LETTING REGULATIONS

Furniture and Furnishings, Fire (Safety) Amendment Regulations 1988

Since 1993 all rented properties can only be furnished with contents that meet the required standard.  The regulations require all furniture and furnishings in rented properties to meet the "cigarette test".

The regulations cover a wide range of furniture and furnishings and apply to all upholstery and upholstered furniture and loose fittings, permanent or loose covers including: beds, mattresses, pillows, armchairs and scatter cushions.

Exemptions

Furniture made before 1950, Carpets, curtains, pillowcases, bed clothes, sleeping bags. 

Although most furniture manufactured after March 1990 is likely to comply if the appropriate labels are not affixed to the furniture checks need to be made with the manufacturer.

To check that furniture meets the regulations you should look for the following labels, (a triangle with a smoking cigarette), or in the case of beds and mattresses a label marked BS 7177.  

The simplest and easiest precaution is to remove all second hand upholstered furniture that does not have a permanent label, unless you can prove that it was upholstered before 1950. 

You therefore need to either replace non-conforming items or let the property on an unfurnished/part-furnished basis.  We will be happy to discuss what items can stay and we can arrange for replacement quotations. 

For further information please contact Local Trading standards 

Electrical Equipment (Safety) Regulations 1994 

From the 9th January 1995 it became a criminal offence to supply electrical equipment, which is unsafe. Equipment is considered unsafe if it jeopardizes the safety of people, domestic animals or property. 

The act does not impose any duty on the supplier to carry out safety checks.  However, without such checks at both the start of the letting and at regular intervals there is no way of establishing whether any equipment is unsafe.  It is likely this would only ‘come to light’ after injury or loss!  Therefore the only way to completely protect yourself (and your tenant) is to have the electric’s/appliances checked by a qualified electrical engineer. We would recommend inspections are carried out at least once a year. 

If you require advice on current legislation would like to arrange an electrical inspection our staff will be pleased to help you.


The Gas (Safety) Regulations 1994

On the 31st October 1994 the Gas Safety Regulations came into effect. Under the regulations, it is the responsibility of anyone letting their property to ensure any gas appliance (including propane or calor gas) or pipework installed in the premises are maintained in a safe condition. 

The Landlord must make sure all gas appliances, pipeworks and flues are checked for safety at least once a year by a qualified gas engineer (Corgi registered). A record of each inspection must be kept and a Landlords Gas Safety Certificate must be available for the Tenant or Local Authority to inspect. 

This Certificate must be available prior to the commencement of a Tenancy, We will arrange, at the Landlord's expense, for this to be carried out if required.  If you require further information about current legislation our staff will be pleased to assist.


Stamp Duty

The Stamp Duty Act states that a document is not admissible as evidence in a Civil Court unless it has been stamped, this includes Tenancy Agreements. Over the last few years there have been a number of changes, with the Government first updating and strengthening the operation of Stamp Duty and then from the 1st December 2003 simplifying it. 

Up until the 1st December 2003 the lettings stamp was nominal (often only £5 or 1% of the rent) but applied to most London tenancies. However, from the 1st December 2003 stamp duty will only apply to long or very expensive leases (i.e. those where the premium/rent is more than £60,000 (for the term).

Conclusion

The stamp duty rules have been criticised for being ‘over complicated’ so these latest changes are welcome because they simplify the system and reduce the bureaucracy caused by collecting the minimum duty.  However, some Landlords may still be affected and as your letting agent Apricot Estates will discuss the stamping of the document with you. 

If you have any further questions please do not hesitate to contact Apricot Estates or contact the Inland Revenue Stamp Office helpline on 0845 603 0135. Source; SO8 (Stamp Duty on Agreements Securing Short Tenancies) 3/12/2003  


Taxes Management Act 1970 

The Inland Revenue have extensive statutory powers under the Taxes Management Act 1970 which require certain organisations to supply them with information  
about various categories of persons such as ‘landlords’.  

Under Section 19 of the Taxes Management Act 1970 it may be necessary for Apricot Estates to disclose information to the Inland Revenue about our clients. 

Should you need to discuss taxation issues we are able to recommend an accountant.  
 


