THIS TRANSCRIPT IS ISSUED ON THE UNDERSTANDING THAT IT IS TAKEN FROM A LIVE PROGRAMME AS IT WAS BROADCAST. THE NATURE OF LIVE BROADCASTING MEANS THAT NEITHER THE BBC NOR THE PARTICIPANTS IN THE PROGRAMME CAN GUARANTEE THE ACCURACY OF THE INFORMATION PRINTED HERE.

MONEY BOX LIVE

Presenter: Paul Lewis

Guests: Ray Boulger, Rosy Border, Caroline Cope

TRANSMISSION 10th DEC 2001 1500 - 1530 RADIO 4

PLEASE NOTE THAT THE HOME ENERGY EFFICIENCY SCHEME AS DISCUSSED IN THE PROGRAMME IS NOW KNOWN AS WARM FRONT AND IS MANAGED PREDOMINANTLY BY THE EAGA PARTNERSHIP.

For further details and information on eligibility for grants in your locality, please call the Warm Front telephone number: 0800 952 0600 or visit:  EAGA Partnership

ANNOUNCER : Now it's two minutes past three - time for MONEY BOX LIVE with Paul Lewis:

LEWIS: Hello, and today we answer your questions on making money out of property. More and more of us are doing it - this year 50,000 people took the first step of buying a house or flat specifically to rent it out. Buying to let has never been stronger - 3 things have led to that: lenders have brought down the cost of mortgages on property to be let, many people are concerned about trusting their savings to the stock market - they think investing in property is in the old phrase: 'as safe as houses', and third, on the other side, a growing number of relatively well off people want to rent a home rather than buy one perhaps in the belief that property prices will collapse and they want someone else to take the hit.

But is buying to let with a mortgage a good idea? The Financial Services Authority has just issued a warning about this 10 billion pound market. It says people may be over extending themselves not appreciating that as with other investment there are risks and tax implications to consider. But it's not just buy to let we're dealing with today - maybe you want to start small, renting out a room in your own home. You can do that and get tax relief on �4250 or you may have a second home you already own and you want to let it out for some weeks when you're not there yourself. And on the other side you maybe a tenant and have problems with your landlord or just want to know what your rights are.

Whatever your question you can call MONEY BOX LIVE now - 08700 100 444 and with me today to answer your questions are Rosy Border who's the author of books on letting your property and taking in a lodger and indeed a landlady herself, Ray Boulger from mortgage brokers Charcol - a veritable encyclopaedia on mortgages and the housing market, and Caroline Cope a council member of the Association of Residential Letting Agents, and herself an active agent with Simmons and Sons. And the first questions is from Ian who's in Bexhill. Ian, your question?

IAN: Yes hello. What I would like to do is rent my place out, but would I have to pay tax?

LEWIS: What sort of tax are you worried about Ian?

IAN: Well you know because it might be classed as income would I be eligible to pay any of it in - like part of a wage or anything?

LEWIS: So you're moving out of your flat are you?

IAN: Yes

LEWIS: Right, so you're moving out, you want to rent it out, sort of basic question - Caroline Cope from the Association of Residential Letting Agents?

COPE: Hello Ian. Yes, you've got to remember before you pay any tax you can deduct all your expenses on the property. If you've actually got a mortgage and you're paying interest on the mortgage that would be one thing you could look at - also all your insurances, like buildings and contents and general repair bills, so actually you can eliminate the profit right down to the narrowest margin and then you will pay tax at 22% on that.

IAN: 22%?

LEWIS: Well at whatever rate he pays tax at presumably yes but I mean - so it is - it is taxable income but you can deduct all your expenses. And Ray Boulger is it that simple?

BOULGER: Well one of the key points with the mortgage is that the general rule is you can get tax relief on the mortgage up to the amount you spent on the property, so if your mortgage is now quite small it may well be worthwhile raising some extra money on that property to perhaps help fund the purchase of another new property if that's what you plan to do.

LEWIS: Ah well that's a good tip, so you can actually - take that off your profits even though you're not using it - or you're using for some other purpose?

BOULGER: That's right, it's quite complicated but the basic rule is that you can only get tax relief on a mortgage up to the amount you spent on buying the property.

LEWIS: Okay, does that answer your question Ian?

IAN: Yes, could I just ask would I have to like, if I start renting out do I have to then declare the tax to the taxman right away when I start letting or do I collect the rent and sort it out near the end of the tax year?

