New rules for smoke and carbon monoxide compliance are expected to take effect from 1st October. In our blog, we have previously discussed whether the new carbon monoxide (CO) alarm regulations will have an impact on the buy-to-rent sector. With these proposed changes just around the corner, now is the time to ensure that you will comply with the law.
What do the new CO rules require from landlords?
Landlords and letting agents should already be aware of the obligations placed on them regarding carbon monoxide alarms and smoke detectors.
But from the beginning of October, the Smoke and Carbon Monoxide Alarm (Amendment) regulations will create new obligations that must be complied with:
• Landlords will be responsible for repairing and replacing alarms throughout the tenancy, not just at the start. They can no longer rely on the tenant to repair or replace the smoke alarm or CO detector, and they need to ensure that they act once they have been informed of a fault by the tenant.
• Any room in the property with a fixed combustion appliance, including gas fires, boilers and wood burners (excluding gas cookers), must have a carbon monoxide alarm.
• Landlords must check alarms are in working order on the first day of a tenancy.
• Carbon monoxide alarms will also be mandatory upon installation of any heating appliance (excluding gas cookers).
• The social housing sector will now also be required to fit homes with fire alarms and carbon monoxide sensors.
To ensure compliance with the new regulations, landlords and letting agents will need to have all required alarms and detectors fitted by 1st October when the new regulations come into effect. It will not be enough to have them ready to install.
Now is the time to prepare for the changes
Now is the time to begin the process of making sure each of your properties will be compliant by the deadline. This means not only checking that smoke alarms and carbon monoxide detectors are working and installed as required but that you also have the right processes in place to ensure ongoing compliance.
Equally importantly, you also need the ability to demonstrate that you are fulfilling your duties.
For those responsible for block or estate management, the task of ensuring and maintaining compliance can be time consuming and complex. We have many clients who rely on our Estate and Block Property Management Services to ensure that they are meeting the range of responsibilities placed on them.
We can conduct weekly, monthly and six-monthly property visits, and our inspections include checks on a range of assets, including:
• Fire detection and fire alarm system
• Fire doors
• Emergency lighting
• Sprinklers
• Fire extinguisher
• Automatic doors
For anyone managing individual properties, our check-in services and mid tenancy services can support you and ensure changes in legislation never catch you out.
If you need support to get ready for The Smoke and Carbon Monoxide Alarm (Amendment) regulations 2022, please contact us to discuss how we can help you.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, supporting compliance, streamlining costs and reducing your workload, then contact No Letting Go today.
The foundation of a good relationship between a tenant, landlord and letting agent is when parties understand their rights and responsibilities to each other, establishing a collective responsibility to ensure the tenancy goes smoothly.
If you’re new to renting or haven’t reminded yourself of your rights and responsibilities as a tenant, look at our guide below to know where you stand.
Your rights as a tenant
As a tenant, you have the rights provided for in Government legislation and may also have additional rights defined in your tenancy agreement with the landlord. The rights set by the government are the minimum:
· To live in a property that’s safe and in a good state of repair
· Your deposit is returned when the tenancy ends, providing no damage has occurred to the property – and your deposit is protected if you rent your home on an assured shorthold tenancy that started after 6 April 2007
· The right to challenge any charges you believe to be excessively high
· To know who your landlord is
· To live undisturbed in the property
· The right to see an Energy Performance Certificate for the property
· Protection from unfair eviction and unfair rent
· To have a written agreement if you have a fixed-term tenancy of more than three years
In addition to these rights, if you live in England, when you begin a new assured or short tenancy your landlord is obliged to give you a copy of the How to Rent guide, offering advice on the rights and responsibilities of both tenants and landlords and the rental process in England and Wales.
Your responsibilities as a tenant
In addition to your rights, you also have responsibilities as a tenant, which you must be aware of to ensure you aren’t risking your tenancy. These responsibilities are:
• To take good care of the property, for example, turn off the water at the mains if you’re away in cold weather.
• Pay the agreed rent, even if repairs are needed or you’re in dispute with your landlord.
• Pay other charges as agreed with the landlord, for example, Council Tax or utility bills.
• Repair or pay for any damage caused by you, your family or friends
• Only sublet a property if the tenancy agreement or your landlord allows it.
• Allow the landlord access to the property to carry out repairs if they have given you at least 24 hours’ notice, and they request access at a reasonable time of day unless it’s an emergency and they need immediate access.
If you don’t meet your responsibilities, your landlord has the right to begin legal action to evict you.
