Private Residential Property Letting Update December 2020 by fishergermanllp

Private Residential Property Letting Information and Compliance for England and Wales December 2020

Contents Electrical Safety Standards...................................................................................................................................................3 Energy Performance of Buildings ........................................................................................................................................4 Human Habitation ..................................................................................................................................................................5 Furniture and Furnishings .....................................................................................................................................................5 Gas Safety ................................................................................................................................................................................5 Smoke and Carbon Monoxide Alarms ................................................................................................................................5 Chimney Sweeping .................................................................................................................................................................6 Oil, LPG, Solid Fuel Appliances & Wood Burning Stoves .................................................................................................6 Legionnaires’ Disease ............................................................................................................................................................6 Septic Tank Regulations........................................................................................................................................................6 Disability Discrimination .......................................................................................................................................................6 Tenancy Deposit Protection (TDP) ......................................................................................................................................7 Tenant Fees .............................................................................................................................................................................7 Record of Condition and Inspections .................................................................................................................................7 Tenant Checks and Right to Rent........................................................................................................................................8 Money Laundering Regulations ...........................................................................................................................................8 Government Renting Guides, Agent Compliance and Consultations ...........................................................................8 Tenancy Agreements, Rents, Notices and Possession ..................................................................................................9 Other types of residential tenancies/occupancies ....................................................................................................... 12 Agricultural Workers’ Occupation ..................................................................................................................................... 12 Houses in Multiple Occupation ......................................................................................................................................... 13 Key contacts ......................................................................................................................................................................... 14 Local knowledge, national reach ...................................................................................................................................... 15

Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

Electrical Safety Standards The main legislation is the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 where Landlords should ensure that the electrics are safe and have them checked regularly. The main requirement is the Electrical Installation Condition Report (EICR) which confirms as far as reasonably practicable, whether the electrical installation is in a satisfactory condition or not for continued service. The new standards came in on 1 June 2020 and for any new letting or renewed letting from the 1 July 2020, or for all existing tenancies from 1 April 2021, a EICR must be done and provided to any new Tenant of the specified Tenancy to which the report relates before that Tenant occupies those premises. Also, any existing or prospective Tenant can request to see the most recent report; and this must be done within 28 days of receiving the written request. The Local Authority can also request to see the report (must be provided within 7 days of the written request). The regulations stipulate that the EICR must be done every 5 years. If the report highlights that any remedial or further investigatory work is required, this must be done within 28 days and written confirmation of completion must be supplied to the Tenant and/or Local Authority within a further 28 days thereafter. If the report highlights an “improvement recommended”, it is best practice to have the work attended to as soon as possible. It is good practice to provide a Portable Appliance Test (PAT) for all supplied electrical appliances and instruction books for all items of electrical equipment. In Wales, the Electrical Safety Standards regulations do not apply, although it is a requirement that all electrical installments and provided appliances are in a safe working order which is covered by the Electrical Equipment (Safety) Regulations 1994, Plugs and Sockets (Safety) Regulations 1994 and the Management of Houses in Multiple Occupation (Wales) Regulations 2006 (for HMO Landlords only).

