With rising prices, tax and changes to buy-to-let mortgages, I think it’s fair to say that landlords across the UK have a lot to consider. To add to this, they have a number of laws and regulations that they should adhere to – a range of penalties apply if they don’t comply.
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Failure to comply with Gas Safety Legislation
It is important that all gas appliances meet industry regulations, as failure to follow the guidelines could put a home and your tenants at risk of a fire or carbon monoxide poisoning. All safety checks must take place every year on each gas appliance within the property and landlords must provide tenants with a gas safety certificate to keep a record of the check. Failure to do so could result in a £6,000 fine for each item or six months imprisonment.
Letting an HMO without a licence
A House with Multiple Occupation is a property that is home to several tenants, from different families, each with their own individual room and shared communal facilities. However, landlords cannot simply utilise their property as an HMO without the necessary permissions and accompanying documentation. Should they fail to obtain the required licence, they could face legal action, and fined up to £30,000.
Breaching ‘Right to Rent’ rules
Private landlords and letting agents are required by law to check the immigration status of all perspective tenants, lodgers, or anyone else who is hoping to live in the property. The ‘right to rent’ check should be completed before the tenancy starts. If landlords decide to ignore this law or fail to comply, the penalty is up to five years in prison or an unlimited fine.
Failure to comply with Electrical Safety Legislation
Landlords are legally required to provide an Electrical Installation Condition Report at five-year intervals and when a new tenancy begins. The report has to be given to existing tenants, new tenants, prospective tenants and local authorities. If these legal requirements are not met, landlords could be facing fines of up to £30,000. However, if their electrical installation is deemed faulty and it causes harm, then they could also find themselves facing fines and imprisonment in relation to other laws.
Unlawful eviction
Landlords, or any party acting on their behalf, are not permitted to evict tenants, from part or all of the property, without a valid reason. Should they attempt to unlawfully deprive a residential occupier without providing clear evidence to support their decision, it could be considered an unlawful eviction. Any subsequent fines will be based on the circumstances, although some have been fined several thousand pounds – one landlord was recently fined £13,000. There is also the risk of imprisonment.
Due to the large number of private landlords in the UK, the lettings industry is heavily regulated, with around 168 specific laws to abide by. Hefty penalties will be applied should landlords break letting laws or ignore legislation.
In addition to what appears an ever-growing list of regulations and restrictions, many private landlords are also facing other additional costs to improve their properties to bring them up to ‘standard’. The National Residential Landlords Association warns that all the extra requirements will force more private landlords to sell up unless the Government provides some sort of support package.