The Renters’ Rights Bill will significantly increase the local authority powers to enforce landlord regulations in their area.
Currently, only a few local authorities carry out enforcement of landlord regulations. In some areas, there is no enforcement. This is mainly because there is no legal obligation on them to do so, and because most enforcement is via prosecutions which can be expensive and time consuming.
The Renters’ Rights Bill is aiming to change this, by placing a statutory duty on local authorities to enforce landlord regulations. This will change their powers from discretionary to mandatory.
There will also be a new duty on local authorities to provide reports to the Secretary of State on their enforcement of landlord legislation. The Bill will provide the Secretary of State with the power to appoint a lead enforcement agency which will have the power to oversee enforcement and provide information or advice to local authorities. This agency will also be able to take enforcement action itself.
Local authorities will have advanced powers to require information, enter business premises without a warrant, and seize documents.
The government will produce guidance on these powers before the Bill comes into effect.
What is the impact on landlords?
The result of these new rules will be that local authorities will be carrying out more enforcement work, because there is a legal obligation for them to do so.
This, as well as the abolition of the section 21 route to possession, means that landlords will need to take more care when choosing their tenants.
For self-managing landlords, they will need to take extra care that they are being compliant with all regulations.
Where managing agents are used, landlords will need to take care when choosing their agent and ensure throughout the tenancy that they are complying with all the regulations. Even when using a managing agent, landlords should keep up to date and informed on the rules, as under agency law they are liable for everything their agents do.
What can landlords be fined for?
Landlords who fail to comply with the relevant rules can be fined up to £7,000 by the local authority, and in most cases will be unable to obtain a possession order. In cases of serious offences, for example where fraudulent information is provided, this can be up to £40,000. Where there are multiple breaches, there can be multiple fines.
Landlords might be fined by local authorities for many different things, including:
- Failure to join a redress scheme or to register on the database
- Failure to clearly state the proposed rent
- Breaching the rent bidding restrictions
- Unlawfully discriminating between tenants
- Failure to provide a written statement (tenancy agreement) that includes the prescribed terms
- Purporting to let a property on a fixed term
- Breaching decent homes standard
- Failure to comply with Awaab's law
- Purporting to end a tenancy orally
- Giving an invalid or inappropriate possession notice
Should you need any further advice on landlord and tenant law please contact our specialist solicitors on 01616 966 229 or complete our online enquiry form.
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