Ultimate student property guide: recent legislation

The Private Rental Sector has expanded significantly over the past decade (from 8% of housing tenure to 14%). This expansion has prompted the government to try and professionalise and regulate the sector. A number of key initiatives, including, HMOs, the TDS, and EPCs, have recently been implemented.

Houses in multiple occupation (HMOs)

These are homes broken up into separate flats or bedsits, or otherwise shared by more than one household and, normally, where some facilities (kitchen, bathroom, toilet) are shared. Some areas have limits to how many properties are converted into HMOs. Landlords of some types of HMOs must be licensed.

From a tenant's point of view, it’s worth knowing that a HMO must comply with certain safety and management standards – for example, it must have fire-fighting equipment. These rules are enforced by the local council.

Details of the legal definitions of HMOs are different in Scotland from those that apply in England and Wales.

More here:
http://www.communities.gov.uk/housing/rentingandletting/privaterenting/housesmultiple/

Tenancy Deposit Scheme (TDS)

Before tenants move into a property, they will be required to pay a deposit – usually a month’s or six weeks' rent, in addition to the pre-payment of the first period of rent. Tenants have legal protection to ensure they get their deposit returned, where they are entitled to have it returned.

The Tenancy Deposit Scheme provides this protection and operates a dispute resolution system where there is disagreement between landlord and tenant over whether the deposit should be fully returned.

• At the start of the tenancy:
• Within 14 days of receiving a deposit, the landlord or agent must give the tenant the details about how their deposit is protected including:
• • The contact details of the tenancy deposit scheme selected
• • The landlord or agent’s contact details
• • How to apply for the release of the deposit
• • Information explaining the purpose of the deposit
• • What to do if there is a dispute about the deposit

• At the end of the tenancy:
• • If an agreement is reached about how the deposit should be divided, the landlord or agent returns all or some of the deposit
• • If there is a dispute, the landlord must hand over the disputed amount to the scheme for safekeeping until the dispute is resolved
• • If for any reason the landlord fails to comply, the insurance arrangements will ensure the return of the deposit to the tenant if they are entitled to it

For more information on the Tenancy Deposit Scheme see:
www.direct.gov.uk/en/TenancyDeposit/index.htm.

Note: landlords are not obliged to take a deposit; they are only obliged to protect it if they do. However, if they suggest an alternative, ask yourself why they are not using the scheme. The TDS is there to protect you and has worked very well thus far; beware alternative arrangements.

Energy Performance Certificates (EPCs)

An EPC provides information about the level of energy use and carbon dioxide emissions of a home and how to reduce these. All homes that are rented out must, by law, have an EPC. They provide a good guide to prospective tenants of how much they must expect to pay to heat a home. And you may be able to use a poor one to negotiate on rent or facilities.

For more information on Energy Performance Certificates see:
http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/Homeinformationpacks/Energyperformancecertificates/DG_177026