Landlord guide: Leicester City Council

Why it matters

Failing to comply with local and national letting regulations can result in severe financial penalties, including unlimited fines, civil penalties of up to £30,000 per offence, and Rent Repayment Orders requiring the repayment of up to 12 months' rent. Non-compliance can also complicate or prevent gaining possession of your property, significantly impacting your investment and reputation. Adhering to these rules protects your tenants and your business.

Legal requirements

• Ensure all rented properties possess the correct licence from Leicester City Council, where applicable, under mandatory HMO, additional, or selective licensing schemes.
• Provide an Energy Performance Certificate (EPC) with a minimum rating of E before marketing the property and to new tenants.
• Maintain annual gas safety records for all gas appliances and flues, issued by a Gas Safe registered engineer.
• Arrange for an electrical installation condition report (EICR) every five years, carried out by a qualified person.
• Install and test smoke alarms on every storey and a carbon monoxide alarm in any room with a fixed combustion appliance.
• Provide tenants with a valid Gas Safety Certificate, EPC, and the How to Rent Guide at the commencement of their tenancy.
• Ensure the property meets the Homes (Fitness for Human Habitation) Act 2018 standards, being safe and free from hazards.
• Comply with all provisions of the Renters' Rights Act 2025, including new possession grounds and changes to rent increase procedures.
• Protect any tenancy deposits received in a government-approved scheme within 30 days of receipt and provide prescribed information to the tenant.
• Adhere to the Tenant Fees Act 2019, prohibiting most upfront tenant fees and capping tenancy deposits.

Common mistakes

• Failing to check if a property requires a licence under Leicester City Council's specific schemes, leading to unlicensed letting.
• Not providing tenants with all required statutory documents at the start of a tenancy, which can impact a landlord's ability to seek possession.
• Delaying gas safety checks or electrical inspections, resulting in expired certificates and potential safety risks.
• Believing that an EPC is only required for new tenancies, when it must be available to prospective tenants before marketing.
• Ignoring tenant complaints about repairs, which can breach the Homes (Fitness for Human Habitation) Act 2018 and lead to council enforcement.
• Attempting to increase rent without following the correct notice periods or prescribed forms, as amended by the Renters' Rights Act 2025.
• Not properly protecting a tenancy deposit or failing to provide the prescribed information to tenants within the legal timeframe.
• Charging prohibited fees to tenants, such as referencing fees or renewal fees, which are banned under the Tenant Fees Act 2019.

Practical guidance

• Always check the Leicester City Council website for the latest licensing designations by postcode before advertising any property.
• Engage a qualified and reputable letting agent who is knowledgeable about local and national regulations if you are unsure about compliance.
• Set up annual reminders for gas safety checks and five-yearly electrical checks to ensure certificates remain current.
• Familiarise yourself with the Renters' Rights Act 2025 changes, particularly regarding new possession grounds and notice requirements.
• Maintain clear and detailed records of all safety checks, maintenance, and communications with tenants.
• Provide a comprehensive inventory at the start of each tenancy, agreed upon by the tenant, to avoid deposit disputes.
• Ensure your tenancy agreement is fully compliant with current legislation and includes all necessary clauses.
• Stay informed about local authority updates and national legislative changes by subscribing to official newsletters or landlord associations.
• Conduct regular property inspections to identify maintenance issues early and ensure the property remains fit for human habitation.
• Budget for compliance costs such as licensing fees, safety certificates, and potential upgrades to meet energy efficiency standards.

Property Licensing in Leicester City Council

Leicester City Council operates extensive property licensing schemes. This includes mandatory HMO licensing, which applies to properties occupied by five or more people forming two or more separate households. Additionally, the Council has implemented additional licensing for smaller Houses in Multiple Occupation (HMOs) in specific designated wards. Furthermore, selective licensing schemes are in force in certain areas, requiring all privately rented properties within those zones, regardless of whether they are HMOs, to obtain a licence. These schemes aim to raise housing standards and improve management practices. Landlords must verify if their property falls within any of these designations by checking the Council's official website, often by postcode. Operating a licensable property without the correct licence can lead to significant penalties, including unlimited fines, civil penalties of up to £30,000, and Rent Repayment Orders for up to 12 months' rent. The application process usually involves demonstrating that the property meets specific physical standards and that the landlord or manager is considered 'fit and proper'.

Key Safety and Property Standards

Landlords in Leicester must ensure their properties meet stringent safety and habitability standards. An annual gas safety record is legally required for all gas appliances and flues, to be issued by a Gas Safe registered engineer. Electrical installations must be inspected and certified every five years by a qualified electrician, resulting in an Electrical Installation Condition Report (EICR). An Energy Performance Certificate (EPC) with a minimum rating of E must be provided to prospective tenants before marketing and to new tenants, detailing the property's energy efficiency. Working smoke alarms must be fitted on every storey of the property, and carbon monoxide alarms are mandatory in any room used as living accommodation which contains a fixed combustion appliance, excluding gas cookers. These alarms must be tested at the start of every new tenancy. Beyond specific certificates, the Homes (Fitness for Human Habitation) Act 2018 ensures properties are safe, healthy, and free from hazards, requiring landlords to address issues such as damp, mould, and structural disrepair promptly. Non-compliance with these safety requirements poses serious risks to tenants and can result in severe legal consequences for landlords.

The Renters' Rights Act 2025 and Tenancy Changes

The Renters' Rights Act 2025, with its main provisions commencing in 2026, introduces fundamental changes to the private rented sector across England and Wales. Notably, it abolishes the assured shorthold tenancy, replacing it with periodic assured tenancies. This means all tenancies will be periodic from the start, providing tenants with greater security. A key reform is the abolition of 'no-fault' evictions, previously known as Section 21 notices. Landlords will now only be able to end a tenancy using new or reformed 'possession grounds', which are typically fault-based or require specific circumstances such as the landlord or a family member moving into the property, or needing to sell. The Act also reforms rent increase procedures, requiring a minimum of two months' notice and limiting increases to once per year. Landlords and agents in Leicester City Council must thoroughly review their tenancy agreements, notice procedures, and record-keeping practices to align with these new legal requirements. Failure to comply with the new possession grounds or rent increase rules could render notices invalid and prolong the possession process. These changes aim to provide tenants with more stability and protection, while still allowing landlords to regain possession under legitimate circumstances.

Regional Differences: Scotland, Wales, and Northern Ireland

While the Renters' Rights Act 2025 applies to England and Wales, landlords should be aware that devolved administrations have their own distinct housing legislation. In Scotland, the Private Residential Tenancy (PRT) regime has been in place since 2017, offering open-ended tenancies and specific grounds for possession. Rent increases are generally limited to once every 12 months, and local authorities can apply rent controls in designated 'Rent Pressure Zones'. Wales introduced the Renting Homes (Wales) Act 2022, which also created a new standard contract equivalent to an open-ended tenancy, providing greater security for 'contract-holders'. This Welsh legislation also revised possession grounds and notice periods. In Northern Ireland, private tenancies are primarily governed by the Private Tenancies (Northern Ireland) Order 2006, which provides for fixed-term and periodic tenancies, but does not feature an equivalent to the 'no-fault' eviction system. Landlords with properties in Scotland, Wales, or Northern Ireland must consult the specific legislation pertinent to that region, as the rules for tenancy agreements, possession, and landlord obligations can vary significantly from those in England.