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How using Inventory Base can help minimise tenancy disputes and protect deposits

In today's competitive rental market, managing tenancy deposits and minimising disputes is paramount for property professionals and landlords alike. While it’s true that both parties must act with fairness for all their tenants, they also must protect their interests while ensuring transparency.

One of the most effective tools for achieving this balance is Inventory Base, a comprehensive solution designed to reduce the likelihood of disputes with a handful of useful features.

The rising importance of tenancy deposits

Recent data reveals that the average rented property deposit now stands at £1,434, a huge increase on the previous year. This significant rise underscores the importance of protecting these substantial sums for all parties. For property professionals, ensuring deposits are safeguarded and disputes minimised is crucial to maintaining compliance and a good reputation.

To that end, a detailed inventory at the start of a tenancy is essential. It provides a thorough account of the property's condition, including the state of walls, floors, and ceilings. Accurate documentation at the outset is the most effective way to prevent court action and disputes when a private tenant vacate the property.

Historical context and legislative changes

The introduction of the Tenant Fees Ban, effective from 1st June 2019, marked a significant shift in the rental market. Initially proposed in November 2016 by Chancellor Philip Hammond, this legislation was designed to make renting more affordable and transparent by prohibiting most upfront fees charged to tenants.

Key aspects of the Tenant Fees Ban include:

These changes have significant implications for property professionals. Letting agents and landlords must now navigate this new regulatory landscape while maintaining their revenue streams. The cap on deposits and the ban on letting fees are expected to save tenants an estimated £240 million annually.

Challenges in the rental market

With so much money at stake, one of the primary challenges in the rental market is the prevalence of tenancy disputes.

Understanding the most common causes of tenant disputes is essential for property professionals to mitigate issues before they arise. Research indicates that property damage, cleaning maintenance, and redecoration disagreements are the main sources of rent-related disputes between a private landlord and tenant.

  1. Cleaning: This is the leading cause of disputes, making up to 50% of cases where claims arise, according to the TDS Statistical Briefing.
  2. Damage: 44% of dispute claims arise from disagreements over damage.
  3. Redecoration: Disagreements over redecoration, changing parts of the original condition, account for 27% of rental dispute claims. What one party considers normal wear and tear, another may view as unacceptable cleanliness standards.

For property professionals, these disputes can be time-consuming and costly. They often result in strained relationships with tenants and can lead to legal battles. Ensuring a detailed and accurate inventory at the start and end of a tenancy is crucial in making sure these disputes never get off the ground.

A clear record of the property's condition helps to resolve disagreements efficiently and fairly.

How Inventory Base can help to minimise disputes

Inventory Base offers a robust solution to this core challenge. The comprehensive features include professional inventories, check-ins and check-outs, interim inspections, and building inspections mean that property professionals can ensure transparency and accountability, protecting both landlords and tenants, too.

With Inventory Base, both parties have a clear reference point, which can be used to resolve disputes effectively.

But the Inventory Base platform is not just about protecting landlords; it also safeguards tenants. With a detailed inventory, tenants can ensure they are not unfairly charged for damages they did not cause.

This mutual protection fosters a more harmonious landlord-tenant relationship and reduces the likelihood of disputes escalating to legal action, which can be particularly troublesome for landlords.

Future trends and recommendations

Looking ahead, potential changes in deposit regulations and the growing need for digital solutions in lettings highlights the importance of platforms like Inventory Base. As the rental market continues to change, both landlords and letting agents must adapt to ensure fairness and transparency, accountability and consistency.

The trend towards digital solutions is set to continue, with more landlords and letting agents beginning to adopt property reporting apps like Inventory Base. These apps help to simplify the inventory process, making it quicker and easier to document the property's condition accurately.

For landlords, this means fewer disputes and more efficient management. And for tenants, it means peace of mind knowing their deposit is protected and the account of the property’s condition is accurate and fair.

Recommendations for property professionals are clear: adopt digital solutions like Inventory Base to ensure transparency and fairness in the rental process. Doing so will help all parties avoid costly disputes, building a stronger, fairer PRS.

Don’t underestimate the power of clarity

The importance of minimising disputes cannot be overstated. With rising deposit amounts and evolving regulations, property professionals must take proactive steps to safeguard their interests, and those of their client landlords.

Inventory Base can offer a solution, through detailed and accurate inventories that protect the interested of everyone. Embracing these digital tools will give landlords and letting agents a way to enhance how they manage properties, reducing the risk of disputes by achieving complete clarity around compliance.

What is the Social Housing (Regulation) Act 2023?

Social housing in the United Kingdom has long been criticised for its failings by campaigners working to raise standards for social housing tenants, though some believe that the results have often fallen short of expectation.

However, a new social housing law, known as the Social Housing (Regulation) Act 2023, is set to make several positive changes to the safety standards people can expect from social housing, and the new powers it grants the Secretary of State and the Regulator of Social Housing to bring negligent landlords to task (or face unlimited fines) is being welcomed across the board.

Although it passed into law in July 2023, the new Act won’t be enforceable until around April 2024 whilst new regulations and procedures are finalised.

Inventory Base is here to support landlords and agents across the wider property sector, so we’ll summarise the Social Housing (Regulation) Act 2023, including key information and updates, looking at the impacts of the reforms on all parties.

What is the Social Housing Regulation Act 2023?

This important piece of legislation looks set to improve the social housing sector according to the National Homelessness Advice Service (NHAS). The act centres on the management of social housing, which often accommodates the most vulnerable people in society.

Intended to protect tenants, there will be tighter regulation of social housing landlords with new social housing consumer standards that aim to avoid a property’s dangerous hazards impacting tenants.

Now enshrined in law, the Social Housing Act has crucially granted the Regulator of Social Housing powers to tackle social housing landlords “before people are at risk” and “holds landlords to account with regular inspections” according to the NHAS. The Secretary of State has also been given the authority to demand that social housing landlords examine and put right any hazards.

A history of the Social Housing (Regulation) Act 2023

There have been several stages of development leading up to the introduction of the Social Housing (Regulation) Act 2023.

In 2018, the UK Government published its Social Housing Green Paper: A New Deal for Social Housing, followed two years later by the Social Housing White Paper or The Charter for Social Housing Residents in 2020. Both shared the common aim of reforming social housing regulation for the better.

As Local Government Lawyer notes, the bill then progressed through Parliament and the different stages of the law-making procedure, where it underwent “a ‘patchwork’ of reform, plugging various gaps and picking up on some wider topical issues”. These positive developments reflect the intricacies of what social housing law should achieve and who it should protect.

As we will discuss, the Social Housing (Regulation) Act 2023 has also been shaped by tragic events that took place in social housing. Therefore, the many supporters of this new law will be relieved when the new consumer standards are enforceable.

The law looks set to come into effect on 1st April 2024, after allowing time for new regulations to be devised, meaning that landlords and their agents will be subject to its rules in mere weeks.

Updates to the Social Housing (Regulation) Act 2023

The Social Housing (Regulation) Act 2023 has three core objectives according to Trowers and Hamlins’ essential guide to this new social housing law.

The first aim is to “reform the consumer regulatory regime” with a more proactive approach to protecting social housing tenants. Therefore, the social housing Regulator will be given new statutory objectives, including transparency and safety, along with the necessary remit to intervene to achieve these aims.

The withdrawal of the ‘serious detriment’ test will also create an easier route for the Regulator to intervene in more cases where social housing falls below expected consumer standards. Previously, since 2011, they could only get involved if they had reason to believe that social housing tenants were at risk of serious detriment.

Its second objective is to “refine the economic regulatory regime” so that regulating consumer standards does not damage financial standards. Social housing providers in the UK must be “well governed and financially viable”, thereby refining the Regulator’s existing economic regulation role.

Thirdly, the Social Housing Act seeks to “strengthen the Regulator’s enforcement powers”. In real terms, they will be able to act using newly granted enforcement powers for more successful interventions regarding consumer standards, to emphasise how these benchmarks matter. It looks set to galvanise Registered Providers of social housing (RPs), social housing landlords and the agents that represent them, so they bring their properties up to a safe standard of accommodation.

A focus on tenant safety & Awaab’s Law

The inconsistent state of social housing across the country, including properties that feature dangerous hazards to life and health, has been brought to the public’s attention following widespread media coverage of two tragedies. The first to note is the Grenfell Tower fire of 2017, where 72 adults and children sadly lost their lives in a fire.

As cited in a BBC News article, Professor Luke Bisby listed multiple issues in his report to the Grenfell Towers public enquiry that contributed towards the rapid spread of the fire throughout the block of flats.

He said that “evidence ‘strongly supports’ the theory that the polyethylene material in the cladding was the primary cause of the fire’s spread”. He also drew attention to the vertical cavities within the cladding structure and insulation – here the evidence was inconclusive.

Similarly, fire expert Dr Barabara Lane stated that the installation of exposed gas pipes in 2016 was another factor, with all of the building’s flat doors failing to comply with up-to-date fire resistance standards.

Other failings included ineffective lifts which could have otherwise helped more residents evacuate and the non-working smoke extraction within the building. The absence of ‘wet riser’ pipes that could have provided fire crews with ample water supply once the fire broke out, was also heard.

Looking to the future, Shelter has highlighted how the Social Housing (Regulation) Act 2023 will ensure that tenants “are treated with dignity and respect by professional housing managers”. This is a basic human need and will provide a safe standard of care that is maintained.

The legislation has also been driven by the tragic passing of two-year-old Awaab Ishak. Caused by the effects of severe mould in his home in Rochdale, the subsequent campaign for ‘Awaab’s Law’ should act to shield other children and families from serious hazards.

As a legacy of the work of campaigners, the Social Housing Act will bestow the Secretary of State with the authority to create regulations that mean that social landlords must investigate and solve serious hazards within a specified period. Issues may include mould, fire safety and damp walls.

Boosting standards in social housing

The new consumer standards being applied to social housing look set to boost standards of accommodation. Unlike before, issues such as landlord transparency, staff qualifications for housing management and health and safety will be proactively prioritised.

It is worth noting that housing associations and other private registered providers already have inspections, unlike local authority social housing. Helping to achieve the Government’s aim of ‘Levelling Up’, introducing these regular new inspections can only be a good thing in driving away rogue actors from the property sector.

A clearer picture

In terms of landlord transparency, the Regulator will be able to create rules where social landlords are obliged to provide information about their services and the amenities and accommodations they manage. They may also have to report any non-compliance aspects and disclose their executive pay for clarity.

New staff qualifications

Unlike in the past, the Regulator of Social Housing will be able to set a universal benchmark of training which covers staff conduct and knowledge. Namely, a professional qualification for anyone who works in offering housing management services.

This echoes the recommendations presented by the Regulation of Property Agents Working Group (RoPA), which we reported on in our blog New Laws for Social Housing Managers. Senior managers and executives will need to obtain mandatory qualifications that might include a foundation degree.

Compliant Health and Safety

Another way to boost social housing lies with the Act’s announcement that social landlords need to hire a health and safety lead. They will act in an advisory role and make sure that the properties meet all relevant laws in terms of health and safety.

Working together

Two further strategies are being put into place. A Memorandum of Understanding is set to improve standards and avoid dangers within social housing. Co-managed by the Housing Ombudsman and Regulator, it will establish a more cooperative way of working.

Benefitting tenants by better handling their complaints, the law will require both bodies to discuss any proposed changes they are considering making to their standards, with the other. In conjunction with the Ombudman’s new powers to issue a statutory-based Complaint Handling Code, progress should be made to boost standards.

Likewise, the Social Housing Act demands that social landlords, the Secretary of State and advocates of tenants living in social housing, are represented within an advisory panel. Created by the Regulator, it will receive advice and relevant information regarding the issues that could significantly affect social housing and its landlords.

What next for the Social Housing Act?

The Social Housing Act is expected to come into force in spring 2024. With this in mind, now is the time for landlords, responsible persons and housing associations/agents to take action to ensure safe living conditions are in place across the board.

The sector will need to achieve considerable professionalism, even beyond its current standards, with qualifications to provide a more accessible, accurate and informed service.

The Government has stated that the “intent of this Act is to reform the regulatory regime to drive significant change in landlord behaviour to focus on the needs of their tenants”.

Social housing landlords, therefore, will need to be fully up-to-date and aware of their obligations. If agents know what they can expect, they can also help to meet this statement’s concluding promise to “ensure landlords are held to account for their performance”.

How Inventory Base can support you

Whether you are operating in social housing or the PRS, our property inventory and inspection templates can help you keep up to date with your growing list of obligations. Schedule your demo to learn more about our award-winning software for landlords and agents.

OPSS Gas Safety Intervention: What Does it Mean for Landlords?

Gas safety should never be ignored. 25% of all UK properties – that's 7 million homes – are thought to include dangerous gas appliances which could expose tenants to the risk of burns, poisonous gas leaks and fires.

It goes without saying that landlords need to know their legal responsibilities in terms of booking gas safety checks, but the outcomes of a recent intervention by the Government have brought about change.

Enacted by The Office for Product Safety and Standards (OPSS), 2023 has seen more than ten gas hob companies added to a gas hob safety list. Rather than confirming their safe nature, these new additions signal potentially faulty (and even fatal) gas appliances where corrective action is urgently required.

Adding these hob manufacturers to the gas hob safety list has implications for landlords and agents too. Affecting how they can legally conduct gas safety checks, always through a qualified professional, this article will address their concerns. A special focus will also be given regarding what regulations now say about the importance of gas-safe hobs.

Background of the gas hob safety list

The gas hob safety list was created following several incidents that concerned gas safety. These included an explosion at the Pershore-based Eckington Riverside Caravan Park in April 2023, where one person suffered serious burns as a result.

An investigation by The Office for Product Safety and Standards (OPSS) found that the accident arose from poor gas safety, specifically faulty elbow joints. The OPSS concluded that these sections of pipework, which connect many models of the hob to their gas supply, “could give rise to serious risk of poisoning, burns or gas explosion and/or fire”.

Something urgent had to happen to protect not only those enjoying a holiday at such locations but also everyone living in gas-connected homes throughout the country.

An update to the gas hob safety list

In response, The OPSS handed out Suspension Notices in July 2023 to stop the affected gas hob models from being sold. Later, by September 2023, Westminster had added a total of suppliers to the gas hob safety list following several gas safety incidents.

The eleven original suppliers concerned are as follows:

As a result, the public is being advised to check whether their gas hob appliances were manufactured by the companies which produced the models of gas hobs identified as a possible risk. Consumer website Which.co.uk reported on the Government’s intervention, noting that “The companies will conduct in-home visits to address affected hobs and ensure their safety”.

It also advises affected persons to visit the relevant manufacturers’ websites for more information about these corrective action programs being offered.

What does this mean for landlords and agents?

Landlords should continue to be vigilant in terms of maintaining and scheduling gas safety checks with appliances, including gas hobs. Just as before these developments arose, landlords and agents will have to continue to be proactive in ensuring that they comply with the safety-related rules and regulations that govern renting out a property. This information is covered in the next section for your reference.

However, the fact that The OPSS has identified and intervened to remedy the risk of this issue suggests that the Government may be looking to protect consumers by cracking down harder on landlords and agents who fail to ensure the health and safety of their tenants.

Hoping to avoid tragedies going into 2024 and beyond, the OPSS has made a plea for householders to double-check whether their gas hob needs corrective action. However, as landlords and agents, you should contact your tenants to ensure that they are not living with a faulty gas hob connector as soon as possible.

Your tenants may be unaware of the safety developments that have taken place this year. As the Propertymark website states, “It is also your responsibility to make sure that any gas pipework in the property is maintained and kept in a safe condition” as well as the mandatory annual gas safety check. So taking proactive action is wise for everyone’s peace of mind.

How to take action for safety

Access the product safety reports and freephone contact telephone number for the 12 brands of gas hobs affected here. They are:

Each provides an elbow joint corrective action programme. If in doubt, landlords will need to have their properties checked by a suitably trained Gas Safe Register engineer to ascertain that the safety of gas hobs within the properties they rent out is not undermined by a faulty elbow joint on the affected models. They can also remind their tenants to “be vigilant” and advise them to contact the National Gas Emergency Helpline for their region (listed here) should they smell gas or feel worried about the safety of a gas hob.

Seek recognised support from Safe2

Always looking to support our landlord and agent clients on matters of safety by establishing industry partnerships, 2021 saw us team up with integration partner Safe2.

The leading provider of property safety certificates throughout the UK, landlords and agencies have been accessing the skills and services of qualified and insured gas safety engineers via the InventoryBase Workstreams network ever since.

Commenting on the developments discussed above, Safe2 has reiterated that “Gas safety is paramount, and at Safe2, we take this responsibility seriously. We recognise and emphasize the significance of ensuring safe product installation and operation for the well-being of both landlords and tenants. In light of recent developments, we acknowledge the efforts of the Office for Product Safety and Standards (OPSS) in identifying potential risks associated with gas hobs”.

“In collaboration with other reputable brands, Safe2 supports the corrective action program initiated by OPSS. We are committed to delivering gas safety certificates to landlords and will work diligently to pass on the necessary information to our trades. It is crucial that everyone in the industry works together to prioritise safety.”

The importance of gas safety: rules and regulations

With around 40 deaths in England and Wales linked to carbon monoxide each year according to The National Institute for Health and Care Excellence (NICE) figures, ensuring gas safety remains paramount. Therefore, we wanted to cover the importance of gas safety for landlords.

Inventory Base’s recent coverage of Gas Safety Week 2023 discussed landlords’ gas safety obligations. In summary, landlords must follow the Gas Safety (Installation and Use) Regulations 1998 (GSIUR) to ensure that all gas appliances and fittings are safe to use and remain well-maintained. Including pipework, checks should also be made to flues and should only be undertaken by Gas Safe registered engineers.

Also, the National Residential Landlords Association (NRLA) notes that it is a criminal offence to neglect your responsibility that the property you rent out is safe to live in. Failure to provide a gas safety record is a criminal offence and can result in unlimited fines, six months in prison or enforcement actions.

These consequences affirm that gas safety checks need to happen every 12 months to spot potential hazards and prevent accidents. Indeed, the law requires that a Gas Safe registered engineer conducts an annual gas safety check on all relevant appliances including hobs.