LEWIS: Well you'll have to fill in a self assessment form at the right time and that also is a bit complicated. I mean I must say I think if you're doing this for the first time Ian, I don't know if Caroline agrees, you should really get advice from somebody about all these nitty gritty points?

COPE: Definitely - go to an accountant and ask them their advice, an initial consultation with the accountant probably won't cost you anything either.

LEWIS: And Ray?

BOULGER: And you do also have to get permission from your mortgage lender because your mortgage offer will actually require that you do that if you want to let it out, so make sure you speak to your lender.

LEWIS: Yeah so get permission from the lender and there could be perhaps a slightly higher mortgage rate to pay?

BOULGER: Possibly, some lenders will let you keep the deal you've got, others may want to charge you a bit more.

LEWIS: And of course very important to get legal advice about the contract that you have - I mean it's not - I mean I'm not saying it's not something for beginners, it's not something for amateurs, you've got to approach it completely professionally. It is a business, you'll need legal and financial advice before doing it.

COPE: Yeah, if you go to your local ARLA member you can get free advice.

LEWIS: So, not difficult but has to be done properly. Carol in Leicestershire your question for us?

CAROL: Yes, we have two spare bedrooms in a four bedroom house - it's just my husband and our, thank goodness, the family have left home - you talked about

LEWIS: Well I hope they're not listening Carol!

CAROL: Well I'm sure they are. We're trying to get to rid of their inheritance. You talked about renting out a room in your house. Both of us still work so all our tax credits, or all our tax allowances have gone. Could you tell me what's the position on renting a room out and how does one protect oneself really?

LEWIS: Okay well I know Rosy Border is very expert on this - Rosy?

BORDER: Right, well first of all hello Carol - Christmas has come early this year because you have a present from the tax man in the form of a �4,250 allowance - this is on your gross rent - on any income from your lodgers, and you don't even have to do any fancy paperwork, all you need to do is tick the box when you come to fill in your tax return. It isn't necessarily as simple as that because your property has to be habitable and you have to make sure for example that your upholstered furniture is- passes the

CAROL: Yeah I appreciate that - because we have rented houses out before.

BORDER: Oh well I'm preaching to the converted then

CAROL: No, but this is actually a different thing when it's in your own home isn't it?

BORDER: That's right

LEWIS: So Rosy, just to be clear, the basic position - is as long as you charge rent and that would be a rent, a total rent to have one or two people in your house and that is �4250 or less there is absolutely - no tax to pay, and if it's a bit more than that Ray what happens then?

BOULGER: Well then the balance would be subject to tax but that �4250 is per year, just to make that clear.

LEWIS: Yes - which is about �80 - just under �82 a week or �354 a month.

CAROL: And what sort of agreement would your panel suggest that one had? Is there a regulated agreement like the short hold tenancy or what would you have?

LEWIS: Caroline?

COPE; You would want to draw up an assured short hold tenancy agreement, and you can get these either from a solicitor, a letting agent, law stationers. Choose it very carefully though.

LEWIS: Now, Rosy seems to be disagreeing slightly?

BORDER: I would be a bit unhappy about this because you're in fact a resident landlord, so in general I don't think an assured short hold tenancy would apply. Are you planning still to live on the premises?

CAROL: Yes

BORDER: Well in that case I would have thought that a standard lodger agreement, I mean I've got a good one on disc and there's lots of other people would have them, this would be much more relevant I think because you are - as a resident landlord you have different rights and in fact you have more rights than you would if you drew up an assured short hold.

COPE: Yeah you're quite right Rosy - yeah I forgot you're a resident landlord Carol so it's quite true

LEWIS: So it's not like letting out a room where you don't live, so get advice about a lodger agreement and make sure the furniture conforms with fire rules and there's also rules about gas appliances, that kind of thing and enjoy up to �4250 tax free. Good Carol thanks for your call - we'll now move on to London where Gloria has a question - Gloria?

GLORIA; Yes hi - I've heard I think it was in the Times about the government - stamp duty relief - you know. I'm thinking of buying a property in the Croydon area and basically my sister told me about the Inland Revenue's website to find out all about the stamp duty relief you know. When my dad looked it up for me we found out that this was being done by wards and the area that I'm thinking about is not included and I wondered you know if you knew anymore about this really because?

LEWIS: Okay, well Ray Boulger does. I think you've probably found the answer yourself really Gloria, but Ray Boulger can tell us all about this - this was the announcement in the Pre Budget Statement by the Chancellor a week or two ago that stamp duty limits were being raised in certain parts of the country?

