?

Where the whole property is let as one on a joint tenancy, normally only one licence for the whole property will be required.

If rooms are let separately, does each tenant require their own licence?

Yes.

If a property is let as self contained flats, does each flat require a licence?

Yes, each flat is treated as a separate dwelling and so each tenant will require a licence.

Are students exempt from requiring a TV licence?

No, just like everyone else, students must be covered by a TV Licence to watch or record television programmes as they’re being shown on TV. This applies whether they live in halls of residence or a private shared house.

If I have a lodger, does the lodger require a licence or can the TV be used on my licence?

If the lodger is a family member, partner au-pair or similar, a further licence is not required. However, if the lodger is unrelated they will require one for their room.

Where can I obtain further information?

Further information is available from the following links:

http://www.tvlicensing.co.uk/

http://www.adviceguide.org.uk/index/your_world/communications/television_licences.htm

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If deposit has been taken, register the deposit with the chosen scheme (see this series)

Write to [amember_protect levels='keywee' user_action='error' user_error='amember_error_default_user' visitor_action='error' visitor_error='amember_error_default_guest']local authority council tax department, electricity, gas and water authority with names of tenants,  commencement date and readings as appropriate.

In particular, although not law at the time of writing this post, soon it will be a legal requirement to notify the water authority. A failure to do so will result in the landlord being jointly liable to pay the tenants water charges. See this article for details.

If someone other than the tenant paid the deposit on their behalf and the custodial scheme is used, landlord must issue a deposit confirmation certificate to the person (known as a relevant person) [F033].

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What’s changing?

The Flood and Water Management Act 2010 adds a new section 144C to the Water Industry Act 1991 [s.45 Flood and Water Management Act 2010]. Currently, the “occupier” is the liable person for water bills (Guild members see later for full details).

s.144C will place a requirement on the owner of premises where those premises are occupied by another person (but not by the owner) to arrange for the undertaker to be given information about the occupiers [s.144C(2)].

If the owner fails to provide the information then, the occupiers water charges will become shared jointly and severally with the owner [s.144C(3)].

When does the change take effect?

As yet, this has not been announced. Although parts of the Flood and Water Management Act 2010 came into force on 8 April 2010, section 45 (which is the part we are interested in) comes into force in England, in accordance with provision made by order of the Secretary of State, and in Wales, in accordance with provision made by order of the Welsh Ministers [s.49(3)(d) & (e)].

We will update this article as soon as we become aware.

What is the information required to be given?

Again, unfortunately this has not yet been announced. It is likely to be names of occupiers, address of premises and commencement of tenancy. The Act currently allows The Minister to make regulations about the information to be given [s.144C(4)(a)].

We will update this article as soon as we become aware.

How long will I have to provide the information?

Again, this has not been announced. The Minister may make regulations about timing and procedure [s.144C(4)(b)].

We will update this article as soon as we become aware.

If I provide the information about the occupiers, could I be liable to pay an unpaid water bill at the end of the tenancy?

No. An owner will only become jointly liable for any unpaid water charges if the owner has failed to provide information about the occupiers within a certain time of the tenants occupying the premises.

Why type of property do the changes apply?

The changes apply to “residential premises”.

“Residential premises” means premises that are—

(a) occupied by one or more persons as a home (but not necessarily as their only or main home), and

(b) a “dwelling”, a “house in multiple occupation” or “accommodation for the elderly” within the meaning of paragraphs 1 to 3 of Schedule 4A.

[s.144C(6)]

Can a letting agent be jointly and severally liable for the tenants water charges?

The owner is always liable (and not the agent or trustee) [s.144C(7)], however, it would most likely be the case that if the agent failed to notify the water undertaker of the relevant information, thus causing the owner to be liable, the owner would probably have recourse back onto the agent. This though would depend on the individual circumstances.

Agents would be well advised to amend their contracts to make it absolutely clear who is to provide the relevant information to the water undertaker.