They will then provide a record of this visit and the vital landlord gas safety certificate, the CP12, in your Landlord Gas Safety Record. Offering reassurance, a qualified engineer will conduct checks on their gas safety checklist so that all parties are reassured that everything is safe to use.

Given the importance of landlord gas safety checks, it is your responsibility to ensure they are completed on time. However, should your tenants refuse access, the Health and Safety Executive (HSE) has previously confirmed that they won’t take legal action against landlords that have made three “genuine efforts” to access the rental property, according to the NRLA.

It recommends keeping written records of all attempts including how access was prevented or including a clause of access for repairs when preparing a tenancy. A minimum written notice of 24 hours is required under Section 11 of the Landlord & Tenant Act 1985, which permits inspections to gauge whether repairs are needed.

Book an Inventory Base Demo

Rely on InventoryBase to support your journey as a landlord or agent, including when new developments such as the OPSS intervention transpire. We can assist you when it comes to ensuring gas safety in a property through our partnership with Safe2 and have many safety checklists and inspection templates as part of our platform.

Discover how we can help your business comply and grow by scheduling your demo via the button below.

Landlord Checklist: Documents, Guides and Reports for Landlords

Being a landlord can feel overwhelming at times. With various legislation and procedures to follow to the letter, many wish they had a bit of a helping hand, a document to guide them such as a landlord checklist. Thankfully, there is help available to keep you on the right side of legislation, whilst at the same time helping you build lasting, successful relationships with your tenants.

The Portsmouth & District Private Landlord’s Association (PDPLA), established in 1985, has created a free landlord checklist for renting a property in the UK, which we’ve summarised in this helpful guide for landlords. The landlord checklist details the documents you’ll need to provide, along with pre-tenancy, new tenancy, during the tenancy and end-of-tenancy tasks, as well as helpful websites for landlords.

As an association formed to represent landlords, they understand the concerns and needs of PRS landlords. However, it should be noted that this list is not exhaustive and does not constitute legal advice.

Landlord Checklist

Having the right documents as a landlord is important to protect not only your tenants but yourself and your business. Crucial for ensuring everyone’s safety and compliance with the law, knowing what needs to be in place (ahead of time) is key. This can avoid fines or legal action further down the line, providing welcomed peace of mind.

However, the UK estate agent Chancellors suggests you should first confirm whether you’re allowed (by law) to rent your property. Typical mortgages allow lending for the occupation by the named persons only, and buy-to-let properties could still have certain restrictive terms regarding the tenants or tenancy you want to advertise.

Once this research has been undertaken, it’s time to follow the PDPLA’s landlord checklist for renting a house or apartment.

Property Documents

Every tenant has the right to live somewhere clean, safe and fit for habitation. As a responsible landlord, you’ll naturally take pride in meeting these needs by having the correct paperwork in place.

Therefore, having the following certificates on the PDPLA’s landlord checklist is non-negotiable:

Tenant Documents

This group of documents is helpful to both landlords and their tenants. It includes fundamental arrangements covering the terms of the Assured Shorthold Tenancy Agreement, GDPR Privacy Notice and the tenant’s deposit (if applicable).

You should have these documents to hand, so everyone is clear on the nature of the tenancy:

Other Documents

To continue meeting best practice standards, it’s also important to pay attention to the financial, tax and data-related aspects of being a landlord. Here, the PDPLA includes an extra landlord compliance checklist for associated documents.

The things that should feature on your landlord document checklist include:

What to do before, during and after a tenancy

Moving is recognised as one of the most stressful life events. At Inventory Base, we believe that this extends not just to tenants but also landlords. Discover your requirements (and practical tips) in the following four landlord responsibilities checklists (compiled by the PDPLA) that cover the entire rental cycle.

Pre-tenancy landlord checklist

Getting started on the right footing can make for a smooth tenancy. That’s why it’s important to give your property the very best chance of attracting good tenants. This pre-tenancy landlord checklist for new tenants includes setting the right first impression and finding a cost-effective letting agent.

Here’s what the PDPLA suggests for the first phase of renting out a property:

New tenancy landlord checklist

Making the beginning of a tenancy go smoothly sets the tone for your long-term agreement. However, when choosing a tenant, there are several things to confirm, sign and set up.

These important steps include:

During a tenancy

Now that a tenant is in place, the priority is to maintain the rental property and communicate clearly in terms of arranging inspections as well as gas and electrical safety checks. In turn, the tenant needs to acknowledge they’ve received any documents.

The PDPLA issues the following advice regarding what to arrange, including three key questions for a landlord inspection checklist:

Your landlord inspection checklist needs to consider:

You’ll need to give them at least 24 hours’ notice before the inspection can be undertaken.

End of tenancy

When a tenant gives notice that they’ll be leaving the property, it’s important to continue exercising best practice. Here’s a practical landlord checklist when a tenant moves out:

FAQS

What do I need to give tenants when they move in?

What other information is useful for my tenants?

Help your tenants settle in by providing the following details:

Conclusion

With plenty of handy tips, the PDPLA checklist is worth exploring by landlords with any level of experience. For help managing and organising the hundreds of forms and checklists, Inventory Base’s features, dashboards and document storage are a game changer.

Book your demo with one of our team members today.

Can landlords refuse to rent to families?

Landlords in the private rented sector (PRS) may have many concerns when renting out their property. Will the tenant have pets? Are they financially secure? Do they have children?

However, recent developments mean that landlords and agents must tread carefully when advertising a property for rent and assessing tenancy applications from families.

There is a strong need to navigate potential discrimination implications backed by legislation and a recent ruling from the Property Ombudsman. Otherwise, landlords could find themselves having to go to court or pay compensation to the tenants with children whose applications they reject.

In this article, we will explore the issue of renting to families balanced with fair housing practices. We will take a look at what these challenges mean for landlords when letting a property in practical terms as well as provide guidance on how to comply with best practices.

What the law says about renting to families

The majority of landlords want to rent their property fairly and not discriminate against potential renters in any way. After all, tenants with dependent children are usually reliable when paying their rent, constituting 1.7 million of the 4.7 million homes within the rental sector in 2019. This represents a sizeable pool of potential tenants.

But the need to avoid direct or indirect discrimination is not only a question of fairness. It is enshrined in law through The Equality Act 2010. This wide-reaching legislation is clear on the situation of renting a property to families in England. It includes a section which specifies that a landlord or agent must not unlawfully discriminate against a person on the basis of a protected characteristic.

Protected characteristics include the tenant’s sex, race and religion as well as any disability. Therefore, landlords need to show that they have not advised the agent to apply blanket bans (in writing or verbally) which means it’s harder for families to be successful in their application. Landlords should not include rules such as “no children” or any terms that would exclude children and their families from renting such properties.

That is not to suggest that families must be considered before other groups. Ultimately the decision of whether to let a property to a specific applicant(s) that happen to have a family, remains with the landlord. However, they must not make it more difficult for tenants with children to be successful.

With the Renters’ Reform Bill expected to pass into law, landlords will no longer be able to refuse tenants with children.

Different types of discrimination

As well as harassment and victimisation, the Equality Act 2010 bans two forms of discrimination that landlords, and the agents acting on their behalf, need to be aware of when advertising and assessing the applicant’s suitability for viewings/renting.

First of all, ‘direct discrimination’ is seen to have taken place when a landlord has intentionally treated a category of applicant (here a family) less favourably than others because of a protected characteristic. Secondly, inadvertently putting a family at a disadvantage when applying for a home via a policy that excludes them, would qualify as ‘indirect discrimination’ however unintended this might be.

Rarely is direct discrimination found to be acceptable under English law. However, the indirect form might be permitted if it is reasonable, proportionate and serves a permitted purpose. An example of this purpose would be where a property does not have enough bedrooms. Landlords have a responsibility to not let out an unsuitable or crowded property and so refusing a family would be justified here on safety grounds.

A relevant case

Crucially, whilst families do not have protected status under the Equality Act 2010, landlords need to tread carefully and fairly consider each application submitted by those with children. A recent ruling by The Property Ombudsman in March 2023 found that several letting agents’ blanket bans on renting to a family not only went against its code of practice but discriminated against women.

A mother of four and her husband were looking for a new rental property after finding themselves homeless. This occurred after a Section 21 ‘no-fault’ eviction notice had been issued to them in their previous property. Whilst they could prove that they were able to afford the rent, they were still unable to secure a rental home after multiple landlords/agents had rejected their applications.

The Property Ombudsman declared that these “no children” bans contradicted its code of practice as such cases disproportionately affected more women than men. Generally speaking, more women will have children living with them. This makes the process tougher for families, as it could be viewed as indirect discrimination towards the applicant’s gender.

If seen to have discriminated either directly or indirectly, landlords in the private rented sector could face financial implications. Compensation may be payable to applicants if landlords and agents are seen to have broken the Equality Act 2010.

What are the renters’ rights?

As 19% of parents have been unable to rent somewhere they wanted in the last five years because they have children, this issue is gaining prominence. More and more emphasis is being placed on preventing discrimination in housing.

The Equality Act 2010 can be applied to blanket bans on renting to families. This means that landlords in the private sector have to be open-minded and fairly consider applicants with families. Making the process tougher for families could be viewed as indirect discrimination towards the applicant.

Renters with children should have their tenancy applications shown the same consideration as other tenants would be given. Therefore, landlords and the agents they instruct, need to show an objective approach and decide on other factors such as credit checks and referencing from previous landlords.

Preventing discrimination

Landlords should consider each enquiry and applicant, including those with children, fairly to stay within the law. Assessing each family’s application objectively on an individual basis using the same criteria for all potential tenants, could help to avoid legal action.

Adequate records of how they assessed each applicant should always be kept for protection against legal action further down the line. This process helps to form fairer housing practices and helps landlords to comply with best housing practices.

Landlords should never instruct their agents in any way to dismiss those with children from viewing the property. This applies when first enquiring on the phone and after submitting a tenancy application.

Furthermore, if you are dealing with prospective tenants as a private landlord independent from agents, applicants will not always be able to challenge your decision and claim discrimination. The reason for this is that PRS landlords are not compelled to follow regulations in the same manner.

Promoting a greater awareness of housing law among landlords is vital to the operation and reputation of the sector. It also ensures that all parties, landlords and future tenants work within the parameters of the law. This article goes some way to highlighting the major points that PRS landlords have to consider when selecting tenants for their properties.

Conclusion

Recent events relating to the Equality Act 2010, The Property Ombudsman ruling and the Renters’ Reform Bill, mean that issuing blanket bans on families with children could have severe financial and reputational implications for landlords.

However, potential fines and legal action can be averted by looking at tenants’ merits on a case-by-case basis (including those with children), diligently keeping records and ensuring that, as a landlord, you are fully versed in regulation and best housing practices.

This approach will provide access to safe housing for tenants and their families, ultimately leading to better retention rates for landlords, while at the same time building trust in the Private Rented Sector.

Book a demo to see how Inventory Base can support you as a landlord once you have your tenants in place.

Gas Safety Week 2023: Landlord obligations and frequently asked questions

It’s Gas Safety Week!

Now in its thirteenth year, Gas Safety Week is a cross-industry event running from 11th to 17th September, aiming to keep the nation gas safe and raise awareness of the importance of gas safety.

Property professionals such as landlords and lettings agents need to be aware of the legalities when renting out properties in the private rented sector properties, so we’re on hand to support professionals.

In this blog, we’ll discuss what this yearly event means for professionals in the sector, exploring its importance and outlining landlords’ legal obligations. You’ll also find the answers to some frequently asked questions regarding gas safety.

What is Gas Safety Week 2023?

This year’s Gas Safety Week takes place between 11-17th September 2023. It strives to educate everyone across the country on gas safety alongside the necessity of properly maintaining their gas-powered appliances, to avoid hazards, accidents and worse from happening.

Organised by the Gas Safety Register, a resource that shows the UK’s official list of gas engineers permitted to maintain gas-powered household items, this year the emphasis is firmly placed on industry-wide collaboration to keep people safe in their homes.

Gas Safety Register describes this annual event as a vital campaign to ensure the nation is aware of the importance of gas safety. This year, they’re urging homeowners and tenants to be vigilant for certain warning signs, such as dark, sooty stains or “lazy” yellow flames. All are potential signs of a carbon monoxide leak, alongside window condensation and a boiler light that goes out.

In an article by the Express, some startling statistics from British Gas research were brought to light. One in four homeowners don’t feel confident spotting signs of a dangerous gas leak, for example. Moreover, a study of 2,000 adults found just 18% would attribute discolouring in their walls to a leak.

But the real takeaway that landlords and other property professionals should take on board is the fact that 22% are putting themselves at risk due to not having a carbon monoxide alarm installed.

Why is Gas Safety so Important?

There are a number of reasons why maintaining gas safety is extremely important. We’ll explore a handful of those below.

1. Carbon monoxide symptoms

Carbon monoxide leaks can cause a number of debilitating symptoms that include nausea, feeling dizzy, struggling to breathe, headaches and collapsing. People can also be misdiagnosed with depression due to a gas leak. It’s difficult to detect this poisonous gas due to the fact it is odourless and has no particular taste.

2. Deaths in England and Wales

Whilst experiencing any of these symptoms can limit the health of those living or visiting the property, the unfortunate truth is that the health implications of carbon monoxide poisoning can be fatal.

The National Institute for Health and Care Excellence (NICE) states that in England and Wales, approximately 40 deaths are reported each year due to carbon monoxide poisoning. In addition, there are around 4,000 attendances at accident and emergency departments in England for treatment of carbon monoxide poisoning every year.

These could all be potentially averted with yearly gas safety checks, working carbon monoxide alarms and a greater public awareness of the symptoms. All are issues which this Gas Safety Week seeks to highlight.

3. Damage to property

Faulty gas appliances and inadequate ventilation are other factors that can cause damage to the landlord’s property, as well as the tenant’s belongings. A lifetime’s collection of items or a home with sentimental value to the landlord may be lost due to a carbon monoxide explosion or fire.

This can be devastating for both parties, so Gas Safety Week serves as a reminder for tenants, landlords and homeowners that their gas appliances require adequate ventilation to avoid such outcomes. But what does this mean for residential properties in the UK including the landlords and professionals operating in the sector?

What are landlords’ gas safety obligations?

Given the disastrous costs of poorly maintained gas appliances and systems, the Gas Safety (Installation and Use) Regulations 1998 (GSIUR) plays an all-important role in ensuring safety within residential properties.

In a previous Inventory Base blog, Landlords – What are your gas safety responsibilities?, we discussed how all PRS landlords need to adhere to these regulations with a legal duty to ensure the safety of the gas fittings and appliances in rented properties.

Landlords have a duty to maintain the safety of gas appliances, pipework leading to gas appliances and flues from gas appliances. This duty involves an annual inspection of all gas appliances and systems, which should always be completed by a qualified gas-safe-registered engineer, after which the homeowner will receive a gas safety certificate.

While the regulations were amended in 2018 to give more flexibility to landlords when it comes to the renewal of gas safety records, it’s still important to have copies of the gas safety certificate.

A landlord may also request that their engineer does a tightness test on the gas system besides visually inspecting the pipes to rule out damage. Propertymark recommends this additional measure in between separate tenancies as installation pipework is not covered by an annual gas safety check.

The cost of poor gas safety

Any landlord who fails to arrange a provide a gas safety record can face serious consequences. Classed as a criminal offence, landlords can be liable for unlimited fines and/or six months in prison. Other enforcement actions they might face include things like prohibition or improvement notices or even emergency remedial action by the local authority.

To avoid potential issues, landlords can now access a helpful reminder service on the Gas Safe Register website free of charge.

Gas Safety FAQs

Can an engineer other than a Gas Safe registered engineer carry out a gas check?

The answer is a resounding no. The Health and Safety Executive states that any landlord/agent would be going against regulations if they hire someone else to conduct the check. Landlords must only use a Gas Safe registered engineer for maintenance and safety checks on gas equipment they own and provide for tenants’ use in domestic premises.

Does my tenant need a carbon monoxide alarm?

By law, rental properties in England now have to have a working carbon monoxide alarm fitted in each room that houses a combustion appliance (not including gas cookers). With safety on the line, its vital that you install sufficient carbon monoxide alarms to remain compliant and keep tenants and their visitors safe.

Is there anything else to consider?

Yes, and it’s critical. Landlords or those managing a property for them, should always double-check the reverse side of their engineer’s Gas Safe Register card to ensure they are suitably qualified for the specific gas safety checks/works being undertaken.

Streamline your Gas Safety Inspections with Inventory Base

With an ever-increasing range of templates and reports designed to keep you gas-safe, why not join the property professionals and contractors using Inventory Base to keep properties safe and compliant?

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HMO Licence: Everything you need to know

Last month it was reported that only 600 applications for HMO licences had been received by Sefton Council from private landlords and agents. With the deadline of the end of August fast approaching, the Merseyside authority stressed the regulatory powers it holds to step in and deal with what it called “poor [property] management and the thousands of hazards being faced by tenants.”

Councils can set their own rules when issuing HMO licences, in the hope that the quality of Private Rented Sector (PRS) housing stock is increased, while at the same time elevating the reputation of private landlords. This local initiative in Sefton is one of over 100 Selective Licence Schemes (SLS) found across the country today.

In this article, we’ll introduce the essential information for landlords and agents regarding the fundamentals of HMO licensing, helping them to understand their responsibilities and not fall foul of any regulations and laws.

What is a HMO licence?

The term Houses in Multiple Occupation (HMO) refers to a rental property located in England or Wales that is let to several people. However, unlike family homes, these tenants are not classed as a single household, and they often share common areas, like kitchens, toilets or bathrooms.

Depending on the council where the property is located, house shares can qualify as HMOs with a different number of tenants. However, a large HMO of five or more house sharers will mean that it is mandatory to obtain an HMO licence before letting the property.

The gov.uk website stipulates that these properties are rented to a minimum of five people who share the above facilities and where one person or more is responsible for paying rent. There are however situations where letting a property to fewer people – more than two and not a family – would qualify as needing an HMO licence. This would qualify as ‘additional licensing’. In addition, other areas require every private landlord to obtain an HMO licence, known as ‘selective licensing’.

The UK Government’s site features many resources, including a useful postcode checker that allows landlords and their agents to confirm the minimum numbers for their area, highlighting any rules or regulations specific to the relevant local council.

It is important to consult the Government’s guidance before renting a property, as an HMO licence now needs to be in place to stay within the law.

