This information should not be interpreted as financial, tax or legal advice. Mortgage and loan rates are subject to change.
Categories: prs | let to buy | guides | property investment guides
Rental properties are a long-term investment. They can offer landlords an excellent source of passive income. If you cannot buy outright with cash, you can use a buy to let mortgage, to invest in one.
Before you can start searching for tenants for your rental property, you need to ensure the property meets the minimum standards for rented housing in the UK.
The UK government has set out minimum standards that rental properties must meet to ensure that they are fit for human habitation. As a landlord or property investor, it is your legal and ethical responsibility to provide safe and healthy living conditions for your tenants. Failing to meet these standards can result in legal action, loss of rental income, and damage to your reputation.
Whether you are a seasoned landlord or a first-time rental property investor, this guide will provide you with valuable insights into ensuring that your rental properties meet the required standards.
The content in this article is for information purposes only. It is not legal or professional advice on your obligations and you must seek appropriate advice from qualified experts if you are unclear on your position.
What are housing standards?
Housing standards for rental properties are intended to make sure any home, rented to tenants, is a safe and healthy place to live.
These standards include requirements for structural soundness, fire safety, gas and electrical safety, and energy efficiency.
Why is it important to meet the minimum standards for rented housing?
Under the Landlord and Tenant Act 1985, landlords are legally required to meet the minimum housing standards. This means ensuring that rental properties are in a good state of repair and free from hazards. Failure to comply can result in legal action, fines, and potential imprisonment.
We have highlighted additional reasons why landlords must meet minimum standards for rented housing:
- Ethical responsibility: Landlords have a duty of care to protect the health and safety of tenants.
- Attract quality tenants: Rental properties that meet the required standards are more likely to be occupied by tenants who are willing to pay a fair rent and take good care of the property. This leads to a stable rental income and reduced void periods.
- Protect reputation: Meeting the minimum housing standards can also help to protect a landlord’s reputation. Providing substandard rental properties can lead to negative reviews and word-of-mouth publicity, which can harm make it difficult to attract tenants in the future.
Landlord responsibilities
As a landlord you are responsible for fundamental health and safety measures. Your rental property must be:
Structurally sound
The interior and exterior of the rental property should be in good structural condition to ensure the safety and well-being of tenants.
The property should be free from large cracks in the walls, damaged roof tiles or gutters, compromised foundations, or any other structural damage that could cause harm to tenants or visitors. Landlords should also ensure adequate ventilation to prevent dampness, which can affect the structural integrity.
Raising funds to make the necessary structural repairs to your rental property is easy with Commercial Trust. Bridging loans can be used for light or heavy refurbishment projects. We will help you save time and money by sourcing the best bridging loan from our extensive range of lenders.
Free from hazards
Landlords are responsible for ensuring that the rental property is free from hazards that could pose a risk to tenants.
Common life-threatening hazards include exposed wiring and faulty gas or electrical appliances. Slippery floors, uneven stairs, and inadequate lighting are other potential safety hazards.
Damp-free
Damp and mould poses severe health risks to tenants, but managing damp requires their cooperation.
For example, if tenants hang damp clothes out to dry indoors and don’t ventilate the room, damp is likely to be a problem.
Have a conversation with tenants at the start of their tenancy to make clear how to manage ventilation and recommend tips like:
- Dry clothes outside. If you have to dry indoors, use the bathroom which is decorated to cope with damp, but keep the window open to let out damp (keeping the internal door shut to prevent loss of heat or drafts will make this more comfortable).
- Open windows to air the property when you are at home.
- Let steam escape via an open window (e.g. from a hot shower or bath) or extractor fan (e.g. in the kitchen when cooking) and keep the internal door shut, to make sure the steam goes outside.
- Don’t push furniture up against external walls, leave an air gap.
- Keep the internal temperature at same level by using central heating.
A landlord must ensure damp cannot:
- Rise up from the ground through the walls of their property. If this is happening, there may be an issue with the damp proof course of the property.
- Get in through faulty doors, rooves, windows or floors if your property has water leaking in, get it fixed quickly. The problem will only get worse with time and the cost of repairs is likely to go up.
- Occur due to faults, breaks or defects such as burst water pipes, blocked drainage, defective radiators.
Equipped with fire safety apparatus
It is the responsibility of the landlord to provide and maintain fire safety equipment in the property.
Fire safety equipment includes smoke alarms, fire extinguishers, and fire blankets. This equipment is designed to detect smoke or fires and provide tenants with the means to extinguish a fire. These should be regularly checked to ensure they are in good working order.
It is also essential to ensure that tenants are aware of the fire safety equipment in the rental property. Landlords should provide tenants with instructions on how to use fire safety equipment and make sure that they know how to evacuate the property in case of a fire.
Fire safety is especially important if you have an HMO rental property. With more occupants in the property, there is a higher risk of fire safety hazards. Ensuring that your HMO property is equipped with appropriate fire safety measures is a legal requirement.
Commercial Trust can help you find you an HMO mortgage to buy or remortgage. Find out more about these mortgages in our HMO guide.
Safe from gas or electrical faults
It is the responsibility of the landlord to ensure the gas and electrical supply to their property is regularly maintained and checked for safety
Landlords are required to have all electrical installations checked by an accredited inspector every 5 years. All gas appliances need to be serviced annually by a Gas Safe registered engineer.
As the landlord, you must supply a copy of the gas safety check to a prospective tenant before they move in to your property, or within 28 days of a check for existing tenants.
Rented property must meet energy efficient standards
Landlords are legally required to have an Energy Performance Certificate (EPC) for their rental properties and meet an EPC rating of E, or higher. To improve the energy efficiency standards of the property, landlords may need to improve insulation, install double glazing, and invest in low-energy lighting.
Having a high energy efficiency rating is beneficial for tenants and landlords alike. For tenants, an energy efficient home can mean lower heating bills. For landlords, an energy efficiency rating of A-C can mean lower mortgage interest rates, as lenders discount their products where this is the case.
Stricter Minimum Energy Efficiency Standards (MEES) were due to be introduced in a revised Bill on the subject, but in an unexpected move, Prime Minister Rishi Sunak scrapped the plans.
Consequences of not meeting the minimum standards for a rental property
Failing to meet the minimum standards for rented housing UK can have severe consequences for landlords.
If a landlord fails to meet the standards, tenants have the legal right to take action against them. This can result in hefty fines and legal costs.
Failing to meet the minimum housing standards can also damage the reputation of the landlord or property investor. Negative reviews or publicity can harm the landlord's reputation and make it difficult to attract tenants in the future, leading to a loss in income.
In extreme cases, failure to meet the minimum standards can even lead to imprisonment. For example, if a tenant is injured or dies due to a landlord's failure to meet the minimum standards, the landlord can be charged, which can result in a custodial sentence.
By ensuring that the rental property meets the minimum standards, landlords can protect their tenants, maintain the value of their property, and avoid legal action and reputational damage.