Energy Performance of Buildings From 1 October 2008 and under the Energy Performance of Buildings (Certificates and Inspections) England and Wales 2007, a prospective Tenant of a residential property in England and Wales should be supplied with an Energy Performance Certificate (EPC) free of charge at the commencement of the Tenancy (new letting or renewed Tenancy). An EPC must be provided by accredited energy inspectors and the certificate lasts for 10 years. On expiry of the EPC another certificate must be carried out or if any energy efficiency improvement works are done at the property, it is recommended that a new EPC is carried out. Properties that do not require an EPC are temporary buildings that will be used for less than two years, standalone buildings with a floor space of less than 50 sq. m., residential buildings intended to be used for less than 4 months of the year and those due to be demolished and they have all the relevant planning and conservation consent. From 1 April 2018, Landlords are legally required to comply with the Minimum Energy Efficiency Standard Regulations (MEES) and residential properties cannot be let to a new Tenant unless the property has an EPC rating of E or above. From 1 April 2020, Landlords can no longer let where the EPC banding is a F or G rating. If the property qualifies for an exemption, the Landlord should ensure they register the details of that exemption on the Governments PRS Exemption Register. If there is no exemption, any property not meeting the MEES requirements cannot be continued to be let out from 1 April 2020. An exemption lasts for five years and then thereafter it will expire and then another attempt to improve the rating must be carried out. If the property cannot be improved to a rating of E for £3,500 (including VAT) or less, then all improvements should be made up to that amount and then register an “all improvements made” exemption. The cap is for installing the cheapest recommended measure and to apply for an exemption, three quotes from qualified installers must be obtained to support the request. Other exemptions include where wall insultation works are unsuitable, requirement for third party consents, the works result in a property devaluation and if you have become a recent Landlord. Listed or properties in conservation areas are not necessarily exempt from the EPC/MEES regulations and advice should be obtained by the Local Authority conservation officer. However, it is best practice to have an EPC, but if the property does not meet the MEES and if any improvement works or alterations detracts from the character and setting of the property, an application for exemption can be made. From 19 September 2020, there is a new version of the EPC certificate (third version with previous versions in 2007 and 2012). It is a modern layout and has features exclusive to the digital version and allows for new interactive features. Prominent on the certificate appears to be the same as the Unique Property Reference Numbers (UPRNs). The Lettings Industry Council (TLIC) announced this earlier in the year that this is the first steps to Property Passports. In addition, there is a new Government EPC register website where searches can also be done by street and place (in addition to postcode and certificate number). The new register also holds the records for display energy certificates (DECs) for public buildings and air conditioning inspection certificated and reports. There are further Energy Efficiency rules which are currently being consulted on, with the proposal of an increase of the MEES for domestic properties to Band C for new lettings by 2025 and for existing properties by 2028 with a cost cap for any improvement works of £10,000 per property. Also, oil-fired and other carbon intensive heating are likely to be phased out.

Human Habitation Under the Homes (Fitness for Human Habitation) Act 2018, all private Landlords in England are required to ensure that their properties, including any common parts of the building, are fit for human habitation at the beginning of the Tenancy and throughout. We must stress that there are no new obligations for Landlords under the Act. The Act came into force on 20 March 2019 and properties let on existing tenancies had 12 months thereafter to comply. If a Landlord fails to comply with the Act, the Tenant may have the right to take court action for breach of contract and if appropriate the court can request the Landlord pay compensation to their Tenant or do the necessary works to improve their property. The main hazards include the property being in bad condition or neglect, unstable, having serious damp, an unsafe layout, not enough ventilation, drainage or hot and cold water supply problems and a lack of area to prepare and cook food or wash up. The Housing Health and Safety (England) Regulations 2005 which introduced the Housing Health Safety Rating System (HHSRS) which came into force on 6 April 2006, contains 29 other hazards and the effect they have on the health and safety of the occupiers. The HHSRS still applies in Wales although this is currently under consultation as part of the Renting Homes (Wales) Act 2016 - fitness for human habitation.

Furniture and Furnishings It is a criminal offence to let a property with upholstered furniture or soft furnishings containing foams which cannot be proven to comply with the Furniture and Furnishings (Fire Safety) Regulations 1988 as amended (latest 2010). The Regulations also require that specified items must be match resistant, cigarette resistant and carry a permanent label.

Gas Safety Landlords are required under the Gas Safety Installation and Use Regulations 1998 to ensure that all gas appliances, installations, flues, and pipework in the property have been checked by a Gas Safe Registered Engineer and a Gas Safety Certificate (GSC) is issued every year. A copy of the GSC must be provided to the Tenant at the start of the Tenancy and the Tenancy is unable to commence without a valid GSC. It is the Landlord’s legal responsibility to arrange for an annual gas safety check and for a copy to be given to the Tenant within 28 days of the certificate being completed. A GSC should be retained for two years. It is good practice for any gas appliance to be serviced at the same time as the provision of the GSC.