In 2018, we covered the changes to rental properties that needed HMO licences. At the time, the number of properties classed as HMOs rose significantly, subsequently falling under the mandatory licensing scheme.

The rules, which had been approved by Parliament, meant that properties of any height which are occupied by five or more people from at least two different households will need the mandatory licence.

Before this, the scheme only applied to properties of at least three storeys. But the new ruling in 2018 added a further 160,000 properties to the licensing program, including flats and bungalows.

How does HMO licensing work?

Both landlords and agents that manage rental properties need to be clear on how HMO licences operate. Councils can impose a benchmark of landlord and residential conditions including mandatory national minimum sleeping room sizes and waste disposal provision requirements, under the Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) Regulations 2018.

As described by Shelter, these minimum bedroom sizes are set at 4.64 square metres (for children under 10 years old), 6.51 square metres (for a person aged 10 or over) and 10.22 square metres for two people aged 10 or over.

Again, it’s important to stress that these numbers can vary from council to council, so it is recommended that prospective HMO landlords confirm with them as to who can occupy the rooms in the property.

Ultimately these health and safety guidelines help landlords understand which tenants they can accept in their HMO property and avoid overcrowding.

Where five or more people are sharing a house or flat, HMO properties must have an adequate number of rubbish bins to maintain living standards. Communal areas need to be maintained and kept clean. There should also be sufficient washing and cooking facilities to obtain an HMO licence.

Ensuring the safety of the tenants should be prioritised, with fire safety measures such as fully-functional smoke alarms, annual gas safety checks and electrical checks undertaken every five years. Some councils will expect these minimum standards before granting HMO licences in properties with fewer tenants, too.

Councils also assess HMO licence applications in terms of the landlord’s character. Checks are made to assess whether they are a ‘fit and proper’ person. Their character and any convictions can result in the council not granting an HMO licence. Equally, the council has the power to remove an HMO licence should they be given a criminal conviction or the landlord breaks the codes of practice.

Landlords that own several properties which qualify as HMOs must obtain an HMO licence for each individual property. An HMO licence is non-transferrable should the property be sold. It lasts five years, once awarded, in most council-run areas and landlords or agents must reapply before this period ends. However, this too can vary depending on the specific council.

In the granting of a licence, a risk assessment will be undertaken by the appropriate local authority or council. Conducting a Housing Health and Safety Rating System (HHSRS) risk assessment within five years of receiving a licence application ensures that the property is suitable to accommodate multiple households. Here a ‘household’ is defined as families, single people as well as couples who live together or are married.

Any health and safety issues identified by the council’s inspector will need to be resolved to remove any hazards. This also ensures that a property is safe for tenants and seeks to remove rogue landlords from the market.

HMO licence scheme UK

How much is a HMO licence?

HMO licence costs depend on which local authority their HMO property is located in. Examples of these figures can be found on the HMO hub website, with Your Move suggesting that the amount landlords are expected to pay usually being £500 to £1,500. Landlords and their advising agents also need to be aware that there is an application fee to be paid.

In a previous article, we reported that the expanded pool of 160,000 additional properties needing to obtain a HMO licence would generate an extra £120 million in the first year. This would then level off at £80 million every five years afterwards, due to HMO licence renewals.

Which HMOs don’t need a licence?

Landlords Defence highlights how purpose-built flats are exempt from needing a HMO licence. Buildings with more than two self-contained flats shouldn’t therefore need HMO licences, in theory. Yet, those councils that have selective or additional licensing schemes will still require landlords to apply for a HMO licence, so be mindful.

On the matter of private student housing, this will usually be classed as an HMO unless it is owned by an institution such as a college or university.

The risks of avoiding a HMO licence

It goes without saying that landlords have a moral and legal responsibility to follow legislation and council rules, just as any other business owner would. After all, a HMO is a business, so a HMO licence is designed to ensure the safety and welfare of tenants, while at the same time protecting landlords and the agents managing their properties.

Governed by the Housing Act 2004 and other laws, there are no upper limits in terms of how much these parties can be fined for letting out an HMO property without a licence. The National HMO Network stresses that, aside from the financial implications, risks include banning orders, confiscation of goods/property under the Proceeds of Crime Act, and even imprisonment.

It also stresses that non-compliant landlords may also have to repay rent – known as a Rent Repayment Order (RRO). This applies to rent paid by tenants or by local authorities in housing benefits during a maximum 12-month period.

These potential consequences are intended to deter rogue landlords from offering substandard accommodation. However, we reported in 2020 how the Residential Landlords Association has claimed that criminal and rogue landlords would simply ignore the scheme, similar to how other rules were ignored by “bad landlords.” Although views towards HMO licences remain mixed, it seems unlikely that the majority of landlords would risk the penalties outlined above.

In addition to the changes in the previous years, the addition of a further clause was laid out, meaning non-criminal action may also be brought against landlords and their agents. Fixed penalty notices were introduced under revisions to the Housing Act 2004, in the form of the Housing and Planning Act of 2016.

With the scope granted to issue this civil route and give non-compliant HMO landlords fines of up to £30,000, there really is little incentive to ignore HMO licences.

Inventory Base helps you manage your HMO licence

Landlords and agents can use Inventory Base’s HMO audits and block management reports to ensure that their HMO properties comply with the regulations surrounding HMO licensing.

Book a demo today to find out more about protecting your HMO investment.

The 5 Signs of Mould Toxicity

Landlords, property managers and inventory professionals need to understand mould toxicity and the effect it can have on their investment and those living within their property.

With increasing emphasis being placed on regulating and legislating against this often toxic substance, a series of news stories and amendments to the Social Housing (Regulation) Bill means landlords cannot overlook this red-hot topic if they’re to continue to meet best practice guidelines.

This article will cover what mould is, the legal repercussions, how to identify mould and damp in a property, as well as the signs of mould toxicity and how to eliminate mould.

What is mould and how is it toxic?

Black toxic mould is probably the most recognised variety in a property and can appear as black or dark green spots on floors and walls. According to experts, it appears following conditions of moisture, oxygen, temperatures between 4.4-38 degrees Celsius and paper or drywalls.

Found in damp areas of the home such as windows, showers and walls, particularly during the winter months, mould can multiply rapidly within a property. Deemed toxic, this fungus has spores which are released into the atmosphere, which are then inhaled, swallowed or transferred via the skin. They can be brought inside on clothing or other means, meaning your property is always susceptible.

Health issues for your tenants can arise from this exposure, with mould often described using three categories. These are allergenic moulds, pathogenic moulds and toxic moulds, the third of which creates hazardous mycotoxins or harmful chemicals that can, in worse-case situations, cause long-term illnesses or aggravate mould allergies, respiratory conditions such as asthma, or affect those with a weakened immune system.

With several tragic news stories affecting the property landscape in recent years, the issue of preventing and treating mould toxicity is now a legal responsibility, rather than merely an ethical one.

What are the legal repercussions of mould?

If you let, manage or compile inventories for properties, it’s vital to be vigilant for mould to prevent the financial and legal implications seen in a number of recent cases.

In June 2023, the Daily Mail reported how Eastbourne Borough Council was ordered to compensate a tenant £2,500 in damages and complete necessary repairs to her downstairs toilet, after failing to address the considerable mould that had built up in the room over a three-year period.

At a total cost of £3,000, this high-profile case covered in several publications reinforces the need for property professionals and landlords to address mould before it becomes a serious problem. The sum initially invested in preventing and treating black mould can save costly legal repercussions and bring peace of mind to landlords.

The sad case of Awaab Ishak, a two-year-old boy whose death was caused by the damp and mould in his home, which was managed by Rochdale Boroughwide Housing, is another tragic example of mould and damp’s side effects.

Named in his memory, Awaab’s Law will reflect amendments to the Social Housing (Regulation) Bill whereby social housing landlords are to investigate and fix damp and mould in their properties within stricter time limits. Awaab’s Law is currently in the final stages of becoming legislation and should receive Royal Assent to come into force this year.

This amendment to social housing laws accompanies the UK Government’s new announcement that social housing managers must obtain a professional qualification, which we discussed alongside criticism of these changes from the Regulation of Property Agents Working Group (RoPA).

Whilst the legislation will not affect the private rented sector (PRS), Alice Kennedy the Director of Generation Rent, is calling for this to be applied there too. She says “The government needs to take the issue of mould and damp in privately rented homes far more seriously”.

For landlords and property professionals outside of the social housing sector, it’s worth bearing in mind that similar legislation could be introduced to govern the PRS at a later date.

How to identify mould and damp in your home

Landlords should be on the lookout for signs of mould. Potentially damaging the floors and walls of their properties, The English Housing Survey 2021-22 identified damp in 11% of PRS buildings, highlighting the need to manage mould and damp from its onset.

Checks for these two substances can be carried out by agents or inventory professionals whilst they create their inventory reports in between tenancies. Landlords should then take the opportunity to look out for the key signs of mould and dampness during their regular property inspections, once the tenants are living in the property.

Inspect walls and floors, around windows and in all bathroom spaces as these naturally damp areas of a property can harbour the telltale signs of mould (black and other coloured spores). Be alert to musty odours and rotten smells which may be a result of chemicals such as volatile organic compounds as outlined in Fitness for Human Habitation and Housing Health and Safety Rating guidelines.

Stained or pungent carpets can also suggest that the property has mould and damp issues. Peeling bubbled paint or warped wallpaper could also be evidence of these concerns, so it’s worth checking the state of the decoration during each inspection. Bathrooms can reveal mildew and mould on their tiles and dark grout, just as their extractor fans can harbour spots of black mould and require frequent cleaning.

The 5 signs of mould toxicity

Not only do properties give away distinctive signs of mould and dampness. They can also cause a number of health complaints for the people living there. Sometimes referred to as ‘sick building syndrome’, there are 5 key signs that suggest your property needs to be treated for mould. Otherwise, you could find a high turnover of tenants, if not legal action.

One sign is feeling tired for no reason all of the time. Fatigue can happen to those occupying a property as a result of toxic mould. Not everyone in the same home will experience this symptom but it can significantly impact tenants’ energy levels.

Other signs of mould toxicity are hayfever-like symptoms or prolonged allergies that refuse to subside. This can affect people who’re exposed to mould as well as those with or without pre-existing allergies, who find that their eyes sting and water after prolonged time spent in the property.

Similarly, a congested or runny nose, sneezing, coughs and colds can be brought on by a rental home that has mould. As with the last sign (allergy-like symptoms), these will worsen if tenants spend long amounts of time there, such as remote workers spending all day in their rented property.

The next sign is often overlooked, but tingling or uncomfortable skin can be another sign of mould toxicity. Spread via clothing and onto skin, tenants who develop an allergy to the mycotoxins found in black mould will find that their body is reacting to its release of histamines in the form of burning sensations.

Asthma can also flare up more severely in homes with mould and damp surfaces. Spores can find their way into the resident’s lungs to irritate and inflame. There are rare but acute cases of allergic bronchopulmonary aspergillosis being triggered by mould toxicity.

How to eliminate mould from your property

As prevention is better and more financially viable than the cure, Inventory Base has addressed the removal of mould in a number of blog posts.

Our guide How to Prevent Mould and Damp outlines the best tactics for tackling these pesky situations. Also, consider equipping your tenants with the information they need to prevent mould by sharing our Advice for Tenants About Mould article.

Should mould spores appear, three quick tips for treating mould, which are covered in more depth in our Winter Mould article, are as follows:

1. Open windows regularly: Allow air to circulate especially in damp areas like kitchens and bathrooms.

2. Consider a dehumidifier: In rooms with limited airflow or stubborn mould infestations, a dehumidifier help remove excess moisture.

3. Choose anti-mould paint: Once the mould has bene removed apply paint to treat existing mould and prevent future growth.

Stay on top of mould and damp with Inventory Base

It’s always the smart choice to stop mould and damp spreading throughout the structure of a property to ensure the longevity of your investment.

Using the Inventory Base inspection app to log the signs of mould during each property inspection could help avoid the legal and financial consequences of mould toxicity and property damage.

By proactively monitoring the signs and taking steps to eliminate mould growth, you’ll stay on the right side of compliance and keep your tenants safe and happy.

Find out more by booking a demo.

How Will the Renters Reform Bill Impact Lettings Agents?

With its origins in 2019 and uncertainty brought on by a series of delays, many parties in the property profession, including letting agents, thought that the proposed Renters Reform Bill (RRB) had been postponed indefinitely.

However, recent announcements made in May 2023 have shown that this piece of legislation is firmly on the Government’s agenda.

Bringing sweeping changes to the shape of the residential market in the UK, property professionals have naturally wondered how these seismic reforms will affect them and their lettings agency practice.

Here at Inventory Base, we’re here to answer your questions so letting agency professionals can best advise and manage your clients. After all, equipping them so they’re aware of the facts can only lead to a better service.

Summary of the Renters Reform Bill

The Government has presented the Renters Reform Bill as the solution to better tenant-landlord relations. It continues the Conservative Government’s aim to bring about better housing in the private rented sector (PRS), as reflected in their Levelling Up White Paper (2022).

Michael Gove the Secretary of State for Levelling Up, Housing and Communities claimed within the whitepaper’s foreword that “more than 2.8 million of our fellow citizens are paying to live in homes that are not fit for the 21st century. Tackling this is critical to our mission to level up the country”.

The bill aims to remove the criminal minority of landlords which would be a positive move in enhancing the reputation of private landlords. The majority of whom provide safe and comfortable properties to their tenants. However, this improved status doesn’t come without several significant rent reform changes that’ll affect landlords.

In summary, the Renters Reform Bill would introduce several key changes across the sector:

Letting agents and landlords based within the private rented sector can discover more details about the proposed changes by reading our recent article Renters’ Reform Bill (RRB): Key Updates for May 2023.

How will it affect Lettings Agents?

Letting agents can expect to face mixed fortunes in the wake of these proposed amendments to the private rented sector. Even today, before details have been confirmed in many areas of its policy, letting agents need to stay informed on the latest developments concerning the Renters Reform Bill. They need to soften the blow of this legislation by mitigating distress and uncertainty amongst landlords.

Professional landlords of varying portfolio sizes are already looking to them for answers regarding the new introduction of a Property Ombudsman and property portal, to name just two recent changes. Letting agencies need to respond with clarity and increase their knowledge of the Renters Reform Bill. There is some cause to celebrate, however. Those letting agents who become known for providing the highest levels of service and expertise could improve their profile with more enquires made for their services.

However, optimism remains scarce given the current property climate. Many letting agents including Graham Wood, MD of Home Sales & Lettings, have already voiced their concerns towards the “constant attack on landlords” over the last five years. Wood comments how their long-held fears towards scrapping Section 21, besides the abolishment of tax advantages for landlords opting for a buy-to-let mortgage (since April 2017), has “sufficiently frightened numerous landlords into selling their rental properties”. Previously, interest and other costs of borrowing could be deducted against the income of long-term let residential properties.

Both of these shifts are fundamental changes that lettings agency firms need to be aware of if they’re to continue to support landlords operating in the private rented sector. Carefully considered research into the effects of this new rental landscape will be required. Although this may still fail to halt the mass exodus of private UK landlords from an increasingly unattractive landscape. Wood reveals that “approximately 10 per cent of our managed properties have been sold in the last 18 months. We anticipate this will increase to 15 per cent by the end of 2023”.

Landlords Quitting the Market will Mean Less Work for Agents

If the upward trend of landlords selling perfectly good rental properties continues, it follows that letting agents across the country will retain fewer landlords on their books. Having less work and fewer potential landlord clients to support will in turn diminish their revenue. Indeed, the increased over-regulation and current tax system could have a negative ripple effect for all parties including tenants who’ll be left with a lower supply of private rented properties.

What Agents need to communicate to their Landlords

Currently, lettings agents can offer advice to landlords such as 8 Top Tips for New Landlords to Succeed. However, the extent of this advisory role looks set to increase with the Renters Reform Bill, notably before it becomes law.

Ben Beadle, the CEO of the National Residential Landlords Association (NRLA), confirms that all agents have “a huge part to play in terms of keeping up with the ever-changing nature” of the sector. For example, if the Renters Reform Bill is passed, private residential landlords will have to demonstrate that their properties comply with the Decent Homes Standard or face fines for non-compliance. Proactive letting agents should see this as a golden opportunity to expand their services and offer enhanced guidance to landlords.

Beadle’s views here can give reassurance to letting agents, stating how this renters reform could be “an opportunity for them” with landlords feeling overwhelmed and seeking professional advice from a well-informed lettings agent. Beadle argues that in today’s market you “could do with the need of a letting agent to guide and support you on the best type of property” in areas such as location, tenant demographic and tax. In theory, the reforms could prove lucrative for lettings service providers provided that the numbers of landlords in the private rented sector is workable.

However, being able to explain the details of the landmark changes above could be easier in theory than practice. The bill has been criticised by the NRLA for the absence of detail concerning these major changes to letting out property. One example of this concerns the fine print of the safeguards that’ll allow residential landlords to reclaim their house or apartment from tenants. The association has reservations that “Whilst we welcome the Government’s pledge to ensure landlords can effectively recover properties from anti-social tenants and those failing to pay rent, more detail is needed if the Bill is going to work as intended”.

Is the Renters Reform Bill a cause for concern?

The general consensus of the property industry finds little to be optimistic about in terms of this new legislation for landlords or tenants. Indeed, few parties could benefit from the Renters Reform Bill, with the exception of letting agents who’ll step up to assist their weary landlord clients. Provide them with answers and there’s real opportunity for growth.

Inventory Base is here to support letting agents with smart property management solutions. Visit the letting agents section of our dedicated professionals page to learn more about the features and templates we can provide as you navigate these uncertain housing waters.

Renters’ Reform Bill (RRB): Key Updates for May 2023

Claiming to boost relations between landlords and their tenants whilst improving living conditions, the Renters’ Reform Bill (RRB) is a proposed piece of legislation that has continued to divide opinion.

The bill embodies the Government’s pledge to improve the private rented sector (PRS) with landmark reforms. Many of the policies made within the Renters’ Reform Bill have faced criticism for disproportionately favouring the tenant. Yet, there are reasons to celebrate as a residential landlord, which we’ll also explore in this article.

