Councils can now fine landlords up to £7,000 for serious health and safety hazards in privately rented homes. Manjit Kataora, Foxtons Director of Legal and Compliance, explains the revised rating system and what it means for landlords.
Key Takeaways
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- 1 Councils can fine landlords up to £7,000 for serious hazards.
- 2 The hazard rating system has been simplified from 29 to 21 types.
- 3 Councils can now enter properties without prior notice.
- 4 Landlords must respond quickly when agents flag safety issues.
- 5 Professional management protects against compliance risk.
What the new fines cover
New powers in the Renters' Rights Act give councils power to issue fines of up to £7,000 if they find serious health and safety issues in privately rented homes. The fines apply to hazards rated as 'serious'. Typically these are severe damp and mould, freezing temperatures, broken boilers and faulty electrical systems.
Councils called upon to investigate any reported hazard will inspect it according to a revised hazard rating system, and assess the level of hazards found present. They must then consider the likelihood of harm for someone in the most vulnerable age group rather than the actual occupant.
The revised hazard rating system
The revised rating system updates the former system, introduced as part of the Housing Act 2004 reforms, consolidating the former twenty-nine hazards into twenty-one types. The previous ten bands of hazards (A to J) have now been reduced to three: High, Medium and Low, which are sub-categorised into Extreme, Severe, Serious and Moderate.
Council powers to inspect and enforce
Last December, councils gained new powers to enter premises without giving prior notice. These new powers combined, make it more important than ever that landlords act swiftly when notified about safety issues.
Councils are being actively encouraged by central government to make full use of their powers to enforce safety issues. On 22 June Housing Secretary Steve Reed said:
"The Government is acting to drive up standards in the private rented sector and make sure that strong action can be taken against landlords who fail to meet legal requirements."
As well as having more powers to enforce safety standards, councils have a legal duty to do so, making it more important than ever that landlords remain vigilant and responsive to issues flagged by their tenants.
What landlords need to do
Landlords will need to ensure they provide timely authorisation and instructions to agents who notify them about safety concerns raised by tenants so that agents can provide the most effective response to remediate issues before they get worse and become a danger to occupants. Fines are the most severe outcome of a hazard finding but councils have powers to issue notices and make recommendations for repairs.
The changes are touted as making the system easier to understand, but careful attention still needs to be paid to ensure the revisions are fully understood because the rating system is not well-known by landlords and can come across as a complicated matrix. Such complexity is further proof why property management remains a wise investment.
The government has published quite a lot of guidance about the new rating system but a good (if lengthy) starting point is the guidance published specifically for landlords and agents, which can be found here.
Compliance, enforcement, fines. None of it has to be your problem. Foxtons property management teams are fully equipped to meet every requirement of the Renters' Rights Act on your behalf. We take care of the legislation, the operational detail and the day-to-day communication for your let, so you know everything is covered and correct.
If your property is already tenanted, it does not need to have been originally let through Foxtons for you to benefit. Our team can step in and manage it for you at any stage.
Source: This article is written by Manjit Kataora, Foxtons Director of Legal and Compliance. With extensive experience in housing law and compliance, Manjit and his team provide clear guidance for London's landlords grounded in current legislation and real-world practice. If you have any questions on this article, email us to ask a Foxtons expert.
