According to the Chartered Institute of Environmental Health (CIEH), a “fundamental review” of private rental sector legislation is necessary to tackle rogue landlords and letting agents.
In a response to the Government’s technical discussion paper on tackling rogue landlords and agents in the private rental sector, the CIEH believes harsher penalties are needed to deter rogue landlords, including minimum fines of £5,000 and imprisonment terms for those that breach bans.
The CIEH states: “It is our view that a fundamental review and consolidation of the entire legislative framework is necessary to bring about comprehensive reform and rejuvenation.”
Responding to the question: ‘Do fines reflect the gravity of a (landlord’s) offence?’ the CIEH says: “No, the fines are almost always too low and do not consider the severe impact (or potential impact) on the tenants or reflect the significant capital and revenue gains to landlords.
“Courts should be required to consider the impact on the tenants and the total assets/rental streams when setting the fine. A minimum fine of, say, £5,000 would be more appropriate.
“We would support setting a minimum fine for repeat offenders, with £7,500 being our preferred level. Courts should consider the impact on and assets of landlords in setting the fine, whilst we would also support giving the courts the power to ban repeat offenders from managing or letting properties for a defined period.”
When asked if it thinks there should be a blacklist of persistent rogue landlords and agents, the CIEH replied: “We support in principle the establishment of such a blacklist on the basis it should make it easier for local authorities to carry out checks on landlords. Our concern is that landlords may not be afraid of being blacklisted.
“The database should include lettings related data, such as gas, electricity and Land Registry information, and should be accessible to tenants. All landlords should be registered to a UK-based address or provide a UK representative for service of formal notices.”
The organisation also believes it should be mandatory for offenders to be placed on the blacklist, and not left to the court’s discretion.
It says a “term of imprisonment”1 was justified for landlords that breach bans, as well as forced property sales, rent payment orders and action under the Proceeds of Crime Act.
1 http://www.propertyindustryeye.com/call-for-harsher-penalties-to-deter-rogue-agents-and-landlords/