With the developments unfolding on Wednesday 17th May looking set to change the private rented property landscape for landlords in the foreseeable future, we’ll outline the Renters’ Reform Bill as well as give an overview of what it holds in store and why this matters.

What is the Renters’ Reform Bill?

Introduced to Parliament this week, the Renters’ Reform Bill is proving divisive. Created as part of the Government’s levelling up drive, it aims to create a “fairer, more secure, and higher quality” PRS for the 4.4 million households renting their property from a private landlord.

The Secretary for State, Levelling Up, Housing and Communities Michael Gove stated in his foreword to the 2022 white paper publication, that “more than 2.8 million of our fellow citizens are paying to live in homes that are not fit for the 21st century. Tackling this is critical to our mission to level up the country”. This dialogue follows their pledge to reduce the number of poor-quality homes by 50% before 2030, made within last year’s Levelling Up White Paper.

Aiming to empower the tenant and produce a fairer system, Gove also commented “The reality today is that far too many renters are living in damp, dangerous, cold homes, powerless to put things right, and with the threat of sudden eviction hanging over them.”

“They’re often frightened to raise a complaint. If they do, there is no guarantee that they won’t be penalised for it, that their rent won’t shoot up as a result, or that they won’t be hit with a Section 21 notice asking them to leave.”

“This government is determined to tackle these injustices by offering a New Deal to those living in the Private Rented Sector; one with quality, affordability, and fairness at its heart.”

Calls for change have also hailed from campaign groups who criticise Section 21 “no-fault” evictions. Currently, these forms of evictions mean that tenants in the PRS can be asked to leave without a reason needing to be given. They have proved unpopular among those who’ve challenged this mechanism because they claim that a termination could occur without fault on the part of those residing in the property.

Yet, the Government has asserted that the Renters’ Reform Bill will bring advantages for landlords in the PRS, as well as their tenants. These benefits include making “it easier for landlords to recover properties when they need to”, including the reduction of the notice period term needed where tenants have caused damage and an online Property Portal that will give information to both parties. Gove noted just this week that it’ll “support the vast majority of responsible landlords who provide quality homes to their tenant” but landlords are still wary about these ‘pro-tenant’ changes.

A History of the Renters’ Reform Bill

The origins of this bill emerged in then-Prime Minister Theresa May’s 2019 election manifesto. Looking to maintain a minimum set of conditions across PRS properties, the Ministry of Housing, Communities and Local Government held a series of consultations.

These consultations considered:

The Conservative Government then released its A Fairer Private Rented Sector white paper in June 2022. Much of the sentiments found within its foreword have been echoed in the Renters’ Reform Bill, such as “We set out a clear mission to halve the number of poor-quality homes by 2030”. This itself originated from the Levelling Up White Paper published at the start of 2022.

Continuing this commitment, the current UK Government views the Renters’ Reform Bill as one way to level up living conditions during the current economic crisis and beyond. Many, including Labour, had speculated whether such a bill was going to be introduced in Parliament after several delays. The Shadow Housing Secretary Lisa Nandy had remarked “Our message to the government is clear, do not backtrack on the promises you have made, do not drop any commitments, do not roll over to your backbenchers again.” And few expected the Government to move forward this quickly following the “procedural issues” that were reported in early May 2023.

However, the 17th May 2023 saw the Renters’ Reform Bill announced at Westminster. Now, after four years of uncertainty and speculation, the presentation of the Renters’ Reform Bill to Parliament looks set to usher in significant changes.

What Key Changes are in the Bill?

The Government’s drive for change is centred upon several new policies under the Renters’ Reform Bill.

Perhaps the most alarming change is the news that Section 21 evictions will be scrapped so no-fault evictions will become a thing of the past. Whilst this could make it more difficult to reclaim a property, other sections of the bill temper this announcement.

The new legislation would make it easier for over 2 million landlords to recover their houses or apartments when needed. Examples of relevant situations include when they want to house a close relative, the tenant stops paying their rent, or there’s a need to sell. This offers some flexibility for landlords based on their life and financial circumstances at least.

Similarly, there’s a safety caveat included which states that the amount of notice period would be shortened when the tenant(s) are behind on their rent or are “irresponsible” such as causing anti-social damage to the property.

If passed, the Renters’ Reform Bill would also make it against the law to rule out tenants with children or those in receipt of benefits. Often criticised as ‘blanket bans’, the Government claim this move is to stop discrimination against vulnerable families and sections of society who are often disproportionately disadvantaged.

Banning pets outright will no longer be permitted as tenants would have the right to request a pet by law. Landlords will have to fairly consider this and “cannot unreasonably refuse” those living within their property to own a pet. However, there are protective measures thankfully, as landlords could insist that their tenants take out pet insurance. This could then financially offset any resulting property damage.

In a major change to the PRS, the Renters’ Reform Bill will demand that every privately rented residential property conforms to the Decent Homes Standard. Currently, 21% of private renters reside in ‘unfit’ homes. Bridging private landlords and social housing providers, landlords will need to follow the latter sector which has had to adhere to minimum health and safety requirements since the start of the millennium. However, this is already a self-imposed standard for many private landlords, who already supported Gove’s claim “No one should be condemned to live in properties that are inadequately heated, unsafe, or unhealthy”.

The creation of a private rental Ombudsman will also require landlords in the PRS to sign up for membership. Any costs, if applicable, have not yet been outlined. But, Money Saving Expert founder Martin Lewis has welcomed the fact that this body will have the power to “compel apologies, take remedial action and pay compensation”. What this means in practice for the balance of support towards PRS landlords and their tenants is uncertain and may add unnecessary anguish and uncertainty among the first group.

On the plus side, the Ombudsman has been presented as a way to “provide quicker and cheaper resolutions to disputes” which could potentially ease concerns for landlords who have nightmare tenants living in their properties. The Government cites this and the new online property portal as effective ways to remove the criminal minority of landlords from the sector. The digital portal will also inspire confidence in landlords by offering relevant information, so they feel reassured that they’re meeting their obligations. This resource would ease the process for new and increasingly overwhelmed landlords. It aims to settle issues without requiring court proceedings.

When Will the Renters’ Reform Bill Finally Come into Force?

Whilst there are no certainties that the Renters’ Reform Bill will advance successfully through the several stages required to become law, The Independent has claimed “There will be a second reading in several weeks”.

However, landlords will be pleased to hear that there are a number of hurdles to pass through before it would come into effect. Following the Second Reading, it would then have to pass through both parliamentary houses (the House of Commons and the House of Lords) and be granted Royal Assent to become legislation.

Also, the National Residential Landlords Association (NRLA) were quick to reassure landlords after the announcement (May 2023) by noting these changes could take 18 months to come into effect. They commented, “The government has confirmed that it will provide at least six months’ notice of the first implementation date, after which all new tenancies will be governed by the new rules. Existing tenancies will be given a further twelve months’ notice from the first implementation date to convert to the new system.”

While the outcome and timeline for passing this new legislation are not yet set in stone, one thing is for sure – it will completely shake up how the private rented sector functions.

Keep an eye on the Inventory Base blog to see how this all plays out and whether the intended measures actually make a positive difference.

8 Top Tips for New Landlords to Succeed

Starting out as a new landlord can be overwhelming. Navigating laws, regulations, and insurance is just the beginning- you also need to manage your property and ensure the safety and well-being of your tenants.

However, the appeal of the private landlord life is undeniable. With high demand for rental properties across the UK, especially in urban areas, you can quickly find tenants and potentially charge higher rents in areas with limited supply.

Owning and renting properties can provide a reliable source of income, offering flexibility and is an attractive option for those seeking extra income or considering a career change to equalize the work-life balance.

But before embarking on your new career as a landlord, it’s essential to take note of a few valuable tips before you get started on your new career.

When it comes to your legal responsibilities, like maintaining properties and complying with regulations, these are (naturally) not up for debate! But on the other hand, some best practices are optional, however, they will go a long way to making your life as a private landlord much easier.

Here are eight tips for UK landlords that will help guide and support you as you embark on your new venture.

1. Research the Market

It’s true that investing in rental property can be lucrative, but it requires careful planning and research. One of the first steps to take is to research the local market thoroughly. This will help you determine the absolute best location for your rental property, the types of properties that are in demand (and those that aren’t), and the rental yield you can expect.

A good way to get started researching the market is to study rental listings in the area. Look at the property portals, like Rightmove, Zoopla and OnTheMarket, to get an idea of what other landlords are charging, what features are included, and which properties are desirable for renters. You can also check out local lettings websites, attend viewings and talk to agents to get a better sense of the market.

Once you’ve identified your target market – the location, not the people – it is then essential to tailor your property to the tenant’s preferences if you haven’t already done so. Depending on your budget, consider things like supplied white goods. These things can really help you stand out in a competitive market.

It’s also important to keep in mind that the market is always changing, so you need to adapt if you want to stay competitive. One of the best ways to do this is to speak with your tenants, but more on that later.

Keeping an eye on market trends and changes to the law – like the upcoming renters reform bill – will help you to remain one step ahead of your competition and enable you to adjust your strategy and business model accordingly.

2. Screen Tenants Carefully

The screening process provides valuable insight into a potential tenant’s background. Before signing an agreement, do your due diligence, especially if you’re not using a managing agent. This not only protects you as a landlord but also ensures that you are renting to a responsible and trustworthy tenant.

It’s important to be consistent with your screening process and avoid discriminating against any potential tenant based on race, religion, gender or sexual orientation. This not only protects you legally but also ensures that you treat everyone equally.

If you are unsure about the legalities of your screening process, seek the advice of an agent, professional referencing service or trade association like NRLA. They can provide you with guidance on what you can and cannot ask potential tenants and how to avoid any legal issues.

It’s better to find a responsible and trustworthy tenant from the start than to deal with the consequences of a bad tenant later on.

3. Outline the Terms of Your Tenancy

The tenancy agreement is an essential document that outlines the terms and conditions of your rental agreement with the tenant. It is a legally binding contract that protects both the landlord and the tenant. However, this might be changing with the upcoming Renters’ Reform Bill.

Before drafting the agreement, it is important to consult a professional. After you’ve got the tenancy agreement, it is crucial that you and the tenant both sign and date it, showing that both parties acknowledge and agree to the terms.

Don’t forget to provide the tenant with a copy of the agreement, and take the time to review the agreement with the tenant to ensure that they understand their rights and obligations. This will help to prevent disputes and misunderstandings further down the line.

4. Conduct an Inventory Report

An inventory report is a crucial document that helps landlords and agents establish the condition of a property before a tenant moves in and after they move out. It is a detailed report that lists all the items and fixtures present in the property and their condition.

Before conducting an inventory report, it is important to ensure that the property is clean and all appliances are in working order. The report should include a detailed description of the property, including the number of rooms, bathrooms, and external areas too.

The inventory report should also contain a list of all the items present inside the property, including furniture, appliances and any other fixtures. Each item should be described in detail, including its condition and any preexisting damage. You should also photographs of each item to provide visual evidence of their condition.

Performing an inventory report is essential to compare the state of the property at the start of the tenancy with the end of the term. This helps to minimise the risk of disputes over damage deposits and sets clear expectations for the tenant to care for the property.

Be warned, the old-fashioned pen and paper way can be incredibly time-consuming. It’s recommended that you use technology to carry out an inventory check, using apps like Inventory Base to save time inputting all the manual information yourself.

5. Use a Deposit Scheme

In the UK, there are three government-approved tenancy deposit protection (TDP) schemes that landlords and letting agents can use to protect their tenants’ deposits. These schemes ensure that tenants get their deposits back at the end of the tenancy. The three schemes are:

  1. Deposit Protection Service (DPS): The DPS is the largest of the three schemes and is available to landlords and letting agents in England and Wales. It offers a free custodial service, where the deposit is held by the DPS for the duration of the tenancy.
  2. MyDeposits: MyDeposits is available to landlords and letting agents in England, Wales, and Scotland. It offers both a custodial and an insurance-based service, where the landlord or agent holds the deposit but pays a fee to MyDeposits to insure it.
  3. Tenancy Deposit Scheme (TDS): TDS is available to landlords and letting agents in England, Wales, and Northern Ireland. It offers both a custodial and an insurance-based service, where the deposit is either held by TDS or by the landlord or agent, who pays a fee to TDS to insure it.

Landlords and letting agents are required by law to protect their tenants’ deposits using one of these schemes within 30 days of receiving the deposit. They must also provide their tenants with information about the scheme used and how their deposit is protected.

A word of caution here – if a landlord fails to protect the tenant’s deposit, they could be liable to pay compensation of up to three times the amount of the deposit.

6. Improve the Energy Efficiency of Your Property

The more energy efficient your property is, the more money you can save over time. Consider installing energy-efficient lights, programmable thermostats and double glazing, if they’re within your budget. It’s doubly important in this day and age, not least because of the cost of living crisis.

Also, for residential properties, an EPC is required for all properties that are newly built, sold or rented, and landlords are required to provide an EPC to their tenants before the start of the tenancy. The EPC must also be displayed on any property advertisement. By 2028, it is expected that all rented properties must have an EPC rating of C at the very least, so it’s good to make a start now.

7. Prioritise Maintenance

A lack of maintenance can hurt the value of your property and lead to costly repairs down the line. Not only that, it can be off-putting for potential tenants and could lead to disputes with current tenants. Make sure you attend to repairs swiftly and maintain a consistent schedule for routine inspections and maintenance.

As a landlord, it is your responsibility to maintain the property and ensure that it is habitable for the tenant. If you keep the property in good repair and promptly address any maintenance issues that may arise, your tenants are more likely to stick around.

Don’t forget to respect the tenant’s privacy and give them reasonable notice before entering the property. This can help to build a positive relationship between you and the tenant and foster a sense of trust and respect.

8. Communicate with Your Tenant

When all is said and done, effective communication is key to a good landlord-tenant relationship, no matter what the issue is that you’re dealing with. Always be on hand to answer questions or concerns that your tenant may have. Remember, being a landlord can be a 24/7 job!

Communicate with your tenant if you need to conduct a periodic inspection, and ensure you make them aware of any changes to the agreement, in writing, within the legally defined time frame.

Conclusion

Being a good landlord takes a lot of commitment and effort. Following these eight tips will help you reduce risks that come with the territory of being a landlord, helping you to improve your property value in the long term.

Remember, always follow the laws and regulations that apply to your area and be considerate and professional when dealing with tenants. Good communication, regular maintenance and careful screening will help with creating a positive landlord-tenant relationship.

To help you manage your time-consuming landlord tasks, check out Inventory Base!

Why are UK Landlords Quitting the Private Rented Sector?

The private rented sector (PRS) is witnessing a watershed moment for private UK landlords. Official statistics published by the Government in 2022 showed that 2.74 million landlords declared income from rental properties during the 2020 to 2021 financial year, on their Income Tax Self Assessment (ITSA) to HMRC.

Whilst they generated a combined total of £41 billion during these 12 months, there was a marked decrease in the number of UK landlords overall. It was down from the 2.79 million individuals reported just one year before (2019-2020). Data from the English Private Landlord Survey 2021 revealed that 45% of this group were classed as ‘amateur landlords’, meaning they own one rental property only. That leaves 55% of unincorporated UK landlords with a portfolio containing two or more rental properties.

Still unsure whether you should continue as a UK landlord or exit the market given the current cost of living crisis, rise in inflation and increasing regulation? Here’s our guide to what we know about the exodus from the private rented sector so far.

An Overview of the UK Private Rented Sector

Recent economic hardship has meant that many would-be first-time buyers are renting one of the 5.6 million private rental properties for longer. This demand for private rented housing has grown since the turn of the millennium. Consequently, the PRS has long been viewed as a prudent source of income for UK landlords looking for a stable investment.

However, regional variation continues to characterise the private rented sector. With no upper caps on monthly rental prices, there are different yields to be drawn from properties across the country. For example, our 2022 report UK Landlord Rental Market Statistics revealed that Newcastle-upon-Tyne had the highest estimated return in England (7.2%).

This is almost five percent more than the lowest annual yield witnessed in Winchester (2.3%). It also noted how Oxford residents spend 65.3% of their annual income per year, whereas their Worcester counterparts pay just 19.9% of their salary.

UK landlords and therefore the PRS own 18.8% of the housing stock in the UK. This consists of fixed short and longer-term tenancies as well as rolling contracts. Both the landlord and tenant agree to set obligations for the intended rental period. An assured shorthold tenancy binds each party to the signed tenancy agreement for 6 months.

Anything beyond this is classed as a long-term lease. Time frames aside, a fifth of families in the UK are renters, meaning there are still opportunities for landlords to meet this significant demand.

However, it hasn’t all been good news for landlords in the UK of late. The cost of borrowing, in terms of increased interest rates, has also affected the landlord’s outgoings, reducing the yield they can expect to receive. This puts landlords in the unfortunate position of having to raise their tenants’ rent should they choose not to accept a lower ROI.

Speculation of a volatile property market has done little to boost UK landlords’ confidence about the future. We examine some of the reasons for this shift below.

Why are UK landlords Quitting the PRS?

Whilst each landlord is an individual with their own set of circumstances, it is fair to say that several factors are causing landlords to turn their backs on the PRS in the UK. Interestingly, not all of them are financial in nature.

The Renters’ Reform Bill

The first cause of discontent is the Renters’ Reform Bill. Introduced in 2019, the Government claims it will provide more protection for private tenants against unscrupulous landlords. Naturally, renting out private domestic properties is a balancing act and few mindful UK landlords want to provide dangerous living conditions for renters and their families.

However, new seismic measures look set to drive landlords in the UK (particularly ‘amateur landlords’) to sell their rental properties before the changes are implemented.

The bill, also known as the fairer private rented sector white paper, seeks to end:

There would also be the creation of a Private Renters Ombudsman dedicated to settling disputes between landlords and tenants.

Propertymark, a membership body for property agents, has raised concerns that “changes to the rules could result in fewer homes being available for tenants and that the bill doesn’t give enough protection to landlords and letting agents”.

Whether such changes will become legislation is by no means certain. This private rented sector white paper has been delayed as of May 2023. Indications are that it will be before the May 25th Parliament recess, which finished on the 5th June, but this is not guaranteed.

Changes in Rental Demand

In February 2023, the Bank of England expressed its own concerns within its Monetary Policy Report. This publication showed that an increasing number of landlords are selling their properties whilst the supply for rental properties cannot currently meet today’s demand.