BOULGER: That's right - I think it's highly unlikely that any other wards would be included. The Chancellor announced a year ago that he was actually going to announce in this year's budget which areas would be covered and he failed to do that and he's up last come up with the wards so having had a year to do it I think that there's no chance other wards are going to be included.

LEWIS: But there are - I mean just give us a bit of background on this Ray, what are the limits and what happens in these 2,000 small areas?

BOULGER: Right, well the normal rule on stamp duty is that if you buy a property for up to �60,000 there's no stamp duty, and then once you go above �60,000 stamp duty is payable at 1% on anything up to �250,000. What the Chancellor's done in the wards which are now going to benefit from this relief is to say there's no stamp duty on properties up to �150,000. And it may well be that if you're looking at a neighbouring ward to a ward that actually does have some relief you may want to perhaps consider the next door ward.

LEWIS; And these are 2,000 - the wards, or voting areas, but some of them are in London aren't they, and some of them have rich and poor bits, the idea was to boost investment in poorer areas, but of course they include places which might be quite attractive for buy to let?

BOULGER: Absolutely, there are some places in Central London included - I think some of the wards are really quite surprising.

LEWIS: Okay, Gloria thanks for your call. I'm sorry we can't help you - it looks like Croydon is not in those areas. James is also in London. James, your question?

JAMES: Yes good afternoon. I'm a student and I've bought a house and I rent three rooms to fellow students, so I'm over the tax budget but my real question is what legislation do I have to be aware of in relation to fire doors, access routes and all that sort of stuff?

LEWIS: Indeed well you are a student and landlord James, yes a very steep learning curve. Caroline Cope, a student who is also a landlord, what does James have to worry about?

COPE: James is lucky, he's actually in London and not in Scotland where houses of multiple occupation have to be licensed. Fortunately at the moment for - for landlords here they don't have to get that licence, which would actually be very stringent for them. But you still have to observe the regulations under the furniture and furnishings fire regulations which I'm sure you're aware of, make sure you've got labels on all the soft furnishings. It depends upon the property, probably Rosy might have a bit more experience than I, but there is no legislation about escape routes that I'm aware of - in a normal house we're talking about aren't we?

JAMES: Yes

BORDER: I don't know of any regarding escape routes, but fire regulations are very important and there is for example I think it's a l991 act that obliges you to install smoke detectors and make sure that there are batteries in it and this should be your watch word, and you should also - you should have a gas safety check and have your Corgi man check it and all this sort of thing, and a lot of it is common sense and in fact there's a very good DETR website and you can get a whole lot off it and there's a free booklet as well rather than my trying to remember everything.

JAMES: Okay, could you just enlarge briefly on the standard lodger agreement that you mentioned to the previous - second caller, and where one would get that from?

BORDER: I'm not allowed to plug my own books

LEWIS: Oh go on it's called 'Taking in a Lodger' - it's by Rosy Border and it's published by the Stationery Office at �7.99 - in there - there is a standard lodger agreement.

BORDER: And there is a brilliant website with the agreement on and if you would like to talk to me afterwards as the teacher said I will tell you the name of the website.

LEWIS: Okay, and there's also a website for the Department for the Environment, Transport and the Regions and details of all that will be on our website, I'll give it you at the end but I'll also give it you now - it's quite simple: www.bbc.co.uk/moneybox. And it's with our helpline - I'll give you that number later. Thanks very much James - good luck with that - a student and landlord. Let's move on now to Southampton where Mark has a call. Mark?

MARK: Hello, good afternoon. I've just purchased a property through my small business which is a limited company and I'm looking to expand my property portfolio but in doing so I'm looking to realise what sort of income - what sort of income I can expect as a return and also what sort of percentage occupancy I should think about when I'm putting figures together to plan ahead?

LEWIS: Okay, let's talk to Caroline about that. Let's talk about percentage occupancy first because this is something people often forget isn't it - that you look at the rent, you think oh wonderful �1000 a month, �2000 a month but you forget that there are these things you call voids - months of unoccupancy if that's a word.

COPE: They are a problem at the moment. On the whole we try and advise our clients to work their sums out on having 10 months of every year where they're going to have it occupied and usually they'll do a lot better than that. Certainly in these troubled times where there's quite a lot of property available to rent we're finding that we're filling them but a little bit more slowly, therefore it's important to build in these voids.

