Legislation and Standards
With in-depth experience from both a landlord and a property manager perspective we ensure that our landlords meet all the compulsory standards and legal requirements for letting a property out, no matter what the size.
Why is it important to follow legislation?
Legislations and standards have been created to protect both the landlord and the tenant. While it is fundamental that landlords follow the standards set, it is also crucial that tenants are not in breach of their contract, whilst helping to keep the property in its best possible condition.
What happens if you don't follow legisltation?
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With electrical safety breaches enduring fines of up to £30,000. Renting out an unlicensed HMO seeing an UNLIMITED fine. Not protecting your tenants deposit in a government backed scheme could see you paying them back up to 3X the amount. It's imperative that landlords abide by all the relevant standards and legislations.
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How can your letting agent help with this?
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At PPM we do our due diligence, we work with landlords to help them understand what legislations and standards are relevant to them and help to apply them to their property.
Landlord legislation includes standards and requirements for:
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Central heating, boilers & gas appliances
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Blinds
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Checkout inspection
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Deposits and Tenancy Deposit Protection
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Electrical Equipment and PAT Testing
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Electrical Installations
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Electrical Safety in the PRS
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EPCs and MEES
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Furniture and Furnishing (Fire Safety)
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Homes (Fitness for Human Habitation) Act
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Legionella
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Prescribed Hazards
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Property Licensing
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Refundable Tenancy Deposit: tenancies before 01/06/2019
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Refundable Tenancy Deposit: tenancies from 01/06/2019
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Right to Rent
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Smoke and Carbon Monoxide Alarms
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Tenant Fees Act (2019)
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The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020
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The Renting Homes (Fees etc) (Wales) Act 2019
Useful Links:
Things to look out for:
Tenant Fees Act 2019
The Tenant Fees Act bans most letting fees and caps tenancy deposits paid by tenants in the private rented sector in England.
The ban on tenant fees applies to new or renewed tenancy agreements signed on or after 1 June 2019.
The government guidance on the Act for tenants, landlords and letting agents helps explain how this legislation affects them. You might also find the ‘How to Rent’ and ‘How to Let’ guides useful.
The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy. Tenants will be able to see, at a glance, what a given property will cost them in the advertised rent with no hidden costs.
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From 1 June 2019, the only payments that landlords or letting agents can charge to tenants in relation to new contracts are:
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rent
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a refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above
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a refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent
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payments associated with early termination of the tenancy, when requested by the tenant
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payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy
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payments in respect of utilities, communication services, TV licence and Council Tax
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a default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement
Minimum Energy Efficiency Standards and EPCs
An Energy Performance Certificate – or EPC – is a four-page document which sets out the energy efficiency of a property on a traffic light system of A to G – A being the most efficient.
An EPC provides an indication of how much it will cost to heat and power a property. It also includes recommendations of energy-efficient improvements, the cost of carrying them out, and the potential savings in pounds and pence that each one could generate.
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After a consultation in December 2020, the government have announced changes to the Minimum Energy Efficiency Standards for England and Wales.
The government have proposed that all rental properties will need an EPC rating of ‘C’ or above by 2025. Similar to the previous changes, the new regulations will be introduced for new tenancies first, followed by all tenancies from 2028.
The regulation changes hope to make homes more energy-efficient and reduce carbon emissions as part of the government target to be net-zero by 2050.
The penalty for not having a valid EPC will also be raised from £5,000 to £30,000 from 2025.
Electrical Safety Inspections
The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 came into force on 1 June 2020 and apply to all tenancies created on or after that date in England from 1 July 2020.
These new regulations require landlords to have the electrical installations in their properties inspected at least every 5 years and tested by a person who is qualified and competent. Landlords will also have to provide a copy of the electrical safety report to their tenants as well as to the local authority if requested.
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Local authorities will be responsible for enforcing the new regulations and can impose a financial penalty of up to £30,000 if they find a landlord is in breach of their duty.
Local authorities have the power to serve remedial notices on the private landlord. If the remedial notice is ignored and action is not taken with 28 days, the local authority can arrange remedial work to be carried out, with consent from the tenant, and recover the costs from the landlord.