The proportion of landlords who break the law and make the headlines with their fines and prosecutions is relatively small and most often involves breaches of HMO regulations.
However, it’s worth all landlords knowing and keeping an eye on what breaches are being most heavily penalised, and in which local authority areas, as it may help gauge the responsiveness of your own council.
Here are five cases of significant landlord fines that have been reported in just the past four months:
August
- A landlord in Hastings was fined £10,000 after failing to provide an electrical safety certificate to the council when requested – which is a legal requirement.
Cllr Glenn Haffenden said: "Regular and timely checks of the electrics within properties is an important safeguard for occupiers. Our team of officers will engage with landlords where appropriate to achieve compliance. However, where this is not appropriate or engagement is not forthcoming, we will not hesitate to take proportionate enforcement action. This protects occupiers but also helps to support a level playing field for those landlords who do comply with their duties and responsibilities."
September
- The landlord of a block of student flats in Sheffield was fined £158,660 in July 2023 for 145 breaches of regulations, after four visits by council officials found issues around fire safety, repairs and general maintenance. However, he appealed to the first-tier property tribunal and had the fine cut to £97,023.
A report for the tribunal, stated: “There is clear evidence that the occupiers of the property have suffered harm. They have had to live in a property that is very much substandard and have had to put up with the presence of rats. The tribunal determines that [the landlord] has intentionally breached the regulations [and] there has been a systematic, serious and deliberate failure to comply with his legal duties.”
October
- A company that manages 750 rental properties across the UK was ordered to repay £15,290 in rent to three tenants who took their landlord to court over the state of their unlicenced HMO in Lambeth, South London. Investigations had found, among other things, that the CO and fire alarms had been allowed to expire, there was mould in the bathrooms, disrepair to the windows and the company had allowed a contractor to enter the flat without giving adequate notice.
November
- A landlord in Gateshead was fined nearly £7,000 for failing to act on Improvement Notices that the council had served on three flats he rented out. Defects included: missing stair handrails, electrical hazards, damp and fire safety issues. South Tyneside Magistrates Court found that the landlord had ‘failed to engage with officers’ or to have the work carried out as required by the Notices.
Councillor Chris Buckley of Gateshead Council said, “We value the contribution that a well-managed private rented sector makes to Gateshead, but we will not tolerate landlords that willingly let substandard properties that risk the health and wellbeing of local residents. Everyone has a right to live in a safe and warm home, and we will continue to take robust action against any landlords who disregard their responsibilities.”
- Three landlords were found guilty of operating eight unlicensed properties across Northampton, all of which had fire safety failings, poor maintenance and inadequate tenant information. They were fined a total of just over £450,000, with the most serious offender receiving a fine of £312,000 for disregarding essential housing standards and endangering tenants.
Increased penalties under the Renters’ Rights Bill (RRB)
If the current proposals within the RRB pass into law, landlords will be subject to the following increases in civil penalties – i.e. fines that can be issued by their local authority without having to go to court:
- The maximum penalty will increase from £30,000 to £40,000 – this is intended for serious and persistent breaches of the law.
- Councils will be given the power to issue civil penalties against landlords who evict tenants illegally. Currently, this type of breach can only be dealt with in court.
- If a landlord fails to keep their property free from serious hazards, the council will be able to issue a fine of up to £7,000. Again, landlords can currently only be prosecuted for this in court.
- A maximum £7,000 fine can also be issued for offences relating to certain regulations within the RRB – including encouraging bidding wars for new lets and failing to register on the new Private Rented Sector Database.
In addition:
- The maximum payable under a Rent Repayment Order will rise from 12 to 24 months’ rent.
- Rent Repayment orders will be extended to superior landlords, so if you currently ‘rent to rent’, be aware that breaches by your tenant landlord could potentially impact you financially.
Although larger fines are usually reserved for deliberate and/or persistent breaches, with the Labour Government’s commitment to protecting tenants and preserving their rights to a greater extent than they have ever been before, we can expect them to support councils in ramping up enforcement action and provide additional funding.
And with a lot of new rules set to come into force with the RRB – which could be passed as early as next spring – by far the best way to ensure your rental is always legally let and managed is to take advantage of a full management service provided by qualified professionals.
If you currently look after your property and tenant yourself, we’d be very happy to answer any questions you have about the impact of the RRB and talk through the benefits of our own Fully Managed service. You can find the contact details for your local lettings team here.
The Reeds Rains Content Marketing Team
