Crack Down on Rogue Landlords! Banning Orders and UK Database Introduced.
Landlords may be forgiven for thinking that in 2018, the seemingly never-ending legislation is “out to get them”. Which of course, it is. But mostly targeted at those landlords who fail to comply with their statutory duties. From 13th January – when landlords or agents were no longer allowed to impose credit / debit card surcharges on electronic payments for property rentals or deposits – more than a dozen items of legislation are to be introduced.
The main legislation comes into force in April and October, and includes the Minimum Energy Levels Regulations (MEES), the Gas Safety (Amendment) Regulations 2018, General Data Protection Regulations (GDPR), the Deregulation Act 2015, HMO and Residential Property Licensing Reforms.
However, many more await a finalisation date, including Homes (Fitness for Human Habitation and Liability of Housing Standards) and the Private Landlords (Registration) Bill. The new rules are intended to crack down on a small minority of landlords who continue to flout the rules by renting out unsafe and substandard accommodation
A landlord may also be placed on the new “rogue” database
The latest legislation – “Banning Orders and Rogue Landlord/Agent Database” – was introduced on the 6th April (in England only) to stop a landlord (or an agent) from operating property lettings if they have been convicted of a banning order offence. A landlord or agent may also be placed on the new “rogue” database if they’ve been convicted of a banning order offence for a minimum of two years. Even without a banning order, a landlord may be placed on the database if they have received a financial penalty for a banning order offence at least twice in a 12 month period.
The new ruling means that councils will be able to more easily share data on “rogue” landlords throughout the UK, and ensure they cannot simply move to another area and carry on operating. The list of offences is extensive, and all landlords need to check carefully to ensure they are compliant with the new regulations.
The main actions for which a landlord can be found culpable include:
- Illegal eviction or harassment of a tenant
- Use of violence to secure entry
- Licensing of Houses in Multiple Occupation
- Selective licensing under Part 3 of the Housing Act 2004 (section 95)
- Fire and Gas safety offences
- Providing false or misleading information
- Failure to comply with an Improvement Notice or a Prohibition Order
- Offences related to an overcrowding notice
Civil Penalties under the Housing and Planning Act
The crackdown on “rogue” landlord activity provides council with extended powers to levy a civic penalty as an alternative to prosecution. Under The Housing and Planning Act 2016 – which updates the Housing and Planning Act 2004 – local authorities can impose a fine of up to £30,000 for a range of offences, including a breach of a banning order. The new government guidance on civil penalties also introduces the Rent Repayment Orders under the Housing and Planning Act, which allows local authorities to seek a rent repayment order against private sector landlords.
A landlord operating a property portfolio should consult with their professional property management service. Many new landlords who have only just started building their portfolio may simply not have the time or resources to ensure they will be compliant with the various new regulations due in 2018. A local area estate agent may be able to offer a bespoke property management service, specifically structured to a landlord’s current needs and help with ensuring future investment growth potential.
