The deposit will equal 5 weeks rent per the Tenant Fees Act 2019. The purpose of the deposit is to cover damage to the property over and above normal wear and tear and/or any rent arrears or costs incurred as a result of breach of contract.

The 2004 Housing Act prevents landlords from holding unregistered/unprotected deposits. All Hunters branches are members of a tenancy deposit service. All deposits relating to Assured Shorthold Tenancies will be dealt with under the rules of the Tenancy Deposit Regulations. Deposits relating to tendencies which are not Assured Shorthold Tenancies are not part of the scheme, although will be dealt with along the principles of the scheme.

Electrical Safety

The safety of the electrical installations must be tested before the beginning of the first tenancy to ensure the system is safe.  This type of safety check generally should be carried out every 5 years  or sooner on the recommendations of the electrician. This regulation applies by law to England only but we always strongly advise that all safety checks are carried out where possible.

The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 (the Electrical Safety Regulations) came into force on 1^st June 2020.

• for new tenancies in the private rented sector with effect from 1 July 2020 (residential only); and
• for existing residential tenancies in the private rented sector with effect from 1 April 2021.

It means that landlords have to ensure that electrical installations are inspected, and that BS7671:2018 standards are met, at the outset of a tenancy and at least every five years and also issue a copy of the inspection report to the tenants within 28 days of the inspection, and to carry out any remedial work within 28 days of the inspection (or sooner if the report requires).  You can read the Landlord Guide here and also the Electrical Safety Roundtable & NAPIT Q&A.

You can contact our office discuss this and our recommendation is to commission your safety check sooner rather than later due to demand.

Homes (Fitness For Human Habitation) Act

The Homes (Fitness for Human Habitation) Act 2018, known as the Homes Act, replaces Section 8 of the Landlord and Tenant Act 1985 (LTA 1985) in England, with the purpose of improving living standards in the private and social rented sectors. 

A property unfit for human habitation is ‘so far defective in one or more of those matters that it is not reasonably suitable for occupation in that condition.’   Such as; any prescribed hazard(s), Repair; Stability; Freedom from damp; Internal arrangement; Natural lighting; Facilities for preparation and cooking of food; Water supply; Drainage and sanitary conveniences; Ventilation; and facilities for the disposal of waste water.

Under the Homes Act 2018, landlords and letting agents acting on their behalf must ensure properties, including common parts where they have an estate or interest, are fit for human habitation at the beginning and throughout the duration of a tenancy. Tenants will now be able to take direct legal action if their agent or landlord does not comply with the Act. NB: Agents should be aware that property checks will no longer be needed by local authority enforcement office.  This law applies to ALL domestic tenancies (England Only). 

NB: Section 8 of the LTA 1985 now only applies to tenancies in Wales. The new section 9C applies to Agricultural Tenancies, substituting ‘house’ with ‘dwelling’. The Act does not cover those with ‘Licences to Occupy’. This includes, but is not limited to lodgers, those living in temporary accommodation and some Property Guardians.

All Landlords should ensure their property/dwelling is fit for human habitation and your local agent can help with this.

Prescribed Hazards

The Housing Act 2004 defines a ‘hazard’ as ‘any risk of harm to the health or safety of an actual occupier of a dwelling or HMO which arises from a deficiency in the dwelling or HMO’. The hazards used in the Homes Act, are the 29 as listed in the Housing Health and Safety Rating System (HHSRS).

The 29 HHSRS hazards are: Damp and mould growth; Excess cold; Excess heat; Asbestos and Manufactured Mineral Fibres; Biocides; Carbon monoxide and fuel combustion products; Lead; Radiation; Uncombusted fuel gas; Volatile organic compounds; Crowding and space; Entry by intruders; Lighting; Noise; Domestic hygiene, pests and refuse; Food safety; Sanitation and drainage problems; Water supply; Falls associated with baths; Falls on level surfaces; Falls associated with stairs and ramps; Falls between levels; Electrical hazards; Fire; Flames, hot surfaces and materials; Collision and entrapment; Explosions; Ergonomics; and Structural collapse and falling elements.

Right to rent

From 1 February 2016, all private landlords (and their agents) in England must check that new tenants have the right to be in the UK before renting out their property (Immigration Act 2014). If the Right to Rent check is acceptable an agent can proceed with the normal full referencing procedure, but should a Right to Rent check fail, by law we will be unable to allow a tenancy to commence. We cannot agree a let until the applicant(s) have provided the agent with the correct documents. If a tenant has a time-limited right to remain, landlords and letting agents will need to conduct follow up checks; normally 12 months from the initial check or at the expiry of the individual’s right to be in the UK (whichever is the later).

Right to rent was introduced in the Immigration Act 2014 as part of the government’s reforms to build a fairer and more effective immigration system.

The aim of the Act is to reduce the costs that tenants can face at the outset, and throughout, a tenancy. Tenants will be able to see, at a glance, what a given property will cost them in the advertised rent with no hidden costs.
 

From 1 June 2019, the only payments that landlords or letting agents can charge to tenants in relation to new contracts are:

• Rent
• A refundable tenancy deposit capped at no more than 5 week's rent where the total annual rent is less than £50,000 or 6 week's rent where the total annual rent is £50,000 or above
• A refundable holding deposit (to reserve a property) capped at no more that 1 week's rent
• Payments associated with early termination of the tenancy, when requested by the tenant
• Payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy
• Payments in respect of utilities, communication services, TV licence and council tax
• A default fee for late payment of rent and replacement of a lost key/ security device giving access to the housing, where required under a tenancy agreement

The Fifth Money Laundering Directive (5MLD)

On the 10^th January 2020 5MLD will take effect in the UK. 5MLD makes changes to the previous UK regulations and will now bring letting agents into the scope of the Money Laundering Regulations for the first time. This means that letting agents will be required to assess certain tenancy agreements for their potential to be used as a mechanism for the proceeds of crime.

All tenancy agreements with a rent in excess of £10,000 per calendar month will now form part of the regulations. This means that lettings agents will be required to carry out “Know Your Customer” checks on landlords and tenants. “Know Your Customer” requires the checking of identification documents and confirmation of residency status, as well as verification that the tenancy is genuine and not set up to assist either the landlord or tenant to launder the proceeds of crime. Tenancies that fall within the scope of the regulations will require on-going monitoring to check that the initial conclusions regarding the money-laundering risk assessment remain unchanged throughout the whole term of the business relationship. Landlords and tenants who fall into this category of tenancy should therefore prepare themselves for additional questions and administration requirements.

More information on the Fifth Money Laundering Directive can be found on the .GOV website here