Landlord guide: County Durham Council

Why it matters

Failing to comply with both local and national regulations can result in substantial fines, prohibition orders preventing properties from being let, and in some cases, criminal prosecution. Non-compliance can also hinder a landlord's ability to regain possession of their property and may lead to rent repayment orders. Staying informed and compliant protects your investment, ensures the safety and well-being of your tenants, and upholds your legal standing as a landlord.

Legal requirements

• You must ensure your property holds the correct licence if it falls under mandatory HMO, additional HMO, or selective licensing schemes in County Durham.
• A valid gas safety certificate, issued annually by a Gas Safe registered engineer, must be provided to tenants before they move in and within 28 days of each subsequent check.
• An electrical installation condition report (EICR) must be obtained from a qualified electrician every five years, with a copy provided to tenants.
• Your property must have a valid Energy Performance Certificate (EPC) with a minimum rating of 'E', and a copy must be given to prospective tenants.
• Working smoke alarms must be installed on each storey of the property, and a carbon monoxide alarm must be fitted in any room with a fixed combustion appliance, excluding gas cookers.
• Any tenancy deposit taken must be protected in one of the three government-approved schemes within 30 days of receipt, and the prescribed information must be served to the tenant.
• Before a tenancy commences, you must provide the tenant with a copy of the current gas safety certificate, EPC, EICR, and the government's 'How to Rent' guide.
• The property must meet the standards for fitness for human habitation throughout the tenancy, addressing any hazards that could make it unsafe or unsuitable for living.
• You must provide tenants with a written tenancy agreement and your contact details, including an address in England or Wales if you live abroad.
• All necessary planning permissions must be in place, especially for properties converted into HMOs or those undergoing significant structural changes.

Common mistakes

• Landlords often fail to check the specific licensing requirements for their property's exact address, assuming that because a neighbouring street is not designated, theirs isn't either.
• Many landlords neglect to provide tenants with all prescribed documents, such as the gas safety certificate and EPC, before the tenancy starts, which can invalidate future possession claims.
• A common error is not understanding the distinction between mandatory HMO, additional HMO, and selective licensing, leading to incorrect or missed licence applications.
• Some landlords incorrectly assume that once a property has an HMO licence, it never needs to be renewed, or they fail to apply for renewal in good time before the existing licence expires.
• Not adequately protecting tenancy deposits within the statutory 30-day timeframe or failing to serve the prescribed information properly is a frequent mistake.
• Landlords sometimes overlook the requirement for regular electrical safety checks, mistakenly believing a one-off check at the start of the tenancy is sufficient.
• Failing to install or regularly check smoke and carbon monoxide alarms, or not keeping records of these checks, can lead to serious safety issues and legal penalties.
• Using outdated tenancy agreements or possession notices after the Renters' Rights Act 2025 takes full effect will render them invalid.
• Assuming a property is exempt from EPC requirements, or not ensuring it meets the minimum 'E' rating, can lead to fines and prevent new tenancies from being granted.
• Not maintaining adequate landlord insurance or public liability insurance, leaving landlords exposed to significant financial risk.

Practical guidance

• Verify the specific licensing requirements for your property's precise address on the County Durham Council website before advertising or letting.
• If a licence is required, submit your application promptly, ensuring all necessary documentation and fees are included to avoid delays or penalties.
• Commission a Gas Safe registered engineer to conduct an annual gas safety check and provide a copy of the certificate to your tenants.
• Arrange for a qualified electrician to carry out an EICR at least every five years and address any identified 'C1' or 'C2' defects immediately.
• Ensure your property has a valid EPC with a minimum 'E' rating and provide a copy to prospective tenants at the earliest opportunity.
• Install working smoke alarms on every storey and carbon monoxide alarms in rooms with solid fuel burning appliances, testing them regularly.
• Protect your tenant's deposit in a government-approved scheme and serve the prescribed information within 30 days of receiving the funds.
• Familiarise yourself with the changes introduced by the Renters' Rights Act 2025, particularly regarding periodic assured tenancies and possession grounds.
• Maintain thorough records of all safety checks, licence applications, communication with the council, and tenancy documentation.
• Regularly review your tenancy agreement templates and processes to ensure they align with the latest legislative changes and best practice.

