Fitness for Human Habitation & Liability

Introduction

The Homes (Fitness for Human Habitation and Liability for Housing Standards) Bill has been introduced by Karen Buck, MP for Westminster North, and has had its second reading in Parliament, bringing it a step closer to being passed and becoming law. While its name tells you its aim, what specifically will it mean for landlords and agents if it gets passed?

What does it say?

The Bill, for the first time, defines the phrase “fit for human habitation”. In this context, the term “unfit” will now cover issues like fire safety, inadequate heating, poor ventilation, condensation and mould - i.e. issues that could be hazardous to the health of tenants and occupiers. Therefore, the phrase “fit for human habitation” will apply to properties that are non-hazardous to the health of those living in them.

The Bill also says that, should private or social tenants be exposed to unsafe areas in the property they are renting, they will be able to legally force their landlords to take remedial action to resolve the issues.

Context of the Bill’s approval

The Bill looks to amend a clause which already existed in section 8 of the Landlord and Tenant Act 1985 which required homes to be “fit for human habitation” at the start of the tenancy and to remain so throughout. The trouble was that the clause only applied to homes with a rent of £80 or less per annum in London (£52 or under elsewhere), which is not a situation currently reflected in any tenancy in England or Wales.

The Bill was first presented by Karen Buck MP prior to the Grenfell Tower disaster, but it was defeated by Conservative MPs, leading to suggestions that the status many of them have as landlords was guiding their judgment of the importance of this issue.

However, in the wake of Grenfell and with a swell of public opinion backing stricter sanctions on irresponsible landlords, this new version of the Bill has gained the full support of the government, with The Department for Housing, Communities and Local Government helping to draft it.

Although the central aim of the Bill hasn’t changed, its scope has been updated. Specifically, it now applies to all areas of a building “in which the landlord has an interest”, including communal areas. Additionally, the categories that determine whether a house is fit for human habitation have been updated, with the Bill now reflecting the list of 29 hazards listed on the 2004 Housing Health and Safety Rating System (HHSRS), which was created to enable local authorities to enforce living standards across the private rented sector.

While, in theory, the HHSRS already applies, David Smith of law firm Anthony Gold says that “the HHSRS is highly dependent on local authorities being complained to and actually enforcing these complaints. In addition, the HHSRS cannot be used against local authority landlords as that would have local authorities enforcing against themselves and is not, in practice, much used against other social landlords due to the close relationship between them and local authorities.” Therefore, it looks as though the Bill is intended to act as a stronger, more enforceable version of HHSRS by adopting and applying its rules to all landlords and rented properties.

In this way, Shelter, which has supported the Bill since the beginning, says that it “avoids creating two parallel standards [i.e. creating two different, conflicting sets of rules in the form of the HHSRS and the Bill for landlords to abide by, which would be confusing] and doesn’t introduce new regulations on private landlords, as these are standards they should already be meeting.”

A quick guide to the Fitness for Human Habitation Bill

1   |   A quick guide to the Fitness for Human Habitation Bill 

What does the Bill mean for property and lettings professionals?

Tenants will now possess the right to take legal action against their landlord in the courts on the grounds that the property is unfit for human habitation. The legislation could also affect lettings agents who fully manage properties which do not meet the new standards, in the sense that the responsibility of ensuring that the property is “fit for human habitation” could well be passed on to them depending on the specific terms of their agreement with the landlord.

The effectiveness of tenants being able to bring legal action against landlords remains to be seen - while it might be assumed that the majority of individual tenants are not likely to have the legal knowhow to bring action against neglectful landlords, it is possible that large social landlords could be vulnerable to class actions if their tenants band together.

It is in the best interests of lettings professionals and property managers, therefore, to ensure that their landlords’ properties meet the new definition of being fit for human habitation. If the property managers themselves are not liable, there could still be a knock-on effect for them regarding their portfolios and revenue streams if the landlord decides to sell the property or has to make significant improvements to it.

What happens next?

The Bill will now be debated in the Committee Stage, where it will be analysed line by line. This is where any amendments might be made. Following the Committee Stage it will return to the House of Commons for discussion.

Given the government’s enthusiastic support of the Bill, any amendments are likely to be minor. It is also relatively short, running to only a few pages, which means there is less of it to be debated. It would not be unreasonable, therefore, for landlords and property managers to expect the Bill to be given Royal Assent before the end of the year.

