Landlords and letting agents to face tougher penalties in rental market reform

Any landlord or letting agent found to be breaking the law could soon be facing tougher penalties from magistrates, following a Government consultation on how to better regulate the industry.

Higher fines, as well as civil penalties, are just some of the potential punishments that could be used to crackdown on rogue property managers, and they could even be forced to repay rent taken at the beginning of a tenancy if found to be providing a substandard property or level of service.

The Department for Communities and Local Government (DCLG) has made it clear that it believes current fines for landlords are too affordable, meaning that the impact of them is lessened.

New proposals in the DCLG’s ‘Tackling rogue landlords and improving the private rental sector’ paper include a number of key points, such as: creating a blacklist of rogue landlords and letting agents, to prevent repeat offenders from working in the industry; new civil penalties and fines for damp, overcrowding, disrepair and vermin infestations; and for local authorities to be given the power to seize private rental properties.

While magistrates theoretically have the option to serve landlords with unlimited fines for failing to observe legislation, the average amount is only £1,500, but if the new rules are implemented fines could go up to approximately £5,000.

Rent repayment orders were introduced in 2004, but only a small number have been issued.

A spokesman for the Association of Residential Letting Agents said: “We are staunch advocates of any moves to improve standards in the private rented sector and welcome the consultation.”