Its authors noted that “contacts attributed this to a combination of factors including tax and regulation, higher maintenance and borrowing costs, and an inability to recoup increased costs in rents”. Savills echoed this sounding of the alarm, stating that “an increasing number of landlords decided to exit when the sales market was particularly hot, to realise the capital growth”.

In contrast, not everyone has been quick to suggest a dip in the number of landlords in the UK PRS. The Housing Secretary Rachel Maclean MP has deflected criticism, saying “If one [landlord] leaves [the PRS], I'm almost certain another one will come in. So this idea that our regulation will drive them out in the sector. I don't accept that”. Time will tell if the large-scale trend of UK landlords quitting the private rented sector continues.

Cost of Living Crisis

Landlords in the UK are also feeling the pinch of the current economic crisis from both sides. On one hand, there is apprehension that their tenants will not be able to afford their rent due to the nationwide cost of living crisis and inflation. This could mean they have to fit the bill if arrears occur, making the private rented sector a far less viable investment.

On the other hand, the costs of their bricks-and-mortar investments have also been affected by the effect of rising interest rates, which rose from 0.5% in December 2021 to 4.5% in May 2023. Couple this with the end of the mortgage interest relief since April 2020 and the newly introduced increase in the amount of capital gains tax (CGT). This latter change means that any sales from April 2023 will incur higher payments (in the thousands).

Anti-Social Behaviour

Another explanation for the mass quitting amongst UK landlords is the Government’s failure to tackle anti-social behaviour, especially with measures surrounding the possible introduction of The Renters’ Reform Bill.

As 50% of participants in a National Residential Landlords Association survey have had to repossess their property from criminal or anti-social tenants, the NRLA wanted the Government to “beef up” its efforts to address this issue. Low confidence in these areas may lead many landlords to reconsider their investment in the property sector.

How Does This Impact the UK Property Market?

Ironically, few parties are set to make gains if large numbers of landlords withdraw from the UK PRS. Jonathan Samuels, Chief Executive of the buy-to-let lender Octane Capital, has criticised the UK Government which he feels has “looked to eradicate amateur landlords via a string of legislative changes”. He said that these new rules were “designed to dent profit margins in order to address the shortage of stock within the sales market”.

Feeling deterred whilst facing a diminished return that would weaken such private rented sector schemes, the withdrawal of buy-to-let landlords would shrink the volume of private rented sector properties on the UK property market by 14% or 383,600 fewer homes worth £223.5 billion. Crucially, this loss would negatively impact the PRS economy and create more competition for homes among renters. A reduced housing supply will then push up the prices for those looking to rent.

The PRS is rapidly evolving, becoming more regulated than ever. Compliance, effective tenant-landlord communication, and landlord insurance for UK homes are now crucial to managing a successful tenancy or property portfolio.

Now is the time to take charge of your tasks and embrace technology to streamline and digitise operations with benefit-led tech for landlords to keep ahead of the changes around the corner.

Why do UK Landlords Need to Adopt Technology?

Landlords know how demanding and time-consuming it can be to manage rental properties. They often have to keep track of multiple units or buildings, respond to tenant requests quickly and stay up-to-date with rapid regulatory changes. The more properties they have in their portfolio, the harder it is to keep up with all of this.

In that regard, adopting technology can make the life of a landlord significantly easier while also saving time and money. So, why have landlords traditionally been resistant to technology adoption?

Well, it appears that one reason is the perception that technology is expensive and difficult to implement. Landlords may be reluctant to adopt technology solutions due to concerns about the cost of implementation and potential technical issues that may arise from time to time.

Another reason which could be putting off landlords is the idea that technology could be difficult for tenants to use. Some landlords could harbour concerns over whether or not tenants will be able to use the technology they’ve paid for and spent time setting up.

Perhaps one of the biggest barriers, however, might be the fact that some landlords prefer to stick with traditional methods of managing their properties, as they have done for decades. They may be too comfortable with the processes they have in place, no matter how outdated they might be, and are thus reluctant to adopt technology that they are unfamiliar with.

Each of these concerns is valid, to a certain extent, but choosing the correct technology for each case is the key to overcoming these barriers. The right technology can be affordable, simple to implement, easy to use, and allow them to retain some of their traditional approaches to managing their properties.

Despite the resistance, as technology solutions continue to evolve they will inevitably become more user-friendly and cost-effective, and it is therefore likely that more landlords will begin to adopt them in order to improve their property management processes and better meet the needs of their tenants.

The benefits of adopting technology

There are countless benefits that arise from adopting technology solutions for landlords, including increased efficiency, improved communication with tenants and enhanced tenant satisfaction, as well as the associated cost and time savings for the landlord.

For example, smart smoke and carbon dioxide detectors can alert landlords and tenants of any potential hazards almost to the second, allowing them to take prompt action and prevent any damage. In a similar way, smart meters, sometimes known as smart thermostats, can help landlords and tenants control heating remotely and track usage, so both parties can rest assured that the property is energy efficient and affordable.

Secondly, technology can improve landlord-tenant communication. Online maintenance request systems, for instance, can allow tenants to report issues at the push of a button, so landlords are able to action any maintenance requests with connected tradespeople.

In a similar vein, landlords can also use inspection software to streamline their property inspections, whether that's check-in reports, periodic inspections or end-of-tenancy checks, reducing the amount of time they need to spend on each task.

Finally, and perhaps one of the biggest areas making the life of landlords easier is that technology can help landlords stay compliant with regulations. Let’s say for example there was a dispute between the landlord and the tenant over property damage.

Well, a landlord who diligently conducts their inspections throughout the course of the tenancy and captures all the necessary details has a record of such information, so that in the unlikely event a legal dispute does arise. In situations such as this, the landlord has peace of mind and paperwork, albeit digital, to back up their case.

For these reasons alone, adopting technology can make a big difference in a landlord's life. As we said, it can help them manage their properties more efficiently, improve communication with their tenants and stay compliant with regulations. So what about the actual technologies enabling that efficiency, communication and compliance? Let’s take a look at four of the very best no landlord should be without.

smart smoke detectors maintenance landlords adopt technology
nacPhotographer: Kislev

The top 4 technologies that make life easier for UK landlords

1. Smart smoke detectors & carbon dioxide detectors

Installing smart smoke and carbon dioxide detectors in your properties can alert you and your tenants of any potential hazards or issues. The reason why they provide enhanced safety for tenants is that they can detect smoke and carbon dioxide levels in real-time and alert the tenant and landlord if there is a potential threat. This can help to prevent fires and other dangerous situations, reducing the risk of injury or property damage.

As carbon and smoke detectors are a legal requirement in rental properties, being able to monitor them remotely is another significant benefit of smart detectors. Landlords who adopt technology like smart smoke detectors can keep track of the status of each detector to ensure that they are functioning properly and are not in need of maintenance or replacement. When they are, the landlord can respond quickly and easily.

2. Smart meters

Renters have been particularly hard hit by the cost of living crisis in the UK. Rising housing costs, coupled with stagnant wages mean that many renters are spending a large proportion of their income on rent, leaving little left over for other expenses. Because energy costs have also risen significantly, this makes it hard for many renters in the UK to afford their energy bills. This is particularly challenging for those living in substandard properties, where energy costs can be higher due to poor energy efficiency.

Even still, for landlords who have improved the energy efficiency of their properties, energy consumption is still a primary concern for many renters. This is where smart meters can be useful, helping your tenants to better understand and manage their energy usage. Whether it’s accurate billing, real-time information or reduced energy consumption, smart meters are a win for both the tenant and the landlord, as the less energy a property consumes, the more sustainable a landlords’ portfolio is.

3. Online maintenance requests

Allowing your tenants to submit maintenance requests online can save you time and effort. Instead of waiting for a phone call or a visit from your tenants, you can receive their requests instantly and prioritize them accordingly. Online maintenance request systems can also keep track of past requests and provide a record of any issues that need to be addressed.

Online maintenance requests allow tenants to communicate maintenance issues to landlords quickly and easily, without the need for endless phone calls or costly in-person visits. This can help to ensure that maintenance issues are addressed promptly, reducing the risk of further damage or inconvenience to the tenant.

These maintenance requests can be tracked by landlords anywhere, at any time, allowing them to stay updated on each request so nothing slips through the cracks. This can help to build positive relationships between landlords and tenants, leading to increased tenant retention.

4. Inspection software

Last but certainly not least is inspection software. This can help landlords streamline their property inspections and reduce the amount of time they need to spend walking around the property, checking the inventory or tracking the property condition throughout the course of a tenancy. With inspection software, landlords are able to create checklists or use premade templates, take photos and videos, and add notes using just a smartphone or tablet.

This makes it easy to document any issues that need to be addressed or capture vital property information for future reference. Landlords can also generate reports and share them with tenants, agents or maintenance personnel, greatly improving communication and accountability.

So, while there are a handful of barriers in the way of technology, changing demands and the shifting nature of the UK housing market mean that future-focused landlords are implementing technology to stay efficient, communicative and compliant, clearly choosing peace of mind over uncertainty, and it’s fair to say they’re better off for it.

Renters’ Reform Bill: What You Need to Know

The Renters’ Reform Bill represents a seismic shake-up of the private rented sector, perhaps the biggest in over three decades. Sweeping reforms have been outlined by the sitting Government, which aims to reset the tenant-landlord relationship and level up the quality of housing in all parts of the country.

However, since initial consultations in April 2019 and the publication of its policy paper, A Fairer Private Rented Sector in June 2022, the proposals have still not been passed into law. So where are we currently with the Renters’ Reform Bill, and what does it mean for tenants and landlords across the country?

What is the Renters’ Reform Bill?

The Renters’ Reform Bill is a significant piece of legislation designed to overhaul the private rented sector and provide a fairer deal for renters.

When Will the Renters’ Reform Bill Be Enacted?

Back in April 2019, after a consultation period about reforming tenancies in England, the government published its initial response and set out a blueprint that it said would deliver a “fairer, more secure, and higher quality” PRS.

A white paper soon followed in June 2022, introducing what Michael Gove dubbed a “New Deal” for 4.4 million households under the care of private landlords.

Since then, however, many have been left wondering when the Renters’ Reform Bill will see the light of day and formally become law across the country. While the government has said it remains committed to the reforms outlined in the white paper, no firm date has been forthcoming, though it is expected to be introduced in the current session of Parliament, which ends in May 2023.

The Impact of the Renters’ Reform Bill on Private Renters and Landlords

The Renters’ Reform Bill proposes a number of changes to the private rented sector, especially around the relationship between landlords and 4.4 million privately renting tenants, while offering support for people under pressure from the cost of living crisis. It has also been stated that the proposed bill will attempt to address “arbitrary and unfair” rent increases and further protections for the most vulnerable by scrapping Section 21 evictions.

“Everyone has a right to a decent home. No one should be condemned to live in properties that are inadequately heated, unsafe, or unhealthy” said Michael Gove, Secretary of State for Levelling Up, Housing and Communities. “Yet more than 2.8 million of our fellow citizens are paying to live in homes that are not fit for the 21st century. Tackling this is critical to our mission to level up the country.”

Improving Rental Accommodation Standards

According to government figures, the majority of tenants in the country benefit from safe and secure rental accommodation, but 21% of private renters live in unfit homes. In order to address this, the “New Deal” will extend the Decent Homes Standard – guidance for setting the minimum standards that social homes are required to meet – to the private sector.

This alone is momentous, and a huge overhaul of the current standards, meaning all private rented accommodation must adhere to the same stringent health and safety standards that social housing has had to abide by since the early 2000s. Under this standard, landlords must keep properties in a “good state of repair”.

‘No Fault’ Section 21 Evictions: Implications and Advocacy

Another huge talking point is the end of ‘no fault’ section 21 evictions. This type of eviction has up until now allowed landlords to terminate tenancies without reason or without demonstrating a “fault” on the part of the tenant, at least in theory. Many campaign groups have long called for an end to proceedings of this type.

One such campaign group, Shelter, said that government figures released earlier this year showed the number of households living in privately rented homes in England who were evicted by bailiffs as a result of Section 21 proceedings had increased by 143% year on year, from 792 households between October and December 2021 to 1,924 households between October and December 2022.

Key Measures Proposed in the Renters’ Reform Bill White Paper

The measures published in the initial white paper also include the following:

renters reform bill proposals changes to the law

How does the Renters’ Reform Bill help tenants?

Michael Gove on Renters’ Challenges and Proposed Reforms

Michael Gove, Secretary of State for Levelling Up, Housing and Communities, said: “The reality today is that far too many renters are living in damp, dangerous, cold homes, powerless to put things right, and with the threat of sudden eviction hanging over them.

“They’re often frightened to raise a complaint. If they do, there is no guarantee that they won’t be penalised for it, that their rent won’t shoot up as a result, or that they won’t be hit with a Section 21 notice asking them to leave.”

Balancing Criticisms and Benefits of the Renters’ Reform Bill

While there are many criticisms of the Renters’ Reform Bill in its early stages, and from both sides of the debate, it is clear that the protections for tenants outweigh the benefits for landlords.

However, widespread reforms, regardless of who they directly impact, are ultimately for the betterment of the private rented sector as a whole, despite the government being accused of “anti-landlord rhetoric” by some campaign groups and industry figures.

Impact of Scrapping Section 21 on Tenant Rights and Landlord Accountability

According to Shelter, scrapping section 21 ‘no fault’ evictions will give renters relief from a pervasive and deeply entrenched fear of eviction, giving them the ways and means to exercise their renting rights freely and without fear of retaliation.

The campaign group said that tenants are “putting up with anything from negligence to dangerous living conditions” and that renters are afraid to complain in case they are evicted from their homes.

When it comes to the landlord register, it is believed that more transparency and clarity around who tenants are entering an agreement with will drive accountability, and therefore compliance, giving them insight into the legality and suitability of a landlord’s property or properties.

Reforming Grounds of Possession: Section 8 Notice Changes Explained

The government will also reform the “grounds of possessions” under a section 8 notice, which can currently be issued if tenants have broken the rules of their tenancy, like if they’re behind in rent or have damaged the property.

The government has said that the changes to section 8 make them more “comprehensive, fair, and efficient” for both tenants and landlords, protecting the former’s security and the latter’s right to manage their property. Section 8 also changes the rent arrears eviction threshold to two-month arrears three times in the previous three years, extending the notice period for these grounds to four weeks.

What will the Renters’ Reform Bill mean for landlords?

In addition to the impact the proposals will have on tenants, the Renters’ Reform Bill will also impact landlords in a number of ways.

There are an estimated 2.3 million private landlords in England, which the government says will receive greater clarity and support through the introduction of these new measures.

It also states that the Private Renters’ Ombudsman represents a faster and more cost-effective way for landlords to settle disputes, without the rigours and timeframes associated with traditional court channels.

In addition to this, it is claimed that the new measures will help landlords gain possession of their properties in a much more efficient manner than before, especially in the case of anti-social tenants. While earlier proposals for a “Housing Court” have been shelved indefinitely, the severe backlog of court possession actions has been crying out for a fast, low-cost mechanism for landlords to expedite possession claims, which this could support somewhat.

Property Portal Benefits and Tenancy Changes Under the Renters’ Reform Bill

The introduction of a property portal can also be of benefit to the landlord, states the government, given that it collates all the necessary information and guidance in one, single platform for compliance purposes. This seeks to help demystify some of the more nuanced guidance that has been present prior to these changes. The property portal will also aid information sharing for councils, tenants and landlords in the case of “rogue operators”.

There are also sweeping changes to tenancies, with assured tenancies and assured shorthold tenancies sunsetted in favour of “periodic tenancies”. Whether this is of benefit to the landlord or not is open to debate, though some believe that a standard tenancy format across the private rented sector will make things more efficient and clear.

What it does mean is that tenants can leave “poor quality” housing or if there is a change of circumstance, without being liable for the rent payments. This could act as a strong deterrent for landlords of sub-standard accommodation.

Debate Over ‘No Fault’ Section 21 Evictions

Perhaps the most divisive issue is that of ‘no fault’ section 21 evictions. On one hand, the new grounds for eviction give landlords the option to end tenancies if they want to sell up, so long as six months have passed since the contract commenced. On the other hand, tenants can end tenancies by giving two months’ notice, which could leave many landlords in a precarious or powerless position when it comes to long-term occupancy and security.

However, Propertymark has warned that changes to the rules could result in fewer homes being available for tenants and that the bill doesn’t give enough protection to landlords and letting agents. The move towards periodic tenancies, it says, will mean that tenants can effectively “quit” a property, which could pose a real problem for landlords across the country.

While the renowned industry association welcomes reforms in the sector, it has questioned elements of the proposed changes, including the revised grounds for possession. It fears that the dissolution of section 21 notices will give landlords less of an ability to regain control of properties under reasonable circumstances.

Renters Reform Bill Propertymark Quote

Impact of Renters’ Reform Bill on Housing Market Sentiment and Sector Longevity

“Letting agents and landlords often form their view of the housing market and the longevity of the sector based on sentiment and certainty,” said Timothy Douglas, head of policy and campaigns at Propertymark. “There are elements of the proposed reform that if progressed will create further risk and our member agents say they have seen enough to convince some of their landlords to sell up or indicate an intention to. Our research shows many properties sold off by landlords are not returning to the rental market.”

Douglas continued by saying that if landlords reject changes to policy, they could quit the private rented sector. As a result, there is a danger that the PRS will shrink, and limited supply would see prices dramatically increase.

“The knock-on effect will see local authorities under unmanageable pressure to help many households secure a suitable alternative against a backdrop of significant under-supply of affordable homes to rent.”

Changes in Rent Increase Rules and Tenant Selection Criteria Under the Renters’ Reform Bill

Landlords must also consider changes to rent increase rules, whereby landlords can only increase rents once a year after giving two months’ notice. This gives tenants time to consider options and, in some cases, challenge the proposed rent increase. The government has stated that this is to end the practice of “backdoor evictions”, which have been engineered through an unreasonable rent increase.

While credit checks and affordability criteria remain, landlords are no longer able to impose a blanket ban on families with children or families on benefits, and any family that wishes to keep a pet in a private rented home cannot be outright declined, though landlords still maintain the right to refuse pets.

Renters’ Reform Bill Timeline and Key Points

Here are the key Renters’ Reform Bill dates as of 21st March 2023.

