A recent report by a well-known inventory service called for properties to undergo certification. Such a scheme could be loosely compared to the MOT system for determining a motor vehicles road safety. Instead, it would determine a minimum set of standards for a property and indicate its suitability for inhabitation.
Government to Review H&S Regulations
This proposal is not new, and it comes on the back of an upcoming government review into property health and safety regulations. The property industry trade body ARLA (Association of Residential Letting Agents) has already called for a certification programme to form part of any new legislation following the government’s review. Change is coming and it is designed to inform tenants, help property owners ensure their property is fit for purpose, and set down specific criteria by which a property is inhabitable or not.
In spring of this year, the new Homes (Fitness for Human Habitation) Bill is set to become law. This framework permits the establishment of property MOTs as it determines that properties are fit for habitation, aiming to reduce damp, mould, and other safety issues into law not currently covered. Finally, tenants will have the power to take legal action against landlords who do not ensure compliance with the law.
What Would a Property MOT Look Like?
Several bodies and individuals have come forward in recent months to suggest a form of “Property MOT”. In September 2018, an academic study by the University of York concluded that a new system of MOTs for properties was needed. Within the report was a number of recommendations:
- It would include current legal requirements such as electrical and gas safety certificates, fire safety, and so on
- New proposals for assessments would include setting a basic minimum standard for habitation for things such as damp
- Like garages do with cars, (and like EPCs for energy performance regulation) the MOTs would be carried out by independent inspectors
- The cost of carrying out a MOT would not hit property owner profits, but would be a tax-deductible cost
About the Homes (Fitness for Human Habitation) Bill
The Bill cleared readings in both houses and received Royal Assent on 20th December 2018. It comes into force on 20th March 2019. It applies to England and Wales, but the measures only come in for England because it already covers aspects introduced by the Welsh Assembly. As a devolved issue, housing is for the Scottish Parliament to decide.
In 2016, around 38% of England & Wales private rented housing stock was found to have at least one indicator of being classified as “poor housing”. At around the same time, 27% failed the Decent Home Standard check. Owner-occupied and social housing figures were 20% and 13% respectively. The new law now places legal obligations on landlords beyond those previously imposed.