So many landlords are not aware of this piece of legislation - are you?
Landlords are governed by literally hundreds of pieces of legislation covering all manner of factors when renting a property to a tenant. One of the main acts to abide by is the Housing Act. But what does it cover? Have you read it?
Passed in 1988 and coming into force in 1989, the Housing Act sets out the legal rights and responsibilities of landlords and tenants in the UK, intending to make the private rental sector fair to all parties.
Before the Act…
- Before the Housing Act came into force, tenancy agreements were 'protected and statutory' and weighted heavily in the tenants' favour.
- Tenants could claim the right to stay in a property indefinitely, and a succession rule meant that any relative could inherit the tenancy for the property.
- Rent values were regulated by the Government before the Act came in and varied based on the property's age, condition and location.
After the Act…
- Security of tenure was introduced via the two main types of tenancy agreements, Assured tenancies, meaning long-term tenancy agreements which gave landlords the right to evict tenants in certain circumstances, and Assured Shorthold Tenancies, which are fixed-term tenancies and most commonly used in the private rental sector today.
- Succession rights were amended to only allow the spouse to inherit the rental rights in the event of the death of a tenant, but under the rules of Assured Shorthold Tenancies, the tenancy agreement will end if the tenant passes away, no relatives have a right to succession, and the tenancy doesn't automatically pass on to anyone, including the spouse.
- Landlords were allowed to set their own rent figures, giving them freedom and flexibility to increase the rent amounts and, therefore, their revenue based on the supply and demand in the market rather than the amount the Government deemed the property to be worth.
And what happened in 2004?
An amendment to the Act in 2004 introduced additional legislation, the Housing Health and Safety Rating System (or HHSRS), concerning the property's condition and ensuring that rental properties are safe and habitable for tenants. There was also mandatory licensing for HMOs, selective tenancy licensing, and the tenancy deposit scheme.
The 2004 legislation was a huge overhaul of the private rental sector, introducing many new rules for landlords to follow on top of those already in place.
The HHSRS system allows a tenant to report unsuitable living conditions and gives the local authority the power to enforce repairs on a property. If landlords still don't deal with the maintenance issues, the local authority can handle the repairs themselves and send the bill to the landlord for payment. This ensures that the condition of properties within the private rented sector is raised and tenants are living in safe homes.
Of course, the licensing regulation and the deposit system have been around for long enough that most landlords are familiar with it now, and it is how things are done across the board. But, the HHSRS rules are lesser known, and some landlords are perhaps unaware that the local authority has as much power as they do under these rules.
Fundamentally there is no need to download the entire legislation and learn it by heart, but you must understand the rules you are governed by as a landlord. Of course, you can always ask your letting agent if you are unsure about anything.
If you have a managing agent that looks after the tenancy for you, you've nothing to worry about. The agent will ensure you are compliant, but it might be worth double-checking that you're doing everything you should if you're working alone.
If your brain is fried from all the legal mumbo jumbo and you don't know what to do next, contact our property letting experts, who can help you navigate the process.