It is expected that once the Renters’ Reform Bill becomes an act of parliament, six months’ notice will be given of an initial implementation date. From then, all new tenancies that qualify will be under the new rules.

Aas it is a two-tiered rollout plan, approximately twelve months after the initial implementation date, all existing assured and assured shorthold tenancies will be moved to the new periodic tenancy system.

For landlords, this represents an unprecedented shakeup of the private rented sector, so they are urged to be mindful of the forthcoming changes lest they fall foul of the soon-to-be law. Ensuring that all documentation, inventory checks, inspections and evidence are kept up-to-date and consistent is strongly advised as landlords, agents and tenants prepare to transition to the new rules, that is when they eventually do come to pass.

Government Announces New Laws for Social Housing Managers

In its bid to further protect social housing residents, the UK Government has recently announced that social housing managers must gain a professional qualification.

The new requirements, which are to be introduced through amendments to the Social Housing (Regulation) Bill, aim to drive standards in the sector. In addition to this, the Government says that the changes will give the Regulator “tough new powers” that allow them to enter a property with only 48 hours' notice to conduct emergency repairs.

Housing Secretary Michael Gove, who made the announcement on the 26th of February, said: “The changes we are delivering today will make sure social housing managers across the country have the right skills and experience to deliver an excellent service and drive up standards across the board.”

However, despite the many positives to be gained from these new requirements, some critics have pointed out that this falls short of the recommendations outlined by the Regulation of Property Agents Working Group (RoPA), a body tasked with advising the Government on a new regulatory framework to help raise professional standards in the industry.

social housing michael gove quote

What is the Regulation of Property Agents (RoPA)?

The RoPA Working Group, established in 2018 and chaired by Lord Richard Best, is made up of several industry stakeholders, including ARLA Propertymark and NAEA Propertymark. It had previously put forth its recommendations in July 2019 for a new industry regulator, the introduction and enforcement of a standard code of practice, as well as the need for training, qualifications and licensing.

Although RoPA's proposals focused primarily on estate agents in the UK and letting and managing agents in England, it was felt that it would have a widespread positive impact on standards in the property sector.

Commenting in May 2022, Timothy Douglas, head of policy and campaigns at Propertymark, said: “The property sector is going through significant change with legislation impacting leaseholders, economic crime and the purchasing of property from overseas buyers, proposals to reform private renting and new building and fire safety requirements.

“These changes are important but without regulating and driving up standards for sales, lettings and managing agents who will implement these rules and work with consumers often at the start of their home buying and renting journey, the UK Government risk only doing half a job when it comes to levelling up the housing market.”

Fast forward to this year, the long-awaited recommendations are still yet to be implemented, despite some in the Government publicly backing the proposals along with leading industry figures.

Speaking on the Today Conveyancer podcast in early February, Kate Faulkner OBE, chair of the Home Buying and Selling Group offered her backing to the cause, saying that with everyone around the agent being regulated it’s now a priority for the Government to stop agents from setting up without minimum standards or regulations.

Despite very clear backing from many quarters, it is felt that the RoPA has been swept aside because it’s not a clear vote winner, and a revolving door of housing ministers has done nothing to help see the wider recommendations put forth by the group come to fruition. The recent departure of Lucy Frazer takes the total to 15 housing ministers since the Conservatives came to power in 2010.

social housing propertymark

What is the Social Housing (Regulation) Bill?

For now, although highly influential and unquestionably needed in the sector, the RoPA remains shelved with no specific timeline for its implementation. Industry reform instead relies on amendments to the Social Housing (Regulation) Bill, which have been inspired by the recommendations of RoPA, at least in part.

Last year, the Social Housing White Paper was put forward, laying the groundwork for the Social Housing (Regulation) Bill in the wake of the tragic Grenfell Tower fire of 2017. The Bill has been devised to create a stronger, more proactive regulatory framework, with the hopes that it will drive standards across the sector and help landlords deliver a better service to social housing tenants.

The Bill has been supported widely in Parliament and has recently tabled amendments that add “greater protections” against hazards in social housing. As of March 2023, the Bill is in its third and final reading in the House of Commons, before it goes into its final stages, where amendments are considered before it receives Royal Assent and passes into law.

The most recent amendments to the bill include the following:

What are the new changes?

The introduction of these new amendments to the Social Housing (Regulations) Bill is deemed by many in the Government as a significant step towards making sure social housing tenants feel safe and secure.

In addition to the tabled amendments, which focused more so on the duties and responsibilities of landlords, the Government has announced that it will also include new rules for social housing managers. Under these new rules, social housing managers must obtain either an Ofqual-regulated Level 4 or 5 Certificate or Diploma in Housing, or a Foundation Degree from the Chartered Institute of Housing.

These new requirements are expected to impact approximately 25,000 social housing managers, which the Government says will professionalise and drive the culture change needed in the social housing sector.

The announcement read: “While many managers already provide a high quality professional service, not all do. This will ensure that all managers have the skills and qualifications they need.

“This will bring social housing more closely into line with other sectors providing front line services, including social work, teaching, and health and care services. Any landlord who fails to meet the requirements of the new standards could receive an unlimited fine from the regulator.”

The Future of Social Housing

As we know all too well, the Grenfell Tower tragedy in 2017 highlighted the need for better regulation of social housing providers. It is felt that by requiring social housing managers to hold a qualification in their field, standards across the sector will be improved, therefore protecting social housing tenants from harm.

While the introduction of these new regulations is a positive development for social housing across the country, property professionals should still work together to ensure that all stakeholders in the property industry are safe, from landlords to tenants to professionals working in the field.

Through greater regulation and increased support for social housing providers and landlords, the quality of social housing will inevitably improve, and although elements of the new changes to social housing regulations are a bitter pill to swallow for some stakeholders, at the heart of the legislation sits a wider issue that must be acknowledged.

In time, it is hoped that recommendations put forth by industry-expert working groups like The Regulation of Property Agents can be carried over to their respective sectors, ultimately creating a widespread culture of professional excellence for the benefit of the entire property industry.

How will EPC Changes Impact the Property Market?

According to a recent survey by Shawbrook, 22% of UK landlords are still unsure about the cost of energy efficiency improvements for their properties.

The survey highlighted that despite the introduction of Minimum Energy Efficiency Standards (MEES) in 2018, which require rented properties to have a minimum energy rating of E, many landlords are still not aware of the cost implications of making improvements to their properties.

According to the survey, one of the key factors involved in landlord uncertainty about energy efficiency improvements is a lack of clarity on the rules and regulations, as well as concerns about the return on investment.

It is widely believed that better education and guidance are needed for landlords to help them understand the cost and benefits of energy efficiency improvements and to ensure they comply with present and future regulations.

The Shawbrook survey, which is part of its “Confronting the EPC Challenge” report, revealed that 26% of landlords have already made energy efficiency improvements with the aim of reducing energy bills for their tenants. On average, landlords have spent £8,900 on measures – around 50% more than was initially expected. Some fear that this financial outlay could act as a barrier.

However, earlier this month, research conducted by Finbri showed that landlords and tenants are nearly on the same page when it comes to EPC ratings, with almost 48% of landlords believing that they are “very or extremely important” when it comes to buying a property. 49.85% of tenants said they were “important or very important”.

It’s undebatable that improvements to the overall energy efficiency of residential properties throughout the UK will be a boon for standards across the housing sector, but despite their best intentions, with almost 50% of landlords poised to carry out EPC improvements over the next 12 months, the costs will have to be absorbed somewhere along the line.

So to better understand the debate, let’s first take a look at what EPC ratings are, the imminent changes on the horizon, and how they might affect the property industry in the UK.

EPC Rating Changes 2025 Quote

What is an EPC rating?

An Energy Performance Certificate (EPC) rating is a measure of the energy efficiency of a property. It’s the main rating system used in the UK, and it is based on a scale of A to G, with A being the most energy efficient and G being the least energy efficient.

The EPC rating takes into account a range of factors, like the age of the property and the way it was constructed, as well as the insulation, heating and lighting systems, taking into account any renewable energy sources such as solar panels.

The rating is assessed and calculated by a qualified Domestic Energy Assessor (DEA) or Non-Domestic Energy Assessor (NDEA), who will conduct a survey of the property and produce the EPC report before granting it to the property owner.

EPC ratings are important because they provide information to potential investors, buyers or tenants about the energy efficiency of the property they are considering. If the EPC rating is high, in theory, it might indicate that the property is going to be cheaper to run and considerably more comfortable to live in, while also having a lower impact on the environment.

EPC ratings also have a legal element to them, as they are used to comply with legal requirements such as Minimum Energy Efficiency Standards (MEES) for domestic private rented properties. At present, the minimum standard is EPC band E.

Energy Performance Certificates were first introduced in England and Wales in August 2007 as part of the European Union's Energy Performance of Buildings Directive. The directive was introduced to encourage the improvement of energy efficiency in buildings and to enhance the long-term strategy around renovations of existing stock, with a goal to reduce greenhouse gas emissions.

Since their introduction, EPCs have become integral to the property market by providing valuable information about the energy efficiency of a building, with many renters and buyers referring to EPC ratings to make an informed decision about a property.

How will EPC ratings change?

Since April 2020, the Minimum Energy Efficiency Standards have applied to all existing tenancies in addition to new ones or renewals. However, following a consultation in December 2020, the government has announced new standards that will become law by 2025 in England and Wales.

These new regulations will require all rental properties to have an EPC rating of C or above, starting with new tenancies and then all tenancies by 2028. The aim is to increase energy efficiency and reduce carbon emissions to support the government's net zero by 2050 target.

The penalty for not having a valid Energy Performance Certificate (EPC) can vary depending on the circumstances. In England and Wales, the current penalty for not having a valid EPC is a maximum of £5,000.

However, the penalty for not having the minimum EPC rating is set to increase significantly as part of the new regulations. From 2025, new rental properties in England and Wales will be required to have an EPC rating of C or above. The penalty for not having a valid EPC is expected to increase to a maximum fine of £30,000.

EPC Rating Changes 2025 UK

How will EPC changes affect the property market?

Energy Performance Certificate changes are likely to have a significant impact on the property market. As we discussed, costs to bring rental properties up to speed with the latest regulations can in some cases exceed £10,000, which could potentially price out many of the “smaller” landlords in the UK.

The new EPC regulations may also lead to an increase in the value of properties with high energy efficiency ratings, while also decreasing the value of properties with low ratings. This could prompt a shift in demand for more energy-efficient properties which will likely impact the wider property market.

Research suggests that the proposed changes are already altering the buying preferences of landlords, with 24% saying they are likely to avoid a property with a low EPC rating when adding to their portfolio. 15% of landlords said they’d only buy a property if it was built in the last 20 years. One of the challenges here is that much of the UK housing stock was built pre-1940 and is unlikely to be above EPC band C.

When it comes to the rental market, EPC changes will mean that landlords must ensure their properties meet the revised energy performance standards. One way this could impact the market is if landlords have to increase rent prices to cover the cost of upgrades. Some experts claim that this will be yet another deterrent for an increasingly unprofitable endeavour.

Changes to EPC ratings may also have a knock-on effect on the new build market, as developers will need to meet the new energy performance standards. This could have an upside, leading to a much-needed shift towards energy-efficient building practices and materials. However, this could increase the cost of new build properties, too.

Overall, the impact of EPC changes on the property market will depend on a variety of factors, including the level of enforcement, the willingness of property owners to make upgrades and whether or not Government subsidies and grants will be readily available for those intending to make changes for the better.

Although the changes will provoke a movement towards more sustainable buildings, there are costs associated with those changes, which will have to be absorbed somewhere in the chain. But the question remains, who will ultimately bear the brunt of those costs?

Anti-Social Behaviour: Do Landlords Have Confidence in the Government’s Plan?

The National Residential Landlords Association (NRLA) has recently called on the UK government to “beef up” its plans to tackle anti-social behaviour, saying that it is a major issue for landlords and tenants and that the government needs to do more to address it.

While the NRLA were encouraged by broad agreement on the need for more effective ways to deal with anti-social behaviour, Ben Beadle, Chief Executive of NRLA, wrote to housing minister Felicity Buchan to outline the steps the Government should take so landlords can have confidence in the proposed system, saying it must:

An NRLA survey recently revealed that half of landlords had to repossess a property because of the anti-social or criminal behaviour of a tenant. Out of those surveyed, 67% said that they had struggled to collect evidence while 83% claimed they received no assistance from their local authority.

NRLA, the UK's largest membership organisation for private residential landlords representing over 100,000 members, says that Government plans to end Section 21 repossessions will mean landlords must be reliant on convictions to tackle problem tenants, which could lead to several issues and delays to the effective resolution of anti-social behaviour, especially in HMOs, where the long term effects of anti-social behaviour are greater.

Anti-Social Behaviour: Do Landlords Have Confidence in the Government’s Plan?

What is Section 21 and when will it be abolished?

Section 21 of the Housing Act 1988 is a law in the UK that allows landlords to evict tenants without a specific reason, commonly known as a "no-fault" eviction. According to Government figures, Section 21 notices served by landlords in 2021/22 led to 20,000 evictions in England, up from 9,000 in the year before.

In April 2019, the UK government launched a consultation on abolishing Section 21. The consultation period ended on 12 October 2019, and the government has since published its response to the consultation, expressing its intention to abolish Section 21, but it has not yet introduced legislation to make this happen.

The COVID-19 pandemic has also impacted the government's plans to abolish Section 21. In March 2020, the government introduced emergency legislation to protect renters from eviction during the pandemic. The legislation included a temporary ban on Section 21 evictions during the pandemic. This ban was extended several times and was in place until 31 May 2021.

The forthcoming Renters' Reform Bill is expected to include the abolition of Section 21, but it has not yet been introduced to Parliament and there is no definitive timeline for its enactment. It is believed by many that it will be formally legislated in 2023.

How does UK law define anti-social behaviour?

In the UK, the definition of anti-social behaviour (ASB) is not clearly defined in a single law. Instead, it is defined in various laws and policies that apply to different types of behaviour and situations.

The UK government's official definition of ASB is "any conduct that has caused or is likely to cause harassment, alarm or distress to any person". This definition is broad and can include a range of behaviours, such as noise disturbances, drug dealing, vandalism, and violence.

There are several laws and policies in the UK that address ASB, including the Anti-Social Behaviour, Crime and Policing Act 2014, the Housing Act 1996, and the Public Order Act 1986. These laws provide authorities with powers to address different types of ASB, such as noise nuisance, environmental crime, and disorderly behaviour.

Under the Anti-Social Behaviour, Crime and Policing Act 2014, local authorities and police have several powers to deal with ASB, including the ability to issue community protection notices, dispersal orders, and civil injunctions. The Housing Act 1996 provides landlords with powers to take action against tenants who engage in ASB, including eviction.

In addition to these laws, there are also various government policies and initiatives aimed at tackling ASB, such as the Community Trigger, which allows victims of ASB to request a review of their case, and the Crime and Policing Toolkit, which provides guidance and support to local authorities and police in dealing with anti-social behaviour.

anti-social behaviour plan graffiti
Photographer: elCarito | Source: Unsplash

What are common forms of anti-social behaviour?

For it to be considered anti-social behaviour in the first place, it must be a persistent pattern. The most common forms of anti-social behaviour, according to the NRLA, include things like:

The persistent part is key, meaning that it must have occurred multiple times. If anti-social behaviour is a one-off event, it cannot be considered persistent and thus is harder to tackle. However, at least four events across a period of time can be considered persistent if, and only if, the anti-social behaviour is considered sufficiently serious.

What does this all mean for landlords?

Landlords should be mindful that they are not necessarily obliged to take action against tenants for breaching tenancy agreements through anti-social behaviour, and they’re not typically held responsible for problematic tenants.

However, landlords could be held responsible if they fail to take reasonable measures to address anti-social behaviour if it has been reported. It is therefore important for landlords to take anti-social matters seriously and prevent potential legal issues down the line.

Normally, landlords would be encouraged to seek assistance from local authorities or the police to handle such issues, but the NRLA makes the case that this course of action usually results in little more than a warning or a lengthy court process.

While eviction should be a last resort and landlords must serve a formal notice before considering it, experts warn that new government rules could mean that evicting tenants will be harder and the burden of proof greater, which could lead to significant delays.

It is believed that these delays will mean that the perpetrator of anti-social behaviour can remain in place while the evidence is collected and a case built, putting other tenants at risk of the effects of long-term anti-social behaviour, especially in HMOs, as the landlord’s hands are effectively tied.

“Anti-social behaviour in the private rented sector is often characterised by persistent, ‘low-level’ nuisance that falls below the threshold needed for action to be taken by police or local authorities,” said Ben Beadle. “It is nevertheless a significant issue for those living with it and the cumulative consequences of such behaviour should not be underestimated.”

As a result, landlords could potentially be fined or lose their HMO licence if they are unable to act on problem tenants, with the potential for other victims – the other tenants in the property or neighbours – to seek financial redress through the Property Ombudsman or the courts.

The best course of action for landlords is to weigh up their actions carefully, keep well-documented records of all forms of anti-social behaviour and consult legal advice if they feel they need to act.

How to Prevent Mould and Damp in Your Home

Recently, the UK government announced that it will review the guidance given to landlords in England about the health risks of mould and damp following the death of a two-year-old boy who suffered a respiratory condition caused by significant exposure to mould.

The death of Awaab Ishak in December 2020 prompted a coroner to call for the government to prevent future deaths by taking action to address the known risks of damp and mould to health, and since then there has been an outpouring of support from the public.

170,000 people have signed a petition to push through Awaab’s law to ensure no other child dies due to mould, which the Government has said it will now deliver.

To explore this topic further, let’s take a look at the facts about mould and the best ways to combat it in your home.

How common is mould in the UK?

Mould is a common problem in UK residential properties, particularly during the winter months when ventilation is reduced and condensation levels increase. Aside from looking unsightly, mould can have serious negative effects on indoor air quality and, as a result, the health of the building occupants.

In January, the chief executive of Shelter, Dr Polly Neate, said that the government’s social housing regulation bill, which would introduce inspections of social homes, was more important than reviewing guidance. Neate said that “unlivable housing conditions” were common in private housing due to a lack of protection for tenants.

Conversely, a Propertymark fact sheet spreads the burden between all parties, saying that in a tenanted property, the responsibility is “shared between landlords, managing agents and tenants.”