Building a positive tenancy
The rental sector is a dynamic one that’s subject to regular changes in the law, such as those proposed by the Renters Reform Bill or the proposed EPC regulations, so there’s a lot for landlords, letting agents and tenants keep aware of.
Good communications and putting processes in place, such as mid-term property reports, ensure that the property is well maintained and all stakeholders know their expectations and can work together to create a positive tenancy relationship – which saves time and money for all concerned.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, contributing towards a smooth relationship with tenants, streamlining costs and reducing your workload, then contact No Letting Go today.
Landlords are raising rents in response to tax changes
It’s been two years since changes to buy-to-let mortgages also changed the way that landlords are taxed. As some had predicted, many landlords have been forced to reconsider their position and think about what the future now holds for them.
How has buy-to-let tax changed?
Before 2017, landlords could deduct mortgage expenses from their taxable profits, including all of the interest they paid for the mortgage on their rental property.
In 2017 this began to be phased out until April 2020. it stopped altogether. This was replaced by a 20% tax credit, which is substantially less for higher rate taxpayers who, under the old system, would have received 40% tax relief.
How has this affected landlords?
These changes in how landlords are taxed have had significant implications for them, with one in three reporting that their portfolio is not as profitable as it was before the changes came in. The same number of landlords have considered selling properties due to the loss of mortgage tax relief.
Apart from the financial impact, the lettings sector is undergoing a raft of changes, with more on the horizon; we recently talked about how the Renters Reform Bill will change things. All these changes and proposals are proving challenging to keep up with, causing 58% of landlords to claim that changing and confusing government legislation is the biggest challenge.
Two options for landlords
In addition to changing legislation, 32% of landlords stated that rising taxes are also a key challenge. To manage the financial impact of these changes, landlords are taking one of two main options – raising rents and selling properties.
25% of landlords said they have increased rents to cover the cost of increasing tax on their tenants, and for landlords with more than 20 properties, this increases to 58% passing on costs.
Around the same proportion of landlords with more extensive portfolios (26%) have reduced the size of their properties to reduce the impact of tax changes. However, the percentage decreases to 13% for landlords with smaller property portfolios.
What does the future hold for landlords?
With more changes to the law on the drawing board that will impact landlords, for example, renting with pets, changes to energy efficiency rating requirements, as well as possible interest rate rises, life for landlords won’t get any easier in 2022.
Ongoing changes and uncertainty in the rental market will continue to have unintended knock-on effects, such as reducing the amount of affordable housing and rental properties on the market.
Despite the challenges, almost 60% of landlords still believe that letting a property is worthwhile. Demand for rental properties is still high, so there is still much for landlords to be optimistic about, so long as they have a realistic business plan, which includes the right support that keeps costs down and maximises occupancy.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your inventory partner, streamline your costs and reduce your workload, then contact No Letting Go today.
The drive to improve the energy efficiency of properties in the UK looks likely to impact landlords in 2025, with the proposed EPC regulations that could require landlords to make potentially significant and expensive changes to their properties.
What are the current energy regulations?
All domestic and commercial properties for rent need to have an Energy Performance Certificate (EPC) confirming the property’s energy efficiency. Ratings range from “A” to the most efficient” to “G”.
Current regulations state that any property being let must have an EPC rating of “E” or above, with certificates valid for ten years. After ten years, landlords only need to renew their certificates when they relet their property to a new tenant.
What are the new EPC regulations proposing?
As part of the government’s objective to increase energy efficiency and achieve net-zero carbon targets, it’s driving for greater energy efficiency in homes. All newly rented properties will need an EPC of at least Band C from 31st December 2025.
Existing tenancies will have until 31st December 2028 to achieve this new practical, affordable, and cost-effective target. Fines for not having a valid EPC will also increase from £5000 to £30,000.
This new legislation is expected to come into effect some time in 2022.
How will this affect landlords?
With approximately two-thirds of homes in the private rental sector having an energy rating of D or below, it means around 3.2 million privately rented properties in England and Wales will require work to meet government targets.
When asked in a recent study, landlords with properties below a “C” rating believe it will cost an average of £10,400 per property to deliver the energy efficacy required. Still, if this action isn’t taken, landlords could find themselves with a property they cannot rent.
What can landlords do to prepare for the proposed change?
It’s difficult to see how any landlords, especially those with tenants already in place, will be able to quickly make the changes to their properties needed to meet the new C band efficiency rating. The work is likely to take time; you also need to work around your tenants to get any disruptive work done on the property and find the funding for such a level of investment.
