Electrical safety standards – latest rules for landlords and details of fines
28th November 2023
By Ben Walker
Landlords will be caught out by the new Electrical Safety Standards
Effective from 1 April 2021
The arrival of new electrical safety standards have seemingly been overlooked by some landlords. This could result in many of them seeing some heavy fines.
Firstly, there are big fines for renting without meeting the regulations.
Secondly, when buying or selling, the absence of a valid report could hold up proceedings. This is because valuers could deem the property unfit to rent without one.
So to clarify, the requirement to obtain a valid Electrical Installation Condition Report (EICR) doesn’t only apply to a new tenancy.
Additionally, from April 1st, it will also include properties with a tenancy already in place.
All properties rented out will require an ECIR completed by a competent or qualified person to confirm the property is safe. The report will examine and comment on all fixed electrical elements of the property. This will include plugs sockets, light fittings and all wiring, as well as electric showers, extractors and testing the fuse box.
Landlords must give tenants a copy of the report within 28 days of the inspection. They must also keep a copy for inspection until the next report is done. Further reports are then required every five years.
What’s included or excluded?
The regulations apply to properties where a private tenant occupies the property as their main or only residence. This includes a licence to occupy as well as an assured shorthold tenancy.
HMO’s were previously covered under the Management of Houses in Multiple Occupation (England) Regulations 2006. This has now been removed and replaced by the new regulations. This means HMO’s are caught.
For larger HMO’s with 5 or more tenants, a license is required. A new condition has now been added to the HMO licence to ensure the fixed electrical installations are all up to the proper standard. Here is some HMO licence guidance.
There are some exceptions in schedule 1 of the regulations. These include lodgers, social housing, student halls of residence, care homes, hospices and hospitals, property on a lease of 7 years or more and other property which is used for the provision of healthcare.
Penalties for non compliance
Any landlord who fails to get the checks carried out by a qualified person could be facing fines of up to £5,000 initially and as much as £30,000 if they’re offend.
Property you own and rent out
Unless there is a relevant exclusion, there is no getting around this – comply or face fines
Property you are buying or selling to rent out.
Make sure there is an EICR in place at an early stage of the process. It’s best if done before a valuation is carried.
It seems there is no way to avoid it. At some point, it will either scupper or delay the sale if not done early. For more information on the electrical safety standards click here.
Products and tools to consider
85% LTV refurbishment bridging
Could help bring the property up to scratch before remortgaging on to a BTL mortgage.
Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.