A Guide to EICRs for Landlords

As a residential landlord, it’s important to stay on top of government regulations, especially those concerning the safety of your tenants.

In this article, we talk about some of the recent changes to legislation around electrical safety for landlords and their properties. We go into detail about EICRs, explaining what they are, the time scale of the process and how they could affect you.

If you’ve had an EICR carried out more than five years before the regulations came into effect, as of April 1st 2021, you will need to have the EICR conducted on all private rental properties to comply with the latest electrical standards.

What are the new regulations?

In 2020, the government introduced new legislation regarding the safety regulation and maintenance of electrical systems in residential buildings, focusing on the private rental sector.

‘The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020’ requires landlords to have an electrical installation condition report (EICR) conducted, by a qualified electrician, every five years. If you fail to comply with this, you could receive a fine of up to £30,000.

These regulations came into effect for all new tenancies from 1^st July 2020 and the following year after April 1^st 2021 this became mandatory for all existing tenancies. 

What is an EICR?

An electrical installation condition report (EICR) is essentially a comprehensive condition check of a property’s electrical system. These electrical condition requirements are followed against the BS 7671 Requirements for Electrical Installations (IET Wiring Regulations).

This assessment consists of:

• Checking the condition of all lights and sockets
• Assessing fuse box functionality (checks on circuits, fuses, power conductors, etc)
• Looking for signs of potential electrical hazards

Once the electrician has completed all necessary checks, they will provide you with a report containing the results from the inspection and any necessary work needed to address issues found.

As a private landlord, you then must:

• Get the report from the electrician who conducted the inspection, with the date recorded.

• Send a copy of that report to each existing tenant of the residential premises within 28 days of the inspection.

• Send a copy of that report to the local authority within 7 days of receiving a request.

• Keep a copy of that report until the next inspection is due and then give this to the electrician who is performing the next assessment.

• Provide a copy of the report for a new tenant before they move into the property.

What does the EICR report show?

The results from an EICR will determine if your property’s electrical systems are compliant with the latest regulations and if any suggested or mandatory remedial work is needed. Depending on what repair work needs to be carried out, electricians will use a coding system when assessing each inspected item. 

• A tick shows that the inspected item is in satisfactory condition.

• C1 - item condition is not acceptable and presents an immediate danger. Remedial work is required.

• C2 - The condition of the item is not an immediate danger at the time of installation but could become potentially dangerous. Urgent repair work is required.

• C3 - The item's condition poses no danger, but improvement work is recommended.

• FI - Further investigation required.

If the report comes back unsatisfactory, what happens then?

As the landlord, you will need to complete any of the required remedial works within 28 days of receiving the report.

When this is completed, it will need to be signed off by a qualified electrician and a record of these completed remedial works needs to be sent to the tenant and local authority in the 28-day window.

What happens if I don’t get an EICR or fail to act on the required remedial work?

Part of the EICR is to help spot electrical faults in your property that may be harmful and dangerous to your tenants. It provides evidence that you have been proactive in maintaining the property’s safety if the event of an electrical disaster arises.

If your local authority requests you to provide proof of an EICR report and you fail to do so, you could be fined up to a maximum of £30,000. You also could lose any sort of insurance you take out on the property as a lot of insurance companies require an EICR to provide coverage. An invalid EICR may mean that you are breaching your insurance agreement and so it leaves you financially vulnerable if your tenant ever takes you to court.

If you get an EICR but fail to act on the remedial work from the report, your local authority will send you a notice requiring you to complete any necessary repairs. Not complying with this will mean the local authority will take the matter further by ordering the remedial work themselves and can claim the costs back from the landlord.

Importantly, an EICR coming back as unsatisfactory does not mean you will need another one conducted. You only need to act on any required remedial work or follow up on the points within the 28-day window and have completed work signed off and in writing, which is kept with the original EICR report.

How much does an EICR cost?

There are many cost factors, such as the size of the property, location, number of items tested and overall condition of the electrics. But on average you will be paying between £100 to £300 for an EICR.

The below table from My Local Toolbox breaks down the average price of an EICR for common properties.

Do these regulations apply to Houses in Multiple Occupation (HMOs)?

Yes, they do. If the HMO property is the tenant’s main residence and they pay rent, the same EICR regulations apply.

However, there can be exceptions to this, please refer to Schedule 1 in the official government documentation for more information.

What if I can’t get an electrician in time to complete the remedial work or my tenant won’t let me in?

As a landlord, you must demonstrate that you have taken every reasonable step to comply with the remedial action notice.

Make sure you keep a record of all communications and steps taken to be compliant. You will not be in breach of the regulations if you can show you have taken every reasonable step to ensure the remedial work is acted on.

What about if my property is a new build? Will I still need to conduct an EICR then?

An Electrical Installation Certificate, known as an EIC, is issued when a property is newly built or has been fully wired.

After five years and if the landlord has complied with all necessary regulations since then, an EICR will be required for the property.

Conclusion

Getting an EICR ensures that any electrical defects in your property are found and rectified, which allows you to stay compliant with the latest regulations and keep your tenants safe. Make sure that you properly research the electrician you are hiring by looking at their qualifications and reviews. Get at least three quotes from separate contractors to get a rough estimate of the job but don’t just choose the cheapest one! 

Finally, when it comes to staying on top of your landlord obligations and maintenance tasks it's essential for you to have the right tools at hand for your property management. With Landlord Studio you can manage every aspect of your buy to let property, from tracking income and expenses and running tax reports, to storing documents, setting reminders and even tracking, prioritising, and streamlining your property maintenance.

Learn more about how Landlord Studio can help you save time and money and remain compliant when managing your rentals.

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