Dealing with damp and mould can be a challenging task for everyone, especially in rental properties, but it is really important for ensuring that a property is safe for tenants. However, with enough vigilance from landlords and tenants, once the common causes of damp and mould are known, it can be much easier to manage the issue and prevent any adverse health consequences.

mould and damp in UK home
Source: AXA

What causes mould in residential properties?

Mould thrives in moist environments. This is why bathrooms and kitchens are particularly susceptible to mould growth. For example, at one point in your life, you may have noticed mildew growing on tiles in a bathroom if left uncleaned and unventilated.

Condensation that comes from cooking, showering and drying clothes indoors can create damp conditions in the home. This can encourage mould growth, providing an ideal breeding ground for it to spread.

Poor ventilation can lead to a build-up of moisture in the air, creating a damp environment that promotes mould growth, while condensation can also be a significant problem, particularly when windows and doors are kept closed and heating is used more frequently in the colder months of the year.

Water leaks can also cause mould to develop, particularly if they remain undetected or aren’t repaired promptly. Leaks can occur in a range of places throughout the home, including roofs and around windows. If they’re left untreated they can lead to long-term damp problems.

The negative health effects of mould and damp

The negative health effects of mould have been much publicised recently, especially in the case of Awaab Ishak. In that heartbreaking situation, excessive mould proved fatal for the young boy who suffered a respiratory condition due to the conditions in his family’s home.

Mould can have a range of negative health effects, and it can be particularly threatening for those with allergies, asthma or underlying health issues.

Mould exposure can cause allergic reactions, such as sneezing, runny nose and red eyes, as well as skin rashes and respiratory problems. People with asthma may experience their symptoms getting worse, including wheezing and shortness of breath.

In rare cases, exposure to certain types of mould can lead to more serious health effects, such as fungal infections. Mould can also produce mycotoxins – toxic substances that can cause a range of health problems including neurological and immunological effects.

So, in short, depending on the severity of damp and mould in the home and pre-existing health problems, symptoms can range from a cough to much more serious, and sometimes fatal respiratory conditions.

damp building up can cause mould in the home

How to prevent mould in your property

Preventing mould growth in UK residential properties requires a combination of measures, including proper ventilation, moisture control and maintenance. Many in the private rented sector argue that tenant education is the key, while both private and social tenants say that building standards are the biggest cause of mould issues in the home.

Whatever side of the debate you sit on, here are some steps that landlords and tenants can both take to prevent damp and mould:

Humidity, of course, is a big factor in damp and mould issues in the home. You should maintain indoor humidity levels between 30-60%.

Experts state that humidity levels above 60% provide an ideal environment for mould to grow, while levels below 30% can cause discomfort too. It’s a fine balance, but so long as it’s between 30% and 60% then tenants should feel the most comfortable.

But for the average tenant, measuring humidity isn’t always easy without specialist devices, so landlords and property managers should be more proactive with humidity readings on their periodic inspections.

To offset high humidity, you can use dehumidifiers, air conditioners and fans to reduce the moisture in the air. If the humidity is too low, then you can use humidifiers to add moisture to the air.

Other solutions, such as sensors that collect indoor air quality data, are being rolled out by some forward-thinking firms to tackle the ongoing issue of damp and mould. While these are more commonplace in commercial properties, more and more consumer-friendly devices are coming to market.

Whatever the solution may be, by maintaining indoor humidity levels within the optimal range and practising good ventilation and cleaning habits, you can prevent the growth of mould in your home, creating a safer and healthier living environment.

Is it possible to eliminate mould completely?

If mould has already developed in a UK residential property, several steps can be taken to eliminate it once and for all:

Whatever route you take, make sure to take precautions when removing or cleaning mould! It might seem like a simple cleaning job, but as we’ve already seen exposure to mould can be deadly.

Wear protective clothing like gloves and a mask so you can avoid inhaling mould spores, and most importantly, ventilate the area when you’re cleaning.

Half-breed girl, holding a magnifying glass to look at a house model, concept of home inspection before buying a house and land.
How regular inspections combat mould growth

As we’ve seen, preventing mould growth requires proper ventilation, moisture control and maintenance, while eliminating mould requires identifying and fixing the source of moisture, removing surface-level mould and ensuring the area stays dry. With the right measures in place, it is possible to prevent and eliminate mould in your home.

If damp and mould do develop, it is crucial to take action promptly to prevent the problem from getting worse. One way to stay on top of any developing damp or mould problems is by conducting thorough, regular property inspections. Not only does this help identify the early warning signs of mould in the property, but it can also help you spot any other adverse issues that may be challenging down the line.

As is the case with most industries these days, technology can play a big part in eliminating mould in the home. One way to do this is by carrying out digital property inspections that connect with humidity sensors, providing real-time embedded data about the indoor air quality of the property, giving landlords, property managers and managing agents ample time to react to address the issues.

Inventory Reports – Why recycling isn’t the best policy

As an industry, we are very vocal about being energy efficient and ensuring that we re-use, recycle and up-cycle at every opportunity to help minimise our impact on the environment.

This includes reducing the amount of paper we use which is why nearly every inventory provider / landlord / letting agent all uses an app, especially Inventory Base, to produce paperless reports. 

However, during this time of austerity, there appears to be an emerging trend of recycling reports and pictures in favour of cost cutting. At best, this can be problematic, if when a dispute is raised, date/timed pictures and information are relied on during the adjudication process that do not match the start date of the tenancy. 

At worst, it can lose the claim and could even create a wider case for more in-depth investigation into the tenancy process to find out exactly what else has been ‘optionally missed’ in favour of lowering costs. 

Basis for property reports 

At the start of a tenancy, in addition to the tenancy agreement, landlords are required by law to supply four documents: 

These obligations mainly benefit the tenants. Perhaps surprisingly, there are other documents which are not mandatory, even though they can provide both security and certainty for both parties. 

One of these is, unsurprisingly, the inventory report

This document records the description of the contents and infrastructure as well as the condition of everything supplied (with the property) for the tenant’s use. At the end of the tenancy, it equally provides important, vital evidence for the apportionment of responsibility for any discrepancies, damage or missing items.

It is often appended to the tenancy agreement, giving it a semi-legal status, and both defines and limits the repairing obligations of the tenant. Normally prepared by an independent inventory clerk, it is a factual record of a property at the start of a tenancy.

Of the three main causes of deposit disputes, rent arrears is a relatively minor one. Much more common are disputes over damage and cleanliness. For the year 2021-22 they accounted for 46% and 50% respectively of all claims made using the TDS dispute service.

The fact that so many complaints reach a status that can be statistically measured suggests that even when an inventory report has been compiled and the contents agreed, there is still room for argument. 

Tenants are often surprised by the claims made on their deposits by their landlords. Equally, landlords who believed their tenants’ repair liabilities to be clearly defined, face unexpected objections and even counter-claims.

Compiling a property report 

The drafting of the report involves so much more than working through a quick-fire yes / no checklist. In some cases, it can be quite straightforward, especially for small, modern properties where there are no historic issues and where infrastructure and decor is replicated in each and every room.

But with older or larger properties with a tenanted history, there is always the potential that an issue will be misrepresented, damage inadequately assessed, poorly photographed or simply overlooked in favour of speed and cost.

Unfortunately, the inventory and all the other tenancy lifecycle reports (check in, interim and check out), are frequently treated as ‘nice to have’, often carried out by inexperienced staff without a thorough understanding of the need to be detailed or the understanding of how, if done properly, the inventory can minimise the risk to both the property, the landlord, agent and also the tenant. 

Risk of recycling reports 

One of the most obvious risks that can be a direct result of using old reports and their pictures is that any changes to the property since the last report was compiled are unlikely to reflect the property’s current description, condition and or issues.

This by default creates doubt – doubt in the validity of the information and doubt in the process of producing ‘an accurate report’.

That is all the deposit scheme needs to be able to dismiss the claim as the reports contents are then highly questionable and the balance of probability is therefore likely to be in the favour of the tenant.

Putting it another way, expressing the balance of probability in percentage terms:

Inventory Reports - Why recycling isn't the best policy


*If the deposit adjudicator concludes that it is 50% likely that the landlord’s case is true, then they fail this test, but should the adjudicator conclude that it is 51% likely that the landlord is right then they will win the dispute.

Taking the short route 

Whilst taking the ‘short route’ may reduce overheads (cost of attending the property, cost of compiling a report using a third party) landlords and agents are creating the ideal environment to have the claim thrown out before the adjudicator even sets eyes on the evidence. 

The adverse effect this also has on the property is that any damage that has been caused by the out-going tenants are unlikely to be recovered leaving the landlord not only out of pocket but also reevaluating their use of any services used to compile the reports in the first place!

At Inventory Base, we work with landlords, letting agents and inventory providers, providing property management and reporting software that’s designed to help produce efficient and fully comprehensive schedules and reports.

Our experience has shown us how easy it can be to miss the early signs of disrepair and even the most glaring problems and the risk is increased if a property report and pictures are ‘recycled’ rather than being updated and new pictures taken at the actual point of a new tenancy being started.

A property inventory report is both vital and imperfect

It doesn’t 100% prevent deposit disputes, but if comprehensively compiled and evidenced, it does minimise the grounds on which disputes can be based, therefore reducing the risk for disagreements and provides powerful evidence to support the landlord’s position.

The temptation to reduce costs and time at the property may be strong but if the ‘saving’ is dwarfed by the losses suffered by a claim being thrown out, then as a landlord, you really need to way up the risks of recycling or investing in an accurate, professionally compiled inventory report.

Prescribed Information – What is it and Why do I need it?

Historically, deposits have been the most common cause of disputes between landlords and tenants. At the start of a tenancy, the tenant hands over a significant sum of money as a form of surety to protect the landlord from loss or damage to their property which occurs while the tenant is living there. So what is Prescribed information and why is it needed?

A brief history 

Even with the most efficient system of check-in, check-out and interim property inspection reports, when the time came for the tenant to leave, arguments would frequently arise about whether the property had suffered normal wear and tear or the tenant had been negligent or wilful in their treatment of it. 

Questions of responsibility immediately gave rise to disagreements over liability and while the landlord retained the deposit, they also held all the cards. Some landlords would withhold some or all of the deposit and the tenant had no option but to accept this, short of expensive, stressful court action.

Housing Act

This inherent imbalance in the relationship was addressed by the Housing Act 2004 and the Tenancy Deposit Scheme regulations, introduced in 2007. 

There are now three officially recognised Deposit Protection Schemes in England and Wales:

Instead of paying the landlord, the tenant places their deposit into one of these schemes. I

The regulations require the landlord to provide the tenant with what is known as Prescribed Information. 

This tells the tenant everything they need to know about how the scheme works, the procedure that must be followed in the event of a dispute and a number of other important details. 

Every landlord is legally obliged to be a member of a Deposit Protection Scheme and must therefore comply with the requirement.

Prescribed Information - What is it and Why do I need it?

Prescribed Information 

There are four elements to the prescribed information, which must be given to the tenant and anyone who is classed as a Relevant Person. For example, a guarantor would fit this classification.

– The amount of the deposit

– The address of the property

– The name, address and contact details of the administrator of the?tenancy deposit scheme which is holding the deposit

– The name, address and contact details of the landlord and tenants including any third parties who have contributed to the deposit

As the landlord, you need to give the tenant full details of the administrator of your Tenancy Deposit Scheme. 

This must include the street and website addresses as well as contact information, including telephone number and email address. Both landlord and tenant must sign to confirm their understanding and acceptance of the information.

Housing Act

The government has prepared a leaflet called ‘What is the Tenancy Deposit Scheme?‘ which explains how the legal provisions contained in the Housing Act 2004 operate. 

It clarifies the process under which the landlord may apply to withhold some or all of the deposit at the end of the tenancy. It also makes clear the limitations on the landlord’s power to do this.

It’s particularly helpful in detailing what needs to happen in the event of a dispute over the deposit. It’s no longer a matter for the landlord and tenant to battle out between themselves because the interposition of a third party with statutory authority means difficulties can be settled without the need for litigation. 

This is in line with the general obligation recommended by the courts to seek alternative methods of resolution as a faster, cheaper and more collaborative response to any contentious matter.

The leaflet covers several other issues, many of them uncommon, but occasionally needing to be dealt with, such as a situation in which one of the parties is not contactable at the end of the tenancy.

Although it’s perfectly acceptable to present the information in a separate document, it’s becoming common practice to include explicit reference to the provisions of the Tenancy Deposit Scheme in the tenancy agreement. 

You can’t exclude its operation but you can specify a procedure and set of circumstances in which money from the deposit can be retained. This enables the parties to come to their own resolution and call on the TDS only if they can’t agree.

Mandatory 

As the landlord, you are obliged to provide the Prescribed Information no later than 30 days after the tenant pays the deposit into the scheme. 

This applies at the beginning of an assured shorthold tenancy (AST), but if it rolls over into a new fixed-term AST or as a periodic tenancy, you won’t have to issue it again, provided that none of the material circumstances change. 

If the same scheme is used, the property is the same one and both tenant and landlord remain the same, there is no need to provide the information a second time, assuming that it was correctly supplied the first time.

What happens if you don’t comply within 30 days? 

You will be automatically in breach of the Housing Act and may be liable to pay compensation to the tenant. This may sound harsh, but since it is very easy to comply, there’s really no reason to risk it. 

In our experience at Inventory Base, the system can benefit both parties and represents a measured, even-handed solution to ensuring renting in the private rental sector is safe ad secure for tenants and landlords.

Renting in Winter – 5 Ways To Prepare Your Property

In his 1962 State of the Union Address, President John F Kennedy memorably said that ‘the best time to repair the roof is when the sun is shining’. 

It’s a simple but wise piece of advice which applies both figuratively and literally to landlords across the regions, especially as the UK faces a winter that is going to be both cold and costly with the impact of rising energy prices and high inflation hitting everybody’s pocket.

Maintenance 

Timely and effective maintenance is important all year round but as the autumn gives way to winter, the potential threats to rental properties and to the well-being of the tenants who occupy them can easily multiply. 

The change in climate conditions and the falling temperatures present challenges that can be easily forgotten in the summer months. 

Getting ready for the onslaught of winter by anticipating the risks and taking preventive measures should be at the top of every landlord’s to-do list.

Cost of energy

In September, the new government announced its Energy Price Guarantee, which halts the inexorable rise of Ofgem‘s energy price cap. 

This measure cancels the proposed increase on 1st October to £3,549 for an average household and holds the cap at £2,500. 

This is a very welcome decision, but it still means that energy prices in the UK are over 60% higher than they were in the winter of 21/22.

Homeowners and tenants alike will face hefty bills for keeping their homes warm.

Heating is important not only for the health and comfort of occupiers but also to protect property against the effects of rain, high winds, low temperatures and the encroachment of damp, which can increase in winter months. 

While homeowners have the freedom to make whatever alterations they can, tenants in the private rental sector are largely at the mercy of their landlords. 

At the same time, landlords have certain legal obligations to provide sufficient heating and to maintain their properties in habitable condition. It’s also in their interests to do what’s necessary to prevent the often-unseen damage that can occur. 

If rented flats and houses are left undefended, then the eventual cost of repairs will be much greater than if any pre-emptive action is taken. Properties that stand empty at this time of year are even more vulnerable.

Renting in Winter – 5 Ways To Prepare Your Property

Lag the pipes

Water pipes are a hidden threat in winter. They can easily freeze, which could cause them to crack so that when the thaw comes, they will burst, requiring costly repairs. 

Even if they don’t freeze, they represent a serious source of heat loss because they will cool down more severely along with the water inside them. 

This means more power will be needed to maintain adequate water temperature. The relatively simple procedure of lagging or insulating them will save energy and avoid the nightmare of burst pipes, which is expensive for the landlord and profoundly inconvenient for the tenant.

Also remember to check the pipework regularly especially during void periods or when tenants are away for an extended period.

Check the roof

Roofs suffer inordinate punishment from the elements and if they already have weaknesses, the winter weather can exacerbate these. You should check for loose, broken or missing roof tiles because replacing a few is quick and cheap. 

If the weather gets to work on damaged areas, then much more extensive repairs will be needed later on. 

From the tenant’s point of view, holes in the roof can let the rain in and allow precious heat to escape, resulting in higher energy bills as well as the inconvenience of leaks. Once water gets in anywhere, it tends to wreak havoc.

Landlords should instruct their inventory clerks to make regular checks as part of every interim report, as well as at check-in and check-out. The property management software supplied by Inventorybase can turn this special measure into a routine task. 

In most cases, flaws in the roof can be detected simply by shining a torch around the loft space. Once discovered, they can be put in the hands of an experienced trades person or roofer to be fixed.

Insulate the property

All new builds are required by law to incorporate insulation to the very highest standards, as part of government efforts to reduce energy consumption. 

Older properties can be retrofitted and the upfront cost of this is offset in the longer term. It will not only make life more comfortable for tenants and reduce energy bills, but it also helps landlords to meet their obligations under the government’s Minimum Energy Efficiency Standards (MEES).

If the windows are not yet double-glazed this should be attended to urgently, since heat loss through glass is substantial and helps keep the heat int during the winter months.

Service the boiler

Boilers should be serviced at least once a year, but if the annual visit is in the spring, then it’s wise to check it as winter approaches. 

This is another job which you can ask an inventory clerk to carry out. Clearly, they are not qualified engineers, but they can verify that the boiler is working and alert you to any concerns. 

Replacement is expensive but gambling on it to survive the winter is a mistake. 

If it’s inefficient, you could be compelled under the MEES to replace it anyway so it’s better to take the initiative. It also means your tenants are guaranteed a reliable source of heating and hot water. 

While you’re at it, you can maximise the efficiency of the heating system by bleeding the radiators so that the hot water always fills them to the top.

Contact our partner Safe2 to find a Gas Safe registered engineer.

Empty properties

These are the most vulnerable of all. Winter weather doesn’t distinguish but with no tenant in situ, it’s easy for serious problems to develop. 

Even keeping the heating on at a low level can create condensation which, if the property is not sufficiently ventilated, can cause damp and mould to develop. This can severely damage plaster, timber and even brickwork. 

Regular checks are invaluable and may be part of your buildings insurance so its always advisable to check you have the right cover.

