Since 20th March, 2019, properties in the PRS have new standards under the Homes (Fitness for Human Habitation) Act 2018. For most landlords managing properties that are in good condition and are well maintained, there should not be anything new to do.

However, landlords should be on their guard as there is the potential for landlords to find themselves subject to court action from tenants, for breach of contract, should a property not meet required standards. Landlords could be forced to carry out improvements and could be subject to compensation claims. There is the possibility that a landlord could be sued for damages, for the full duration of the contract.

Background

The Act, amends the Landlord and Tenant Act 1985 and the Building Act 1984 and will initially impact new and renewed tenancies or fixed-term tenancies in England from March 20th, 2019. It will affect all landlords or agents acting on their behalf. Landlords and agents should be aware that it is likely the legislation will be extended to cover all periodic tenancies from March 20th 2020. I therefore recommend all landlords assess the condition of their rental properties and address any issues sooner rather than later.

The legislation aims to raise living standards in the PRS. The Housing Health and Safety Rating System (HHSRS) is under Government review and will help to define what ‘fit for human habitation’ means.

There are a number of housing issues being looked at, which include:

• repair work;
• stability;
• levels of dampness in the property;
• internal arrangement;
• natural lighting in the property;
• the amount of ventilation;
• the quality of the water supply;
• drainage and sanitary conveniences;
• what facilities there are for the preparation and cooking of food and for the disposal of waste water;
• and, Hazards under the Housing Health and Safety Rating System.

Under the new rules, a home needs to be regarded as significantly defective in one or more of the above areas, in order to be considered as unfit. The Act states: “the house shall be regarded as unfit for human habitation if, and only if, it is so far defective in one or more of those matters that it is not reasonably suitable in that condition”.

A judge will ultimately make the decision on whether or not this is the case.

Rectifying property problems

If a problem arises in a rental property, there is an expectation that the tenant will notify the landlord, in order for any issue to be repaired within a reasonable timeframe.

In this sense, the current landlord’s obligation will not change. In joint tenancies, a landlord will need to be made aware of a defect during the tenancy, by the tenant. The landlord must respond within reasonable time frame to fix the issue.

Landlords may be subject to court action for breach of contract, if a home doesn’t meet required standards.

When the property is rented out on a per room basis, e.g. a shared property or HMO, the landlord’s obligation is instantaneous, from the moment the defect occurs, regardless of whether or not the tenant informs them. The landlord will again be obliged to remedy the issue within a ‘reasonable time frame’ which would be determined by the nature of the problem and potentially external factors.

Events where the landlord is absolved

Whilst the landlord will be responsible for addressing issues in most cases, the Act does not make landlords liable for damage or disrepair caused by the tenant’s conduct.

Furthermore, the landlord will not be expected to rebuild or reinstate a destroyed building or to carry out works which are the responsibility of a superior landlord, or where it is not possible to obtain necessary third party consent.

Summary

The majority of landlords will not need to do anything, if they are maintaining a property in good condition, so long as they react appropriately, should a defect be reported.

The law may have more significant ramifications where the landlord is responsible for a regulated tenancy, where repair and modernisation are restricted by the presence of a sitting tenant. To understand the full implications of the Homes (Fitness for Human Habitation) Act 2018 speak to a landlord association, letting agent, or a property solicitor.

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