Editor's note: This brief was summarised by The Property AI Team from a report by The Negotiator. Read the original article for full details.
Landlords and Agents Warned of Increased Licensing Penalties
Landlords and letting agents are being warned about expanding licensing schemes and increased penalties for non-compliance, according to Propertymark. Fines for breaching HMO licence conditions have been raised under the Renters’ Right Act, which came into force in May.
The first phase of the Act increased the maximum civil financial penalty for relevant Housing Act offences from £30,000 to £40,000. At the same time, councils across England are consulting on new selective and additional licensing schemes, as well as Article 4 directions affecting HMOs.
Propertymark highlights that the combination of growing local regulation, higher penalties, and the forthcoming Private Rented Sector (PRS) Database makes it increasingly important for agents and landlords to have a clear understanding of their obligations. The regulatory landscape for the private rented sector is described as increasingly complex.
Consequences for non-compliance can extend beyond civil penalties. Liability for an unlicensed property can apply to those managing or controlling a property, as well as 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 calling for greater coordination between national and local regulation. The organisation supports a national register but states that landlords and agents should not have to repeatedly provide the same information to different regulatory systems.
Source: The Negotiator