What if I have tenants in occupation when section 45 comes into force?

This has not yet been announced. The changes are not retrospective but a landlord would be well advised to notify the water authority promptly when section 45 comes into force to avoid any problems.

It seems transitional provisions are going to be detailed and in particular s.45(2) suggests that for current occupiers at the time of section 45 coming into force, the water undertaker may have to first serve notice on the owner asking for the information before the owner will become liable.

Transitional provision of an order commencing this section may, in particular, provide for application of the duty in new section 144C(2) to depend on service of a notice by an undertaker.

We will update this article as soon as we become aware.

What if I have squatters, will I be liable?

The Act does not place any requirement on rent being payable. Therefore, rather bizarrely, if an owner fails to provide information on the occupiers (including squatters), then according to the Act, the owner will become jointly and severally liable for the water charges!

What is the current position (before section 45 comes into force)?

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Section 144 Water Industry Act 1991 governs who is liable. When section 45 Flood and Water Management Act 2010 comes into force, s.144 Water Industry Act 1991 remains basically unchanged. The change will simply make the owner “jointly” liable should the owner fail to provide information about the occupiers.

Currently, the occupier is liable to pay water charges, unless there is an agreement which contains a contrary provision.

144. Liability of occupiers etc. for charges.

(1) Subject to the following provisions of this section and except in so far as provision to the contrary is made by any agreement to which the undertaker is a party—

(a) supplies of water provided by a water undertaker shall be treated for the purposes of this Chapter as services provided to the occupiers for the time being of any premises supplied; and

(b) sewerage services provided by a sewerage undertaker shall be treated for the purposes of this Chapter as provided to the occupiers for the time being of any premises which-

(i) are drained by a sewer or drain connecting, either directly or through an intermediate sewer or drain, with such a public sewer of the undertaker as is provided for foul water or surface water or both; or

(ii) are premises the occupiers of which have, in respect of the premises, the benefit of facilities which drain to a sewer or drain so connecting.

(2) Subject to subsection (3) below, charges which, under the preceding provisions of this Chapter, are fixed in relation to any premises by reference to volume may be imposed so that a person is made liable in relation to those premises to pay charges for services provided by a relevant undertaker after that person has ceased to be the occupier of the premises.

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Because the market is open to occupiers to choose who they like to supply gas and electric, there are two national numbers to assist in locating the suppliers.

Step 1 – Find out the Meter Point Reference Number and the name of the supplier

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Gas

Call 0870 6081524. This is an automated service where you speak essentially to a computer (which actually works very well). You will be asked to provide the postcode, then the first line of the address. Once the address is confirmed, you will be provided with the meter point reference number, the name of the supplier and the telephone number of the supplier. You should have a pen ready to write all these down.

Electricity

Call 0845 6013268
This time you will speak to a human and just as with the gas you provide the full address including postcode. You will need to ask for the meter point reference number, name of supplier and telephone number of the supplier, all of which will be provided.

Step 2 – Contact each supplier

Now simply contact the supplier that was provided to you in step 1. Explain the date you are possibly moving in and provide your details. For speed, you may provide the meter point reference number. They will then arrange for the supply to be put in your name and if necessary arrange a meeting at the property to reconnect the supply. They may tell you to call again when you move in with the meter reading.

Important note: Many properties have card / token meters installed by previous tenants. Because of the rising costs of gas and electricity, you would be wise to get rid of these meters. It has been suggested that pre payment meters cost on average 30 – 40% more than regular billed meters. Once you have signed on, you can change the meter and / or the supplier to your choice but this can take up to 28 days. Also, with pre payment meters, boilers have a much higher chance of breaking down because of the continued interruption of the gas supply.[/amember_protect]

The first step is to establish what the terms of the tenancy are. If the tenancy provides that electricity and / or gas is included and paid by the landlord, the landlord is contractually bound by the tenancy.

