Private Rented Sector
Private Tenancies Order
The Private Tenancies (Northern Ireland) Order 2006
New legislation was introduced on 1 April 2007 which provides a new structure for the private rented sector in Northern Ireland. Some of the main features of this are:
- New tenancies are defined according to their fitness for human habitation – an unfit tenancy will be subject to rent control until it is made fit
- District Councils are responsible for inspecting tenancies for fitness and have been given new powers to ensure that unfitness and serious disrepair are addressed.
- Controlled rents are now based on a number of factors including the condition of the property, the equivalent Housing Executive rent for a similar dwelling and the general level of rents in the area.
- 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 rather than two as at present.
- There are to be no more protected tenancies. On vacancy, all currently protected tenancies will be decontrolled. If the property is rented out subsequently, the rent is not subject to control, as long as the property is fit. As a result, whether a tenancy is furnished or unfurnished no longer has any significance.
- As well as having rent books, new tenants 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 provides default terms.
Purpose
The new system rewards 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 retain their security of tenure.
Impact of Private Tenancies Order on Existing Registered Regulated Tenancies
The provisions of the Rent Order which allowed for annual increases (Article 33) was repealed on 1 April 2007.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 provisions of the Private Tenancies Order 2006 which came into effect on 1 April 2007.
If a tenancy is currently registered as regulated and:
- Was built after 1945, or
- Had a regulated rent certificate issued within the past 10 years, or
- Had a renovation grant paid by the Housing Executive within the past 10 years, or
- Had an HMO grant paid within the past 10 years
NO FITNESS INSPECTION IS REQUIRED AND THE LANDLORD CAN APPLY DIRECT 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 should contact their district council environmental health department for further information.
Legislation/Guidance
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