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Confusing web of buy-to-let regulation

Monday, 23 June 2008 12:00 AM

In recent years buy-to-let investors have grown in number and presently account for up to six per cent of the UK mortgage market.

Although the present malady in the market may have dampened demand for new acquisitions, record rents are still proving attractive to investors.

But, with a bewildering slew of laws and regulations affecting landlords, buy-to-let may be a more complex experience than many envisioned - especially since some of the rules are hardly obvious.

In response, Adrian Flux Insurance Services (AFIS), a specialist in landlord insurance, has put together a brief list of pointers covering some of the lesser-known areas to consider.

"The list covers just a few of the acts, rules and regulations that apply to landlords," says Julie Carter of Flux.

"In such a complicated arena it's very important to get all the support you can, through landlords associations and the like.

"It also makes sense to take out legal cover, to ensure that you have back-up if things go wrong," she added.

Landlords may with to consider:

  • Control of Asbestos (2002)

Landlords are responsible for identifying any asbestos-containing materials (ACMs) on their premises, and having them analysed. (They are commonly found in ceiling tiles, pipe lagging, door and wall panels and floor tiles). Once identified the ACMs need to be recorded, with signage put up if necessary.

If required, the landlord must have the ACMs removed.

  • Lifting Machinery Regulations (1998)

If the property has lifts, escalators or cleaning cradles then they need regular (usually six-monthly) inspection by competent engineers.

  • Gas Safety (1998)

This is one of the more obvious areas to be aware of. Landlords need to ensure any gas appliances are serviced by a CORGI registered gas engineer annually, and provide the tenant with a copy of a gas safety certificate after the inspection.

  • Electricity at work regulations (1989)

Landlords are responsible not only for ensuring the safety of fixed installations - such as electrical wiring, which should be well maintained and regularly inspected - but also any portable appliances supplied, such as electric fires and even kettles.

These all need routine safety-testing.

  • Pressure Systems Safety (2000)

If the property has an air conditioning or refrigeration plant with a compressor motor exceeding 25 watts, then the landlord needs to ensure it is regularly inspected.

  • Disability Discrimination (1995 & 2005)

Like everyone else, landlords must not discriminate against a disabled person.

In terms of property dealings, this means disabled people must be treated in exactly the same way as anyone else: for example, the same letting terms must apply and they cannot be refused access.

In addition, landlords cannot refuse to give consent to tenants to sub-let to a disabled person.

  • Defective Premises (1972)

Landlords who sell a property are still liable for its condition and could be held responsible if it's later proved that the property hadn't been maintained properly, prior to the sale.

Chris O'Toole

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