With more and more legal requirements facing landlords over their property interests now, Landlord News looks at the latest legislation in place and what is due to come into effect in the near future
Home Information Packs (HIPs) and Energy Performance Certificates (EPCs)
Home Information Packs (HIPs) are being phased in from August 1, 2007 and will include information on a property, such as building certificates, planning permission and local searches, as well as a Home Condition Report (HCR).
An integral part of the HIP is the Energy Performance Certificate (EPC), which has to be made available to the owner, prospective owner or tenant every time a building is constructed, rented or sold. The EPC is a comprehensive energy report, which encourages people to improve the energy efficiency of a property, and will look at areas such as construction features, heating and hot water. Each property will be given a rating, plus suggestions on how to improve energy efficiency.
In the private rented sector the requirement for HIPs/EPCs is expected to come into force in October 2008, though this may still be amended and as yet there are no set guidelines in place. Non-marketed lettings do not require a HIP or HCR but will need an EPC. This timescale also applies to the social housing sector. HIPs, including EPCs, will be required for thesale of four-bedroom properties and larger. Packs for smaller properties will be phased in when sufficient energy assessors become ready to start work.
The Government is also inviting councils and registered social landlords to work with them to introduce EPCs on a voluntary basis in social housing.
Single Equality Bill
The Single Equality Bill will require landlords to improve the access to their premises for disabled tenants. This could mean building ramps and lifts, if requested, or making alterations to common parts of the property, such as stairs and halls.
The legislation is designed to modernise the law, which would mean landlords lose the right to refuse permission for a ramp, handles or lift to be fitted on their property. But the law does also make it clear that a landlord would not necessarily have to pay for the alterations. The planned legislation, which covers a wide range of other social areas, is at the Green Paper stage and will be consulted on until September.
Tenancy Deposit Schemes
From April, many landlords will be obliged to join a Tenancy Deposit Scheme (TDS) if they take deposits from their tenants. This applies to all assured short-hold tenancies (ASTs). The aim is to safeguard these deposits and offer protection to tenants from landlords who do not refund deposits on termination of their lease. Landlords will be able to choose between a single custodial scheme and two insurance-based schemes.
Under the custodial scheme the tenant pays the deposit to the landlord, who pays it into the scheme administered by Computershare Services Investor Plc. At the end of the tenancy, if the landlord and the tenant agree how the deposit should be divided, the scheme returns the deposit. Under insurance-based schemes the deposit is retained by the landlord, who pays a premium to the insurer. At the end of the tenancy the money is returned in a way agreed by both parties. In order to avoid disputes going to court, TDS will be supported by an alternative dispute resolution (ADR) service.
HMO licensing
Legislation was introduced by the Government in April 2006 for landlords with Houses in Multiple Occupancy (HMOs) with the keyaim of raising the management and amenity standards for property.
The HMO legislation, part of the Housing Act 2004, includes properties where an entire house or flat is let to three or more tenants who form two or more households sharing a kitchen, bathroom or toilet, or a house that has been converted entirely into bedsits or other non-self-contained accommodation. Local authorities monitor and license HMOs to ensure standards are driven up.
Housing Health and Safety Rating System
The Housing Health and Safety Rating System (HHSRS) is a risk assessment tool used to assess potential risks to the health and safety of occupants of residential properties in England and Wales. The HHSRS came into effect in April 2006 and replaced the Housing Fitness Standard, which was set out in the Housing Act 1985. It outlines a landlord's responsibilities to look after the exterior of a property and the structural elements, as well as the inside facilities.
Under the legislation, private landlords and managing agents are advised to assess their property to determine if there are any serious hazards that may cause a health and safety risk to tenants and then carry out improvements to reduce that risk. Installations inside the dwelling that should be focused on include: water, gas and electricity; personal hygiene issues around hand basins, showers or baths; sanitation and drainage; food safety on sinks, worktops, cookers and cupboards; ventilation and heating.
Local authorities will enforce this and they are advised to deal with problems informally at first. If this is unsuccessful, they may require a landlord to carry out improvements and ultimately issue a statutory notice with failure to comply, carrying a fine of up to £5,000.
If you require more information on legislation, please contact your local landlords association or dedicated Money Centre consultant.
Back to top