Introduction

The Homes (Fitness for Human Habitation and Liability for Housing Standards) Bill has been introduced by Karen Buck, MP for Westminster North, and has had its second reading in Parliament, bringing it a step closer to being passed and becoming law. While its name tells you its aim, what specifically will it mean for landlords and agents if it gets passed?

What does it say?

The Bill, for the first time, defines the phrase “fit for human habitation”. In this context, the term “unfit” will now cover issues like fire safety, inadequate heating, poor ventilation, condensation and mould - i.e. issues that could be hazardous to the health of tenants and occupiers. Therefore, the phrase “fit for human habitation” will apply to properties that are non-hazardous to the health of those living in them.

The Bill also says that, should private or social tenants be exposed to unsafe areas in the property they are renting, they will be able to legally force their landlords to take remedial action to resolve the issues.

Context of the Bill’s approval

The Bill looks to amend a clause which already existed in section 8 of the Landlord and Tenant Act 1985 which required homes to be “fit for human habitation” at the start of the tenancy and to remain so throughout. The trouble was that the clause only applied to homes with a rent of £80 or less per annum in London (£52 or under elsewhere), which is not a situation currently reflected in any tenancy in England or Wales.

The Bill was first presented by Karen Buck MP prior to the Grenfell Tower disaster, but it was defeated by Conservative MPs, leading to suggestions that the status many of them have as landlords was guiding their judgment of the importance of this issue.

However, in the wake of Grenfell and with a swell of public opinion backing stricter sanctions on irresponsible landlords, this new version of the Bill has gained the full support of the government, with The Department for Housing, Communities and Local Government helping to draft it.

Although the central aim of the Bill hasn’t changed, its scope has been updated. Specifically, it now applies to all areas of a building “in which the landlord has an interest”, including communal areas. Additionally, the categories that determine whether a house is fit for human habitation have been updated, with the Bill now reflecting the list of 29 hazards listed on the 2004 Housing Health and Safety Rating System (HHSRS), which was created to enable local authorities to enforce living standards across the private rented sector.

While, in theory, the HHSRS already applies, David Smith of law firm Anthony Gold says that “the HHSRS is highly dependent on local authorities being complained to and actually enforcing these complaints. In addition, the HHSRS cannot be used against local authority landlords as that would have local authorities enforcing against themselves and is not, in practice, much used against other social landlords due to the close relationship between them and local authorities.” Therefore, it looks as though the Bill is intended to act as a stronger, more enforceable version of HHSRS by adopting and applying its rules to all landlords and rented properties.

In this way, Shelter, which has supported the Bill since the beginning, says that it “avoids creating two parallel standards [i.e. creating two different, conflicting sets of rules in the form of the HHSRS and the Bill for landlords to abide by, which would be confusing] and doesn’t introduce new regulations on private landlords, as these are standards they should already be meeting.”

What does the Bill mean for property and lettings professionals?

Tenants will now possess the right to take legal action against their landlord in the courts on the grounds that the property is unfit for human habitation. The legislation could also affect lettings agents who fully manage properties which do not meet the new standards, in the sense that the responsibility of ensuring that the property is “fit for human habitation” could well be passed on to them depending on the specific terms of their agreement with the landlord.

The effectiveness of tenants being able to bring legal action against landlords remains to be seen - while it might be assumed that the majority of individual tenants are not likely to have the legal knowhow to bring action against neglectful landlords, it is possible that large social landlords could be vulnerable to class actions if their tenants band together.

It is in the best interests of lettings professionals and property managers, therefore, to ensure that their landlords’ properties meet the new definition of being fit for human habitation. If the property managers themselves are not liable, there could still be a knock-on effect for them regarding their portfolios and revenue streams if the landlord decides to sell the property or has to make significant improvements to it.

What happens next?

The Bill will now be debated in the Committee Stage, where it will be analysed line by line. This is where any amendments might be made. Following the Committee Stage it will return to the House of Commons for discussion.

Given the government’s enthusiastic support of the Bill, any amendments are likely to be minor. It is also relatively short, running to only a few pages, which means there is less of it to be debated. It would not be unreasonable, therefore, for landlords and property managers to expect the Bill to be given Royal Assent before the end of the year.

