Can a Tenant Move in With an Unsatisfactory Eicr

Can a Tenant Move in With an Unsatisfactory EICR? Reasons and Solutions

An unsatisfactory EICR (Electrical Installation Condition Report) indicates a faulty and hazardous electrical system of a property that doesn’t meet safety standards. An unsatisfactory EICR can result from issues like exposed wires to outdated wiring, posing risks like electric shocks or fire hazards.

Tenants should not move into a property with an unsatisfactory EICR, as it violates safety regulations. Landlords are legally obligated to ensure the electrical system is safe before renting out a property.

Common causes of an unsatisfactory EICR include faulty wiring, outdated fuse boards, improper earthing, exposed live wires, and malfunctioning circuit breakers. These issues pose immediate safety risks and need urgent attention to comply with regulations.

The solution to an unsatisfactory EICR involves arranging for remedial work by a qualified electrician to address safety hazards, followed by re-inspection. For critical issues (C1 or C2), immediate repair is necessary, while non-urgent problems (C3) are scheduled for later improvement.

What does a failed EICR indicate?

A failed EICR indicates the property’s electrical system has faults that could lead to electric shocks or even fires. These issues directly endanger tenants’ lives, making such a property highly unattractive and fundamentally unsafe to live in.

Unreliable power supplies are another indication of a failed EICR. Faulty wiring or damaged electrical components lead to frequent power outages or malfunctions, disrupting tenants’ daily lives and work. 

A failed EICR also results in increased insurance and liability risks in case of an accident. Properties with unresolved electrical issues face higher insurance premiums or, in some instances, invalidated insurance coverage. This leaves tenants financially vulnerable if accidents occur.

Beyond the immediate safety and financial risks, a failed EICR also reflects poorly on the landlord. It conveys a lack of responsibility and disregard for tenant safety, as addressing electrical hazards is a basic requirement of property management. 

Why Don’t Tenants Want a Property with a Failed EICR?  

Tenants don’t want a property with a failed EICR (Electrical Installation Condition Report) because it indicates serious safety risks, such as electrical faults that cause fires or electric shocks. 

According to the “Fire Fact Sheet” by Electrical Safety First, electrical hazards are a leading cause of house fires, with electrical products being responsible for 89% of electrical fires annually in the UK alone. This creates an urgent need for proper electrical safety, and tenants prioritise homes where their safety is guaranteed.

Is a New EICR Required for Each New Tenant?

No, a new Electrical Installation Condition Report (EICR) is not required for each new tenant, provided the previous EICR is still valid and no major changes have been made to the property’s electric system since the last EICR. 

According to the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, an EICR is valid for up to 5 years or the duration specified in the report. This ensures that landlords maintain high safety standards while protecting tenants from electrical hazards.

According to UK government regulations, landlords are required to ensure the electrical system in their rental properties is safe at the start of each tenancy, but they don’t need to obtain a new EICR for every tenant as long as the report remains within its validity period.

However, landlords should provide new tenants with a copy of the most recent EICR. This confirms that the electrical system has been inspected and deemed safe, fulfilling legal obligations while assuring the tenant that their safety is prioritised. 

If an EICR has expired or requires remedial work or further investigation, landlords are obligated to take corrective action. Within 28 days of completing the job, landlords must provide written confirmation to their tenant and to the local authority that the work has been carried out. 

Failure to provide an EICR could result in a fine of up to £30,000, as outlined in the Electrical Safety Standards regulations published by the National Residential Landlords Association in “Electrical Safety Inspections.”

What are the Reasons for an Unsatisfactory EICR Report?  

The reasons for an unsatisfactory EICR report include a variety of electrical hazards, such as exposed live wires, faulty wiring, damaged components, and inadequate earthing or bonding. These issues lead to electrical shocks, fires, and power disruptions, making the property unsafe for tenants. 

According to EICR reports, the assessment is categorised using four EICR codes to indicate the severity of the issues found

  • C1: The C1 code indicates a pressing safety issue that requires immediate attention. It is given to faults like exposed live wires, faulty connections, or an outdated installation. C1 indicates a hazardous environment where electric shocks or fires could easily occur, and these immediate dangers to tenants must be rectified right away.
  • C2: The C2 code represents a potentially dangerous condition, such as poor wiring or exposed terminals that might deteriorate over time, damaged fuse boxes or loose connections. These conditions do not pose an immediate threat to tenants but could escalate over time. C2 issues must be addressed to ensure the future safety of tenants.
  • C3: C3 code indicates general recommendations for improvement. This means that the property’s electrical system is safe, but it can benefit from the suggested upgrades or better practices to meet the latest standards and regulations.
  • F1: The F1 code refers to further investigation required to ensure the electrical system’s safety since it has yet to be fully assessed for potential issues.

What are the Effects of a Failed EICR on a Property? 

The effects of a failed EICR on a property include safety risks, potential legal consequences, decreased property value, and financial costs for repairs. A failed EICR report indicates that the property’s electrical system is unsafe, which can lead to accidents such as electric shocks or fires unless costly maintenance or upgrades are made to meet safety standards. 

The effects of a failed EICR on a property on a landlord are listed below.