If these measures sound like a lot of work, bear in mind how much greater the work and higher the costs you could face by not paying enough attention. Your tenants will experience a much more comfortable winter and you will be maintaining the value of your asset.

Preparing for Winter: Key takeaways

To avoid unnecessary damage and limit complaints from tenants; landlords should:

To find out more about how Inventory Base can help keep your property safe in winter; visit our support guide Inspection Scheduler to plan your maintenance and property visits or service, repair or replace your boiler with a qualified Gas Safe engineer with Safe2.

Rent Guarantee Insurance – The Landlord’s Predicament

At a time of economic uncertainty teetering on the edge of recession, hardships are rarely confined to one group of people. Renters can be disproportionately affected, as are landlords when rent goes unpaid. Can Rent Guarantee Insurance ease the burden & why are inventory reports important?

Businesses that sell products and services are just as vulnerable in an economic downturn because of falling demand and incomes. Those that serve can be hit as hard as those who can no longer afford the service.

This is an obvious phenomenon in the consumer goods industry and sectors where discretionary spending is paramount to survival, such as hospitality and leisure. 

Housing 

What is not always appreciated is how commonly it affects those services and contractual relationships most of us would term essentials. Housing is one of the most significant.

The rental sector is especially vulnerable.

Social housing is supported by public money, either from local or central government, which means that the impact of tenants who fall into arrears is more easily borne by the local council. In the private rental sector it’s a very different story. 

Private landlords have virtually no protection when a tenant is seriously in default and simply cannot pay what they owe. Court action to recover the debt is only effective if the tenant has the money.

Otherwise the only option is eviction. 

Rent Guarantee Insurance 

The average eviction can take 42 weeks which means months of lost rent as well as court costs.

That’s where rent guarantee insurance comes in. 

This can be a lifesaver or at least a business-saver. Like all policies, Rent Guarantee Insurance operates on the principle that paying a modest regular premium is a sensible financial commitment to guard against catastrophic loss. 

We insure our property and our valuables, so why shouldn’t a landlord insure their income?

According to Which? magazine significant numbers of people are regularly missing important payments, including mortgages, credit card bills and rent. 

This isn’t because of any unwillingness to pay, but simply because the dramatic rises in the cost of living are leaving millions of people short of money. 

With inflation heading for double figures and interest rates rising inexorably, this position is likely to worsen especially in October when expected rises in the cost of gas and electricity are set to bite.

What Does Rent Guarantee Insurance Cover?

Policies differ, but they will generally cover unpaid rent for six to 12 months. They may also pay the landlord’s legal expenses and the costs of any disputes that arise in any action to recover rent arrears or pursue repossession or eviction processes. 

In addition, the insurance company might fund access to a panel of solicitors who can offer legal advice. It’s important to bear in mind that the level of cover you receive may be subject to prescribed limits. 

Yes a landlord, you can’t assume you’ll be automatically compensated to the full level of any loss, but the right policy could go a very long way towards achieving this.

What’s Not Covered?

Again, as with most insurance policies, Rent Guarantee Insurance cover won’t be payable for the initial period – usually the first month but potentially for longer. This is to protect the insurer from any misuse of their services.

Once you’ve succeeded in evicting the tenant or they have left of their own accord, any payments will normally stop. This is because the policy is not designed to cover any empty property, even though you may not have a tenant immediately ready to replace them. The same applies should you decide not to re-let but to sell.

Many rent guarantee insurance policies will exclude those types of tenant that the insurance company considers to be high risk, such as the unemployed and students. Commercial properties are also excluded.

It’s important to remember that the cover relates only to unpaid rent and situations arising from it. It won’t help you with any legal costs for disputes over terms in the tenancy itself.

The Landlord’s Predicament

Landlords are as vulnerable to cost of living rises as anyone else. Many are being compelled to increase rents in order to cover mortgage loans on their rental properties as well as the cost of maintenance and commercial overheads. 

Many are also leaving the PRS because of changes to tax laws, increased oversight and lack of Government support.

And there isn’t a day that goes by where landlords are either being vilified or counting the cost of unpaid rent, with some stories showcasing the appalling condition of properties handed back after months, and in some cases, years of protracted negotiations and court action.

Rent guarantee insurance is one sure way for landlords and those whose services they use to get protection from what can be a drastic loss of revenue. 

It can be added to landlord insurance policies that are already in place and can apply to existing tenancies as well as new ones and renewals. 

In comparison with the thousands of pounds that could be lost, a policy is relatively cheap, with prices starting at £150 a year when bought together with other landlord insurance.

Requirements for Rent Guarantee Insurance

All insurance companies require policyholders to meet strict conditions and this involves assiduous record keeping. 

Insurers will want to see a detailed schedule of how much rent is owed as well as evidence that all references were properly completed and that the tenant’s deposit has been correctly protected within an approved deposit scheme. 

They will also want to see all correspondence between the landlord and tenant as well as copies of every property inspection and inventory report that has been carried out during the tenancy. 

Having the right evidence, that is robust, beyond contestation and clearly showcases the changes to a property, will help insurers and despots schemes make fair and swift judgments when it comes to management of the tenancy.

Property Reports

Lettings agents are also likely to be affected by the loss of management fees and there is a corresponding risk to the livelihoods of inventory clerks who rely on regular inventory property management assignments to keep their businesses viable. So it is in everyones interest to do all we can to support the industry by proving quality services that protect the asset.

Inventory Base is a specialist supplier of software for landlords, letting agents and inventory clerks and provides an efficient, cost-effective way of keeping the thorough records that will be needed in the event of a claim against the Rent Guarantee Insurance policy. 

Not only do our services enable you to protect your property, but they also support efforts to claim compensation if faced with the nightmare of tenant rent arrears.

Landlords – How to prepare for your Inventory

Compiling an Inventory is a time intensive job that is often impacted because the property is either not ready, not clean or is undergoing last minute maintenance work.

This could result in the report being ‘out of date’ as soon as the clerk leaves the property!

So how can landlords minimise disruptions to their own schedules, avoid costly tenant fall throughs and ensure that the report accurately reflects and safeguards the property?

Tenancy documents 

As every landlord will know, there are literally hundreds of legislative hoops, armfuls of required documents and forms to complete, many of which are utterly indispensable when setting up a tenancy. 

The first document is the tenancy agreement (or AST), which contains all the terms by which the landlord and tenant agree to abide by. 

Other key documents which the landlord is legally obliged to provide, include the Government’s ‘How to Rent‘ booklet, gas safety and electrical certificates, energy performance certificate (EPC) and details of the deposit protection scheme used to secure the tenants hard earned deposit.

The other document, vital for both landlord and tenant, is the schedule of condition, more commonly known as an inventory. 

This is an immensely detailed, evidence-rich document that records the condition of the property, its fixtures, fittings, contents and most importantly, the condition of all that will form part of the tenants responsibilities when renting out the home and set the expectations for all parties. 

The inventory report

Many think that a quick once over of the property is sufficient especially if it’s being let without furniture. Right?

Well, no actually.

Compiling a report on a rental property is very important but even more so when let with furnishings as how to you prove your case if things go wrong, go missing or are damaged?

Any landlord who allows a tenant to take possession under a tenancy without first conducting an inventory, is inviting trouble and confusion later down the line.

So it’s always recommended that landlords instruct an independent report to be carried out as an inventory professional is impartial and will not only list the items present, but also comment on the condition and take vital pictures or video should the items fail to make it to check out.

It is also a mistake to think that conducting an inventory is a simple matter of ticking a few boxes which can be done by just anyone. 

Although landlords can and often do conduct their own reports, they are not always detailed or objective.

For a property inspection you can truly rely on, there is no substitute for the services of a professional, experienced inventory clerk using a detailed template that is focused on the facts, ensuring the report is both accurate and reliable.

Good, Satisfactory, Poor – it just doesn’t cut it! 

When it comes to the kind of detail that anyone else might miss, inventory clerks have the precision and thoroughness of thought to spot, question and investigate the smallest issues that might eventually prove significant.

Using generalised and loose terms opens up the potential for argument or ‘wriggle room’ when it comes to dispute.

What is poor? How do you evidence it and is it enough to allow the adjudicator to make a decision or do you need to literally spell it out in the report?

Good and satisfactory are equally subjective as both landlords, tenants and agents involved in the tenancy will have a different viewpoint so detail is key to ensuring everyone ‘gets it’ when reading the report.

So how do you prepare for the inventory? 

Depending on the size of the property, an inspection could be a brief affair or take several hours. Nobody wants it to take longer than absolutely necessary, but it needs to be clear, comprehensive and more importantly, backed by objective, factual evidence. 

So there are several ways in which a landlord can prepare for a successful inventory and tenancy.

Carry on Cleaning!

Unless you’re renting out a newly built or freshly converted property, the first jobs are the simple ones which often require little effort and no professional skills. 

Cleaning is essential, not just for the sake of the new tenant but because it is one fewer thing for the clerk to record and the tenant to complain about. 

Landlords can, of course, do this themselves, but it makes sense to engage experienced cleaning contractors who will do a much better job in a considerably shorter time so you can concentrate on more practical and revenue generating tasks.

Although legally a landlord cannot require the tenant to carry out a professional clean at check out, they are expected to return the property in the same condition (less fair, wear and tear) so if it’s spotless or issue free at check in then tenants are expected to return it in an equally clean state.

Sort out maintenance issues

It’s well worth checking the property for any maintenance issues, such as tired decor, damaged plaster, cracked window panes or leaks. 

The inventory clerk will be obliged to include them in the report, and should anything like this deteriorate, the potential for disputes over who is responsible increases and any consequent damage more difficult to apportion. 

So it’s far better to fix everything before the tenancy begins.

Remove unsafe furniture and equipment

Landlords should also check both the condition of furniture and their resistance to fire. 

Chairs, tables and beds don’t last forever, so it’s helpful in the longer term to let the property with furniture that is in a perfectly serviceable state, and get rid of anything substandard or, more importantly, unsafe that doesn’t conform to the Furniture and Furnishings (Fire Safety) Regulations 1988.

That last point about the safety of furnishings raises the important issue of compliance. 

As a landlord you are under a lengthy series of legal obligations to ensure the safety and comfort of your tenant while they occupy your property. 

Safety certificates & compliance

It is a legal requirement for landlords to commission reports on the safety of all gas appliances, including the pipework that supplies them. 

These must be performed by an engineer registered with Gas Safe, and needs to be renewed every twelve months and a copy of this record provided to the tenant within 28 days of the check being completed.

New tenants just starting a tenancy should also be given a copy of the latest record.

If anything in the property fails the inspection, it must be repaired and tested again before the property can be let.

Similar safety checks are now compulsory for all electrical installations under the 2020 regulations, although they do allow an interval of up to 5 years between tests. 

When preparing the property before an inspection it’s well worth checking each appliance to see when it was last tested so you can keep everything up to date. 

After a successful test landlords receive an Electrical Installation Condition Report (EICR) that should be supplied to the existing tenant within 28 days, a copy supplied to a new tenant before they occupy the property or when requested for a prospective tenant and finally, not only hold a copy for reference but provide it to the local authority within 7 days of any request.  

As you can see, with safety compliance, there is a huge amount of admin that an inventory provider can help with by adding the certificates into the report and sharing directly with the tenant to provide proof of service.

Get ready for The Decent Homes Standard

Although this technical measure was introduced under the Blair government in an attempt to raise the minimum standard of housing conditions in the public sector such as council housing and housing association properties, it stands as a useful guide for private sector landlords as well. 

The criteria includes stipulations of a reasonable state of repair, reasonably modern facilities and a reasonable degree of warmth. 

Exactly what constitutes reasonable is not yet defined, but it’s largely a matter of common sense. This is a key subject of the Department of Levelling Up, Housing & Communities (DLUHC) white paper out for consultation so make sure you keep an eye out for any changes as the government seeks to introduce a legally binding Decent Homes Standard (DHS) in the Private Rented Sector for the first time.

Risk assess

Homes (Fitness for Human Habitation) Act builds on the Landlord and Tenant Act 1985, and applies equally to the private and public sectors. 

It expands on the principles of the Decent Homes Standard and is specific about issues such as damp, structural instability, ventilation, light, sanitation, hot and cold water supplies and even the suitability of the layout. 

By risk assessing the property before it even enters the rental market will mean the property is safe, and then lessens any risks to the tenant or their visitors and reduces the likelihood of fines or imprisonment if the property fails to adhere to the standards set out by the government.

Again, most of this is obvious, and a capable inventory clerk will instantly pick up any areas of concern. They will be able to do their job more quickly, efficiently and accurately if the property is prepped and ready to let by, fixing what you can and ensuring easy access to all areas.

Final thoughts 

One last but important point for landlords to remember is to book your property report or inspection early!

Summer is nearly upon us and ‘student season’ is about to start meaning many inventory clerks and providers will already be booked up so start planning your reporting needs now.

Inventory clerks are in high demand as the rental sector continues to grow, so don’t leave things to the last minute.

Even if you only have a rough idea of when you expect to start a new tenancy, you need to be sure the check-in inventory can be completed before the tenant moves in.

Key takeaways 

Avoid delaying the move in; book your next property report, interim property visit or inspection with Workstreams 

The Renting Homes (Wales) Act 2016 is now in force – 1 December 2022

Fitness of Homes for Human Habitation, an integral part of the new legislation in Wales rental market, was due to come into effect on 22 July 2002 however it was delayed for 6 months after the Welsh Government admitted that there were still significant issues to be addressed before implementation so wanted to give landlords more time to complete the necessary preparations ahead of implementation.

The new legislation will now be implanted on 1st December 2022.

Background 

Although the Renting Homes (Wales) Act was passed in 2016, it will only come into force once the issues around implementation are sorted.

According to the Welsh government minister Julie James, the six-year delay before the original implementation date of 22nd July 2002 was necessary to allow time for the development of a complex collection of statutory instruments. 

Statutory instruments (SIs) give powers to ministers and civil servants to take actions in the service of a law without having to return to parliament for approval. However, they still need to be subjected to scrutiny and consultation before being introduced into law.

Now that this lengthy process has been completed, the new provisions, which have been so long anticipated, will assume legal status and bring about the biggest change to housing law in Wales since at least 1988.

What are the most significant effects of the law for tenants, landlords and the wider industry? 

In a major overhaul of the diverse range of tenancies and licences, including short-hold assured and secure tenancies, the Renting Homes Act replaces all of these variants with just two types: a secure occupation contract and a standard occupation contract. In keeping with the new terminology, tenants will now be known as contract holders.

The difference between the two types depends on whether the rental property is owned by a private landlord (standard) or by a council or housing association (secure).

At Inventory Base our clients are in the private rental sector, so this is our focus in examining the new Renting Homes law.

A standard occupation contract will be for a fixed term of virtually any length up to seven years, or for a periodic week to week or month to month open-ended term. On expiry, a fixed term contract will automatically become a periodic one if the contract holder is still living in the property.

It will now be a legal requirement for every occupation contract to be in writing, and to incorporate a number of mandatory terms. The landlord must supply a written statement of terms and conditions within 14 days of the start of the contract.

This applies to all new contracts created after 1st Dec, while existing ones will be automatically converted, with landlords being obliged to provide the written statement within 6 months.

The terms required in the statement fall into four categories:

Tenants 

One of the main benefits for tenants is that a tenancy governed by a joint contract will no longer have to end for all parties if one party leaves. They can be removed from the contract, which will survive that removal, and may even have new parties added to it.

Section 21 and Section 8 notices cease to be available, and new notices will strengthen the position of contract holders by requiring a minimum of six months’ notice, not to be served within the first six months of the contract. 

Furthermore, landlords are prohibited from giving this kind of ‘no fault’ notice unless they have complied with obligations such as health and safety provisions, deposit protection, the preparation of a satisfactory report on the safety of all electrical installations and the issuing of energy performance and gas safety certificates.

It will no longer be possible to insert break clauses into any occupation contract that has a fixed term of two years or more and any break clause cannot be exercised within the first 18 months of occupation.

Other tenant benefits include the requirement for properties to pass a test based on the Housing Health and Safety Rating System. 

Fitness of Homes for Human Habitation is an integral part of the new legislation that was due to come into effect on 22 July 2002 however there is now a 6 month delay after the Welsh Government admitted that there are still significant issues to address before implementation.

Part 4 of the Renting Homes (Wales) Act 2016 (The Act) also sets out the obligations placed on a landlord renting homes with regard to the condition of a dwelling. These obligations apply to all occupation contracts made for a term of less than seven years. 

A landlord under an occupation contract is obliged to ensure a dwelling is both in repair and fit for human habitation (FFHH).

Key points of the Renting Homes act include: 

Landlords also remain responsible for the maintenance of the property’s structure, interior, sanitation and all utilities and appliances. Relatives and carers will find it easier to exercise succession rights should a tenant die in occupation.

While the position of tenants, or contract holders, is strengthened, not everything in the act represents a burden on landlords.

Councils will be given new powers to repossess abandoned properties without the need for a court order and they are free to introduce contract clauses addressing anti-social behaviour and other forms of prohibited conduct. 

Domestic abusers can also be much more easily targeted for eviction and there will be temporary exclusion powers available in some supported contracts.

Impacts and benefits on the private rental sector

Such a far-reaching overhaul of the private rental sector will inevitably cause some difficulties for landlords, such as increased costs, particularly in terms of maintenance and property inspection reports. 

However, for the industry as a whole it is an act to be welcomed for the way in which it will raise standards of renting homes and promote a less adversarial atmosphere.

The obligation to prepare an explicit and exhaustive statement of conditions will improve certainty for both parties not just in the event of disputes but in more clearly identifying responsibilities. 

A landlord who runs their businesses fairly, professionally and legally has nothing to fear from the new provisions, as they do not impose onerous new demands but simply seek to codify and support the principles of good practice.

It is clear that landlords and tenants will find it in their interest to be even more vigilant regarding the condition of rental properties. Inventory clerks and lettings agents are well placed to contribute, by reviewing their reporting practices in line with enforceable standards. 

How Inventory Base can help you to manage the requirements of renting homes in Wales

The use of advanced property management and reporting software is sure to play a significant role in complying with the new legal regime.

Inventory Base has two new Fitness For Human Habitation Templates for landlords use as well as professional risk assessors to capture key information across all 29 risk assessment areas.