The Government has revealed a range of new fines for both landlords and agents who flout the measures being introduced within the looming Renters’ Rights Bill.

For example, agents who market properties to rent belonging to landlords who have not signed up to join the Government’s new Private Rented Sector Landlord Ombudsman will face penalties of up to £7,000 for an initial breach and £40,000 or criminal prosecution for continuing or repeated breaches.

These penalties, which at the top end are £10,000 more than existing ones for non-compliance with other legislation such as selective licencing, have been revealed within the Government’s detailed summary of the Renters’ Rights Bill going through parliament. It is expected to become law later this year or early in the New Year.

Punitive

A similarly punitive regime of fines and potential prosecution face landlords who fail to join the new Private Rented Sector Database, which will require them to register details about themselves and their properties. These property details will be restricted to minimum standards details and compliance with mandatory requirements such as Gas Safety Certificates.

The legislation will give local authorities to power to take enforcement action against landlords who fail to join the ombudsman scheme and those who don’t join, and who then let or advertise a property to rent, will face a fine of up to £7,000 and for repeated offenders up to £40,000.

The new database and the ombudsman will be free for tenants to access but will both charge landlords a ‘proportional and good value’ fee to sign up for.

More fines

There are other fines within the bill including up to £7,000 for landlords and agents who ‘overtly’ discriminate against tenants who have children or who are on benefits, and also landlords or agents who are caught encouraging competitive bidding for tenancies, and also who operate properties that do not meet the new Decent Homes Standard for the sector.

The guidance also reveals that councils will be able to force landlords and agents to hand over information and give officers “powers of entry to business and residential premises”.

Also, for the first time, local councils will also be able to issue civil penalties against landlords who evict their tenants illegally.

Read the full summary of the Renters’ Rights Bill.