UK Landlords Affected By Numerous Legal Changes in 2021
It’s always important for landlords to keep up with changes to the law that affect their business. There have been a number of important changes in tenancy law in England and Wales this year, keeping landlords, estate agents, and property managers on their toes. Some landlords struggle to keep up with existing laws, such as the requirement to obtain gas safety check certificates, and further changes can simply give them more things that they need to do. However, these laws are put in place to protect tenants and they can make things clearer for landlords too.
Several changes in the law in 2020 and 2021 affected both landlords and tenants. New renters’ rights require landlords to pay attention and ensure they are following the law. There were some significant changes over the last year, both temporary and permanent.
Pets in Properties
One of the big changes that have occurred in England is a change to the standards relating to tenants having pets in properties. This has caused some confusion over whether the law has changed and what is now expected of landlords. However, the main change that has taken place is new guidance, rather than a clear change in the law. The government has changed their model agreement for a shorthold assured tenancy. The new tenancy agreement and guidance say that tenants should submit a written request to keep pets and that the landlord must not have a blanket ban on pets. It also says “A Landlord must not unreasonably withhold or delay a written request from a Tenant without considering the request on its own merits. The Landlord should accept such a request where they are satisfied the Tenant is a responsible pet owner and the pet is of a kind that is suitable in relation to the nature of the premises at which it will be kept.”
While landlords shouldn’t have a blanket ban on pets, it doesn’t mean that they can’t turn down a request to keep pets in their property. However, they should have a reasonable reason for doing so, such as the pet being unsuitable for the property. Landlords also need to be aware that they cannot increase the deposit amount of the property to more than five weeks of rent. This means that they can’t charge an extra “pet deposit” on top of the standard deposit. It’s also important to follow the law on equality in the case of service animals, such as guide dogs.
Electrical Safety Check Requirements
Another significant change to the law this year is the requirement for landlords to carry out electrical safety checks in their property. Faulty electrics can cause big problems, leading to fires that could cause destruction and even death. Previously, HMOs (houses in multiple occupation) were the only rental properties required to have full electrical inspections. However, the law changed in April 2021, and all private rental properties are now required to have one.
Private rental properties now need to have an Electrical Installation Condition Report (EICR), which generally needs to be carried out every 5 years. What does an EICR do? The report assesses whether the electrics in the property have been installed properly and are in good condition. The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 mean that new tenancies in England were required to have electrical safety reports from July 2020, while existing tenancies had to have them starting in April 2021. However, many landlords are still behind and need to ensure that they have these reports carried out.
The EICR details any damage or defects, or anything dangerous, if there is anything to note. Otherwise, it confirms that the electricity in the property is safe. If the property is not safe, remedial action must be taken within 28 days, unless the report specifies that it must be repaired sooner. The inspection should be repeated at regular intervals, which is considered to be every 5 years unless the report states that it should be sooner.
There are some exceptions to these new laws, which are found in Schedule 1 of the regulations. The exceptions include student halls and lodgers, who live with their landlord rather than renting a separate property. Landlords who don’t have electrical inspections carried out when they are required to could face a £30,000 fine.
Changes Related to the Pandemic
The COVID-19 pandemic also led to a number of changes in private renting in the UK. A major change was in the length of notice that needed to be given to evict tenants. Tenants with an assured shorthold tenancy (AST) in England and Wales can be evicted using a Section 8 or Section 21 notice. A Section 8 notice is used when the tenant has breached the terms of their tenancy, while a Section 21 notice can be served at the end of a fixed-term tenancy or during a periodic tenancy to regain possession of the property.
The law was changed in March 2020 to extend the notice period that landlords had to give. In England, they previously had to provide 2 months’ notice but were required to give 3 months from March 26th to August 28th, 2020. From August 29th to May 31st, 2021, landlords had to provide six months’ notice, and from June 1st, 2021, they now have to provide 4 months’ notice. In Wales, landlords were required to give at least 6 months’ notice from July 24th, 2020. Notice periods when evicting tenants for anti-social behaviour can be shorter, but at least 3 months must still be given in Wales.
Additionally, the length of the rental period is the notice that must be given for contractual periodic tenancies. For example, 2 months’ notice must be given if rent is paid every 2 months. In Wales, tenants can stay for the notice period, as well as any extra time that is covered by their last rent payment.
UK landlords may have new laws to contend with, but it’s essential for them to keep up with the changes to avoid fines and other consequences.
