Landlords and agents warned about heavier licensing penalties
Tim Thomas of Propertymark says stiffer fines and expanding licensing schemes are now in place in many locations.
Landlords and letting agents face expanding licensing schemes and increased penalties for non-compliance, Propertymark warns.
Fines for breaching HMO licence conditions were raised under the Renters’ Right Act, which came into force in May.
At the same time, councils across England are consulting on new selective and additional licensing schemes, alongside Article 4 directions affecting HMOs.
Maximum penalty
The first phase of the Act increased the maximum civil financial penalty for relevant Housing Act offences from £30,000 to £40,000.
Propertymark says the combination of growing local regulation, higher penalties and the forthcoming Private Rented Sector (PRS) Database, make it increasingly important that agents and landlords have a clear understanding of their obligations.
The regulatory landscape for the private rented sector is becoming increasingly complex.”
Tim Thomas, Senior Policy and Campaigns Officer at Propertymark (pictured), says: “The regulatory landscape for the private rented sector is becoming increasingly complex, and the cost of getting compliance wrong is rising.
“Agents and landlords need to be absolutely clear about whether a property requires a licence, what conditions apply and who carries responsibility within the ownership and management structure.”
He adds: “Responsible landlords and professional agents should not be faced with unnecessary duplication, excessive administration or a patchwork of requirements that makes it harder to provide much-needed homes.”
Consequences
The consequences can also extend beyond civil penalties. Liability for an unlicensed property can apply to those managing or controlling a property and landlords higher up a rent-to-rent chain.
Failure to obtain a required licence can also result in a rent repayment order of up to two years’ rent in relevant cases.
Propertymark is also calling for greater coordination between national and local regulation. It supports a national register but says landlords and agents should not have to repeatedly provide the same information to different regulatory systems.