Smoke and Carbon Monoxide Alarms Under the Building Regulations (England and Wales) 2010, there is a duty for any property built since 1 June 1992 to have a mains powered smoke alarm. The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 require from the 1 October 2015 that:  

All properties must have a working smoke alarm fitted on each floor of the property. The Landlord must ensure that all alarms are in full working order at the start of a Tenancy. All properties must have a working carbon monoxide alarm in any room where a solid fuel appliance is present (wood burner/open fire/biomass).

In Wales, the Building Regulations 2010 apply but the 2015 Regulations do not apply although it is best practice to have a working smoke and carbon monoxide alarms appropriately located internally. With regards to gas appliances, we advise all Landlords to consider the installation of alarms to protect the occupier and help prevent any legal action being taken against the Landlord.

Chimney Sweeping Working chimneys (including gas fires) should be swept at the commencement of the Tenancy and we would recommend that this is done every 12 months during the Tenancy unless otherwise specified in your property insurance policy.

Oil, LPG, Solid Fuel Appliances & Wood Burning Stoves Oil, LPG, Solid Fuel appliances and wood burning stoves should be serviced and checked annually. Fuel tanks should be visibly checked regularly and be serviced every year (in conjunction with appliance). Raised tanks should be adequately supported, located appropriately, have space around and be bunded (depending on the location and the storage capacity (over 2,500 litres)). Any non-domestic oil tank requires a bund. Wood burning stoves installed from 2011 must have a HETAS Installation Certificate and a Carbon Monoxide alarm fitted.

Legionnaires’ Disease The main legionella regulations are underpinned by primary Health and Safety laws. To comply with the Executive’s Code of Practice, Landlords are required to carry out a risk assessment at their premises prior to letting where there are open water tanks, cooling systems or a swimming pool. It is best practice that these surveys are carried out annually and by a registered assessor.

Septic Tank Regulations There are new rules for all private sewage systems which came in on 1 January 2020 and no discharge is allowed into surface waters (ditch, stream or river). All septic tanks and small sewage treatment plants must comply with the “general binding rules” which ensure that systems are well maintained and do not cause pollution. To comply with the regulations, an existing septic tank must be upgraded either by connecting the system to a mains sewer, installing a small sewage treatment plant or installing a drainage field. Septic tanks must meet British Standards (BS) although any tanks installed before 1983 predates the BS system, although these must be properly maintained and comply with the “General Binding Rules”. The rules also state they must be emptied regularly by a registered waste carrier and a permit is required from the Environment Agency in certain circumstances in respect to discharges and locations. Cesspools are not required to meet the “general binding rules” but must be emptied regularly and well maintained.

Disability Discrimination Under the Equality Act 2010 and from 1 October 2010, a disabled person is entitled to ask the Landlord to carry out any adjustments to a property to ensure the person is able to enjoy the property as much as an able-bodied person.

Tenancy Deposit Protection (TDP) From 6 April 2007, all Landlords or agents must use one of the three approved Tenancy Deposit Protection (TDP) schemes to protect Tenants' deposits for Assured Shorthold Tenancies (AST) in England and Wales within 30 days of the deposit monies being paid or the Tenancy commencing. The approved schemes in England and Wales are: Deposit Protection Service (DPS); MyDeposits and Tenancy Deposit Scheme (TDS). If any other scheme is used, deposits are not protected in law. Any deposit taken before 6 April 2007, does not need to be protected although it is best practice to lodge within an approved scheme and not held elsewhere. The prescribed information (which contains specific detail of the Tenancy- amount of deposit, address of property and contact details for all parties and deposit administrator) must be provided to the Tenant within that 30-day timescale. Also, the terms and conditions of the TDP scheme must be issued to the Tenant with the Tenancy Agreement. At the end of the occupation, the Landlord should return the deposit to the Tenant, via the appointed scheme and within 10 days of agreeing to do this. Any monies retained by the Landlord must be agreed by the Tenant and if agreement is not reached, settlement will be through the deposit scheme’s dispute resolution process. If a deposit is taken and not lodged and the prescribed information not issued, the Landlord is unable to serve a Notice to terminate the agreement. From 1 June 2019, under the Tenant Fees Act 2019, any deposit for a new letting taken total cannot exceed five weeks’ rent (six weeks if the annual rent is more than £50,000). There is no cap for lettings commencing prior to that date and a Landlord does not need to return any amount of tenancy deposit that is over the cap for tenancy agreements that were entered into before the 1 June 2019. It is good practice to take a deposit, although the Landlord is under no obligation to take a deposit on commencement of the Tenancy.

