Private sector housing enforcement policy

The Housing Act 2004

The Housing Act 2004 (the Act) provides that, amongst other things, the statutory minimum standard for all homes in England and Wales, the Housing Health and Safety Rating System (HHSRS).

HHSRS is a calculation of the effect of 29 possible hazards on the health of occupiers and the legislation provides a range of actions for addressing identified hazards. This Policy takes account of the guidance provided by the Government and sets out how the Council will use its powers and reach its decisions in relation to the HHSRS (Part 1 of the Housing Act 2004).

The Council has a duty to take action to address Category 1 hazards as defined by the Act and must decide which of the available enforcement options is the most appropriate to use.

In the case of Category 2 hazards identified under HHSRS the Council has the power to take action and will exercise its discretion and consider individual cases and circumstances when deciding whether to take action in response to Category 2 hazards.

Housing Act 2004 notices and orders

Improvement Notices require the recipient to carry out certain works within a specified time period. It is anticipated that Improvement Notices will be an appropriate and practical remedy for most hazards.

Where the Council determines that an Improvement Notice should be served in respect of a Category 1 Hazard, it will:

• Require works that will either remove the hazard entirely or reduce its effect so that it ceases to be a Category 1 hazard.

Where the Council determines that an Improvement Notice should be served in respect of a Category 2 Hazard, it will:

• Require works it considers sufficient either to remove the hazard or reduce it to an appropriate degree.

Suspended Improvement Notices provide the Council with the power to suspend an Improvement Notice once served.

The Council will consider this course of action where it is reasonable in the circumstances, to do so, for example,

• The need to obtain planning permission (or other appropriate consent) that is required before repairs and/or improvements can be undertaken; and
• Personal circumstances of occupants, which suggests that works ought to be deferred.

When deciding whether it is appropriate to suspend an Improvement Notice, the Council will have regard to:

• The level of risk presented by the hazard(s);
• The response or otherwise of the landlord or owner; and
• Any other relevant circumstances (e.g. whether the vulnerable age group is present).

Suspended Improvement Notices will be reviewed on an ongoing basis, at least every six months.

Prohibition Orders can be used in respect of both Category 1 and Category 2 hazards for all or part of a dwelling and are likely to be used if repair and/or improvement appear inappropriate on grounds of practicality or excessive cost (i.e. the cost is unrealistic in terms of the benefit to be derived).

Prohibition Orders can prohibit specific uses (Section 22 (4)(b) Housing Act 2004); this option may be employed to prevent occupation by particular descriptions of persons, for example, premises with steep staircases or uneven floors which make them particularly hazardous to elderly occupants and premises with open staircase risers or widely spaced balustrades that make them particularly unsuitable for infants.

Suspended Prohibition Orders provide the Council with the power to suspend a Prohibition Order once served.

The Council will consider this course of action where it is reasonable in the circumstances to do so. Suspended Prohibition Orders will be reviewed on an ongoing basis, at least every six months. The Council will consider any written requests made for alternative uses of premises in accordance with our planning duties.

Hazard Awareness Notices may be served to notify owner-occupiers of the existence of hazards (for example where the risk from the hazard is mitigated by the longstanding nature of the occupancy). It might also be applicable where:

• It is judged appropriate to draw a landlord’s attention to the desirability of remedial action; and
• To notify a landlord about a hazard as part of a measured enforcement response.

Emergency Remedial Action & Prohibition Orders may be used specifically where the Council is satisfied that:

• A Category 1 hazard exists, and that
• the hazard poses an imminent risk of serious harm to health or safety, and that
• Immediate action is necessary.

If these conditions are met, the Council will take appropriate emergency action. Situations in which emergency action may be appropriate include:

• Residential accommodation located above commercial premises which lack a safe means of escape in the event of fire because there is no independent access; and
• Risk of electrocution, fire, gassing, explosion or collapse.

Demolition Orders provides the Council with the power to make an Order to demolish the building as a possible response to a Category 1 hazard (where they are judged the appropriate course of action). In determining whether to issue a Demolition Order, the Council will take account of Government guidance that is applicable at the time and will consider all the circumstances of the case.

