Legislation buy-to-let landlords need to know

August 17, 2022

Over recent years, successive governments have regularly updated landlord legislation, and become more stringent on the requirements of properties in the private rented sector.

For property investors who intend to run their investments as buy-to-let homes, the various rules and regulations that currently exist can be daunting. While many such rules were brought in as a way of improving the sector for tenants and making landlords more accountable, it isn’t always easy to keep on top of all the information out there.

Many buy-to-let landlords choose to appoint a management company to deal with their rental properties, and most good letting agents will be well-versed in the latest rules.

However, as a responsible rental home owner, it is still important to know about any new and existing laws governing the sector that could apply to you or your property.

The National Residential Landlords Association (NRLA), which is the UK’s largest membership organisation for private residential landlords in England and Wales, has teamed up with Rentguard Insurance to create a handy guide of updates for landlords.

Below we provide an outline of the latest advice.

Right to rent: Before the start of any tenancy, it is vital that a tenant’s right to rent is ascertained, by either checking their original documents or by viewing their status online if they have a ‘share code’. This involves checking their immigration status, but it is against the law to only check people you think are not British citizens - every new tenant must be checked.
Gas safety regulations: All buy-to-let landlords must organise for a Gas Safe registered engineer to conduct an annual safety check on all gas appliances, and carry out any necessary maintenance. Tenants must then be given a copy of the gas certificate as proof.
Energy performance certificate: This is particularly topical at the moment with the increased focus on the energy efficiency of homes, and all residential rental properties in England and Wales must currently achieve an EPC rating of E or above. Any homes rated F or G must be brought up to the new minimum standard, unless they qualify for an exemption. The government has indicated that the minimum EPC rating will be raised even higher in the coming years, so this is something to keep an eye on.
Fire regulations: All rental homes must have at least one smoke alarm fitted on every storey, which must be tested at the start of each new tenancy to ensure they are in good working order. There must also be clear access to escape routes for tenants at all times, with clear exits in the case of a fire.
Electricity regulations: Another one that was updated relatively recently (1 June 2020), buy-to-let landlords must ensure that a qualified electrician carries out an electrical safety check at least once every five years. Like the gas safety certificate, the electrical safety condition report (EICR) must be given to the tenant. You should also register any appliances such as fridges and washing machines, so the manufacturer can alert you if there are any issues with the items.
HMO insurance: Houses in multiple occupation (HMOs) are rental properties where three or more households live together with shared facilities such as a kitchen and living room. In some local authorities and assigned areas, landlords must obtain a licence to operate an HMO property, and adhere to minimum room size requirements and other rules specific to the property type which can be found here. Landlords who operate large HMOs (with five or more tenants) are required to hold a licence regardless of where they live.

‍

The list above is not exhaustive in terms of requirements for buy-to-let landlords, but it is a good place to start to ensure you are compliant. The rules surrounding the private rented sector are continuously reviewed and revised, so landlords are well advised to keep on top of any changes coming to the market.

The team at The Prestbury Advisory are available to help any prospective or existing property investors to navigate the legislation mentioned above. Call us on 01625 725 779, or email us at contact@theprestburyadvisory.com.

Legislation buy-to-let landlords need to know

You may also be interested in...

Our top 5 tips for maximising your return on investment

Demand for investment property in the North West is far higher than in London and the rest of the UK

UK asking price record broken: Is this a good time to buy UK property?