LEWIS: It's an important warning isn't it because there has been concern recently about this market, you know there's now I think 130,000 people who are sort of buying to let as private landlords in that way and there is a danger that you'll get too much property in the market and you will have - and if it's empty for 2 or 3 months that can really knock a hole in your figures?

COPE: It does. I think it all balances out in the end though and if you take a long term view when you're a buy to let investor you will actually find that over a period of 4 or 5 years it works out very well.

LEWIS: Now another expense Caroline is of course the fees of the agent if you use one. Just tell us what sort of percentage your members take for the different services?

COPE; It will vary right across the country but typically for full management service you'll be looking at around 15% of the rent.

LEWIS: And that means you do everything - you set it up, you collect the rent, you pass it on to the landlord, you hold the deposit in many cases as well?

COPE: Yeah the agent will hold the deposit and will declare where that deposit's held and whether or not it gets interest.

LEWIS: Right, so that's 15% a year off as well and then of course you have this return that - Mark was asking about. How do you work out the return?

COPE: Well the gross return often will - it's only a rule of thumb, but it often does work out quite accurately, not necessarily in Central London - that's always different, but certainly out of London you would expect between 5 and 7%

LEWIS: And is that after you'd paid your mortgage?

COPE: No, that's gross.

LEWIS: Or is that - that's for somewhere you own completely?

COPE: Yeah

LEWIS: So Ray Boulger, if you've got a mortgage on that property, there's not going to much left is there?

BOULGER: No, although with interest rates as low as they are now it does mean that even at the lower returns you're still making a profit. One suggestion Mark which maybe useful to cover void periods - if you don't have much in the way of spare cash, pay in any extra surplus rent to the mortgage, have a flexible mortgage, and then if you do have a void period, you can take a payment holiday which will tide you over.

LEWIS: Mmm- just tell us a bit about mortgages you can get for this sort of business Ray, because they are very flexible now as you say, or they can be, and what sort of rates of interest are we talking about, because they're a bit higher than an owner occupier?

BOULGER: Yeah, typically you can expect to pay around an extra half percent compared with the best residential mortgages, but rates do start about 4.5% and you can get fixed rates as low as 5% for three years, so there are some good deals around.

LEWIS: And that has the advantage of course that you've got a fixed expense and then you hope that your rent will also be fixed apart from voids of course?

BOULGER: Well that's right. We do find that in the buy to let market a lot more clients prefer a fixed rate because they are of course taking a long term view.

LEWIS: Okay Mark, well I hope that's helpful. It's - I know a tricky and sometimes alarming business to get into - though I think you probably have some properties already. Rugby now and Kay who has a question - Kay?

KAY: Well it's pretty similar to the last one - is there a target rent for say every �20,000 of the property's value - because certainly in this area I've been given - quite - very different targets for instance - �800 to �1000 - rather you know a big difference.

LEWIS: And these - these are given you by whom?

KAY: Professional letting agents.

LEWIS: Ah right, so Caroline, there's different advice from different agents?

COPE: Well it's an extraordinary thing that if you asked three agents to your property to value it, you will get three answers - it's just always the way - but usually there is a middle line that's probably a relatively accurate one. You can always ask the agents to come up with comparables of similar properties let in the area and see what they're actually achieving. The agent's job is to get you the best rent, so they're always going to recommend asking more than you probably will expect to get.

LEWIS: So in a market where things are changing obviously it's a question of supply and demand in a sense and I suppose you think well I'll ask a bit more and you might have longer before you let it out, cut the price, it might go more quickly. Rosy?

BORDER: This is a very simple routine thing and you've probably thought of it already but I would get several local newspapers, read the property sections and see what the going rate seems to be. I'm sure you've already thought of this?

KAY: Well yes, but my property is a fairly small three bedroom house but it's in an extremely attractive village with a lot of parking space and a lovely garden. It is not typical, that's my trouble.

LEWIS: The other thing to think about Ray is that these contracts now are for 6 months certain, so if you feel at the end of 6 months you let it too easily you can put the rent up?

BOULGER: That's right, but I'm a great believer in actually if there is any difficulty finding a tenant, drop the rent straightaway because if you find the property's empty for a couple of months it takes you an awful long time to get that back, so I think much better to get a tenant in quickly.

LEWIS: Yeah don't be greedy about a fiver a month - okay well I hope that's helpful Kay. There is no right or wrong answer but some hints there to find what price your house really is worth on the rent market, and Jeff in Derby has a question - Jeff?