All landlords need to start understanding the scale of the proposed changes by looking at their properties’ current EPC certificate, the recommendations made at the time, and understanding where the current areas of energy inefficiencies exist.
You can take many actions to improve a property’s energy efficiency and allow yourself time to plan the most effective and appropriate measures for your property that could help you save money.
With the potential for more regulations requiring further investment from landlords, now more than ever, it’s essential to protect your investment by looking after your property and ensuring that it’s well maintained. Regular property inspections and building good relations with your tenants keep your property an attractive proposition on the rental market, spread the cost of improving energy efficiency, and ensure you get a return on your investments.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could help keep you regulation-compliant, streamline your costs and reduce your workload by becoming your inventory partner, then contact No Letting Go today.
No Letting Go are proud to announce that we have been SHORTLISTED for a prestigious ESTAS customer service award! To be announced in October 2021.
ESTAS honour the best agents, conveyancers, mortgage advisors and suppliers in the UK.
The annual ESTAS awards occur in Spring and Autumn, attracting the top players in the UK’s property and lettings industry.
The ESTAS Supplier Awards recognise supplier firms who have delivered the best customer experience to their respective agency, conveyancer and broker clients in 2020.
Now in their 11th year, the supplier categories have become an integral part of the annual ESTAS competition providing a badge of excellence that is instantly recognisable by agents and highlights a supplier’s commitment to quality service.
Twenty-eight supplier firms have made this year’s shortlist across various product sectors. Property professionals in the last year submitted a record total of 9,500 reviews.
ESTAS Brand Ambassador Phil Spencer will announce the winners at the 18th annual ESTAS Awards on 22nd October. Spencer said, “the industry’s leading suppliers are instrumental in helping property professionals provide excellent service, they are an extension of that experience so the service they deliver is crucial, it’s therefore only right that ESTAS puts the spotlight on their efforts.”
No Letting Go said, “We’re absolutely delighted to have made it on to this year’s shortlist. We are passionate about the level of service we deliver to our clients and this proves all the hard work the team put in has paid off”.
Renting with pets
We’ve learned over the past year how much of a comfort pets have been for many people during lockdown. The government is keen to make it easier for dwellers in private rented accommodation to enjoy the benefits of living with a furry friend and is taking steps to encourage more landlords to allow pets.
What’s changed
A BBC report found that only 7% of landlords offer pet-friendly accommodation. In a move to increase this, the government has introduced a new model tenancy agreement that allows renters to seek consent for pets as a default, requiring the landlord to provide written refusal within 28 days, providing good reasons for their refusal. It’s not a legal requirement to use the modal tenancy agreement, but there is a drive-in parliament to make these changes a legal requirement.
What does this mean for agents?
Letting agents want to strike the right balance between ensuring that additional wear and tear or damage caused by pets is managed without excluding potential tenants because of pet ownership. Also, on the positive side, pet owners are often mindful not to abuse a landlord’s trust, and they also tend to look for longer tenancies because they know how difficult it is to find properties that allow pets.
In our post Renting with pets: A landlord’s guide, we discuss key considerations when allowing pets in rental properties, but there are additional measures to consider to minimise the impact of pets on a property:
- Requiring pet insurance: This can cover accidental property damage.
- Landlord references: Confirm from previous landlords the acceptable behaviour of the animal and the tenant as a courteous pet owner.
- Proof of vaccinations: This helps prevent flea infestations and ensures the good health of the pet.
- Charger higher rent: You may be entitled to charge a small additional amount to cover the cost of wear and tear.
Add protection with regular property inspections.
Regular inspections of rental properties are always advisable as a means of protecting your landlord’s investment. Still, if you have pet-owner tenants, property checks will also pick up any damage caused by their pets, such as chewed woodwork, damaged furniture or smells. You can then work with the tenant to resolve the issues or decide if the arrangement needs reviewing.
Delays to repairs can stall renting out to the next tenants and increases overall costs, which regular checks can prevent. It’s also advisable to ensure a thorough end of tenancy cleaning regime to remove pet hair and smells, especially if your next tenant isn’t a pet owner or could have pet allergies.
When your new tenants move into a cared-for, clean property, you’re setting their expectations for how your property should be looked after. To create the best impression, an end of tenancy clean will show your new tenants the property in the best condition possible.
What’s involved in an end of tenancy clean?
The purpose of an end of tenancy clean is to deep clean a rental property before the next tenant moves in, which is particularly important in the shadow of Covid-19 and with people’s enhanced concern over health.
