Note: Articles on the Renters’ Rights Bill will be continuously updated as details emerge
Last updated 11 October 2024
Read an interactive and user-friendly version of this guide below.
Introducing new legislation, such as the Decent Homes Standard and the requirement for private landlords to belong to the Private Rented Sector Ombudsman and register on a Private Rented Sector Database , is part of driving up standards in the private rented sector. And most landlords will recognise that these are positive steps.
However, there will always be a minority who choose to flout the law, so it’s important that there are serious consequences for non-compliance and that local councils are able to take significant action quickly when necessary.
As it stands, local councils can issue civil penalties of up to £30,000 to landlords who breach certain lettings regulations, but this is limited. For instance, if a rented property is found to have serious hazards, or a landlord evicts a tenant illegally, they can only be prosecuted through the courts, which can be time-consuming and costly.
The Renters’ Rights Bill has expanded the range of local authority enforcement powers and increased the maximum fines they can issue to landlords without having to go to court:
In addition, rent repayment orders will be extended to superior landlords, and the maximum penalty will be doubled, from one to two years’ rent. This is intended to help crack down on disreputable rent-to-rent schemes in particular.
One of the key problems for many councils trying to improve their local private rented housing stock, including via clampdowns on rogue landlords, is that they lack the powers and funding to do it.
Only a handful of (mainly) London councils have large teams inspecting properties and following up their failings with landlords. But across London, according to Safer Renting, 2.2 enforcement officers on average are expected to police around 10,000 homes each.
It’s why so many HMO and selective licensing schemes have sprung up across the UK in recent years – they are a way for local authorities to fund better enforcement.
Ministers are aware that they can promise as much new legislation and regulation as they like, but it’s local councils who do much of the heavy lifting - and who, ironically, have had their budgets slashed in recent years.
So, despite having had the power to issue fines of up to £30,000 without going to court, a simple lack of resources has meant the problem of sub-standard rented properties has not been properly tackled and there are still landlords getting away with breaking the law.
“The introduction of the new Private Rented Sector Database should make it much easier for local councils to monitor the standard of rented homes in their area, and increased enforcement powers will allow them to take direct action in a wider range of circumstances where landlords are not fulfilling their legal obligations and responsibilities.
However, it is important for the Government to back up the positive changes the new Bill will introduce, by making sure councils have adequate funding and sufficient resources to make a practical difference on the ground.”
- Sean Hooker, Head of Redress at the Property Redress Scheme
In the second reading of the Bill on 9 October 2024, Matthew Pennycook agreed that enforcement of the measures in the Bill will cause ‘resourcing challenges’ for local councils. While the Government believes the civil penalties will help fund enforcement, he confirmed that additional burdens on councils would be ‘fully funded’.
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