Due diligence checks before buying

1. Title and tenure

• Freehold or leasehold? Freehold means you own the building and land. Leasehold means you own the right to occupy for a set term.
• For leasehold, check the remaining lease length (short leases can be costly to extend and may affect lending), ground rent, service charge history, major works and the managing agent.
• Check boundaries, rights of way, restrictive covenants and any charges on the title.

2. Legal pack and solicitor

Your solicitor or conveyancer reviews the contract, title documents, property information forms and fixtures list, and raises enquiries with the seller's side. Ask them to explain anything unclear in plain terms, including risks specific to an investment purchase.

3. Searches

Typical searches cover local authority matters (planning history, building control, roads), drainage and water, and environmental issues such as flooding, contaminated land or mining where relevant. Your solicitor advises which apply.

4. Survey

Arrange a survey proportionate to the property's age and condition, and obtain specialist reports where advised. See our guide on assessing a refurbishment opportunity.

5. Energy performance (EPC)

• A property let on an assured tenancy generally needs a valid EPC.
• Under current law in England and Wales, rented homes generally cannot be let if rated F or G, unless a valid exemption is registered. A landlord is not required to spend more than £3,500 including VAT on improvements to reach band E.
• The government has set out an aim for privately rented homes to reach band C or equivalent by 2030 and has been working on how to do it. Check gov.uk for whether and when this becomes law; it is not current law as described here. Factor in possible upgrade costs before you buy.

6. If the property is tenanted

Ask for and review:

• The tenancy agreement and any rent history
• Deposit protection details: which scheme and when it was protected
• Current gas safety record, electrical installation condition report, smoke and carbon monoxide alarm records and EPC
• Whether any arrears, disputes or notices exist

Renters' Rights Act 2025

The Act is being brought in by phases. According to the government's implementation roadmap, from 1 May 2026 most private tenancies became assured periodic tenancies, section 21 "no fault" evictions were abolished, rent increases are limited to once a year by a set procedure, and rules on rent in advance, bidding, pets and discrimination apply. The next phase starts with a mandatory landlord database, due to roll out region by region from late 2026 (check gov.uk for the date for your area). The landlord ombudsman follows from 2028. Later changes, such as the Decent Homes Standard and extending Awaab's Law, have dates still to be confirmed.

Because a purchaser takes over an existing tenancy, ask your solicitor how the current rules affect that tenancy and your plans, and check the latest gov.uk guidance.

7. Planning and licensing

• Confirm the lawful use (single household, HMO or other) and whether planning permission or an Article 4 direction applies.
• Check whether an HMO, additional or selective licence is needed or held, and whether it transfers. Rules differ by council.

8. Insurance

Check that buildings and landlord insurance can be arranged for the property and its use, especially if it is unoccupied, being refurbished or let to sharers. Some properties are harder to insure.

9. Finance

Confirm how you will fund the purchase, including deposit, costs and any works. Lenders have their own criteria, valuation approaches and timescales. Speak to an independent, regulated adviser. Allow for the chance that a valuation comes in lower than expected.

10. Source of funds and AML checks

Solicitors, estate agents and lenders are subject to anti-money-laundering rules. Buyers should expect to prove their identity and address, and to explain and evidence where the purchase money has come from, such as bank statements, savings, sale proceeds or gifts. Where a company or trust is buying, expect questions about who owns and controls it. Gathering this early helps avoid delays.

Final points

• Do not skip steps because a deal feels urgent.
• Keep written records of what you were told.
• Get independent advice from a solicitor, a surveyor and, where relevant, a tax adviser and mortgage adviser.