Landlords have been warned that the Renters (Reform) Bill could cost them dearly, despite plans to abolish Section 21 evictions being kicked into the long grass.
According to Landlord Licensing & Defence, the bill will bring in a raft of new enforcement measures against landlords that could result in massive fines and “even bankruptcy for some”.
The bill received its second reading in parliament earlier in the week and the government revealed that plans to abolish Section 21 ‘no fault’ evictions in England and Wales will be delayed until after the court system is reformed.
However, Des Taylor, a director of Landlord Licensing & Defence, warned that the bill as it stands will punish many common errors and oversights that landlords and agents make, and give local housing authorities (LHAs) the power to impose financial penalties of up to £30,000 for offences.
He said: “The bill will… introduce new requirements for landlords to register on a national register and with an ombudsman scheme, to provide meticulously correct paperwork and notice forms to tenants, and to comply with even more standards and regulations.
“Failure to do any of these things exactly will expose landlords to the risk of hefty fines from LHAs, who will have a statutory duty to enforce them under the bill when it is enacted.”
Taylor added that the bill also proposes to expand the scope of rent repayment orders (RROs), which allow the claiming back of up to 12 months of rent from landlords who have committed certain offences. He said this could be “devastating” for portfolio landlords who make mistakes.
Taylor criticised the lack of consultation on the bill, which he said had been overshadowed by the focus on ending ‘no fault’ evictions, and warned that many landlords and agents were unaware of the enforcement measures and their implications. He also called for a national authority to set the level of fines rather than leaving it to LHAs.
Taylor said: “The Renters (Reform) Bill might be a great idea in principle, but it has not been thought through in practice. It will create a lot of confusion and complexity for landlords and agents, who will have to navigate an enlarged minefield of new rules and regulations.
“We hope that the government will reconsider some of the proposals and listen to the concerns of the industry before it is too late and thousands more landlords exit the industry.”
