Material information in advertising

Introduction

In November 2023, National Trading Standards Estate and Letting Agency Team (NTSELAT) published updated guidance on the meaning of material information. The new guidance expands on the Part A material information published last year, by adding Parts B (information for all properties) and C (information that may be relevant).

The material information is more detailed than typical listings, and agents are expected to verify the information. As a result, landlords should expect their letting agents to require more information before listing a property. 

To ensure your letting can progress without delay, landlords should familiarise themselves with these requirements and gather the information required if necessary.

Which listings should material information be included on?

All residential property listings should include material information, including those on property portals, property agent websites, third-party websites, and printed material.

Where space is limited in the advert, reference should be made to how the consumer may access the information.

Part A material information should be included on the first page of listings. Parts B and C are not required to be included on the first page of listings but should still be prominent and accessible. For online listings, Parts B and C information should be no more than one click away from the main listing.

What is Part A material information?

Part A information is the most important material information and covers the most common elements of a property listing.

The following material information falls under Part A and must be included in the front page of a listing:

•    Rental amount per rental period and details of any bills that are included within the rent;
•    Council tax band and any exemptions that might apply; and
•    The amount of security or holding deposit required.

What is Part B material information?

Part B covers information that the agent should establish for all properties. It will be material information where the information may involve some cost of maintenance or repair, knowingly impact a tenant’s enjoyment of the property, or affect the availability of relevant insurance products.

Part B information that should always be included:  

• The number of bedrooms; 
• The size of the rooms (and any limits on occupancy);
• The property type (semi-detached, terrace, flat, etc); and
• Where the property is located in a larger building, the floor on which it is located.

Part B information that might need to be included:

•    Non-standard electricity, water and sewerage (septic tanks, private water supplies such as wells, etc);
•    The heating supply (particularly whether electrical heating is used or communal heating systems are in place);
•    The broadband supply;
•    Any issues that may affect mobile phone signal; and
•    Whether parking is available.

What is Part C material information?

Part C material information concerns itself with risks to the property condition. Typically, if information is required then it will have either been included in the conveyancing checks prior to purchase, or through communications with the local authority.

These include:

•    Building safety risks (unsafe cladding, presence of asbestos, unsafe flooring, etc)
•    Restrictions and rights (listed building status, restrictive covenants, lease conditions, etc)
•    Flood and erosion risks (whether the property has been flooded recently, whether it has sea defenses, etc)
•    Planning permission and proposals for development that may affect the property
•    Whether the property is in a coalfield or mining area
•    Whether the property has been adapted with things like wet rooms and step-free access. 

Property listings do not have to include this information unless it affects the property being advertised.

Please note that it is not clear whether Part C is actually enforceable as most of these matters are normally a matter for a conveyancer, with agents unlikely to be in a position to advise on these matters. As a result, it is not clear whether Part C of this guidance will be enforceable by local authorities in practice.

What about the EPC?

The energy performance certificate is not considered to be part of the material information but in most cases it must be included at the earliest possible opportunity.

Is this all the material information I must provide?

While the guidance published by NTSELAT is helpful and persuasive to courts, it should not be seen as a complete list of material information you should provide in an advert. What is material information is still a matter for the courts to decide based on the facts of the case. 

If there is other information about your property, good or bad, that an average tenant needs to make an informed choice then this is also likely to be material information and should be included.