A Third of all Landlords Could Face £30,000 Fines
It is a headline-grabbing title, but accurate according to the research carried out on behalf of Direct Line insurance.
In this article, our Landlord and Tenant Solicitors in London examine the law on EICRs, the risk of fines, and the impact of non-compliance on possession proceedings.
Contact our landlord and tenant team for specialist legal advice.
EICR fines
If you are a landlord, do you know that you could be fined up to £30,000?
The size of the fine applies whether you own several buy-to-let properties or are an accidental landlord renting out your home because a job relocation or other circumstances mean you cannot live in your home.
Some landlords are incredulous about the law and the fines they face. After all, some landlords have been living in their properties with their children before renting their house out to a tenant. Surely, if a property is safe for a landlord and their family with no requirement for an EICR, then it is odd that a landlord is at risk of a £30,000 fine if they don’t comply with the EICR rules applicable to landlords.
The law on EICRs
The law on EICRs is contained in the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020.
The Regulations can be found here.
The Guide for Landlords: Electrical Safety Standards in the Private Rented Sector can be found here.
Regulation 3 specifies the obligations placed on private landlords for electrical safety in residential premises. Residential premises are defined by Section 122(6) of the Housing and Planning Act 2016.
Landlord obligations and EICRs
The 2020 Regulations require landlords of privately rented accommodation to:
- Ensure national standards for electrical safety are met. These are set out in the 18th edition of the ‘Wiring Regulations.
- Make sure the electrical installations in their rented properties are inspected and tested by a qualified and competent person at an interval of at least every 5 years.
- Obtain a report from the EICR inspector/electrician, which gives the results and sets a date for the next inspection and test.
- Where the report shows that remedial or further investigative work is necessary, complete the job within 28 days (or any shorter period if specified as necessary in the report).
- Supply written confirmation of the completion of the remedial works from the electrician to the tenant and the local authority within 28 days of completion of the works.
Who does a landlord need to supply an EICR to?
A landlord must supply a copy of the EICR to:
- The existing tenant within 28 days of the inspection and test.
- Any new tenant before they occupy the rental property.
- Any prospective tenant within 28 days of receiving a request for the report.
- The local authority – if the council asks for a copy of the EICR, one must be supplied within seven days of receiving the request.
- The electrician carrying out the next EICR test in accordance with the Regulations.
Who can conduct an EICR?
The Regulations require landlords to have the electrical installations in their properties inspected and tested by a qualified and competent person at intervals of no more than every 5 years.
The EICR time bomb
EICRs are in the news because the Regulations requiring them were enacted in 2020. Landlords who complied with the EICR Regulations when they were first introduced need to renew their EICR in 2025 onwards to remain compliant.
The Direct Line research on landlord compliance with the EICR Regulations
The Direct Line business insurance research worryingly revealed:
- 32% of landlords are at risk of an EICR fine because they either don’t have an EICR or are unsure if it is valid.
- 21% of landlords are unaware that failing to have a valid EICR could result in a fine of up to £30,000.
- 8% of landlords say they either don’t have an EICR or don’t know if it is valid
- Only 10% of UK landlords can identify all the necessary documents to initiate possession proceedings and evict a tenant.
A more positive spin on the research indicates that nearly 70% of landlords have an EICR and plan to renew it.
Implications for landlords if they don’t have a valid EICR
There are five main implications for landlords if they don’t have a valid EICR:
- They could receive a fine of up to £30,000.
- Their landlord insurance may be invalid because the fine print in the policy may say the insurance is not valid without a valid EICR.
- If they need to ask their tenant to leave, it will be a slower and more complicated process to obtain possession and secure an eviction order. That’s because a landlord cannot serve a valid Section 21 notice without an EICR. A landlord may need to restart the Section 21 notice process after obtaining an EICR or start Section 8 notice possession proceedings.
- A local authority can issue a remedial notice if a landlord fails to produce an EICR. If electrical work is necessary, the local authority can undertake the work, then charge the landlord for the work, and impose a fine.
- Reputational damage.
Legal advice for landlords on landlord obligations
At OTS Solicitors, our Landlord and Tenant Lawyers provide proactive and commercially savvy legal advice to landlords and letting agents.
We advise on UK landlord obligations on:
- Tenancy agreements
- Landlord obligations under the law and tenancy agreements.
- How to avoid deposit and disrepair disputes.
- How to resolve disputes with tenants.
- Serving a valid notice to quit.
- Securing possession and an eviction order.
- Minimising the risk of allegations of landlord harassment, revenge eviction and disrepair claims.
Our experts will help you understand your duties and legal obligations as a UK landlord as well as your legal rights.
A consultation with a Landlord Lawyer at OTS Solicitors can save you time and money by explaining what you need to do to be compliant with the law and Regulations and how to exercise your rights as a UK landlord best.
Appointments are available at our offices in central London, by phone or online consultation.
Related Posts
The Purpose of a Letter Before Action for Landlords
The Legal Requirements for Landlords
Possession Proceeding Solicitors
Landlord Guide When a Tenant is in Rent Arrears
Top Reasons Landlords are Fined
OTS Solicitors in the Financial Times: London Tenant Rights and Landlord Obligations in the UK