Clearance Areas can be declared if the Council is satisfied that each of the premises in the area is affected by one or more Category 1 hazards (or that they are dangerous or harmful to the health and safety of inhabitants as a result of a bad arrangement or narrowness of streets). In determining whether to declare a Clearance Area, the Council will act only in accordance with Section 289 of the Housing Act 1985 (as amended) and having had regard to relevant Government guidance on Clearance Areas and all the circumstances of the case.

Houses in Multiple Occupation (HMOs)

Part 2 of the Housing Act 2004 introduced a mandatory licensing system for certain types of Houses in Multiple Occupation (HMO).

The aim of licensing is to ensure that every licensable HMO is safe for the occupants and visitors and is properly managed.

Since 2006 all HMOs of three or more storeys with five or more occupants, sharing facilities required a licence.

The Government has introduced changes to the mandatory licensing system set out in the Housing Act 2004 that will remove the “three-storey rule” and as such from October 2018 owners of HMOs with five or more occupants must apply to the Council to have their properties licensed.

The responsibility for applying for a licence rests with the person having control of or the person managing the property.

The Housing Act 2004 also provides the Council with the power to apply Discretionary Licensing, either by way of Additional or Selective Licensing based on specific conditions being met. Should an area within Coventry ever become subject to discretionary licensing, a specific enforcement policy will be developed to accompany any designation.

HMO licensing offences

The Housing Act 2004 sets out a number of licensing related offences all of which carry an unlimited fine, including:

• Operating an unlicensed HMO;
• Allowing an HMO to be occupied by more persons than a licence allows;
• Breach of licence condition; and
• Supplying incorrect information in a licence application.

Rent Repayment Orders (RRO)

In addition to the above, a landlord who operates an unlicensed HMO can be subject to a Rent Repayment Order (RRO) by a First-tier Tribunal (Property Chamber) under sections 96 and 97 of the Housing Act 2004.

A RRO requires repayment of rent received by the landlord over a period of up to 12 months. The Council will usually consider applying for such a measure if the landlord has received rent that has been paid by Housing Benefit.

Where an unlicensed HMO is identified, the Council will assess whether there are good reasons why an application has not been received. If there are no good reasons, the Council will look to take formal proceedings with a view to prosecution in the courts or by way of issuing a Civil Penalty.

Any action in relation to a breach of licence conditions will be assessed on how serious the breach affects the safety of the occupants or whether the responsible person does not carry out necessary works within an agreed timescale or has been given a previous opportunity to comply. Where appropriate the Council will pursue legal proceedings if it is in the public interest to do so.

Interim and final management orders

An Interim Management Order (IMO) transfers the management of a residential property to the Council for a period of up to twelve months. The circumstances in which an order can be made are discussed below. In particular, the IMO allows the Council possession of the property against the immediate landlord, and subject to existing rights to occupy can;

• Do anything in relation to the property, which could have been done by the landlord, including repairs, collecting rents etc.
• Spend monies received through rents and other charges for carrying out its responsibility of management, including the administration of the property
• To create new tenancies (with the consent of the landlord).

Under an IMO the Council must pay to the relevant landlord (that is the person(s) who immediately before the order was made was entitled to the rent for the property) any surplus of income over expenditure (and any interest on such sum) accrued during the period in which the IMO is in force. It must also keep full accounts of income and expenditure in respect of the house and make such accounts available to the relevant person.

The Council must take enforcement action in respect of a licensable property (which means an HMO subject to Part 2, or other residential property subject to Part 3) by making an IMO if:

• the property ought to be licensed, but is not, and the Council considers there is no reasonable prospect of it granting a licence in the near future; and/or
• the Health and Safety Condition isn’t met and, therefore, it would not have granted an application for a licence.

An IMO may not, however, be made on these grounds if an effective application is outstanding with the authority for the grant of a licence or a Temporary Exemption Notice or if such a notice is in force.

Final management orders

In exceptional circumstances, the Council can also apply to the First-Tier Tribunal (Residential Property) for a Final Management Order (FMO) which can last for up to five years. Such powers will only be used in exceptional circumstances and will be authorised through the appropriate method.

Management order management schemes

The Council must adopt a management scheme for a property subject to an FMO. The scheme must set out how the Council intends to manage the house.