2   |   A quick guide to the Fitness for Human Habitation Bill 

Introduction

The Homes (Fitness for Human Habitation and Liability for Housing Standards) Bill has been introduced by Karen Buck, MP for Westminster North, and has had its second reading in Parliament, bringing it a step closer to being passed and becoming law. While its name tells you its aim, what specifically will it mean for landlords and agents if it gets passed?

What does it say?

The Bill, for the first time, defines the phrase “fit for human habitation”. In this context, the term “unfit” will now cover issues like fire safety, inadequate heating, poor ventilation, condensation and mould - i.e. issues that could be hazardous to the health of tenants and occupiers. Therefore, the phrase “fit for human habitation” will apply to properties that are non-hazardous to the health of those living in them.

The Bill also says that, should private or social tenants be exposed to unsafe areas in the property they are renting, they will be able to legally force their landlords to take remedial action to resolve the issues.

Context of the Bill’s approval

The Bill looks to amend a clause which already existed in section 8 of the Landlord and Tenant Act 1985 which required homes to be “fit for human habitation” at the start of the tenancy and to remain so throughout. The trouble was that the clause only applied to homes with a rent of £80 or less per annum in London (£52 or under elsewhere), which is not a situation currently reflected in any tenancy in England or Wales.

The Bill was first presented by Karen Buck MP prior to the Grenfell Tower disaster, but it was defeated by Conservative MPs, leading to suggestions that the status many of them have as landlords was guiding their judgment of the importance of this issue.

However, in the wake of Grenfell and with a swell of public opinion backing stricter sanctions on irresponsible landlords, this new version of the Bill has gained the full support of the government, with The Department for Housing, Communities and Local Government helping to draft it.

Although the central aim of the Bill hasn’t changed, its scope has been updated. Specifically, it now applies to all areas of a building “in which the landlord has an interest”, including communal areas. Additionally, the categories that determine whether a house is fit for human habitation have been updated, with the Bill now reflecting the list of 29 hazards listed on the 2004 Housing Health and Safety Rating System (HHSRS), which was created to enable local authorities to enforce living standards across the private rented sector.

While, in theory, the HHSRS already applies, David Smith of law firm Anthony Gold says that “the HHSRS is highly dependent on local authorities being complained to and actually enforcing these complaints. In addition, the HHSRS cannot be used against local authority landlords as that would have local authorities enforcing against themselves and is not, in practice, much used against other social landlords due to the close relationship between them and local authorities.” Therefore, it looks as though the Bill is intended to act as a stronger, more enforceable version of HHSRS by adopting and applying its rules to all landlords and rented properties.

In this way, Shelter, which has supported the Bill since the beginning, says that it “avoids creating two parallel standards [i.e. creating two different, conflicting sets of rules in the form of the HHSRS and the Bill for landlords to abide by, which would be confusing] and doesn’t introduce new regulations on private landlords, as these are standards they should already be meeting.”

What does the Bill mean for property and lettings professionals?

Tenants will now possess the right to take legal action against their landlord in the courts on the grounds that the property is unfit for human habitation. The legislation could also affect lettings agents who fully manage properties which do not meet the new standards, in the sense that the responsibility of ensuring that the property is “fit for human habitation” could well be passed on to them depending on the specific terms of their agreement with the landlord.

The effectiveness of tenants being able to bring legal action against landlords remains to be seen - while it might be assumed that the majority of individual tenants are not likely to have the legal knowhow to bring action against neglectful landlords, it is possible that large social landlords could be vulnerable to class actions if their tenants band together.

It is in the best interests of lettings professionals and property managers, therefore, to ensure that their landlords’ properties meet the new definition of being fit for human habitation. If the property managers themselves are not liable, there could still be a knock-on effect for them regarding their portfolios and revenue streams if the landlord decides to sell the property or has to make significant improvements to it.

What happens next?

The Bill will now be debated in the Committee Stage, where it will be analysed line by line. This is where any amendments might be made. Following the Committee Stage it will return to the House of Commons for discussion.

Given the government’s enthusiastic support of the Bill, any amendments are likely to be minor. It is also relatively short, running to only a few pages, which means there is less of it to be debated. It would not be unreasonable, therefore, for landlords and property managers to expect the Bill to be given Royal Assent before the end of the year. 

Source

www.fixflo.com