Private Tenancies Order

New legislation was introduced on 1 April 2007 which will provide a new structure for the private rented sector in Northern Ireland.

Some of the main features of the new legislation are:

a) New tenancies will be defined according to their fitness for human habitation – an unfit tenancy will be subject to rent control until it is made fit.

b) District Councils will inspect tenancies for fitness and will be given new powers to ensure that unfitness and serious disrepair are addressed.

c) Controlled rents will be based on a number of factors including the condition of the property, the equivalent Housing Executive rent for a similar dwelling an the general levels of rents in the area.

d) Restricted and regulated tenancies will retain their protection. Existing tenants will have a tenancy for life but there will only be one further succession possible than two as at present.

e) There will be no more protected tenancies. On vacancy, all currently protected tenancies will be decontrolled. If the property is rented out subsequently, the rent will not be subject to control, as long as the property is fit. As a result, whether a tenancy is furnished or unfurnished will cease to have any significance.

As well as having rent books, new tenants will have to be supplied with a written statement of the terms of their tenancy. Where a tenancy agreement fails to clarify repairing obligations, the law will provide default terms.

Purpose

The new system will reward the efforts of landlords who wish to provide good quality housing for their tenants and remove restrictions which would hamper the development of good quality, privately rented housing. Protected tenants will retain their security of tenure.

Impact of Private Tenancies Order on Existing Registered Regulated Tenancies

The provisions of the Rent Order which allow for annual increases (Article 33) will be repealed on 1 April 2007. As a result the current registered rent for regulated tenancies will not change.

For any increase to be applied after 1 April 2007, a landlord must apply to the Rent officer for Northern Ireland under the new provisions of the Private Tenancies Order 2006 which come into effect on 1 April 2007.

If a tenancy is currently registered as Regulated and

1. Was built after 1945, or

2. Had a Regulated Rent Certificate issued within the past 10 years, or

3. Had a renovation grant paid by the Housing Executive within the past 10 years, or

4. Had an HMO grant paid within the past 10 years.

No fitness inspection is required and the landlord can apply directly to the Rent Officer to set a new rent.

If a current Regulated Tenancy does not fall into one of the above categories, the landlord can still apply direct to the Rent Officer but the new rent determined will be based on the assumption that the property does not meet the fitness standard. In order to maximise the rent that can be charged, the landlord will need to apply to the district council for a fitness inspection after 1 April 2007.

LANDLORDS - you should complete an application form and submit with the appropriate fee. Click here for a Landlord Application Form

TENANTS - Click here for a Tenant Application Form (NB: only required if your landlord has applied and you think the property is unfit for human habitation)

Further information for tenants may be found by clicking here

The leaflet PRIVATE TENANCIES - ADVICE FOR TENANTS has been translated into Lithuanian, Slovakian and Polish, please click on your preferred languagebelow -

Lithuanian

Slovak

Polish

To view the Private Rented Sector Newletter Issue 1 please click here