In particular, the management scheme must include:

• The amount of rent it will seek to obtain whilst the order is in force;
• Details of any works which the Council intends to undertake in relation to the property;
• The estimate of the costs of carrying out those works;
• Provision as to the payment of any surpluses of income over expenditure to the relevant landlord, from time to time; and
• In general terms how the authority intends to address the matters that caused the Council to make the order.

The Council must also keep full accounts of income and expenditure in respect of the house and make such accounts available to the relevant landlord.

Temporary Exemption Notices

Where a landlord is or shortly will be taking steps to make an HMO non-licensable, the Council may serve a Temporary Exemption Notice (TEN). A TEN can only be granted for a maximum period of three months. In exceptional circumstances, a second TEN can be served for a further three-month period. A TEN will be considered where the owner of the HMO states in writing that steps are being taken to make the HMO non- licensable within 3 months.

Raising Standards in HMOs

Under current legislation, many HMOs do not currently require a licence. These include houses containing self-contained flats and smaller HMOs. Many of these still pose a significant degree of risk to occupants and/or have a history of being poorly managed. The Council will continue to regulate such HMOs through enforcement of the HMO Management Regulations and by use of the HHSRS.

General Management of HMOs

The Management of Houses in Multiple Occupation (England) Regulations 2006 require the person having control of the house to ensure that:

• All services, furnishings, fixtures and fittings are maintained in good, sound, and clean condition;
• The structure is kept in good order;
• All communal areas of the interior are regularly cleaned and redecorated as necessary;
• All yards, boundary walls, fences, gardens and outbuildings are maintained in a safe and tidy condition;
• Satisfactory arrangements for the disposal of refuse and litter have been made;
• At the commencement of all tenancies the lettings are clean, in a satisfactory state of repair and decoration, and comply in all respects with these standards;
• All staircases and multiple steps should be provided with suitable handrails; and
• All tenants should fulfil their tenancy obligations.

Where compliance with the Management Regulations has not been achieved then enforcement will be considered based on the effect the breaches are likely to have on the occupants thereby providing tenants and neighbours confidence that the Council are addressing any issues relating to all HMOs.

Fire Safety in HMOs

Statistically, HMOs have one of the highest incidents of deaths caused by fire in any type of housing. It is therefore essential that any HMO possesses an adequate means of escape in event of a fire and adequate fire precautions. The actual level of fire protection and detection required will be determined by a risk assessment. The Planning and Regulatory Service is generally the lead enforcing authority for fire safety in HMOs, however where an HMO contains communal areas, a Fire Risk Assessment must be carried out in accordance with the Regulatory Reform Order which is administered by West Midlands Fire & Rescue Service.

Powers of Entry and Power to Require Information

The Council has the power of entry to properties at any reasonable time to carry out its duties under Section 239 of the Housing Act 2004 provided that:

• The officer has written authority from an appropriate officer (Head of Planning and Regulation) stating the particular purpose for which entry is authorised; and
• The officer has given 24 hours’ Notice to the owner (if known) and the occupier (if any) of the premises they intend to enter.

No such notice is required where entry is to ascertain whether an offence has been committed under Sections 72 (offences in relation to licensing of HMOs), 95 (offences in relation to licensing of houses) or 234(3) (offences in relation to HMO Management Regulations).

If admission is refused, premises are unoccupied or prior warning of entry is likely to defeat the purpose of the entry, then a warrant may be granted by a Justice of the Peace on written application. A warrant under this section includes the power to enter by force, if necessary.

The Council also has power under Section 235 of the Housing Act 2004 to require documentation to be produced in connection with:

• Any purpose connected with the exercise of its functions under Parts 1-4 of the Housing Act 2004
• Investigating whether an offence has been committed under Parts 1-4 of the Housing Act 2004

The Council also has powers under Section 237 of the Housing Act 2004 to use the information obtained above and Housing Benefit and Council Tax information obtained by the authority to carry out its functions in relation to these parts of the Act.

Housing and Planning Act 2016

This Act provides Coventry City Council with additional powers and amends existing powers within the Housing Act 2004. Planning and Regulatory Services will implement these where appropriate in accordance with statutory guidance provided by Government and its policies and procedures.

