Have you obtained any necessary ‘consent to let’ your property?
Make sure to get permission from your mortgage lenders, freeholders, or leaseholders before renting out your property
Laws for landlords can be a minefield. It is estimated that there are more 170 rules and regulations that apply to the private rented sector, and these are often amended and updated – sometimes at relatively short notice.
So, when it comes to landlord responsibilities, not only is there a lot for landlords to know and understand, but if you don’t have a reliable way of staying up to date with changes, you could easily find yourself unknowingly falling foul of the law, which could be very costly - both financially and personally.
To find out about penalties for landlords who break the law and the potential consequences of being fined – or worse – read our article: Landlord fines: How much are the charges and how do you avoid them?
The Government’s last English Private Landlord Survey, carried out in 2021, revealed that more than a fifth of those questioned didn’t check a tenant’s right to rent, 36% did not issue tenants with the Government’s ‘How to Rent’ guide and only just over half (56%) said they had carried out a fire safety risk assessment.
All of these are legal requirements when letting a property.
To help you understand your legal obligations, we’ve put together this comprehensive guide, updated for 2024.
Yes, it's crucial to obtain consent
No, it's not necessary to obtain consent
I'm unsure
However, it’s important to always seek your own legal advice when letting a property to make sure all rules and regulations are met, as there are also local as well as national laws that may apply to your property.
Our article, a roundup of what 2023 has meant for landlords, highlights the key changes that affected landlords last year.
Before letting a property, you may be required to inform and gain consent from other people or organisations, such as a mortgage lender, insurance company or the main landlord of a leasehold property.
You must make sure that letting the property does not contravene any pre-existing signed agreements, such as covenants or housing loans.
It’s particularly worth checking consent if you’ve become an accidental landlord – especially if there is a standard residential mortgage on the property.
The lender may grant you consent to let on the existing mortgage for a limited period of time – in which case they’ll usually raise the interest rate to account for the increased risks associated with letting – or they may require you to apply for a buy to let mortgage.
Note also that if you rent out property in breach of your insurance policy, your insurer can refuse to pay out if you make a claim.
If your property is leasehold and you are subletting in breach of the terms of your lease, you could at risk of losing your lease altogether.
For more information, read our article ‘Accidental landlords – do you have consent to let your property?’
At present in the UK, only a property let as an HMO (House in Multiple Occupation) where there are five or more occupiers from two or more ‘households’ (there are additional requirements in Wales) falls under mandatory licensing requirements, although there are further rules that can apply at a local level.
The exact definition of a licensable HMO and the terms of the licence varies between the nations: in England & Wales the blanket rule only applies to large HMOs, while in Scotland and Northern Ireland, every HMO requires a licence.
Then in England and Wales, individual councils have the power to introduce additional and selective licensing schemes.
Additional licensing allows them to expand the definition of a licensable HMO, and selective licensing can require any rented property to be licensed.
This helps local authorities to maintain a balance of housing stock, keep track of the rented properties in their area and make sure rented accommodation meets certain standards.
It also makes it easier for them to tackle anti-social behaviour and identify and prosecute landlords who break the law.
Courts are known to hand out huge fines to landlords who do not comply with licensing requirements – particularly HMO landlords.
So it’s essential to check with your local council to find out whether your rented property is classed as a licensable HMO and whether there are any additional or selective licensing schemes in place.
For more information on licensing, check out our comprehensive guide: What is licensing – and do I need a landlord licence to let my property?
And to find out more about rent repayment orders, which are used by tenants or local authorities to reclaim rent, often when a landlord has operated a property without the appropriate licence, read our ultimate guide to rent repayment orders for landlords.