Where the contract requires the tenant to pay the bills, then clearly it is their responsibility.

After a tenant has vacated, can a utility company seek payment from landlord?

Assuming of course the tenancy provides that the tenant is responsible, the utility company [amember_protect levels='keywee' user_action='error' user_error='amember_error_default_user' visitor_action='error' visitor_error='amember_error_default_guest']cannot seek payment from the landlord whilst the tenant is in “occupation”. Nor can they seek payment once the tenant has vacated for any amount that became due whilst the tenant was in occupation.

If a tenant vacates, a landlord should promptly take a meter reading because the landlord will be liable from this point onwards. This is the case even if the tenant vacates without giving notice because there is a deemed contract with the “occupier” (or the owner where the property is unoccupied).

What if the tenant has no contract with an electricity company can the landlord be liable?

Paragraph 3(1) of Schedule 6 to the Electricity Act 1989 makes a contract between the electricity company and the “occupier”

Deemed contracts in certain cases

3.—  (1) Where an electricity supplier supplies electricity to any premises otherwise than in pursuance of a contract, the supplier shall be deemed to have contracted with the occupier (or the owner if the premises are unoccupied) for the supply of electricity as from the time (“the relevant time”) when he began so to supply electricity.

Therefore, from the moment the property is occupied,  there is a deemed contract between the occupier and the supplier.

There are similar provisions for gas.

Will a landlord be liable on an unoccupied property even though no contract has been signed between landlord and supplier?

Yes.

For the same reasons as above, there is a deemed contract between the “owner” if the premises are unoccupied. However, because of this phrase, the deemed contract can only occur from the moment the property becomes unoccupied. Therefore, they can only bill under that contract for energy used from that time.

How can a landlord cancel the contract where a property is unoccupied?

Para (3)(7) & (8) Schedule 6  provides:

(7) Each electricity supplier shall make (and may from time to time revise), a scheme for determining the terms and conditions which are to be incorporated in the contracts which, by virtue of sub-paragraph (1) or (2), are to be deemed to have been made.

(8)  The terms and conditions so determined may include terms and conditions for enabling the electricity supplier to determine, in any case where the meter is not read immediately before the relevant time, the quantity of electricity which is to be treated as supplied by the supplier to the premises, or taken by the owner or occupier of the premises, during the period beginning with the relevant time and ending with–
(a)  the time when the meter is first read after the relevant time; or
(b)   the time when the supplier ceases to supply electricity to the premises, or the owner or occupier ceases to take a supply of electricity,

whichever is the earlier.

A landlord therefore should obtain the appropriate terms from the supplier to establish what the terms of the deemed contract are and the cancellation rights.

As an example, EDF energy provide such a document on their website.

The rights of cancellation are as follows:

4.       Your Rights To End This Contract And Our Rights To Stop Your Supply

1.       You can end these arrangements to have energy supplied at your premises by giving us notice in any of the following ways (note you must give notice in relation to each service you have requested):

•         By telling us in writing or by telephone on 0800 096 9000* within 12 days from the date you entered this contract (which will then end immediately).

•         By telling us in writing within 14 days from being told of any proposed change to your terms (including price) which is to your significant disadvantage (see clause 3.2 above). Our contract for the services affected by such change will then end 28 days after you have told us, provided that an alternative supplier has registered with the local metering point administration service in relation to the supply of services to your premises.

•         By telling us in writing, or by telephone, at least two working days before you want this contract to end, if you are permanently leaving the premises being supplied.

•         By telling us in writing, at any other time, at least 28 days before you want this contract to end, provided you have agreed a contract with an alternative supplier to commence from the date you want this contract to end. If you are being provided with more than one service by us, ending one service will not automatically end the contract for the other service(s).

Note above states if you tell them within 12 days, the contract will immediately end. Obviously if you cancel, they may well disconnect the supply.

Although all the above information relates to electricity, gas is pretty much identical in principle.

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