The latest Landlord Regulations
Make sure you’re up to date on the latest Landlord Regulations or you could face a fine or even be banned from letting! (List updated 18/11/19)
- Tenant Fees Ban
From 1st June 2019, the Tenant Fees Act aims to ensure there are no hidden costs to advertised rents.
- Deposits
Deposits will be capped at five weeks rent (or six for tenancies that cost more than £50,000 a year).
- No Fees Chargeable for:
inventories, tenant referencing, and credit check.
- Homes (Fitness for Human Habitation) Act
From 20th March, this requires that landlords ensure their property is free of any hazards and fit for human habitation. Properties breaching the updated legislation will be liable for court action from tenants.
Make sure you’re up to date…
- Client Money Protection scheme
From 1 April 2019, Landlords’ rental payments and tenants’ deposits will be protected as part of the Client Money Protection (CMP) scheme.
- HMO Licensing Extensions
Changes to the law mean that thousands of landlords letting shared properties will now come under House in Multiple Occupation (HMO) licensing rules, the previous 5 or more people rule has been removed.
- Minimum Space Standards
There are new requirements for the minimum size of bedrooms. The regulations depend on how many people occupy the bedroom. Breaking those rules, landlords have up to 18 months to rectify the problem, with those who fail to rectify, liable to be fined up to £30,000.
- Mortgage Interest Tax Relief
Under the old rules, you could deduct your mortgage interest (plus other related costs including arrangement fees) before determining your taxable profit. But under the new rules, that interest rate relief will be cut in a phased process that will end April 2020.
- Rent controls in London
The proposition of rent controls began back in 2017 with Labour’s general election manifesto.
While not yet confirmed, the London mayor Sadiq Khan has made rent controls a central policy in his 2020 re-election bid, pledging in January to develop a “blueprint for stabilising or controlling private rents in the capital.”
Do your properties meet the minimum standards?
- Minimum Energy Efficiency Standards
The minimum threshold of an E on an EPC certificate came into force on 1 April last year and applies to all new lets and renewals. The rules will be extended to all tenancies come 1 April 2020, and all existing tenancies must be brought up to this new standard by the 2020 deadline.
- Complaints Resolution Service
There are currently several different complaint bodies, making it difficult for people wishing to register a complaint against a builder or landlord.
For homeowners and tenants, to private landlords and developers, this new service is designed to provide a straight-forward way for everyone to receive help with unresolved disputes.
- Electrical Installation Checks
The government appears committed to introducing mandatory five-year electrical installation checks on private rented housing in England.
This will likely be introduced in a phased manner, and agents and landlords should have at least six months to familiarize the new legislation before it comes into force.
- Banning Orders
If you’re not fully compliant with current regulations, you could be banned from letting property.
- The Deregulation Act
At the start of each tenancy a landlord must provide a:
- Valid Energy Certificate
- Valid Gas Certificate
- How to Rent Guide
Without them, a landlord is not permitted to serve an eviction notice
Do your tenants have the right to rent?
- Right to Rent
It is the landlord’s responsibility to ensure tenants have the Right to Rent.
- Right to Rent Checks
Under Right to Rent Checks, a landlord must make electronic or photocopies of original documents.
- Rogue Landlord Database
Failure to abide by your legal responsibilities could see you added to the Rogue Landlord Database.
- Unlawful Eviction
Unlawful eviction & harassment of an occupier could see you banned from letting property.
- What is Statutory Excuse?
A statutory excuse protects a landlord from being liable for a civil penalty.
Still not sure? Get in touch.
If you have any questions about Landlord Regulations and buy to let issues, please don’t hesitate to get in touch.
Join me and other like-minded individuals in my Facebook Property Group. A great chance to ask your questions, network and keep up to date on the latest legislation and events. Join here http://www.propertyexpertpartnership.com/fb-refurb-group
Why not check out the new edition of my book which has a complete section on building regulations, damp problems and some great real-life case studies?
Get your copy here… http://www.propertyexpertpartnership.com/book
Thanks for reading.
Mike Woods, MCIAT
