Standards improve in British rental properties – but safety still falls short

19 September 2018

Posted in Product

Since 2014, a whole raft of new legislation has been introduced by the UK and devolved governments to improve tenants’ lives. Rental market insurer AXA has tracked progress over the past four years, and finds significant leaps forward in landlords’ professional standards1, but safety is still compromised in too many rentals.

Despite a broadly improving picture, the private rental sector still has catching up to do on important areas like fire and gas safety. Every rental property requires an annual gas safety inspection – but just 58% have had this check in the past 12 months.

Four in ten tenants, meanwhile, say they do not have smoke alarms installed, despite landlords being legally required to fit them on each floor of a property. This is still a marked improvement on 2014, prior to the rule being introduced, when six in ten tenants lacked them.

British rental homes complying with safety rules
Safety rule Percentage complying in 2018 compared to 2014
Tenancy agreement 81%(up from 73%)
EPC (provided) 33%(up from 19%)
Current gas safety certificate 58%(up from 30%)
Inventory of contents 41%(up from 36%)
Smoke alarms (on each floor) 59%(up from 42%)
Carbon monoxide alarms 34%(up from 27%)

Two other key requirements are that landlords provide an Energy Performance Certificate (EPC) to tenants, and (in England and Wales) the Government’s ‘How to Rent’ Guide, which informs them of their rights and responsibilities. As yet, only a third of tenants say they have seen the EPC (up from 19% in 2014), and just 15% of those eligible have received the Government’s mandatory guide.

AXA notes that landlords too compromise their rights with these omissions, as those who have not provided the guide, EPC and gas safety certificate cannot evict a tenant under a Section 21 notice.

While recent legislation has increased pressure on landlords to raise their game, there is still little awareness among tenants of basic rights and entitlements. This means vital consumer pressure to push standards up further is largely absent.

Three quarters of tenants did not know their landlord is legally required to ensure a minimum energy rating for the property, and a similar number were unaware of the requirement for EPCs and gas safety checks. Most – 89% – said it was the tenant’s responsibility to keep any chimneys swept too (which is untrue – this is the landlord’s responsibility).

150,000 rental properties fall into outlawed category

Last year, AXA found that one in twenty rental properties were still rated F or G for energy performance (categories now outlawed from the rental market). This has now fallen to 3% of properties in the, equating to 150,000 properties nationwide.

Seven in ten rental properties are now A-C bands for energy performance, but ‘cold hazard’ is still rated the number one health risk associated with living in private rented accommodation. Half of tenants surveyed said they feel their rental property negatively impacts their health: poor energy performance was quoted by 21%. Most tenants in this group also cited damp or out-of-date heating systems at the same time.

Change is afoot, however, as AXA’s latest figures on energy-saving features in the private rental sector show that landlords are upgrading their properties at a rapid rate, with figures jumping on smart meters in particular.

Energy-saving features in rental properties
Energy saving feature Percentage with feature 2018 compared to 2014
All windows double-glazed 78%(up from 73%)
Smart meters installed 26%(up from 14%)
Roof insulation 34%(up from 32%)
Solar panels 2%(up from 1%)

Notes to editors

1 Figures are based on a survey of 2,000 UK tenants conducted in August 2018 by AXA Insurance.