Part A of NTS guidance for landlords and agents published – What does it mean?

Part A of NTS guidance for landlords and agents published – What does it mean?

 

The National Trading Standards (NTS) has published guidance to ensure letting agents and landlords are meeting their requirements under Part A of the three-phase process to improve material information in property listings. Part A covers information considered material when advertising properties for let, incorporating four areas including the rent, holding deposits, deposits, and council tax band.

 

Material information is any information “which would impact the decision that a consumer makes in relation to the property, such as arranging a viewing or putting in an offer to rent. The information can be positive or negative in nature and should include information that might deter interest or cause a longer timeframe to secure an offer.” It should be prominently and clearly displayed in the property listing and “should not be hidden, unclear or ambiguous”. Those who fail to properly disclose material information could be liable for making “a misleading omission”, which is an offense under the Consumer Protection from Unfair Trading Regulations 2008.

 

The four areas in slightly more detail, are:

 

1. The council tax band which must be included in the listing. If the rent includes council tax, this information will need to be included in the listing, so the band will not need to be displayed.

 

2. The rent for the property should be listed as a numerical amount with the time period that it relates to, e.g. per calendar month. If rent is paid monthly, the equivalent weekly rental amount can be shown for information purposes, however, it must be made clear whether or not the rent can be paid weekly.

 

The rental amount displayed must reflect the nature of the occupancy and the price per tenancy. In a multi-occupied property, such as a student house share that is let on a single tenancy, the overall rental amount for the property should be listed. Where a comparative “per person” or “per room” rental amount is provided , it must be clear in the listing what the overall price is when the property is fully occupied. Where a multi-occupied property is rented on a room-by-room basis, then the rental amount per room and associated occupancy (single or double) should be listed.

 

If the rent includes bills, the listing should clearly state which bills are included.

 

3. A Holding Deposit (HD): Where it is required, it must be clearly stated on the listing and comply with the Tenant Fees Act 2019 if in England. The amount of the HD must reflect the nature of the occupancy.

 

If a multi-occupied property is rented on a room-by-room basis, then the amount of the holding deposit per tenancy should be clearly listed.

 

4. A Security Deposit: These details must be included on the listing and comply with the Tenant Fees Act 2019 if in England. Similarly, the deposit amount displayed must reflect the nature of the occupancy, such as in a multi-occupied property

 

Guidance in Part B and Part C will be released in due course. Part B will cover information “established for all properties”, such as utilities – which may affect the tenant’s decision if it’s a “non-standard” system. Part C will cover additional information that may not be applicable for all properties but should be included if it is – for example, if a property is at risk of flooding due to its location.

 

Part A covers standard information that all agents and landlords should know and it will be just good practice to make sure that the information is displayed at the time of marketing. The concern will be that if not displayed and a tenant complains, what else will an enquiry reveal and how costly could that be!! The regulations are tightening, so keep it simple, transparent and correct thus avoiding any unwarranted attention.