Changes affecting Landlords of private rental property
NewsIn recent years the government has brought out a number of new pieces of legislation which affect privately rented property in Northern Ireland.
The Private Tenancies (Northern Ireland) Order 2006 came into effect on 1 April 2007. It is one of the major reforms of housing law in the private rented sector within the past few decades. It aims to simplify the minefield of previous rent control legislation, together with restating existing law eg 4 weeks written notice to quit and the requirement for the tenant to be provided with a rent book.
Tenants must now be given a written statement of tenancy terms (such as a term tenancy agreement) and if no period is mentioned, it will be construed as a 6 month term. There are also now default repair obligations on the Landlord, unless the tenancy agreement states otherwise.
The government has also introduced the Tenancy Terms Regulations (Northern Ireland) 2007, which now specifies minimum information that must be provided to any tenant in a private tenancy (or change to terms) commencing after 1 April 2007.
As from 1 April 2007 it is no longer possible to create a new protected or statutory tenancy. This should avoid the situation were Landlords and their advisers in the past have accidentally created generational tenancies at rents restricted to as little as £1 per week, which has risked decimating the value of property.
However for any new tenancy created after 1 April 2007, if the property was built before 1 January 1945, the Landlord must apply to the local Council for a Certificate of fitness (unless the property already has a pre-existing certificate that remains valid). If the property does not pass the fitness inspection, it will be subject to rent control. There are certain other exceptions eg if the house is registered with the Housing Executive as a house in multiple occupation, or a renovation grant has been paid by the Housing Executive within the last 10 years, or a regulated rent certificate has been issued within the last 10 years.
The consequences therefore if you are buying a new property to rent out or creating a new residential letting of your property, are that you will need to obtain a Certificate of Fitness from the local Council (or check that one is already in place). You must apply within 28 days of granting the tenancy, and may apply before granting the tenancy - we suggest that it would be prudent to obtain the Certificate of Fitness before granting the tenancy.
Please note that new tenancies are also now subject to an Energy Performance Certificate being provided by the Landlord (for new tenancies from 30 December 2008).
There are also rules in relation to houses in multiple occupation ie 3 or more unrelated persons as tenants. Certain areas in popular shared housing spots eg around the University area are now compulsory registration areas for houses in multiple occupation.
More information is available on the Department for Social Development’s website www.dsdni.gov.uk/private_rented_sector. Our property team act for a number of private multiple and individual landlords and will be happy to assist you in buying or reviewing your rental property or portfolio
Craig Russell
Property and Private Law