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Regulator urged to use new powers to levy unlimited fines on rogue social landlord – London Wallet

Mark Helprin by Mark Helprin
July 2, 2024
in Real Estate
Regulator urged to use new powers to levy unlimited fines on rogue social landlord – London Wallet
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A housing safety specialist is calling for a council in London to be hit with a mega fine after the local authority referred itself to the Regulator of Social Housing (RSH).

Phil Turtle, of Landlord Licensing & Defence, believes the social housing fiasco should be seen as a ‘national scandal’. He wants the RSH to use its new powers and fine the council as much as the council would fine a private landlord.

The call comes after Southwark Council, which has 36,000 council homes, found that it had not met a new regulatory requirement to carry out electrical safety tests in its properties.

That led to the self-referral to the RSH which is an independent organisation for regulating the social housing sector.

Turtle said the regulator should hit the council with a fine equivalent to one a landlord in the private rented sector (PRS) would face.

He commented: “Under the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, any private landlord that failed to do an EICR every five years and who let a property without a valid EICR, would be fined by the very same local authority up to £30,000.

“In terms of the calculation of this fine, every LHA has a civil penalty matrix with the axis of ‘Harm’ and ‘Culpability’.

“The harm would be considered as being high as EICRs were introduced specifically because of the significant risks of electrical fires and electric shock/electrocution due to old fashioned, and now inadequate, circuit protection.

“The culpability would be rated on the landlord’s experience and ability.

“A single property landlord may be rated as low to medium, but a portfolio landlord would have no excuse for not knowing and would be rated at the top of the culpability scale.”

Turtled continued: “A landlord the size of the local authority would expect a fine of at least £25,000, if not the full £30,000

“As such, the local housing authority would be imposing fines of 10,000 properties, times – let’s say £27,000 each – which would be £270 million.

“Will the Regulator of Social Housing (RSH) impose such a fine?

“Of course not, the council will get a slap on the wrist and no one, particularly the incompetent staff will get away Scott-free.”

He added: “The regulator should use its new powers to levy unlimited fines – let’s see this being used so councils are treated in the same way as private landlords.”

Southwark says it is now carrying out the outstanding tests, in the form of Electrical Installation Condition Reports (EICR).

Council leader, Cllr Kieron Williams, said: “We take residents’ safety extremely seriously and are determined to keep raising the quality of our council homes.

“Whilst we have made real progress – improving our repairs service, tackling damp and making our homes safer from fire – we also have work to do.

“This includes completing these important electrical tests. I apologise for this delay.”

 





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