Landlord's Code of Practice Updated for 2023: What Landlords Need to Know

The Landlord’s Code of Practice was updated in 2023 to reflect changes in the law and the private rented sector. The updated code includes new sections on right to rent, energy performance certificates, gas safety certificates, rent increases, and deposits. This article will discuss the key changes to the code and how they will impact landlords and tenants.

The Landlord’s Code of Practice is a set of standards that landlords are expected to meet when managing their rental properties. The code was developed by the National Residential Landlords Association (NRLA) and is endorsed by the government. The code is not legally binding, but landlords who fail to follow it may be at risk of legal action from tenants.

The code was updated in 2023 to reflect changes in the law and the private rented sector. The updated code includes new sections on:

1. Right to Rent: Landlords must check that all prospective tenants have the right to rent in the UK before letting them a property.
2. Energy Performance Certificate: Landlords must provide tenants with an Energy Performance Certificate (EPC) for their property before they move in.
3. Gas Safety Certificate: Landlords must ensure that their properties have a valid Gas Safety Certificate.
4. Rent increases: Landlords can only increase rent by a maximum of 5% per year without the consent of the tenant.
5. Deposits: Landlords must protect tenants’ deposits in a government-backed scheme.

Right to Rent

The Right to Rent scheme was introduced in 2016 to prevent landlords from renting properties to people who do not have the right to rent in the UK. Landlords who fail to check the right to rent of their tenants may be fined up to £3,000 per tenant.

To check the right to rent of a prospective tenant, landlords must ask them to provide proof of their identity and immigration status. Landlords can accept a variety of documents as proof of identity, such as a passport, driving licence, or national ID card. Landlords can accept a variety of documents as proof of immigration status, such as a visa, permanent residency card, or proof of settled status.

If a landlord is unsure whether a prospective tenant has the right to rent, they can contact the Home Office for advice.

Energy Performance Certificate

An Energy Performance Certificate (EPC) is a document that shows how energy efficient a property is. EPCs are graded from A to G, with A being the most energy efficient and G being the least energy efficient. Landlords must provide tenants with an EPC for their property before they move in.

EPCs can be obtained from a qualified energy assessor. The cost of an EPC varies depending on the size and location of the property.

Tenants can use the EPC to compare the energy efficiency of different properties and to make informed decisions about where to live. EPCs can also help tenants to save money on their energy bills.

Gas Safety Certificate

A Gas Safety Certificate is a document that shows that the gas appliances in a property have been checked and are safe to use. Landlords must ensure that their properties have a valid Gas Safety Certificate.

Gas Safety Certificates must be renewed every 12 months. Landlords can obtain Gas Safety Certificates from a qualified gas engineer.

Rent increases

Landlords can only increase rent by a maximum of CPI + 1% in any year without the consent of the tenant and subject to such weekly rents not increasing by more than 7% in any year for a rent period that begins in the 12 months from 1 April 2023 to 31 March 2024.. This helps to protect tenants from excessive rent increases.

If a landlord wants to increase rent by more than this, they must obtain the consent of the tenant. The landlord must give the tenant at least two months notice of the proposed rent increase.

Renter’s Deposits

Landlords must protect tenants’ deposits in a government-backed scheme. This ensures that tenants’ deposits are safe and that they will be returned to them at the end of their tenancy, less any deductions that are justified.

The government-backed schemes are:

• The Deposit Protection Service (DPS)
• The Tenant Fees Deposit Scheme (TDS)
• My Deposits

Landlords must choose one of these schemes and register their properties with the scheme before they let them out.

Final thoughts on the changes

The Landlord’s Code of Practice is a valuable resource for landlords and tenants. It helps landlords to meet their legal obligations and provides tenants with a clear understanding of their rights. Landlords who follow the code can reduce the risk of legal action, improve tenant satisfaction, and increase property value.

Tenants should also be aware of their rights and responsibilities under the code. If they have any concerns about their landlord’s compliance with the code, they should contact their local Citizens Advice Bureau or Shelter for advice.