Houses in Multiple Occupation 

The government has recently introducing licensing of rental properties that are defined as a House in Multiple Occupation (HMO).  Any property classified as a House in Multiple Occupation requires a license and may require improvements to bring the HMO up to the required standard.  From the 6th April 2006 all three storey HMOs must be licensed and within certain Boroughs including the London Borough of Ealing the rules have been extended to cover two storey properties, let to more than 3 people who are classed as two or more households.  

These new rules could apply to many types of property rented in London, and therefore it is best to discuss your property with a member of our staff or the local authority direct (Contact the HMO team on (020) 8825 6622.

Are certain properties exempt?  

If within the London Borough of Ealing you rent to a family or to sharers who are not defined as two households (in other words no more than two couples), then the property will not be an HMO. In addition purpose built flats and converted properties are treated differently, as the number of flats that are let out within a building can determine whether a license is required.  

What if you have an HMO? 

  1. The property will need to be licensed.  Licenses are for a period of 5 years and the current minimum fee in Ealing is £598 (paid upfront) for 5 years. The License holder can appoint a manager to look after the property on their behalf.

  2. Works may be required to bring the property up to the appropriate standard.

The local authority will inspect the HMO and advise on any repairs required.  

The Future 

We are aware that many of our Landlords could be overwhelmed by the regulations and therefore we are here to help. Apart from the costs to the Landlord, there is little doubt that these rules will have a significant impact on the London lettings market. We expect some landlords to dispose of certain properties and some landlords have already decided to only rent to a family or to sharers that would not be defined as an HMO, even if this results in a lower rent.  Some landlords may decide to invest in smaller purpose built flats rather than larger properties. We also think that some short term lets may become unviable if a five year license is required. 

Although for some Landlords there will be increased costs, on a positive note many commentators believe that these new rules could lead to rent increases due to the reduction of private-rented accommodation available to private tenants.  

Although the rules regarding the Licensing scheme are complicated, Apricot will help our Landlords through the HMO maze.  

Please note that this information has been prepared in good faith but should not be relied upon as an interpretation of the law.  As noted the implementation of rules has already been amended once and there is a risk that they will do so again. We have used information from the Office of the Deputy Prime Minister and Ealing Council. Visit www.odpm.gov.uk and www.propertylicence.gov.uk 
 

Money Laundering Regulations 2003, the Proceeds of Crime Act 2002 and the Terrorism Act 2000 

Recent European Regulations mean that all financial institutions, accountants, legal professionals and estate agents are legally required to verify the identity of their customer.  In order to comply with these Regulations, all clients must provide Apricot Estates with (i) proof of identity and (ii) proof of a current residential address.

One document from each of the following two lists should be presented to Apricot Estates and we are required to take photocopies or note details of these documents for this Statutory Purpose:

(1) Identity Documents: Current full UK Driving License** (Provisional Driving License will NOT be accepted), •Current signed passport, •Resident Permit issued by the Home Office to EU Nationals, •Inland Revenue Tax Notification, •Firearms Certificate. **May be used to evidence identity or address, but not both.

(2) Evidence of Address: Current full UK Driving License** (Provisional Driving License will NOT be accepted), •A utility bill issued within the last three months (NOT a mobile phone bill), •Council Tax Bill (valid for the current year), •Bank, Building Society or Credit Union statement containing a current address, •The most recent original mortgage statement from a UK lender.

Please Note

• If you are acting on behalf of another party, you will be required to provide the documents detailed above for both yourself and the client, as well as providing a valid letter of authority authorising you to act on their behalf.  
 

TENANCY DEPOSIT SCHEME - SUMMARY OF KEY POINTS 

Alternatively landlords can make their own arrangements to insure the deposit or hand it over to Computershare Investor Services plc.  

Please note that this information has been prepared in good faith but should not be relied upon as an interpretation of the law.  We have used information from the Department of Communities and Local government and the three deposit schemes.  For further information visit www.communities.gov.uk/index.asp?id=1152035 

ENERGY PERFORMANCE CERTIFICATES SUMMARY OF KEY POINTS 

Please note that this information has been prepared in good faith but should not be relied upon as an interpretation of the law.  We have used information from the Department of Communities and Local government. For further information visit

www.communities.gov.uk/documents/housing/pdf/energy-certificate

www.communities.gov.uk/planningandbuilding/theenvironment/energyperformance