Take rental properties from rogue landlords, committee says

Strong penalties recommended for landlords who flout laws

The Housing, Communities and Local Government Committee has called for harsher penalties for landlords who abuse their position. The measure that has grabbed the most attention would see Local Authorities (LAs) given powers to confiscate property from landlords guilty of large-scale exploitation of vulnerable tenants.

While it is the remotest of possibilities that any Purple Frog clients need to worry about this, it highlights that the select committee has the private rental sector (PRS) under the microscope. Previously, it caused ripples when it published its recommendations on the tenant fee ban.

The committee sees that, in some parts of the PRS, there is a clear imbalance of power in favour of the landlord. This means that some tenants are unwilling to complain about the state of their rented accommodation, for fear of reprisals.

Recent legislation has introduced £30,000 fines and banning orders, as punishments for rogue landlords. However, the committee doesn’t believe that LAs have sufficient resources to enforce the penalties already in their tool kits.

In fact, according to the committee, six out of ten LAs did not prosecute any landlords in 2016.

Committee chair, Clive Betts, MP, says:

“The imbalance in power in the private rented sector means vulnerable tenants often lack protection from unscrupulous landlords who can threaten them with retaliatory rent rises and eviction if they complain about unacceptable conditions in their homes.

Local authorities need the power to levy more substantial fines against landlords and in the case of the most serious offenders, ultimately be able to confiscate their properties.

Such powers are however meaningless if they are not enforced and at the same time councils need more resources to carry out effective prosecutions.”

The committee has made the following recommendations:

• Greater protection for tenants from retaliatory evictions or rent increases, and harassment
• A new fund to help LAs undertake informal enforcement activities
• New ways to communicate the rights and responsibilities of tenants and landlords
• LAs to publish their enforcement strategies online
• Give tenants, landlords and LAs more clarity by publishing a review of legislation relating to the PRS

With the growth of the PRS, the number of inadequate properties offered for rent has increased, but not the percentage, in relation to the sector as a whole. The majority of landlords are happy to comply with their responsibilities and offer rental properties that are of a good standard.

Further reading:

Announcement of recommendations: https://www.parliament.uk/business/committees/committees-a-z/commons-select/housing-communities-and-local-government-committee/news/private-rented-sector-report-17-19/

The full report:
https://publications.parliament.uk/pa/cm201719/cmselect/cmcomloc/440/44002.htm