Blog » Extending a fixed-term tenancy agreement does not trigger the Healthy Homes compliance requirements

Extending a fixed-term tenancy agreement does not trigger the Healthy Homes compliance requirements

Alide Elkink  |  May 12, 2021

The Residential Tenancies (Healthy Homes Standards) Regulations 2019, (referred to as the Healthy Homes Standards) was introduced in July 2019 to set minimum standards in heating, insulation, ventilation, draught stopping, and moisture ingress and drainage for rental properties. All rental properties must comply with the minimum standards set out in the Healthy Homes Standards by 1 July 2024 but implementation is being introduced in stages.

Implementation of the Healthy Homes Standards

The first stage, which was required by 1 July 2019, was that all residential rental properties have ceiling and underfloor insulation installed where it is possible to do so. Additionally, landlords were required to provide a statement of intent to comply with the Healthy Homes Standards.

The next stage, which was required by 1 December 2020, was for rental properties to be assessed for compliance with the Healthy Homes Standards and a compliance statement be prepared for each property. The statement describes the level of compliance of the property at the time that the  assessment was carried out and must subsequently be included with new and renewed tenancy agreements.

The final stage of implementation, required from 1 July 2021, is that for new or renewed tenancies, the property must to be fully compliant with the Healthy Homes Standards. A 90-day period after the start of the new or renewed tenancy gives a period of grace for non-compliant aspects, e.g. no or inadequate heating in the main living room, to be remedied.

Definition of “renewed tenancy”

Up till now the definition of a “renewed tenancy” has included fixed-term tenancies that are extended. Under this definition, the re-signing of a fixed-term tenancy has been considered to activate the 90-day period within which the property must be upgraded to meet compliance with the Healthy Homes Standards.

Definition has changed

Last week however, MBIE changed their stance and now state that an extension to an existing contract is not a renewal of that contract as the only part that changes is the end date. Under this ruling, when a fixed-term tenancy is extended, it does not activate the 90-day period to achieve compliance.

This ruling gives landlords in some situations a greater period of time in which to upgrade their rentals properties.

Dates for compliance

The dates for compliance are as follows:

- where a tenancy does not change, compliance with the Healthy Homes Standards is 1 July 2024 – this applies to both fixed-term and periodic tenancy agreements.

- where a tenancy changes before 1 July 2024, compliance with the Healthy Homes Standards is required 90 days after the start of the new or renewed tenancy.

Nightingales view

Regardless of the timeframes, at Nightingales we encourage landlords to address any non-compliant issues sooner rather than later. We believe tenants are entitled to have a warm, dry, draught-proof home. And the benefit of happy tenants is that they are likely to be long-term tenants.