The law

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Complying With Legal Requirements

Relax! Our highly qualified team are here to steer you through the legal maze.

The Electrical Equipment (Safety) Regulations 1994:

These regulations require the landlord to ensure that the earthing and insulation of all electrical appliances in the property are safe. Cabling, fuses and plugs should also be inspected and replaced with the correct rating for that particular appliance.

Give Vanessa a ring and she will provide access to

• Our recommended contractors and advice on the services they can provide.

The Building Regulations 1991:

These regulations require that all properties built since June 1992 must be fitted with;

• Mains-operated interlinked smoke detectors/ alarms on each floor.
• Properties built before that date do not have a statutory requirement, but
• We recommend that you should consider the installation of smoke alarms.

The Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993:

These regulations make it an offence to supply certain furniture in the course of a business.

The regulations, which apply to all rented property cover.

• All upholstery and upholstered furniture.
• Loose fittings, permanent or loose covers.
• They do not apply to any furniture manufactured before 1st January 1950.
• The recommended way is to check for compliant furniture lables.
• If there are no labels, you must:
• Establish when and where the furniture was bought and
• Contact the retailer or manufacturer to check whether the item complies.
• Furniture must be repaced if you are unable to establish origin or its compliance.
• It is illegal to let a property with furniture which does not comply.

Stamp Duty Land Tax:

With effect from 1st December 2003 Under the Finance Act 2003, Stamp Duty Land Tax is only payable by:

• The tenant for properties that deliver a rental income exceeding £60,000 / annum.
• If in doubt contact our Lettings Manager Anouska Stelmach.

Taxation for overseas landlords:

Under the Finance Act 1995, the Inland Revenue introduced a system of self-assessment:

• All overseas landlords may apply to the Inland Revenue for a Certificate of Self-Assessment in order for rents to be paid over gross.
• We strongly recommend that all overseas landlords apply for self-assessment.
• For those who have not applied and/or supplied a tax approval number, Complete is required by law to deduct the tax for all overseas landlords at the basic rate (currently 22%)
• This is decucted from the net rental income and paid on a quarterly basis to the Inland Revenue along with a fee for the service.
• As we are not qualified tax accountants, we recommend that you take professional advice regarding these regulations.
• Please see the Ling for the Inland Revenue Non Resident Landlord Scheme

The Housing Act 2004 – Houses in Multiple Occupation:

The law in relation to Houses in Multiple Occupancy (HMOs) under the Housing Act 2004 has recently changed. In summary:

• A property that is let to at least 2 seperate households (ie. three sharers) who share a kitchen or a bathroom is an HMO.
• If there are less than five sharers, the property is not subject to mandatory licensing, but
• The Landlord must check with the relevant Local Authority as they may require the property to be licensed.
• Where there are five sharers comprising two households or more and
• The property is 3 storys or more mandatory licensing is required.
• In addition, where a building is fully converted into self-contained flats and
• If the conversion work does not comply with the building standards of the 1991 Building Regulations and
• Less than two thirds of the flats are owner-occupied, this type of building is an HMO and may need to be licensed.
• Again, the Landlord must check with the relevant Local Authority.
• Landlords must not ignore this as failure to obtain a licence from the relevant Local Authority will attract a fine of up to £20,000.
• A tenancy may not be allowed to commence until a licence has been obtained.

Housing Health & Safety Rating System:

Landlords should be aware that where an HMO is licensed, the property will be subject to:

• Inspection under the Housing Health & Safety Rating System within five years of the application for a licence.
• Landlords should also be aware that any property that is either let, or available to rent,
• Can be subject to inspection under the Housing Health & Safety Rating System.
• In brief, the inspector visits the property to assess potential hazards (ie. excess cold, steep staircases) and,
• If applicable, will issue a Notice upon which the Landlord must act as appropriate.

The Regulatory Reform (Fire Safety) Order 2005:

The above Order came into force on 1st October 2006, giving obligations with regard to HMOs. Where a property is an HMO, it must at least have:

• Mains linked smoke detectors in the common parts (ie. hallways) and
• Fire blankets and fire extinguishers in the kitchen.
• Depending on the age and character of the property, further alterations may be required.
• Although currently the above order applies to HMOs only, we would recommend that:
• All our clients’ properties are fitted with mains linked smoke detectors with fire blankets and fire extinguishers in the kitchen.
• Please refer to the HMO department of your local County Council for details

Disability Discrimination Act 1995:

Amendments to the above Act came into effect in December 2006:

• This gives a disabled person the right to ask a landlord for reasonable adjustments to a property to:
• Enable him to enjoy the property and its features as an able-bodied person could.
• However, it should be noted that such adjustments are temporary and can be reinstated at the end of the tenancy,
• i.e. changes to wall colour, provision of a portable wheelchair ramp, changes to door handles, doorbells and taps.
• Such reasonable adjustments and renistatement are at the landlord’s expense.

Types of Tenancies:

The Assured Shorthold Tenancy (AST)

Complete will advise you on the scope and benefits of the Assured Shorthold Tenancy created by the Housing Act 1988 (as amended by the Housing Act 1996). Here are some of the points covered within the AST:

• The property let must be a dwelling house let as a separate dwelling.
• The landlord must give a minimum of two months’ notice to gain possession.
• The tenancy will be for an initial fixed period of at least six months.
• The rent must not exceed £25,000 per annum.
• The tenant must be an individual and must occupy the property as his/her only or principal home.
• A court cannot make a possession order to take effect earlier than six months from the commencement of the tenancy, even if the term granted was for a shorter period.

Under Section 21 of the Housing Act 1988 (provided that a true AST has been created) the landlord is guaranteed an order for possession if:

• The term of the tenancy has expired (except in the case of a periodic tenancy); and
• The landlord has given not less than two months’ notice stating that he/she requires possession.

Common Law Tenancy (otherwise known as a ‘Company tenancy’)

This is a tenancy not regulated by statute and therefore falling outside the provisions of the Housing Act 1988.

The most common occurrence is where the tenancy is:

• For less than six months or
• It is not the tenants main and principle home, or
• The Tenant is a Company.

The parties are therefore bound solely by the provisions of the tenancy agreement (contract) which should have all the necessary provisions incorporated.

The Regulations:

• Gas Saftey
• Electrical Equipment
• Building Regulations
• Furniture & Furnishings (Fire)
• Stamp Duty Land Tax
• Overseas Landlords
• The Houseing Act
• Health & Safety
• Regulatory Reform (Fire Safety)
• Disability Discrimination
• Tenancy Types

Useful Links:

• Non resident Landlords
• HMO'S
• CORGI

Contact Us:

• Anouska Stelmach
• Vanessa McArdell