Civil Penalties

In April 2017 powers to impose civil penalties of up to £30,000 as an alternative to prosecution for certain specified offences came into force under Section 126 and Schedule 9 of the Housing and Planning Act 2016.

Income received from a civil penalty can be retained by the local housing authority provided that it is used to further the local housing authority’s statutory functions in relation to their enforcement activities covering the private rented sector.

A civil penalty may be imposed as an alternative to prosecution for the following offences under the Housing Act 2004:

• Failure to comply with an Improvement Notice (section 30);
• Offences in relation to licensing of Houses in Multiple Occupation (section 72);
• Offences in relation to licensing of houses under Part 3 of the Act (section 95);
• Offences of contravention of an Overcrowding Notice (section 139); and
• Failure to comply with Management Regulations in respect of Houses in Multiple Occupation (section 234).

The amount of penalty is to be determined by the Council in each case by applying the matrix in this policy. In determining an appropriate level of penalty, the Planning and Regulatory Service will have regard to statutory guidance given in the Ministry of Housing Communities and Local Government publication ‘Civil Penalties under the Housing and Planning Act 2016’.

Only one penalty can be imposed in respect of the same offence and a civil penalty can only be imposed as an alternative to prosecution. However, a civil penalty can be issued as an alternative to prosecution for each separate breach of the Houses in Multiple Occupation Management Regulations. Section 234(3) of the Housing Act 2004 provides that a person commits an offence if he fails to comply with a regulation. Therefore, each failure to comply with the regulations constitutes a separate offence for which a civil penalty can be imposed.

The same criminal standard of proof is required for a civil penalty as for prosecution. This means that before taking formal action, the Council must satisfy itself that if the case were to be prosecuted in a magistrates’ court, there would be a realistic prospect of conviction. In order to achieve a conviction in the magistrates’ court, the Planning and Regulatory Service must be able to demonstrate beyond reasonable doubt that the offence has been committed. Further details of how the Council determines penalty levels can be found at Appendix 2.

Rent Repayment Orders

In addition to the powers provided by the Housing Act 2004 to apply Rent Repayment Orders (RROs) in regard to offences related to HMOs as outlined above, the Housing and Planning Act 2016 extended the power to apply RROs in respect of the following offences committed after 6th April 2017;

• Failure to comply with an Improvement Notice under Section 30 of the Housing Act 2004;
• Failure to comply with a Prohibition Order under Section 32 of the housing Act 2004;
• Breach of a banning order made under Section 21 of the Housing and Planning Act 2016;
• Using violence to secure entry to a property under Section 6 of the Criminal Law Act 1977; and
• Illegal eviction or harassment of the occupiers of a property under Section 1 of the Protection from Eviction Act 1977.

The maximum amount of rent that can be recovered is capped at 12 months. A criminal standard of proof is required. The Council must apply to the First-Tier Property Tribunal for an RRO.

Database of Rogue Landlords

The Rogue Landlord Database is a new tool for local authorities in England to keep track of rogue landlords and property agents and came into force on 6 April 2018.

A local housing authority must make an entry on the database where a landlord or property agent has received a banning order. They have the discretion to make entries where a landlord or property agent has been convicted of a banning order offence or has received 2 or more civil penalties within a 12 month period.

Local authority officers will be able to view all entries on the database, including those made by other local housing authorities. The database can be searched to help keep track of known rogues, especially those operating across council boundaries and will help authorities target their enforcement activities.

Details held on the database will not be available to members of the public.

Planning and Regulatory Services will have regard to the guidance provided by Government when deciding whether or not to include a person on the Rogue Landlord Database.

Appendix 8 provides the Council’s decision-making process when determining the length of time a person will remain on the Rogue Landlord Database.

Banning Orders

From 6 April 2018, a Local Authority has the power to apply to the First-Tier Tribunal for a banning order.

A Banning Order is an order that bans a landlord or property agent from:

• Letting housing in England;
• Engaging in English letting agency work;
• Engaging in English property management work; and
• Doing two or more of those things. Breach of a banning order is a criminal offence.

A Banning Order must be for a minimum period of 12 months. There is no statutory maximum period for a Banning Order.