The depth of cleaning doesn’t just refer to how clean a place is but also what is cleaned. A deep clean ensures the removal of dirt, hair, grease, stains and limescale throughout the property, including ovens, white goods, soft furnishings, cupboards and even outdoor spaces.
Why have an end of tenancy clean?
As a landlord or agent, you should only expect the tenants to maintain the property to the standard they found when they first moved in. Good tenants will strive to keep to this standard so that they don’t risk losing their deposit, but even with the best of intentions, they may not be able to meet the professional standard you want for your next tenants.
While setting the right standard is the fundamental reason for end of tenancy cleaning, there are knock-on effects:
- Making your property an attractive prospect for potential new tenants to increase rental success.
- Letting agents can reassure landlords that their property is being well kept by maintaining clear and high cleaning standards.
- Professional end-of-tenancy cleans can be done quickly to minimise periods between tenancies.
- Professional cleaning services are familiar with working to an inventory and achieving the required standards.
- Well maintained properties are more likely to achieve the desired rental income.
How to set the standard for your end-of-tenancy cleaning
The cleanliness of a property is the leading cause of deposit disputes between landlords and tenants, but these can easily be avoided. Rather than relying on individual interpretations of “clean”, the check-in and check-out inventories can be essential tools for defining expectations. When they are set, the end of tenancy clean then becomes an essential means of preparing for the end of tenancy and pre-tenancy checks.
Using the check-in inventories and cleaning schedules provides clear details against which tenants, landlords, and agents can assess. With the addition of photographs to any written comments, it becomes clear for all to see any difference in standards of cleanliness. This mitigates the risk of disputes, making it easy to deduct money from the deposit to clean where there is good reason and avoid third-party arbitration, which saves time and expense.
As a landlord or letting agent, you want a good reputation; maintaining a clean and healthy environment for tenants will go a long way to achieving that while ensuring they take good care of your property investment. If you are looking for a professional end of tenancy cleaning service, Kompleet offers a fast and thorough service at competitive prices.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your property management partner, streamlining your costs, reducing your workload and protecting your investment with accurate property inventories and checks, then contact us today.
The introduction of the government’s stamp duty holiday scheme has had a significant positive impact on the housing market but there is now speculation about what happens when this popular scheme begins to wind down from June onwards and the effect it will have on buyers’ behaviour and the market.
Why was the stamp duty holiday scheme introduced?
In July 2020 the Chancellor of the Exchequer, Rishi Sunak, announced that the government would temporality increase the lower limit from where stamp duty on property purchases would be paid to £500,000. This measure was taken to boost the housing market, which had been hit dramatically by the first lockdown, and to support buyers whose finances were badly affected by lockdown.
The scheme has been a success; 2020 saw the busiest October for a decade for residential transactions, and house prices were boosted, with Nationwide reporting a year-on-year growth rate in average house prices of 5%, a new record. It created such high demand that in the March budget, the Chancellor announced the scheme would be extended to June 2021, tapering back to normal stamp duty levels in September of this year.
What is likely to happen when the party ends?
After such a success, concerns were raised that the end of the stamp duty holiday, initially planned for March 2021, would create a dramatic drop off in the housing market. With the extension to the scheme there’s some relief, but many feel it only delays the inevitable and could see some negative consequences:
• A decline in buyer interest: RICS survey found buyer inquiries fell sharply in Feb 2021, leading to the original end of the stamp duty holiday.
• A drop in house prices: Nationwide reported signs that prices have started to fall for the first time in six months.
• Sales missing the stamp duty deadline: More sales will miss the new deadline as existing sales still struggle to be processed and new ones are added to the high workload
• Buyers pulling out of deals: If purchases can’t be completed by the deadline because they haven’t budgeted for the additional stamp duty.
The end of the stamp duty holiday is likely to see a levelling off in demand and a return to more normal timescales to complete transactions. Although some believe that house prices will decline, February 2021 saw them continue to be strong, even with the original end date of the stamp duty looming.
What will happen at the end of the stamp duty holiday remains uncertain. However, we are heading into spring and summer, traditionally busy times for the housing market. And as we continue to emerge gradually from lockdown, optimism may stay high and the market resilient. Whatever happens, we will be keeping a close eye on the market over the months to come.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your property management partner, streamline your cost, reduce workload, and keep accurate property inventories, then contact us today.
If you are a landlord or have responsibility for managing a rental property, you need to ensure that you are aware of your obligations under the Housing Health and Safety Rating System (HHSRS), or you could find yourself facing a hefty fine.
What is the HHSRS?
The government’s guidance on the HHSRS states that the landlord must look after:
• The exterior of the dwelling and structural elements, and
• The inside facilities that are part of the dwelling.