JEFF: Yes, I'd like to ask the problem that I have is a tenant who is 2 months behind with his rent and at the present time he's actually 9 weeks and owing 3 months rental.

LEWIS: Can I ask what sort of tenancy it is ?

JEFF: It's a short hold assured tenancy

LEWIS: So it's one of the new forms of tenancy?

JEFF: That's right. I mean Caroline Cope, we're always told aren't we that with these new tenancies it's easy to get people out, or relatively easy not like with the old days - that's why it's a good deal but what should Jeff do?

COPE: I think Jeff ought to immediately instruct a solicitor to act for him - he's got the grounds to get the tenant out of the property because the tenant's in arrears and there'll be a forfeiture clause in the tenancy agreement which will allow the judge to give a possession order.

LEWIS: And beyond that, does it allow the judge to give an order that this tenant has to pay and possibly take money off him or her to do that?

COPE: Absolutely. The biggest problem of all is getting that enforced if he hasn't got any monies, but you've got to act now and not let it build up because the arrears will build up - because it takes time to get to court.

LEWIS: Now you said those words instruct a solicitor - that sounds to me like yet another expense of being a landlord that we haven't talked about here?

COPE: Yes I mean it can be - a lot of agencies will offer a legal protection insurance policy which would cover legal costs which is very nice if you have one. If you haven't got one then solicitors are relatively competitive and very often they'll quote a fixed price, but yes if you get into a situation like this, I'm afraid it does cost money.

LEWIS: So act quickly Jeff and

JEFF: Thank you very much

LEWIS: Yeah and sort it out because it's just money out of your pocket until you do. Let's talk to Jane now who's calling us from London. Jane, what's your question?

JANE: Good afternoon. My question was what rights does the person leasing a room have when to my horror I came back from Paris after a trip and I think I was something like 10 days late with my rent, I opened the door of my flat to find that my �60,000 cello had been removed by my landlord, leaving a note to say that because I was late with the rent he felt entitled to remove my cello and when I paid this fixed amount for my rent for that month I could have it back.

LEWIS: Goodness. This sounds to me like illegal activity - Rosy?

BORDER: Your landlord is totally wrong - your landlord has committed a criminal offence - go for the jugular.

JANE: The police actually

BORDER: Yes

JANE: completely ignored me and they said it was a civil matter.

LEWIS: Oh I think that - well that may well be right - Caroline, tell us your view on this?

COPE: There's an act of Parliament - the Protection From Eviction Act of l977 which does not allow your landlord to do what effectively is harassment and to actually remove your property is not legal.

JANE: I didn't think it was even legal that they could be on the premises without notice?

COPE; Exactly. It's completely wrong and it should not be tolerated.

JANE: Well I put that to the police as well - I said under section 4,1 I'd like to sort of apply for harassment because this is not the first time this man's behaviour has been just beyond belief - he'd in fact left numerous inebriated messages late on Sunday nights and I'd discussed it with a couple of legal friends.

COPE: That's it - again legal advice - get a letter from a solicitor to him.

LEWIS: I think one of the problems we often face on Money Box Live though is that we talk about peoples' rights and they have rights and Jane obviously in a sense knows her rights and has gone to the police and yet it's enforcing them that's the problem?

COPE: It is a problem - it really is, but you've got to show your teeth and I think you need your hand held and that's why I say go to a solicitor. Let them write a letter for you.

LEWIS: Yes, and ultimately if Jane wins she can recover the costs presumably?

COPE: Certainly yeah.

LEWIS: Okay well we've had a number of e-mails as well - let me just mention one to you - this is a gentleman called Edward from Derby - he's got �150,000 in cash - he says obviously the rate of return he's going to get on that is poor. He wants to put it into property but he wants to know if he should perhaps borrow some as well. Is it more sensible to borrow or to use his cash or indeed top up his cash? - what sort of rules are there about borrowing money to buy - Ray Boulger?

BOULGER: Well effectively the taxman encourages you to borrow because if you actually invest the cash with no borrowing then you're going to have to pay tax on most of the rent, so there is a strong incentive to borrow. I think a lot also depends though on your risk profile. Obviously, if you do borrow money that's increasing the risk, but equally it can increase the return. The maximum that you can borrow on investment property is 85% of the value so it would theoretically be possible for you to actually buy property to the tune of a million pounds - I'm not suggesting you should do that but that would be a possibly so I think you need to consider how much risk you're prepared to take - the bigger the deposit you put down on this property the more protection you've got, but if you are looking at this as a long term situation then and having a portfolio of properties, no reason why it shouldn't give you a good return.

