Tow Law is a former iron-smelting and coal-mining town in the uplands of County Durham, situated 8 miles north-west of Bishop Auckland and 14 miles west of Durham city on the A68 road. The town occupies an elevated position in Weardale at 900 feet above sea level, and is known for some of the most affordable residential property in England. Entry prices for terraced houses start from £45,000–£85,000 with gross yields of 10–15%, reflecting a combination of extremely low entry prices and a stable local rental market supported by Bishop Auckland hospital and public sector employment, Crook and Consett retail and services, and commuter access to Durham city and the wider A68 corridor. Durham County Council does not currently operate a district-wide selective licensing scheme.
The Renters' Rights Act 2025 (in force 1 May 2026) applies to all private rented properties in England including Tow Law, abolishing Section 21, converting all new lets to periodic tenancies from day one, and requiring mandatory Property Portal registration and PRS Ombudsman membership. Energy efficiency obligations are particularly important at Tow Law — the elevated location and older stone-built housing stock means EPC improvement works require careful planning.
Durham County Council landlord licensing
Licensing requirements for Tow Law landlords:
- Durham County Council does not currently operate a district-wide selective licensing scheme — always verify the current position with the council before letting
- Mandatory HMO licensing applies nationally to properties with 5 or more persons from 2 or more households — apply to Durham County Council
- HMO licence conditions include minimum room sizes, fire detection, annual gas safety certificate, 5-yearly EICR, and deposit protection
- The Renters' Rights Act 2025 Property Portal and PRS Ombudsman registration (mandatory from 1 May 2026) are additional to any local licensing
- Selective licensing can be introduced by any council with 10 weeks' consultation notice — check Durham County Council's website before letting
Renters' Rights Act 2025 — key obligations for Tow Law landlords
From 1 May 2026, all residential tenancies in England including Tow Law operate under the Renters' Rights Act 2025:
- Section 21 no-fault evictions abolished — all possessions must use a statutory ground from the new Schedule 2 of the Housing Act 1988
- Fixed-term tenancies cannot be granted for new lets from 1 May 2026 — all tenancies are periodic from the first day
- Tenants can end any tenancy with two months' written notice at any time
- Property Portal registration is mandatory before any property can be let — the Portal opens 1 May 2026
- PRS Ombudsman membership is mandatory from 1 May 2026 for all private landlords in England
- Rent increases must use the statutory Section 13 notice — contractual rent review clauses have no effect
Energy Performance Certificate (EPC) requirements
EPC compliance for Tow Law landlords:
- Current minimum: EPC Band E — properties below Band E cannot be let without a valid PRS Exemptions Register entry
- EPC Band C is confirmed government policy for 2030 — new lets from 2028 are likely to require Band C
- Tow Law has a significant stock of older stone-built terraced properties — solid walls cannot be cavity-filled and may require external or internal wall insulation to reach Band C
- The elevated location and older construction means heating costs are higher than average — loft insulation, draft-proofing, and efficient boilers are essential
- If solid wall insulation costs exceed the proposed £15,000 cost cap without reaching Band C, register a cost cap exemption on the PRS Exemptions Register
Gas and electrical safety
Safety certificate requirements for Tow Law rental properties:
- Annual gas safety check (CP12) by a Gas Safe registered engineer — mandatory under the Gas Safety (Installation and Use) Regulations 1998
- CP12 must be provided to new tenants before occupation and to existing tenants within 28 days of each annual check
- Five-yearly EICR — mandatory for all private rented properties in England; code C1/C2 defects must be fixed within 28 days
- Smoke alarms required on every storey; carbon monoxide alarms in every room with a gas appliance
- Older stone-built properties in Tow Law are likely to have dated electrical installations — commission an EICR before letting any property not recently tested
Deposit protection
Tenancy deposit obligations for Tow Law landlords:
- All deposits must be protected in a government-approved scheme — DPS, myDeposits or TDS — within 30 days of receipt
- Prescribed Information must be served on the tenant within 30 days of receiving the deposit
- Maximum deposit: 5 weeks' rent for annual rents under £50,000; 6 weeks' rent for annual rents over £50,000
- At Tow Law's rent levels the 5 weeks cap is very unlikely to present any practical constraint
- Failure to protect on time prevents valid Section 8 service and exposes the landlord to a penalty of 1–3 times the deposit
Tow Law investment case
Buy-to-let fundamentals for Tow Law investors:
- Gross yields of 10–15% on entry prices of £45,000–£85,000 — some of the highest nominal yields available in England
- Extremely low capital requirement creates very strong cash-flow profiles even after all compliance and maintenance costs
- A68 road access to Consett (8 miles), Bishop Auckland (8 miles), and Darlington (24 miles) supports tenant mobility across the Durham employment market
- No selective licensing removes a layer of compliance cost — mandatory HMO and Renters' Rights Act obligations are the key compliance framework
- Stone-built housing durability offsets higher initial EPC improvement costs over the long hold period typical of high-yield portfolio investment
Frequently asked questions
Does Tow Law have selective licensing?+
No. Durham County Council does not currently operate a selective licensing scheme. Mandatory HMO licensing applies nationally to properties with 5 or more persons from 2 or more households. Always verify with Durham County Council before letting.
When does the Renters' Rights Act apply to Tow Law landlords?+
The Renters' Rights Act 2025 came into force on 1 May 2026 and applies to all private rented properties in England, including Tow Law. Section 21 is abolished, all new lets are periodic, and landlords must register on the Property Portal and join the PRS Ombudsman.
What EPC band does my Tow Law rental property need?+
Currently Band E is the minimum. The Government has confirmed Band C as the target by 2030. Tow Law has a significant stock of older stone-built properties — solid walls cannot be cavity-filled and may require external or internal wall insulation. If improvement costs exceed £15,000 without reaching Band C, register a cost cap exemption.
Is Tow Law a good buy-to-let location?+
Tow Law offers gross yields of 10–15% on entry prices of £45,000–£85,000. The extremely low capital requirement delivers outstanding cash-flow, though EPC upgrade costs for stone-built properties require careful budgeting. No selective licensing simplifies the compliance framework.