Legislation changes for landlords
May 30, 2022If you are the landlord of buy to let property, one element of the constant round of news affecting your segment of the housing market is the constantly shifting volume of legislation.
Unless you keep a close eye on the news, you might miss an essential piece of new or amended legislation. If you fail to take the appropriate action, you could be left high and dry, facing stiff penalties under the law, and placing your tenants in a vulnerable position.
Let’s illustrate the point with just two examples.
Smoke and carbon monoxide (CO) alarms
According to a recent news story, the existing rules on smoke and carbon monoxide rules are slated for revisions that may come into effect as early as the Autumn of 2022.
The original legislation – the Smoke and Carbon Monoxide Alarm (England) Regulations – was implemented in 2015, and, on the 23rd of November 2021, the government signalled its intention to tighten the effect of these rules to achieve the following standards:
- both private and social landlords in England will be under an obligation to replace or repair faulty smoke or carbon monoxide alarms as soon as they are made aware of any defects;
- CO alarms must be installed in any room that has a “fixed combustion” (solid fuel) appliance – with the exception of gas cookers;
- the installation of CO alarms in any rented accommodation – private or social housing – will be regulated by the local authority building regulations; and
- smoke alarms must also be installed in all social housing.
The regulations currently in force already provide for fines of up to ÂŁ5,000 for landlords who fail to install the required alarms. However, given that these rules were last updated in 2015, any new penalties can be expected to be significantly steeper.
Selective licensing
As a landlord, you are probably aware that you need a licence from your local authority if you want to run a large House in Multiple Occupation (HMO) – that is the law.
What is probably less well appreciated is that any dwelling in the private rented sector may require the landlord to hold a valid licence from the local authority. This is known as “selective licensing”.
The Housing Act 2004 gave local authorities powers to require all private sector landlords within any given housing area to hold a licence as a condition of letting their property to tenants.
Although licences are mandatory for landlords of HMOs, these “selective licensing” powers extend the requirement to any area where the local authority believes there is a need for tighter control and regulation of private rented accommodation. Typically, selective licensing is introduced where councils believe housing demand is low or there have been ongoing problems with antisocial behaviour.
The current rules allow selective licensing schemes to run for five years – and licences aim to ensure that any landlord is a “fit and proper person”, set out conditions concerning the management of the property, and safeguard the health and safety of tenants.
Although selective licensing has been around since 2006, it will not be immediately apparent whether any such scheme exists in the area where you own – or plan to own – let property. This is because new schemes are introduced all the time. For instance, a new selective licensing scheme started as recently as the 1st of April 2022 in 16 wards of Liverpool City Council.
The penalties and fines for letting your property without the necessary licenses can be steep. Any attempt to evict your tenants might prove fruitless, but you could have to repay many thousands of pounds in rent.
The only way to establish whether you need a licence to let your property to tenants is to ask your local authority. The exception is London, where the Mayor has introduced a free, online property licence checker which will tell you whether any particular property needs a licence.
Summary
If you are unsure as to your legal obligations as a landlord, contact your local authority for help or advice or visit the Government website.