Tenant Fees From 1 June 2020, under the Tenant Fees Act 2019, the ban of fees will apply to all applicable residential tenancies (except regulated tenancies) and licences (excluding holiday lets) regardless of when they commenced. Landlords are responsible for the costs of setting up, renewing or ending a tenancy. No fees can be charged after this date by the Landlord to the Tenant except in certain circumstances, which are known as a permitted payment. These include rent, a capped refundable tenancy deposit or holding deposit, default fees written into the tenancy agreement, a request by the Tenant to change the tenancy agreement (capped at £50 or reasonable costs if higher), a request by a Tenant for early termination (the fee cannot be higher than the rent due until the end of the contact) or council tax and utility and communications services. Any fee taken by the Landlord in error must be returned within 28 days to the Tenant and if not returned would be treated as a prohibited payment which could affect not being able to serve a Notice to recover possession. Also, any breach in charging a Tenant a prohibited payment could result in a fine of up to £50,000 for the Landlord which is enforced by Trading Standards.

Record of Condition and Inspections It is good practice for a full inventory of contents or record of condition with photographs and video (if appropriate) to be completed on commencement of the Tenancy. This should also include utility meter readings and providers, fuel tank levels and a schedule of keys (including any gate/alarm fobs and window or utility box keys) which were either handed over or available within the property. The Landlord should retain a set of keys. During the Tenancy, it is recommended that the Landlord or a nominated party carries out regular inspections, inspects when the Tenant identifies a problem or when any work by third parties has been completed. The visits should be agreed in advance with the Tenant by giving the appropriate advanced notice as recorded in the Tenancy agreement but the Tenant can not refuse these visits or when contractors require entry for any reasonable works or for compliance servicing requested by the Landlord or their nominated party. Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.

At the end of the occupancy, it is also recommended that the inventory of contents or record of condition should be checked. It is recommended that the pre and post letting checks are carried out by an independent party and preferably by a specialist inventory clerk to assist the both with any disputes or as evidence in a Landlord’s claim for recovery of any part of the Tenant’s deposit.

Tenant Checks and Right to Rent Prior to agreeing a Tenancy, it is good practice to take personal and financial references for all prospective occupiers and for Landlords to meet the occupiers as appropriate. Under the Immigration Act 2014, the Right to Rent Scheme was introduced to confirm that Tenants (or lodgers) have the necessary legal immigration status to legally reside in England. From the 1 February 2016, it has been the responsibility of the Landlord or agent to check the original ID (with the Tenant present) as to whether they believe the Tenant to be British, settled or a person with limited permission to be in the UK before the start of a tenancy. It is best practice to document this check within the tenancy agreement and these identification documents should be kept for the whole length of the tenancy and a year after. If the Tenant is only allowed to stay in the UK for a limited time, you need to do the check 28 days before the start of the tenancy. It is a criminal offence to let to a disqualified person. Checks for Tenants are not required where the accommodation is provided by a Local Authority, tied to employment, for a mobile home or residence for medical, educational or care home purposes. There is a Government guide in respect to the Right to Rent checks for Landlords and Tenants which provides a visual guide to the types of documents which can be presented by a Tenant and accepted. Detailed information on the Right to Rent Scheme can be found in a further Landlord’s guide, which also contains information on how to carry out checks using the Home Office online service. The online service enables the Tenant can receive a “share code” and this can be inputted with their birth date to ensure they can legally rent. The Right to Rent scheme currently does not apply in Wales, but it is best practice that similar checks are done.

