Ian Barnard, associate solicitor, agricultural law and commercial property at the Malton office of Crombie Wilkinson Solicitors LLP

GEORGE Osborne’s recent announcement proposing increased Stamp Duty Land Tax on the purchase of second homes or investment properties (due to be implemented on the April 1, 2016) may well put people off becoming a landlord, but for those that already own investment properties, there are further changes in the law both recent and proposed which are likely to cause further headaches and impose more obligations on landlords.

Typically properties are rented for a fixed term of either six or 12 months under an Assured Shorthold Tenancy (AST), and should the tenant remain in the property after this term, their tenancy will become a statutory continuation tenancy.

The main attraction for landlords in using ASTs is that they are able to terminate the tenancy by serving a Section 21 Notice which provides the tenant with two months notice that their tenancy will come to an end and they will need to vacate the property at the end of that two months, providing that the two month notice does not end before the original fixed term of the tenancy.

However, since October 1, 2015, in relation to any ASTs granted after this date, the Section 21 Notice is invalid unless the landlord has provided the tenant with the following information:

1 An Energy Performance Certificate for the property (at no cost to the tenant);

2 A copy of the current gas safety certificate for the property (if applicable);

3 A copy of the Department for Communities and Local Government pamphlet How to Rent: the checklist for renting in England.

If the landlord fails to provide any of the above, then any Section 21 Notice will be invalid, and can only be validly served again, once the information has been provided. Until a valid Section 21 Notice is served, the tenant will be entitled to remain at the property.

Further changes that have been brought in on October 1, 2015, by the Smoke and Carbon Monoxide Alarm Regulations 2015, relate to all ASTs whether granted before or after this date.

The Regulations place an obligation on the Landlord to ensure that the property has:

1 A smoke alarm equipped on each storey on which there is a room used wholly or partly as living accommodation; and

2 A carbon monoxide alarm is equipped in any room of the property which is used wholly or partly as living accommodation and contains a solid fuel burning combustion appliance.

The alarms need to be in proper working order and operational at the grant of the AST, although there is no ongoing duty on the landlord to monitor the equipment through the term of the tenancy.

However, non-compliance with these regulations may lead to enforcement action from the local authority and potentially, up to a £5,000 fine.

Finally, although originally mentioned in the Immigration Act 2014, the Government is planning to implement nationwide, from February 1, 2016, the requirement for "right to rent checks" for all new tenancies granted after this date.

The law will require that all landlords (including lodgers and tenants who sub-let their rooms) to ensure that they have undertaken identity checks on their prospective tenants and that the tenants have a valid right to rent property in the UK.

This will mean checking the identity of all prospective occupiers of the property, not just those named on the tenancy agreement, to ensure that they have a valid right to remain in the UK, not only at the start of the tenancy but for the entirety of its’ term.

The main form of identity check is the production of a valid passport (failing which two other forms of identification will be required) and the landlord is required to retain evidence of the checks for 12 months after the tenancy comes to an end. Failure to administer the checks could lead to a £3,000 fine per tenant.

As can be seen above, the rental market is becoming a minefield for landlords, so if you are unsure what your obligations may be or want advice or assistance in any legal aspect of letting property, please do not hesitate to contact one of the team at Crombie Wilkinson. For more information, phone 01653 600070.