The Importance of Material Information When Advertising a Property to Let

As a landlord, ensuring your property is attractive to potential tenants is vital to ensure you are not left with voids and you attract the right kind of tenant.

But something as simple as the advert now involves more than just highlighting the properties aesthetic and functional features. An essential aspect of advertising process is providing comprehensive and accurate Material Information.

Material Information is defined as any detail that could affect a prospective tenant’s decision to rent a property.

National Trading Standards Estate and Letting Agency Team (NTSLEAT) guidance final issue in November 2023, explains in detail what information must be included in a property advert.

Previously reserved for Sales adverts, Material information is now very much the norm in residential lettings adverts too

Material information is split into three critical parts: A, B, and C.

• Part A: Information that is essential for tenants to know from the outset.
• Part B: Information that tenants should be made aware of early in the marketing process.
• Part C: Additional information that might influence a tenant’s decision, which can be disclosed at a later stage.

Understanding and effectively communicating this information can significantly impact your success in letting your property.

It’s also important to understand that many of the property portals, such as Zoopla and Rightmove, do reject adverts that do not meet the Material information requirements.

Understanding Material Information

Part A: Essential Information

Part A guidance was released in May 2022 and includes the foundational details every tenant must know to make an informed decision about viewing or considering a property.

This includes:

• Rent and Deposit: Clear information about the monthly rent, the required deposit, and any other upfront costs, such as Holding Deposit
• Council Tax Band: The local council tax band the property falls under, which affects the monthly outgoings.
• Length of Tenancy: Minimum and maximum lease terms available.

Part B: Important Early Information

Part B includes details that should be disclosed early in the marketing process to avoid wasting time for both parties. This includes:

• Property Type and Size: Accurate descriptions of the property’s type (e.g., apartment, house), number of bedrooms, bathrooms, and overall size.
• Utility and Service Charges: Information about which utilities and services (e.g., water, electricity, gas, internet) are included in the rent and which are the tenant’s responsibility.
• Property Construction: Outlining the materials used in construction. Tenants should generally understand the make up of a property, which is generally achieved through good photography
• Restrictions: Any restrictions on the property, such as pet policies, smoking policies, or occupancy limits.
• Parking: Clearly state if the property has allocated parking or off street, whether a parking permit is required, if there is a restriction on number or type of vehicles that can be parked, eg: No work vans
• Property Condition: Information about the property’s condition, including recent renovations or known issues that could affect the living experience.
• Energy Performance Certificate (EPC): The EPC rating of the property, which informs tenants about the energy efficiency and potential running costs.

Part C: Additional Influential Information

Part C involves supplementary information that might impact a tenant’s decision and should be provided before the signing of the tenancy agreement. This includes:

• Planned Developments: Any planned construction or developments in the area that might affect the tenant’s living conditions.
• Local Amenities: Information about nearby amenities such as schools, hospitals, parks, public transport links, and shopping centres.
• Historical Information: Any relevant historical information about the property, such as previous flooding or structural issues. Murders, serial killers etc
• Building safety Unsafe cladding, risk of collapse, lack of emergency lighting, insufficient fire/smoke alarm systems
• Flood and erosion risk Whether the property has flooded in the past five years, any sources of risk, and frequency of flooding, any known risk of coastal erosion
• Restrictions and rights Any Lease restrictions, real burdens in Scotland, restrictive covenants, whether a business can be run from the property)
• Property accessibility and adaptations Is there step free access, level access shower etc

The Importance of Transparency and Compliance

Providing thorough and accurate Material Information is not only a good practice but also a legal obligation. Misrepresentation or omission of key details can lead to legal disputes and penalties. The 2023 NTSLEAT guidance underscores the importance of transparency in avoiding legal pitfalls and ensuring compliance with consumer protection laws.

When prospective tenants receive comprehensive information upfront, it establishes a foundation of honesty and reliability. This trust can lead to longer tenancies, timely rent payments, and a more harmonious landlord-tenant relationship.

Attracting the Right Tenants

By clearly presenting all essential details, you can attract tenants who are well-informed and genuinely interested in your property. This can lead to quicker lettings and reduce the likelihood of tenants backing out at the last minute due to previously undisclosed information.

Reducing Vacancies and Tenant Turnover

Properties advertised with full Material Information tend to have shorter vacancy periods and lower tenant turnover. When tenants know exactly what to expect, they are more likely to commit and stay longer, reducing the costs and effort associated with finding new tenants.

Implementing the NTSLEAT Guidance

To comply with the NTSLEAT guidance and maximize the effectiveness of your property advertisements:

1. Prepare Detailed Listings: Ensure your property listings include all necessary information as categorized in Parts A, B, and C.
2. Regular Updates: Keep your listings updated with any new information or changes to the property or its surroundings.
3. Clear Communication: Use clear and concise language to convey all Material Information, avoiding any ambiguities or omissions.
4. Documentation: Keep records of all disclosed information and communications with prospective tenants to protect yourself in case of disputes.

What happens if you don’t disclose material information on a property listing

Material information “should not be hidden, unclear or ambiguous”. adverts which fail to properly disclose material information clearly could be liable for making “a misleading omission”, which is an offence under the Consumer Protection from Unfair Trading Regulations 2008.

If you become aware of any listings that do not include the material information covered by Part A, you should update these as soon as possible. However, this does not mean that those who have viewed the advert are prevented from making complaints about incomplete or missing information from the listing, as this is already an established requirement under the Consumer Protection from Unfair Trading Regulations 2008.

Landlords or their agents could face hefty fines or imprisonment of up to two years for severe breaches of material information, in addition the aggrieved customer could seek to unwind a tenancy if one has been entered into as well as seek damages.

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