Money Laundering Regulations The Money Laundering Regulations 2019 passed into UK law on 10 January 2020 requires any letting agents who manage property, which individually yield an income of €10,000 or more for a minimum of one month to comply. All letting agents have 12 months to register from May 2020 with HMRC. Customer due diligence (CDD) checks will need to be carried out on any new Tenants and Landlords on or from 10 January 2020. Also, if an existing tenancy is renewed after this date, the appropriate checks at that point on both parties would have to be completed. The checks require identifying and verifying the customer, obtaining information on the nature of the business relationship and details of any beneficial owners. Carrying out CDD before establishing a business relationship should also be done.

Government Renting Guides, Agent Compliance and Consultations The current Government renting guide “How to rent: the checklist for England” (which was introduced by the Deregulation Act 2015) is required to be given to all new Tenants in England prior to occupation on or after 1 October 2015 and for all existing tenancies renewed on or after that date. It provides a checklist and more detailed information on each stage of the process, including what to look out for before renting, living in a rented home, what happens at the end of a Tenancy and what to do if things go wrong. The guide is frequently updated and it is very important that the current guide is used by downloading from the Government website to avoid any problems. Any letting agent in England must be registered with one of the Government approved redress schemes, must protect tenancy deposits and hold client money protection through a Government approved scheme. The Government are currently considering mandatory registration of letting agents in England.

In Wales, all Landlords need to be registered with Rent Smart Wales (since 23 November 2015) and if the Landlord manages their own property, they must also have a licence from Rent Smart Wales as do letting agents. There is a Welsh Government renting guide known as “A Home in the Private Rented Sector: A Guide for Tenants in Wales” which covers similar topics to the English version. Rent Smart Wales assists those let or manage properties to comply with the Housing (Wales) Act 2014 obligations and provides advice on renting safe and healthy homes. The Renting Homes (Wales) Act 2016 was passed to introduce changes to tenancy law and once implemented will apply to virtually all rented properties in Wales. It is anticipated to take affect in 2021 although is still under review.

Tenancy Agreements, Rents, Notices and Possession Assured Shorthold Tenancies The most common form of a Tenancy agreement is an Assured Shorthold Tenancy (AST). These types of agreements apply to private Landlords if the Tenancy started after 15 January 1989 under the Housing Act 1988 and providing it is the Tenant’s main accommodation and the Landlord is not living there. There are certain circumstances where the Tenancy can not be an AST; if the rent is less than £250 or more than £100,000 per annum, is a business Tenancy or occupation of a licensed premises, holiday lets or where the Landlord is a Local Authority. There is no minimum or maximum length for the initial term of an AST, although the common length is between 6 and 12 months. Any tenancy longer than 3 years will need to be executed by deed and those over seven years will need to be registered with Land Registry. These are known as a fixed term Tenancy. After expiry of the initial term, either a further term can be agreed, or the agreement rolls on and runs from either week to week or month to month with no fixed end date (periodic Tenancy).

Rent The Landlord can propose a new rent on the commencement of the term or at any time after the expiry of the term, subject to serving of one month’s advanced Notice to the Tenant. If the initial term is in excess of 12 months and the tenancy agreement contains a contractual rent review provision, the Landlord can review the rent within the term. Both parties can agree the rent, although if the Tenant does not agree to the revised rent, the matter can be referred to Tribunal. Once the rent is agreed, the next opportunity for the Landlord to review the rent is 12 months thereafter. A Landlord requesting changes to the rent, the appropriate prescribed Notice form has to be completed and served on the Tenant. If the Tenant owes rent and claims Universal Credit or Housing Benefit, Landlords may be able to rent paid through the Department for Work and Pensions or through the Local Authority by requesting a “managed payment”. Any rent arrears should be discussed with the Tenant and a rental re-payment plan agreed between both parties and it is recommended that this is recorded in writing, in case this is not met by the Tenant and possession procedures or Court procedures are required. Notices If the Landlord wishes to recover possession of the property under a periodic Tenancy, a written Notice (known as a Section 21 Notice) must be given to the Tenant. No reason is required to recover possession but for the Notice to be valid, the date must be at least 4 months since the tenancy started or within the last 6 months the Landlord either has not been served an “Improvement Notice” under the Housing Act 2004 by the Local Authority (following a Tenant’s complaint) or the Council has not served Notice that it will do emergency works. In addition, there are certain other requirements depending on when the tenancy started or was renewed as follows:  

