Renting out a flat with cladding

Expatmichali

We own a leasehold flat in the three storey building and have rented it out for many years. As we are elderly and find it difficult to deal with the hassles, we decided to sell, only to realize the building has cladding. It appears to be tile and I don’t think there are any safety issues but because of the cladding we would most likely need an EWS1 certificate to be able to sell.  We are hoping to hear from the surveyor of the freehold management company to clarify our position but, in the meantime, the Lettings agents have told us that, not only can we not sell, we are no longer allowed to rent it out! I have asked for the legislation that prohibits renting a flat in a building with cladding but cannot find the information on the net. Indeed most people trying to sell a cladded property are advised to either continue living in it, rent it out or find a cash buyer. Does anyone know of such restrictions please? I would assume that, if this is indeed the case, even the renewal of current leases would not be allowed. Any advice would be much appreciated. 

greatcrested

I don't know of any specific legislation other than more generic obligations to LLs to ensure the property is 'safe'.

Possibly the The Homes (Fitness For Human Habitation Act 2018?

and/or

The Housing Health & Safety Rating System

This latter highlights "Design and construction of the building to limit the spread of fire/smoke;" as a risk. Following an assessment of the risks, the Local Authority has the option to issue a Prohibition Order.

But I'm surprised the agent has made a blanket statement that you cannot let the property unless they know a PO has been issued....

Expatmichali

Thank you for those links. We will look at them closely. Of course the problem probably lies in the fact that, due to a shortage of qualified surveyors, it will difficult to get an official all clear on safety. The only option might be to find a cash buyer who might then rent it out privately, knowing it is a safe building. It is well maintained by the freehold management who place a lot of emphasis on safety. Of course, such a sale would be at a substantial loss to us as the owners. But, at this point, I just want to get rid! 

annetheman

I am a flat-renter in an EWS1-less building and renewed AST with no issue in August. I'm also trying to buy a flat, which finally got EWS1 a few weeks ago...

There is no law that prohibits you from from letting a flat out due to cladding/lack of EWS1 - unless your flat is a Shared Ownership flat or there is something in your lease that prohibits you from letting or part-letting the flat without permission etc.

You could also try to sell - not all lenders will ask for it on a 3 storey building but your buyer's lender is very likely to ask for it anyway. It really is dependent on the valuer and their opinion - but err on the side of "will not pass"!

Have you had a read through your lease? If there is no clause that prevents you from letting or part-letting the property, there should be no problem in just letting your lender know (assuming you have a mortgage), getting the right type of insurance and doing everything a landlord should do in any other type of flat rental. The letting's agent seems to be a bit confused as to the purpose of an EWS1. 

A lot of people with cladded blocks have found their buildings' insurance (part of the service charge) has shot up, so you might not even break even on the let but hope it works out.

Many caught up in the cladding scandal are FTBers who used HTB or bought with Shared Ownership, so they are literally stuck - you have options. 

Norman_Castle

Ask the letting agency where their information is from. It may just be opinion given as fact. Ask other agencies if they will take the property, see if they ask about cladding or EWS1 certificates.

Expatmichali

Thank you so much for that encouraging news! To hear that someone was able to get an EWS1 recently gives us hope. We certainly have permission to sub let as we have been doing it for many years but it is the estate agent who told us, they can no longer find new tenants for us, should we be unable to sell. We have no mortgage and I do realize that there are many people so much worse off than we are! However, I really don’t want a flat which can’t be sold or rented, lying empty and incurring the usual council tax and service charge bills each month while we get no income! Your post has helped me relax quite a bit and I am grateful for that. 

Expatmichali

Norman_Castle said:

Ask the letting agency where their information is from. It may just be opinion given as fact. Ask other agencies if they will take the property, see if they ask about cladding or EWS1 certificates.

Yes, I have asked for the legislation she refers to. It may be that that particular agency has decided it’s not worth the hassle. They are very good generally and I would be reluctant to move agencies but if needs must! Thanks! 

greatcrested

If you decide to switch:

Post 9: Letting agents: how should a landlord select or sack?

Expatmichali

Very helpful! Thank you so much!