10 March 2010: 18:14 UK Time
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A guide to UK Property Law relating to landlords and letting, EPCs, HIPs, and more.
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Property Letting Law, Government Regulations

In the past few years, true to form, the Labour Government has introduced a whole raft of legislation which affects the sale and letting of property in the UK. Some of it is good, though the majority of it is pretty stupid, but you as a landlord letting property you need to know about it.

How do Government Regulations affect me as a landlord?

There are now numerous pieces of legislation that as a landlord you need to be aware of when letting property.
They are as follows:
1) Annual CORGI Registered gas inspections
2) Annual Electrical safety inspections
3) Houses of Multiple Occupation Regulations
4) Home Information Packs (HIPs)
5) Energy Performance Certificates (EPCs)
6) Furniture Fire Safety Regulations
7) Tenancy Deposit Rules

Annual CORGI (now Gas Safe Register) Gas Inspections and Certification

All rental properties connected to the gas with any gas appliance must by law be annually checked by a CORGI registered gas engineer. A certificate must be retained by the landlord and a copy supplied to the tenant. Since April 1st 2009 Gas Safe Register took over the administration of registered installers throughout the UK, although CORGI continues to administer the Channel Islands and Northern Ireland.

Annual Electrical Inspections

It is important to ensure that all electrical installations and items you supply such as kettles, irons etc are in good working order. However, unlike with gas there is no current legal requirement to have an electrical safety certificate.

Houses of Multiple Occupation (HMOs)

• A property is classed as 'A House of Multiple Occupation' if it falls into one or more of the following categories
• an entire house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet.
• a house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to three or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities
• a converted house which contains one or more flats which are not wholly self contained (ie the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by three or more tenants who form two or more households
• a building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies
• in order to be an HMO the property must be used as the tenants' only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges.

If a property you own satisfies any or all of the above criteria, then as a landlord you will need a licence, granted by the local authority. In order to be granted a licence you will have to satisfy a number of requirements, fire door provision, cooking facilities etc etc

Home Information Packs (HIPs)

One of the silliest pieces of property legislation ever passed! However, if you intend to sell your property you will need a HIP – they tend to cost very approximately around £400.00 and are available from various HIP providers.

Energy Performance Certificates (EPCs)

Another piece of nonsense from this Government. However, as with HIPs, you will have to have one. In fact, any property offered for rent after 1st Octobert 2008 will require an EPC. They are basically a certificate, again supplied by a registered inspector, detailing the enery efficiency of your property. They should cost between about £80.00 and £150.00 depending on supplier and number of bedrooms, and last for 10 years.

Furniture Safety Regulations

?All upholstered furniture that is included in rented accommodation has to comply with the ignitability tests contained in the Furniture (Fire) (Safety) Regulations 1988. Furniture first supplied before March 1993 can be included in property rented to tenants who were in residence on 1 January 1997, but must be replaced when the property is let to new tenants. Furniture manufactured in compliance with these regulations will be marked with a permanent label stating that it has been tested.

Tencancy Deposit Rules

For once I believe the government have actually introduced a useful piece of legislation, designed to minimize landlord / tenant disputes over the refund of the security deposit. Until this legislation became law, landlords or their agents were able to simply retain the tenants' deposit and when it came for the tenants to leave there were many cases of unscrupulous agents and landlords unfairly witholding all or part of the edeposit.

If you let a property now, you must do one of two things. Either you must place the tenants' deposit into one of the government's approved schemes, OR insure the deposit. In either case the people actually holding the deposit will act as arbitrators between landlord and tenant in the event of any dispute over the return of the deposit.


 

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