If the proposals in the Renters’ Rights Bill (RRB) become law (as is expected), local authorities will be given greater powers to issue civil penalties to landlords – i.e. fine them without having to go to court:
- The maximum civil penalty will increase from £30,000 to £40,000. This is intended for serious and persistent breaches of the law.
- Councils will be given the power to issue civil penalties against landlords who evict tenants illegally. Currently, this has to be dealt with in court.
- If a property is found to have serious hazards, the council will be able to issue a fine of up to £7,000. Again, landlords can currently only be prosecuted for this in court.
- A maximum £7,000 fine will also apply if certain new regulations within the RRB are breached, including: landlords failing to register on the new Private Rented Sector Database, and encouraging tenants to engage in bidding wars for new lets.
In addition:
- The maximum payable under a Rent Repayment Order will be increased from 12 to 24 months’ rent.
- Rent Repayment orders will be extended to superior landlords. If you currently ‘rent to rent’, be aware that breaches by your tenant who is sub-letting could potentially impact you financially.
The proportion of landlords who break the law to the extent that they’re fined and prosecuted is relatively small and most often involves breaches of HMO regulations.
However, it’s worth knowing and keeping an eye on what breaches are being most heavily penalised - and in which local authority areas - as it may help you gauge your own council’s approach to enforcement.
Five significant landlord fines
Here are five cases that have been reported in the press in just the past four months:
- A landlord in Hastings was fined £10,000 in August after failing to provide an electrical safety certificate to the council when requested – which is a legal requirement.
"Regular and timely checks of the electrics within properties is an important safeguard for occupiers. Our team of officers will engage with landlords where appropriate to achieve compliance. However, where this is not appropriate or engagement is not forthcoming, we will not hesitate to take proportionate enforcement action. This protects occupiers but also helps to support a level playing field for those landlords who do comply with their duties and responsibilities." - Cllr Glenn Haffenden - Last July, the landlord of a block of student flats in Sheffield was fined £158,660 for 145 breaches of regulations, which included issues around fire safety, repairs and general maintenance. However, he appealed to the first-tier property tribunal and in September this year had the fine cut to £97,023.
The tribunal report stated: “There is clear evidence that the occupiers of the property have suffered harm. They have had to live in a property that is very much substandard and have had to put up with the presence of rats. The tribunal determines that [the landlord] has intentionally breached the regulations [and] there has been a systematic, serious and deliberate failure to comply with his legal duties.” - In October, a company that manages 750 rental properties across the UK was ordered to repay £15,290 in rent to three tenants of an HMO in Lambeth, South London. Investigations had found, among other things, that the property was unlicensed, the CO and fire alarms were expired, there was mould in the bathrooms, disrepair to the windows and the company had allowed a contractor to enter the flat without giving adequate notice.
- A landlord in Gateshead was fined nearly £7,000 in early November for failing to act on Improvement Notices that the council had served on three of his rented flats. Defects included: missing stair handrails, electrical hazards, damp and fire safety issues. South Tyneside Magistrates Court found that the landlord had 'failed to engage with officers' or to have the work carried out as required by the Notices.
“We value the contribution that a well-managed private rented sector makes to Gateshead, but we will not tolerate landlords that willingly let substandard properties that risk the health and wellbeing of local residents. Everyone has a right to live in a safe and warm home, and we will continue to take robust action against any landlords who disregard their responsibilities.” - Councillor Chris Buckley - Three landlords were found guilty of operating eight unlicensed properties across Northampton, all of which had fire safety failings, poor maintenance and inadequate tenant information. They were fined a total of just over £450,000, with the most serious offender receiving a fine of £312,000 for disregarding essential housing standards and endangering tenants.
Although larger fines are usually reserved for deliberate and/or persistent breaches, with the Labour Government’s commitment to increasing protection for tenants, we expect to see councils ramping up their enforcement action.
And with a lot of new rules set to come into force with the Renters’ Rights Bill – which could be passed as early as next spring – it’s never been more important to make sure your rental is always legally let and managed.
The best way to do that is to use the management services of a qualified and experienced agent.
So, if you currently look after your property and tenant yourself, we’d be very happy to talk through the benefits of our own fully managed service – as well as answer any questions you might have about the impact of the RRB.
You can find the details for your local lettings team here. To ensure your property is fully compliant, consider our fully managed services for landlords. Your investment will be in the hands of local lettings experts.
The Your Move Content Marketing Team