 

From the 1 April 2007, the Landlord can not evict the Tenant if the deposit has not been put into a Deposit Protection Scheme. From the 1 October 2015, the Landlord cannot evict the Tenant if the Landlord has not provided mandatory compliance documents (including a valid Energy Performance Certificate, the Government’s “How to Rent Guide” and a current Gas Safety Certificate) prior to the commencement of the tenancy. In Wales, from the 23 November 2016, a Landlord’s licence under the Housing (Wales) Act 2014 from Rent Smart Wales is required. From the 1 June 2020, the Tenant is not due re-payment of any unlawful fees/ deposits.

The Notice period is at least 2 months if the Notice was served before 26 March 2020, at least 3 months if the Notice was served between 26 March 2020 and 28 August 2020 and at least six months if the Notice was served on or after 29 August 2020. A longer notice period may need to be given if there a “contractual” periodic tenancy and this must be the same as the rental period. In Wales, the Notice period must be at least 6 months if the Notice was served on or after 24 July 2020 and if it’s a periodic tenancy, the additional time covered by the final rent payment must also be considered. These changes in respect to the timescales are due to Coronavirus (COVID-19) although in certain circumstances (and based on technical guidance on eviction notices), the timescales can be shorter, although in Wales, it is still 3 months or more. If possession is required during a fixed term, a reason must be given for the Notice under certain grounds of the Housing Act 1988 (rental arrears, damage to property or using the property for illegal purposes) via a Section 8 Notice.

Under the Housing Act 1988, prescribed forms must be used for the serving of the Notice (Form 6a for a Section 21 Notice for tenancies starting since 1 October 2015 and Form 3 for a Section 8 Notice). In Wales, the Landlord must also explain in writing why an Eviction Notice is being served. It is best practice to seek legal advice when requiring to use a Form 3. The Tenancy can not be ended prior to the expiry of the Term, unless there is a break clause (cannot be less than 6 months from commencement of the Tenancy) or both parties agree to end the Tenancy early. Possession If the Tenant does not leave on the expiry of the Notice or owes rent, and both parties do not agree for an extension or a rental re-payment plan, the Landlord can apply to the Court for a standard possession order online. The online system can not be used for some kinds of standard possession claims (paper required) and the possession decision will be heard through a Court hearing and usually it is a minimum of 8 weeks for the claim to be heard. Under a Section 21 Notice, an accelerated procedure can be used without a Court hearing and the Court will make its decision on papers, and can order outright possession to be given up within 14 days but up to 28 days, although could be shorter or up to a maximum of six weeks. A suspended and postponed order for possession or one with a money judgement can be made in special circumstances. The accelerated procedure can only be used if there is a written tenancy and the required Notice has been served on the Tenant but it can not be used if Landlords are also claiming rent arrears (the latter requires a standard possession claim). A Tenant has 14 days notice to challenge the application from the date of receipt or appeal any possession order. If the Tenant still does not leave on the expiry date of the possession order, a warrant for possession would be required and a bailiff appointed by the Court to evict the Tenant. The Landlord can apply for a warrant of possession up to 6 years after a possession order is made.