  • Reduces the property’s value, making it less attractive to potential buyers or renters.
  • Facing legal and financial consequences, including fines or potential lawsuits from tenants. 
  • Damage to reputation and client dissatisfaction.

The effects of a failed EICR on a property on a tenant are as follows:

  • Increases concern by creating an uncomfortable or insecure electrical system in a property.
  • Disruption of daily life due to power outages, faulty appliances, or malfunctioning lights.
  • Raises concerns about legal rights and financial risk if an accident occurs due to electrical faults.

Does a Failed EICR Devalue Your Property? 

Yes, a failed EICR devalues your property. A failed EICR signals that the electrical system is unsafe, which significantly impacts a property’s value. 

Potential buyers or tenants are less likely to invest in or rent a property with unresolved electrical issues due to safety concerns. 

Additionally, banks or mortgage lenders are reluctant to offer financing for properties with a failed EICR, further reducing demand and, consequently, the property’s market value. 

Can you sell a property with an unsatisfactory EICR?

Yes, you can sell a property with an unsatisfactory EICR, as there’s no legal barrier to doing so. However, it’s important to disclose the report to potential buyers, as they need to be aware of any electrical safety issues present in the property. Buyers may view the property as needing repairs, which could affect its marketability and possibly reduce its sale price. If the buyer is financing the purchase, some mortgage lenders require that the electrical issues be resolved before approving the loan​.

How to Address an Unsatisfactory EICR?  

To address an unsatisfactory EICR, start by identifying and repairing all the issues flagged in the report, particularly those classified as urgent (C1 or C2). A qualified electrician must resolve each of these issues to bring the property up to standard and ensure safety compliance.

To address an unsatisfactory EICR, the following steps are performed.

  • Go through the EICR carefully, noting all the listed issues, especially any C1 or C2 codes which indicate immediate dangers or potential risks.
  • Hire certified electricians to perform remedial work according to regulations.
  • Resolve all C1 hazards, as they pose an immediate danger. 
  • Fix C2 issues, which are considered potentially dangerous.
  • Complete recommended C3 improvements to enhance safety and prevent future issues.
  • Request a follow-up inspection after completing the repairs to obtain a satisfactory EICR.
  • Provide documentation of the updated EICR and any relevant work to the tenant or buyer and local authority.

How to Arrange Remedial Work After an Unsatisfactory EICR?  

To arrange remedial work after an unsatisfactory EICR, the first step is to hire a qualified and certified electrician to address the flagged issues. Remedial work is corrective actions needed to resolve identified electrical faults that pose immediate safety risks. Remedial work is required to bring the property’s electrical installation up to safety standards and ensure compliance with legal regulations, which protects both occupants and property value. 

  • Insulate or replace old cables and install new circuit breakers to address C1 issues like exposed live wires and faulty circuit breakers, preventing accidental contact and shocks while restoring effective current control.
  • Replace or rewire defective wiring to address C2 faults, preventing future electrical fires. Replace outdated fuses with modern circuit breakers or fuse boxes for better safety control.
  • Replace old wiring with modern cables to accommodate C3’s suggested upgrades to improve efficiency, though these are not mandatory.
  • Conduct additional testing to identify any hidden or unclear hazards flagged ensuring all issues are fully diagnosed.

How Can a Certified Electrician Help with an EICR?

A certified electrician helps with an EICR by thoroughly fixing the property’s electrical system to ensure compliance with safety standards. Their certification and expertise are important for identifying hazards, performing repairs, and ensuring compliance. This provides tenants with a safe environment and protects the property’s value for landlords by verifying adherence to legal safety standards, which reassures prospective buyers or tenants.

How Much Does it Cost to Obtain an EICR?  

It costs around £100-£250 to obtain an Electrical Installation Condition Report (EICR), according to CheckATrade. The prices vary depending on the type of property and location. For example, landlords pay, on average, £100 for a flat and £250 or more for a house​, according to House Keep.

The cost to obtain an EICR for a residential property depends on its size, the complexity of the electrical system, and the age of the wiring. Larger homes or those with more circuits and electrical connections incur higher costs, in the range of £100 to £300 for houses and £60 to £200 for apartments. For commercial property, EICRs cost from £30 to £50 per circuit. 

Get your EICR inspection for £130 for properties with 1–3 bedrooms and 1 fuse board in London and M25 areas from Landlord Property Certificates. Our NAPIT and NICEIC-certified electricians provide thorough, reliable assessments, checking for issues like earth bonding strength, wear and tear, and potential safety risks.

How is the EICR Inspection Process Performed?  

The EICR inspection process involves a certified electrician inspecting the property’s electrical wiring, circuit boards, and electrical components to identify hazards or defects.

The inspection begins with a visual assessment of the property’s electrical systems, checking for obvious signs of wear, such as damaged cables or exposed wiring. Next, the electrician will test the electrical circuits and devices like fuse boards, circuit breakers, earthing, and bonding using specialised equipment to ensure they function properly and comply with safety standards. Finally, a report is compiled that details any issues found, using EICR codes (C1, C2, C3, F1) to categorise the severity of the findings.​

How Often Should You Renew Your EICR?

The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 state that you should renew your EICR after 5 years. However, the EICR frequency might need to be sooner in certain situations, such as when there have been significant changes to the electrical system.

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