These requirements have been put in place to ensure residential premises are safe and secure for residents and anyone who may be visiting the property. As a landlord, it’s your responsibility to ensure there is no risk or, if unavoidable, an acceptable level of risk from the hazards identified by HHSRS.
What types of hazards are assessed?
The HHSRS is a very comprehensive rating assessment that considers twenty-nine hazards found in the home. These hazards relate to:
• Dampness and excess cold/heat
• Pollutants, such as carbon monoxide and asbestos
• Lack of space, security, lighting, noise
• Hygiene, sanitation, water supply
• Accident risks, such as electric shocks, falls, cuts, burns, collisions
• Explosions and structural collapse.
How do the inspection’s work?
Local authorities will conduct the assessment by completing a matrix containing the twenty-nine hazards and are given extensive powers to act if the standard of a property is unacceptable. Each hazard will be given a rating (bands A-J), with bands A-C considered the most serious category 1 hazard and band D-J a less serious category 2.
The overall assessment will be made on the likelihood of an occurrence of an incident and the range of likely harmful outcomes.
What happens when the inspection finds a problem?
Local authorities have a wide range of sanctions to use against the landlord to remedy any hazards they find:
• Hazard Awareness Notice
• Improvement Notice
• Prohibition Order
• Emergency Order
• Demolition Orders and Clearance Areas
If you fail to comply with this notice requiring action, you could be fined up to £5,000.
What happens when the inspection finds a problem?
Landlords know that ensuring their property is maintained to a good standard is about ensuring their tenants’ safety and comfort and looking after their investment. HHSRS assessments are just another reason to ensure your property remains fully maintained, both inside and out.
Regularly inspecting properties can be time-consuming, and many landlords may not have the knowledge to conduct a comprehensive assessment that would pick up all the potential risks present. Regular inspections, such as those offered by No Letting Go’s property management services and regular check-ins, will keep you on top of property maintenance and can avoid large repair costs by picking up problems early on. Regular property inspections are an investment in your investment.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your property management partner, streamline your cost, reduce workload, ensure compliance with regulations and keep accurate property inventories, then contact us today.
Are you keeping your tenants safe and your property protected? Are you sure that it has fully functioning smoke and carbon monoxide (CO) detectors installed? Here’s a reminder of your responsibilities to your tenants as their landlord.
What are your responsibilities?
Regulations for private sector landlords were introduced in October 2015 detailing a legal responsibility to protect tenants from the risks of fire and CO poisoning. The expectation of landlords is very clear, and there is no grace period to let you meet legal requirements. You need to ensure that your rental property has fitted:
• At least one smoke alarm installed on every storey of the property which is used as living accommodation;
• A carbon monoxide alarm installed in any room used as living accommodation where solid fuel is burned. A solid fuel-burning appliance could be a coal fire or wood-burning stove.
In addition to the alarms being fitted, you should also:
• Follow the legal requirement to check that alarms are in working order on the first day of each new tenancy. After this, the tenants are responsible for regularly testing alarms. Guidance suggests that this should be done monthly.
• Consider where you fit the alarms. Smoke alarms should be on a ceiling in spaces where the air circulates. CO alarms should be at head height and only a few meters from the fuel-burning appliance. However, the manufacturer’s instructions should be followed.
• Ensure alarms are audible throughout the property.
• Consider fitting a CO monitor near gas appliances as these can also emit carbon monoxide (although this is not required by law).
• Consider how you will prove you have checked the alarms at the required times.
Landlords who fail to comply with the regulations can expect a fine of up to £5000.
Regular property inventories can ensure compliance
As highlighted in our smoke and CO verification information, if your property is outside England, or you have a different type of rental property, there are different requirements you need to be aware of.
To ensure your ongoing compliance with all regulations affecting a landlord can be difficult and time-consuming, but something that good landlords and property agents are keen to do. At No Letting Go, we support our landlords and property agents with smoke and CO alarm verification and compliance with other legislation through inventory checks.
Pre-tenancy checks, regular inventory check-ins and end-of-tenancy inventories ensure that throughout a tenancy and at the start of every new one, you are providing tenants with a safe property that is in good order. We can schedule regular inventories that tenants will sign off to provide an audit trail for your compliance with regulations should this become necessary. We will also provide feedback and guidance where a property may be falling short of legal requirements.
No Letting Go
If you would like to discuss how the local inventory specialists at No Letting Go could become your property management partner, streamline your costs, reduce workload and keep accurate property inventories, then contact us today.