Other types of residential tenancies/occupancies There are other types of agreements including excluded tenancies or licences (if there is a lodger), Assured Tenancies (starting between 15 January 1989 and 27 February 1997 with increased level of protection for Tenants under the Housing Act 1988) and regulated tenancies (starting before 15 January 1989 where there is a further level of protection for Tenants under the Rent Act 1977). Under a regulated Tenancy, an application for a fair rent can be be made to Rent Officer and applications can be made every two years after the previous registered rent. Under an Assured Tenancy, the provisions and procedures for agreeing the rent are similar to an AST. Regulated or Assured Tenants will need to give at least 28 days Notice to end a tenancy, although this could be longer depending on the terms of the tenancy. If a Landlord wishes to recover possession for an Assured Tenant, a reason must be given or under certain “grounds” for possession under the Housing Act 1988. Again, If a Landlord wishes to recover possession for a regulated Tenant, the Landlord must obtain a possession order from the courts and prove that one of the “grounds” for possession set out in the Rent Act 1977 are satisfied. A occupier where the rent is less than £250 per annum, lodges with the Landlord, is under a holiday let arrangement or if the rent includes payment of board and/or provision of a service is excluded from a protection and would treated as a licence to occupy. If the agreement is an excluded tenancy or a licence, you do not have to go to court to evict an occupier although “reasonable notice” to quit is required and this is based generally on the length of the rental period. No written Notice is required although it is best practice to do so. If the occupier does not leave at the end of the required period, it is best practice to take legal advice as the Landlord can take physical possession (ie change the locks), care has to be taken in respect to treatment of the occupier’s possessions. The rent/licence fee can be agreed by both parties at any time again subject to “reasonable notice”.

Agricultural Workers’ Occupation Agricultural workers’ have additional protection as either regulated or an Assured Tenant if renting accommodation owned by the farmer or arranged by them Occupancies are protected under the Rent (Agriculture) Act 1976 which provides housing security for qualifying agricultural workers’ living in tied accommodation where no rent or a low rent is paid or under the Housing Act 1988 as an Assured Agricultural Occupancy where a market rent is paid. The commencement date (pre or post 15 January 1989) will determine the type of agreement. A qualifying worker is someone employed full time (over 35 hours a week) in agriculture for two years, a retired farm worker, a former farm worker who have taken employment elsewhere or a widow or widower of a farm worker (living at the property at the time of death). The procedure for agreeing the rent and for recovery of possession for agricultural workers’ dwellings are similar to those properties occupied by regulated or Assured Tenants. An agricultural worker offered accommodation, can be provided with an AST, if a prescribed Notice form is served prior to the occupancy on the Tenant and signed that the agreement is to be an AST. Once an AST, fixed term and periodic tenants apply and there is the same procedure for rent reviews and for recovery of possession.

Houses in Multiple Occupation A House in Multiple Occupation (HMO) is where at least three Tenants from different households live there, kitchen and sanitary facilities are shared, and one Tenant pays rent (five Tenants constitutes a large HMO). The regulations are covered by the Management of Houses in Multiple Occupation Regulations 2006. It is best practice to check with the Local Authority whether a licence is required, although all large HMOs will require a licence, which is valid for 5 years. Licences are not required for those owned or managed by a Housing Association, Local Authority, health service or police or fire authority. The safety compliance matters for Landlords are generally the same as for privately let dwellings but in addition, the Landlord must send the Local Authority a GSC every year, install and maintain the smoke alarms, have a carbon monoxide alarm fitted and provide safety certificates for all electrical appliances when requested. The electrical regulations for an HMO were required prior to 2020 but are now covered under the Electrical Safety Standard Regulations in England. The Landlord must ensure that the property is not overcrowded, there are the appropriate cooking and bathroom facilities for the number of people living there, communal, and shared facilities are clean and in good repair and there are enough rubbish facilities. The Local Authority can also apply other restrictions, which can be appealed to the First-Tier Tribunal. If a Landlord renews an HMO licence from 1 October 2018, all bedrooms have to a certain size depending upon the number and age of the occupants. AST agreements can be used, and all the legal requirements are the same, although if there is not a licence from the Local Authority, Section 21 Notices are not valid. Any unlicensed HMO which is rented out could be subject to an unlimited fine. In Wales, there are three types of licencing, registering with Rent Smart Wales and other Local Authority requirements depending on the nature of the property.

The requirements and information contained within this document is correct as at the date of publication and is liable to change. It applies only to privately rented dwellings as there are different requirements for social housing. The majority of legislation, compliance and best practice procedures detailed within this document are currently the same for England and Wales. However, where there are different obligations for Wales, these are detailed in the respective sections. For dwellings let in Scotland and Northern Ireland, different procedures apply and are not covered in this document.

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