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Regulations relating to letting your property
 


When letting your property there are a number of legal matters that you need to consider. This list is just a selection to give you some points to consider. If you are concerned about any aspect of these regulations please ask. We have access to legal advisors who can clarify any specific point of law, although we would remind you that we are not legally qualified. If we have not covered any specific area of law, please ask. The Law is constantly changing and new regulations are coming into operation on a regular basis. There is much case law relating to letting that sets precedent on how disputes will be settled - it is important NOT to assume anything when it comes to Letting issues. Always ask if you want to ensure a smooth let. In order to maintain our knowledge of these area we are members of various professional bodies. A list is provided under the What we do section.

The Housing Act
This is the main servies of legal documents relating to housing law. There are various amendments to it 1985, 1988, 1996. Full details on 1996 edition are available from The Letting Centre. Details of notices are also available from The Letting Centre.

Gas Safety (Installation and Use) regulations 1998
Under regulation 36 of the Gas Safety (Installation and Use) Regulations (GSIUS) 1998 you must under the Gas Safety Regulations provide a copy of the Landlord's annual safety certificate to the tenant. You need to ensure that this certificate is renewed every year by a CORGI registered contractor. More details from The Letting Centre.

Electrical Equipment (Safety) Regulations
The Electricity at Work Regulations and the Health and Safety at Work Act put responsibility on a Landlord to ensure that all electrical installations/appliances are maintained so as to prevent danger to tenants in the property. There is no requirement to have an annual inspection, as with Gas devices,but you are advised to have this at the start of the letting to ensure there will be no problems.

Plugs and Sockets etc. (Safety) Regulations 1994
This Act states that since August 1994 all 3 pin plug tops supplied to a tenant must meet British Standard 1363 and be so marked. This standard means that the live and neutral pins must have part insulation. The benefit of this insulation is that if little figures start playing with a plug that becomes partially pulled out they have less chance of getting electrocuted. More details from The Letting Centre

Furniture and Furnishings Regulations (Fire)(Safety)
These regulations are really relevant if you let your property furnished. They cover the us of certain materials in furniture in let property. The regulations cover, in general terms, all upholstery and upholstered furniture, loose fittings, permanent or loose covers. Full details are available from The Letting Centre.

Water Industry Act
This Act came into force on 1st April 2000. As a result it will be possible for a tenant who is a water customer to have a water meter fitted, regardless of the Landlord's wishes. If you do not want a water meter fitted to your property then the water utility must remain in your name. You can then insist that the tenants do not fit a water meter.

Absentee Landlords - Finance Act
If you are considered to be an absentee Landlord this Act allows the Landlord to apply for a self assessment status in order for rents to be paid over gross. In the absence of this certificate the Agent is required to deduct basic rate tax from the rents and pay this to the Inland Revenue on a quarterly basis. We are not qualified accountants but we would advise you to discuss this with your accountant who can also advise on what items of expenditure can be off set against rental income. More details on this can be found from The Letting Centre or in Inland Revenue Leaflet IR140 from the Finance Intermediaries and Claims Office(FICO) phone 0151-472-6208/6209 or on the Inland Revenue website www.inlandrevenue.gov.uk

Finance Act 1999 - Stamp duty
Important changes on the level of stamp duty came into effect on 1st Oct. 99. These are complex rules, ill-thought out rules which introduce penalties for late stamping of agreements. The penalty for late stamping in the first year is ?5, but rises to ?300 thereafter. We can advise on this but if you want to know more then you need SO899 from the Stamp Office Helpline 0845-603-0135. They key period of let is now 'a year less a day'. An agreement is still valid if it is not stamped BUT the key point is that an agreement cannot be produced in Court if it is not stamped! Most agreements never have a problem so it is a matter of risk for your consideration. More details from The Letting Center.

The Building Regulations 1991
These regulations require that all properties built since June 1992 must be fitted with mains-operated interlinked smoke detectors/alarms on each floor. Properties built before that date do not have such a statutory requirement. However, we recommend that both smoke detectors and CO2 are fitted for maximum safety. These might just prevent your property from extensive damage.

Shared Houses/Houses in multiple Occupation (HMOs)
This area is letting is the must difficult and the subject of most disputes and indeed the most regulation. We have much experience of this area of letting and can advise you on the many issues that you face if you want to let your house for multiple occupation, for example, to students or other sharers. We are continually monitoring the proposed licensing schemes which are proposed to be introduced and which have been the subject of wide consultation.

Unfair contract terms 1995
This Act underpinned and closed loopholes in the Unfair Contract Terms Act 1977. The regulations require that all contract terms be written in plain and intelligible language. The regulations also impose a test of fairness on any agreement. In a test case a judge has held that a tenancy agreement between a landlord and a private tenant is governed by the regulations. We will endeavour to ensure that both our Tenancy Agreements and our terms meet these regulations. The important point about an unfair contract term is that if you reply on a clause which is deemed to be unfair in a dispute then it may prevent you from recovering money. We will also expect our Landlord and tenants to read the contract carefully and if they are unsure to take independent legal advice before signing any agreement. It has also been suggested that a local Trading Standards Officer is the best person to ask if a contract term is unfair. We will use our best endeavours to ensure that neither our Landlords or Tenants are prejudiced but a failure under these regulations. More details from The Letting Centre.