Navigating Licensing Schemes in County Durham Council

County Durham Council operates various licensing schemes designed to improve housing standards and tenant safety within the private rented sector. It is imperative for landlords to accurately determine which scheme, if any, applies to their property. Mandatory HMO licensing applies nationally to properties housing five or more individuals forming two or more separate households who share facilities like a kitchen or bathroom. Beyond this, County Durham Council may implement Additional HMO licensing, extending licensing requirements to smaller HMOs, for example, those with three or four occupants. These additional schemes are typically designated for specific wards or areas and run for up to five years. Furthermore, Selective Licensing can apply to any private rented property within a designated area, including those let to a single family. Designations for selective licensing are usually ward or street-specific. Landlords must check the council's housing licensing pages or directly contact the housing team with their property's full address to confirm its licensing status before advertising a property for rent. Operating an unlicensed property where a licence is required is a criminal offence and can lead to unlimited fines, rent repayment orders, and difficulties in regaining possession.

Essential Safety and Compliance Checks for Landlords

Beyond licensing, landlords in County Durham must adhere to a range of statutory safety and compliance obligations. An annual gas safety check, conducted by a Gas Safe registered engineer, is mandatory for all properties with gas installations, with certificates provided to tenants. Electrical installations require an Electrical Installation Condition Report (EICR) every five years, carried out by a qualified person, and tenants must receive a copy. Properties must also have a valid Energy Performance Certificate (EPC) with a minimum 'E' rating, which must be shown to prospective tenants. Furthermore, working smoke alarms must be fitted on every storey used as living accommodation, and carbon monoxide alarms are required in any room containing a fixed combustion appliance, excluding gas cookers. Landlords are responsible for ensuring these alarms are in working order at the start of each new tenancy. All tenancy deposits taken must be protected in a government-approved scheme, and the prescribed information relating to the deposit protection must be served to the tenant within 30 days. Failure to comply with these requirements can lead to fines, difficulties in serving notice, and impact a landlord's ability to regain possession.

Impact of the Renters' Rights Act 2025 on Tenancies

The Renters' Rights Act 2025, with its main provisions commencing in 2026, introduces significant changes that landlords in County Durham must prepare for. The Act abolishes assured shorthold tenancies, replacing them with periodic assured tenancies, which means tenancies will automatically roll on a periodic basis from day one, with no fixed end date. Crucially, the Act ends 'no-fault' evictions under what was previously Section 21 of the Housing Act 1988. Landlords will now only be able to regain possession of their property by using new or reformed grounds for possession, such as those related to rent arrears, antisocial behaviour, or the landlord's intention to sell or move into the property. The Act also establishes a new Private Rented Sector Ombudsman to resolve disputes between landlords and tenants without the need for court action, and introduces a national landlord database. Landlords should review their existing tenancy agreements, internal processes for rent increases, and record-keeping practices to align with these new requirements. Understanding the new possession grounds will be vital for effective tenancy management.

Differences in Letting Laws Across the UK

While this guide focuses on England's regulations and specifically County Durham Council, it is important for landlords with properties across the UK to understand that housing laws differ significantly in Scotland, Wales, and Northern Ireland. In Scotland, the Private Housing (Tenancies) (Scotland) Act 2016 introduced the Private Residential Tenancy (PRT), which replaced assured and short assured tenancies. PRTs are open-ended, and 'no-fault' evictions are not permitted, mirroring some aspects of the Renters' Rights Act 2025 for England. Wales has its own distinct legislation under the Renting Homes (Wales) Act 2022, which introduced 'occupation contracts' as the new legal framework for renting, replacing traditional tenancies. This Act also has different notice periods and possession grounds. Northern Ireland operates under the Private Tenancies (Northern Ireland) Order 2006, as amended, which has its own rules regarding tenancy agreements, notice periods, and deposit protection. Landlords with portfolios spanning these jurisdictions must consult the specific legislation and local council guidance for each property location to ensure full compliance.