Housing & Planning Act - key regulations and timetable
Rogue landlords can be banned from renting homes under new rules brought in by the Government's Housing and Planning Bill.
New legislation also includes plans for the creation of database of criminal landlords and agents – as well as powers to impose civil penalties of up to £30,000.
The Government's Housing and Planning Bill finally received Royal Assent in May after a prolonged period of Parliamentary ping pong. So what happens next?
The Act applies to landlords in England. The sections affecting private renting survived largely unchanged, with the addition of two enabling amendments that will allow the introduction of electrical safety standards and checks, and a requirement to agents to hold client money protection.
The new Act includes several measures designed to tackle rogue landlords and property agents:
- Banning orders for most prolific offenders - In effect the order would ban individuals from letting a property, or acting as a letting agent or as a property manager in England. The Government has promised an autumn consultation on what offences could result in a banning order, with draft regulations published in early 2017 and the measures coming in to force in October 2017.
- Database of rogue landlords/property agents - The database of rogue landlords and agents will be held by DCLG and updated by local authorities. Those with banning orders made against them will be included, plus those where a local authority deems them suitable for inclusion, even if they are not in possession of a banning order. Currently, only local authorities are proposed to have access to the register. Implementation is expected by October 2017.
- Civil penalties of up to £30,000 - The Government expects to publish guidance on in March 2017, with the measures taking force in April 2017
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Extension of Rent Repayment Orders - The First Tier Tribunal will be able to make the orders to deter landlords who have committed an offence or breached a banning order. The order will require a landlord to repay the rent - either direct to the tenant, or to the loacal authority for housing benefit or universal credit. Guidance is expected to be available from March 2017, with the measures taking force in April 2017
- Tougher Fit and Proper Person test for landlords - guidance to be published along with Civil Penalities and RRO, with the new tests being implemented in October 2017.
- Tenancy Deposit Protection Scheme data sharing - Local authorities will be able to request data from tenancy deposit protection schemes to help identify private rented property and landlords, take action against rogue landlords and enforce housing standards.
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One of the later amendments was introduction of compulsory client money protection (CMP) for letting agents, which will include management of short term lets (long-leasehold managing agents it seems are excluded) and relocation agents. This is currently under review but it has been suggested it may run similarly to the deposit protection scheme, whereby government approved
Under the Act a new statutory code will be introduced enabling landlords to recover property if the assured shorthold tenant has abandoned it, without the need to serve a Section 21 Notice or obtain a Possession Order. This can only take place if the tenant owes more than two months’ consecutive rent and must, of course, have left the property. If this is the case the landlord must give at least three warning notices on the tenant and two of these must be sent to the tenant as well as others such as the deposit payer. The landlord must give at least eight weeks for the tenant to respond to the notices. Only if none of these notices have been responded to saying the property is not abandoned and/or no rent at all is paid can the landlord repossess the property
New electrical safety standards for properties let by private landlords - obligation on Landlords to ensure that electrical safety standards are met during any tenancy term. Landlords are likely to be required to carry out and give evdence of an electrical safety test on the installation of the electrical supply and the electrical fixtures and fittings or appliances that the Landlord may have supplied. Until the Secretary of State has passed the regulation, we will not know the extent of the obligations, this is currently under review.
If you would like more detail you will find the full Act published here
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