In November 2023, National Trading Standards (NTS) published their guidance on what letting agents and landlords should include by way of ‘material information’ in any property adverts throughout the whole of the United Kingdom. Similar guidance was published for property sales and since then the major property portals have been scrambling to update their systems to accommodate the new requirements. The guidance can be found here
What does the guidance mean?
The effect of the guidance is that every advert listing a property for rent must include what is called ‘material information’. That means adverts on property portals/third-party websites, agent’s own websites, window displays and any brochures.
What is material information for lettings?
‘Material information’ is defined with reference to the regulation 6(3) of Consumer Protection from Unfair Trading Regulations 2008 as any information that is provided by a letting agent, which ‘an average consumer needs, according to the context, to take an informed transactional decision’. This means any information that would ‘impact’ the decision a consumer may make. This can be a decision that relates to:
- arranging a viewing,
- putting in an offer, or
- any other aspect of the process.
Material information can be both positive and negative in nature, and you should not omit information that may ‘deter interest or take longer to secure an offer’.
The guidance provides three classes of material information and that Part A requirements should be on all listings with Parts B and C not being ‘more than one click away’.
What are letting agent’s responsibilities?
They must ensure that they:
- request material information and details about a property
- undertake verification checks on information provided to check it is accurate (e.g. obtaining title information, checking with local authorities and others like the Coal Authority as well as asking for copy documents)
- Display material information prominently and clearly in any property listing to avoid committing an offence of a ‘misleading omission’;
- update all property listings and interested parties as soon as new material information is known or there is a change to any material information as it is an offence to provide material information in an ‘untimely manner’.
What material information is covered by Part A?
- Council Tax Band
Adverts must include the council tax banding and, If the rent includes council tax, this should be specified (and there would be no need to list the band separately).
- Rent
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.
If the rent includes bills, somewhere in the listing it should clearly state which bills are included.
The rental amount displayed must reflect the nature of the occupancy and the price per tenancy. For example, in a multi-occupancy property, like a house share that is let on a single tenancy, the overall rental amount for the property should be listed. If the adverts provide a comparative ‘per person’ or ‘per room’ amount, it must be made clear in the listing what the overall price would be as if fully occupied.
If a multi-occupancy property is rented on a room-by-room basis, then the rental amount per room and associated occupancy should be listed, for example (eg single or double).
Security deposit
Details of the security deposit must be included on the listing and the deposit amount displayed must reflect the nature of the occupancy. For example, in a multi-occupancy property, the total deposit amount for the property should be listed. If there is a comparative ‘per person’ or ‘per room’ deposit amount, the full amount of the security deposit must be made clear.
If a multi-occupancy property is rented on a room-by-room basis, then the deposit amount per tenancy should be listed.
‘Holding deposits’ are also listed under Part A, but care should be taken with regard to ‘holding deposits’ in Scotland and specific legal advice should be sought.
The guidance does not include Energy Performance Certificate (EPC) ratings under Part A as these should be included in a property listing in any event.
What material information is covered by Part B?
Part B is aimed at things like the cost of maintenance, repairs, or affect the availability of some insurance cover so that consumers can make an informed decision as to whether to consider a property further.
- Physical characteristics of a property
This means an accurate description of the type of property – for example, whether it is a house or apartment – and what floor the apartment is on. It also means the materials used in construction. Tenants should generally understand the general material makeup of a property (this could be achieved by comprehensive photography).
- The number and type(s) of room
The number and types of room should be in each property listing, which can be achieved by way of floor plans rather than written measurements. There are rules regarding what can constitute a ‘bedroom’, so this should be accounted for.
- Utilities
It should be made clear if bills are included as part of the rent. The guidance also states that unless otherwise stated consumers can reasonably assume that a property is connected to a mains supply and that the provision of utilities can potentially be material information. It is suggested that the following information becomes particularly important if the property is not connected to a mains supply, such as:
- A description of the nature of the electricity supply
- A description of the nature of the water supply
- The nature of sewerage – for example if septic tanks or cesspits will require emptying, and who pays for it
- An accurate description of how the property is heated – including how it is charged (including for communal heating systems), whether the tenant can change the provider or the heating
- The nature of broadband into the property – whether there is an exclusive supplier. If there is no broadband infrastructure, this should be stated
- Mobile signal and coverage, and any known issues
- Parking
The property advert should clearly state whether a property has parking, or if there are multiple options (including listing the location of parking) and details of any disabled parking. Tenants should be made aware if they need to obtain a parking permit, and whether there is a cost involved to acquire one.
What material information is covered by Part C?
Part C information may or may not be needed, depending on whether the property is affected and landlords or letting agents may need to seek specific, expert advice listing a property. What might be included under Part C is:
- Building safety (e.g. unsafe cladding, risk of collapse, lack of emergency lighting, insufficient fire/smoke alarm systems).
- Restrictions and rights (e.g. lease restrictions, real burdens such as no pets, parking restrictions or not being able to run a business from the property, servitude rights and Public Rights of Way)
- Flood and erosion risk (e.g. whether the property has flooded in the past five years, any sources of risk, and frequency of flooding, any known risk of coastal erosion)
- Planning permission or proposal for development
- Property accessibility/adaptations (e.g. step free access, wet room/level access shower or ‘lateral living’)
- Whether the property is in a coalfield or mining area
If you require any further information or advice, please contact us or watch our blogs for further updates.