LEWIS: And what's your view Ray on the future of this market? There is a fear isn't there among some people, though no evidence yet it has to be said, that house prices are at a peak and may well fall - you could end up if you borrowed too much to rent out in some difficulty?

BOULGER: Well that clearly is a risk, although in terms of paying the mortgage, that's being paid from the rent, so as long as the landlord is able to get tenants you can still afford the mortgage, but in my experience the majority of our clients anyway are going into this market for capital appreciation, rather than short term income. So yes you do need to take a view on the property market and in Central London particularly expensive properties, prices have fallen a little, outside London though, prices still seem to be edging up.

LEWIS: So the tenant basically is there - living there and paying your mortgage and then eventually you'll sell the property and use the money as your retirement fund?

BOULGER: Exactly

LEWIS: Okay - thanks for that e-mail Edward, let's move on now to Doncaster where Virginia has a question - Virginia?

VIRGINIA: Yes, we rent out a property that has the registered or capped rent which we'd like to improve by installing central heating for the tenant's benefit. Due to limited funds we need some confirmation from the local council or the housing benefit department - as the tenant is in receipt of housing benefit - that the rent would be increased enough to cover the costs over a reasonable period say 2 to 3 years?

LEWIS: Right, well Rosy Border has her hand up to answer your question Rosy?

ROSY: I have indeed. Hello Virginia. Am I right in thinking your tenant is on benefits?

VIRGINIA: Yes

ROSY: Well you may well be able if your tenant is on benefits to get improvements done without cost to you and the watch word is Home Energy Efficiency Scheme and in some areas it's called EAGA - E.A.G.A - and you need to ask about this because I have had myself thousands of pounds worth of insulation and heating improvement done, but there is a downside - you're not allowed to raise your rent for a year afterward, but then as it's free why worry?

LEWIS: Virginia I think - I think the tenant has to be a certain age for this is that right?

BORDER: No - no - for a complete central heating outfit - they have to be a pensioner, but I have got someone who is not a pensionable age who is on benefits and I had thousands of pounds worth of improvements done.

LEWIS: Virginia, is that helpful?

VIRGINIA: Not really - we've actually just explored that and all that she was entitled to was some loft insulation and the front wall cavity wall filled.

LEWIS: Okay, well let me move on to Caroline because we're a little bit short of time now - Caroline, this is a very old tenancy - 36 years I think Virginia has told us - can she put the rent up after improving the property?

COPE: Well I think the rent officer who comes along and he will set a fair rent - have you applied Virginia to the rent officer?

VIRGINIA: Well that's my actual query - is that I'm wanting to get some kind of confirmation

COPE: You'll find them very helpful and very friendly

VIRGINIA: I phoned them and I found them very - basically they're asking for me to lay out �3000 with no guarantee that - that I will be able to recoup that money at all?

COPE: I'm afraid - well that is one of the problems. They will take it into account when they come and register the rent the next time. As you probably know, you can register it every 2 years and there - on the form there is provision to mention any improvements you've done

LEWIS: But they're not going to give you - not going to give you a guarantee. Well we've not got long left but I'm going to ask John in Blackpool to ask his question in 10 seconds - John?

JOHN: Hello, my question is very very simple - who is the legal owner of a bond? - which is paid

LEWIS: This is the deposit paid by the tenant?

JOHN: Yes

LEWIS: Okay, let me ask Caroline that - who owns the deposit?

COPE: Very simple answer - the tenant - it is the tenant's money and it always will remain the tenant's money until the landlord has a rightful claim against it.

LEWIS: And that claim comes at the end of the tenancy if there's damage to the property?

COPE: At the end, against any damages.

LEWIS: Okay John that is the answer to your question - we can't go into more detail because that is all we have time for. My thanks to the author Rosy Border. Thanks to Ray Boulger from Charcol the mortgage brokers and Caroline Cope from the Association of Renting and Letting Agents. Thanks of course to all of you for your calls. More information with our action line: 0800 044 044 Calls are free: 0800 044 044 Our website: www.bbc.co.uk/moneybox. Our email: [email protected]. Noon on Saturday for MONEY BOX and I'll be back here with MONEY BOX LIVE at three o'clock next Monday afternoon.

BACK ANNO: And that was Paul Lewis. The producer was Jessica Dunbar.