Legislation changes for rural landlords: Is your rental property compliant?

There has been lots for landlords to discuss in recent weeks, following a range of legislation proposals announced by the Government, to tackle issues in the rental market.

Whilst recent media coverage has focused on urban and city centre rentals, it is important to note that landlords of country houses, estate cottages, and any other property that’s let on a residential basis, will also need to comply with the proposed changes. 

Up-front and centre is The Tenant Fees Bill which is expected to become law in 2019.

This Bill proposes a ban on all unexpected fees charged to tenants in residential properties in England. Under the Bill, the only payable fees permitted will be the rent, a refundable security deposit and a refundable holding deposit. 

These deposits will be capped for landlords, with a maximum charge of six weeks’ rent for security deposits and one week’s rent for holding deposits. Any landlord found to have breach these laws could be fined up to £5,000 with higher penalties and the threat of criminal prosecution for subsequent breaches.

Landlords will also need to provide evidence of any costs incurred by tenants’ actions, to prevent the charging of excessive fees for minor damage.

Any administrative fees or credit check fees, even if these are incurred by the landlord or letting agent, will not be recoverable from tenants. 

James Brokenshire MP, the Housing Minister, has also announced that the Government will review current rules concerning health and safety standards in rental properties and will look at whether to introduce minimum standards for common health and safety problems.   

Housing policy in England seems set for an overhaul, as there are a number of other changes affecting landlords and renters under discussion too:

• The Homes (Fitness for Human Habitation) Bill, under which landlords must ensure their property is fit for human habitation at the beginning of the tenancy and throughout its occupation, including common areas. This received cross-party support and if impended, will give tenants the right to take legal action where a breach occurs
• The Private Landlords (Registration) Bill which would require all landlords in England to hold a license 
• The Creditworthiness Assessment Bill, which would allow renters to build up a credit score through payment history of Council Tax and rent
• A proposal to give tenants a minimum three year contract, but allowing them to walk away if they wish, designed to prevent landlords from forcing tenants out of properties at short notice
• A mandatory five yearly electrical safety checks for rental properties
• A review of carbon monoxide requirements in the home.

These proposals all follow on from a significant increase in the number of people renting over recent years, and a recognition that protection for renters needs reviewing. 

These changes should provide comfort for renters, and whilst we are still waiting to hear how and when they will be implemented, we advise landlords and estate owners to take steps now to ensure their properties and letting agreements are fully compliant, particularly in advance of the Tenant Fees Bill becoming law.

If you need assistance with rural property lettings, whether they are on a farm, estate  or country house, please get in touch with our Rural Property Team.