DIY Landlords Failing to Keep Up With the Law

According to two new surveys, self-managing landlords need to spend more time getting up to speed with laws that impact their buy-to-let rental businesses.

The research projects looked at the Right to Rent and updating rental homes to comply with proposed energy efficiency regulations.

The studies found:

• Half of the buy-to-let landlords self-managing rental homes considered they were not well-informed about their obligations under the Right to Rent
• 57 per cent of landlords letting a single home and 77 per cent of those renting out four or more homes were unaware of the need to upgrade their properties to a C energy performance certificate (EPC) rating by April 2025 (but in fairness, this is a proposal and not legislation yet).

Poor Right to Rent knowledge

Right to Rent demands landlords should check their tenants’ right to live in the UK, with hefty penalties imposed on landlords who fail to carry out the checks.

Research for the government revealed fewer than half of self-managing landlords claimed a good knowledge of the scheme.

The report also looked at if landlords discriminate against foreign renters or those from ethnic communities. One in five landlords claimed they were aware of discrimination based on ‘actual or perceived nationality, race or ethnic background’.

However, one in five landlords who check Right to Rent documents told researchers that they needed more confidence in carrying out correct checks.

The study group reported the research aimed to investigate if the Right to Rent triggered unlawful racial discrimination.

“The results show that some clear examples of discriminatory attitudes were found, but there was insufficient evidence to claim any systematic unlawful discrimination as a result of the scheme,” said the report.

Researchers from the London School of Economics, who carried out the study, recommend the government look at how to improve understanding of the Right to Rent scheme.

Landlords need more EPC advice

Meanwhile, a third of landlords (38 per cent) understand the implications of failing to meet a C EPC rating on a rental home.

It's proposed that should a property register a lower rating for a new tenancy from December 2025; the landlord is banned from letting the home. From December 2028, the rule is proposed to apply to existing tenancies as well.

The report from Market Financial Solutions polled 459 investors. Nearly half (48 per cent) praised the government for implementing EPCs, but two-thirds of landlords need help upgrading their homes. A similar number felt the government should offer more advice about improving their properties.

Half of landlords plan to increase rents to pay for energy efficiency improvements, while 15 per cent have discussed borrowing the funds.

MFS argues many landlords do not have the cash to pay for improvements in the current economic crisis, so they may have to take on extra borrowing to pay for the work.

Right to Rent and EPC FAQ

What is the Right to Rent for landlords?

Right to Rent is a legal requirement for landlords in England to check the immigration status of tenants before allowing a renter to move into the home. The checks must be carried out in a way that avoids discrimination.

Who carries out Right to Rent checks?

Ultimately, the landlord is responsible for carrying out Right to Rent checks, although the job can be left to a property manager or letting agent.

Does Right to Rent cover Scotland and Wales?

No, the Right to Rent only applies to rental homes in England.

What is an EPC?

An EPC (Energy Performance Certificate) tells a tenant how energy efficient their home is by rating from A to G, with A being the highest. The rating varies according to how much insulation and heating the home may have.

Do I need an EPC?

Landlords must order an EPC before marketing a home for sale or rent.