Planning and Regulatory Services will use banning for the most serious offenders who breach their legal obligations and rent out accommodation which is substandard and where previous sanctions, such as a prosecution has not resulted in positive improvements and it is necessary for the Council to proceed with further prosecutions/ formal action.

Part 5 of the Housing and Planning Act 2016 covers a range of measures including changes to the ‘fit and proper person’ test applied to landlords who let out licensable properties and allowing arrangements to be put in place to give authorities in England access to information held by approved Tenancy Deposit Schemes with a view to assisting with their private-sector enforcement work.

Protection From Eviction Act 1977

The Legislation defines unlawful eviction and harassment of residential occupiers, creates a criminal offence for breach of same for which any person subsequently convicted of an offence may receive an unlimited fine and/or a term of imprisonment.

Residential Occupiers [tenants] occupying a privately rented property under the provisions of an Assured Shorthold Tenancy are entitled exclusive possession of the property, to enjoy the property without interference to either their peace or comfort and not to be unlawfully evicted from it.

Any person with the intent to cause the residential occupier of any premises and any person who knows, or has reasonable cause to believe the conduct committed is likely to cause the residential occupier or members of his family:

(a) To give up the occupation of the premises or any part thereof; or

(b) To refrain from exercising any right or pursuing any remedy in respect of the premises or part thereof; or

(c) Does acts calculated to interfere with the peace or comfort of the residential occupier or members of his household; or persistently withdraws or withholds services reasonably required for the occupation of the premises as a residence, shall be guilty of an offence.

The electrical Safety Standards in the Private Rented Sector (England) Regulations 2020.

The Electrical Safety Standards Regulations came into force on 1 June 2020 and form part of the Government’s work to improve safety in all residential premises - and particularly in the Private Rented Sector (PRS).

These Regulations put best practice on a statutory footing. All landlords in the PRS now must do what good landlords already do: make sure the electrical installations in their rented properties are safe.

The Regulations require landlords to have the electrical installations in their properties inspected and tested by a person who is qualified and competent, at least every 5 years. Landlords must provide a copy of the electrical safety report to their tenants, and if requested to their local authority.

Local authorities have a vital role to play in ensuring a high-quality, safe and healthy PRS. Under these Regulations they can require landlords to carry out vital remedial works or even arrange for the repairs to be done and recover their cost from the landlord. They can decide the level of penalty for landlords who don’t comply, up to £30,000 and can spend the proceeds on enforcement purposes, helping them to keep up the good work driving up standards in privately rented homes.

Environmental Protection Act 1990

Statutory Nuisance Provisions

If a property is unsafe, causing or is likely to cause a nuisance to the locality, there are several legislative tools available to the Council to ensure that the condition of the property is improved.

Issues that may be a statutory nuisance include:

• noise from premises or from vehicles, equipment or machinery in the street
• smoke from premises
• smells from industry, trade or business premises (for example, sewage treatment works, factories or restaurants)
• artificial light from premises
• insect infestations from industrial, trade or business premises
• accumulation or deposits on premises (for example, piles of rotting rubbish)

For the issue to count as a statutory nuisance it must do one of the following:

• unreasonably and substantially interfere with the use or enjoyment of a home or other premises
• injure health or be likely to injure health

Abatement notices

Coventry City Council must serve an abatement notice on people responsible for statutory nuisances, or on a premises owner or occupier if this is not possible. This may require whoever’s responsible to stop the activity or limit it to certain times to avoid causing a nuisance and can include specific actions to reduce the problem.

The Deregulation Act 2015

Introduced on the 1st October 2015, the effect of Section 33 of the Act is to provide six months’ protection from eviction for a tenant occupying a dwelling under an assured shorthold tenancy, where a relevant notice has been served by a local housing authority in relation to a dwelling. The purpose is to prevent retaliatory evictions in instances where a tenant has reported conditions of disrepair to the Local Authority. The Act initially covers new tenancies only, although from 1st October 2018 it will apply to all tenancies.

The Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022

With effect from the 1st October 2015, these Regulations have for the first time made it an offence for landlords not to provide smoke and carbon monoxide alarms within their properties in prescribed locations. The requirement is to have at least one smoke alarm installed on every storey of a rented property and a carbon monoxide alarm in any room containing a solid fuel burning appliance (e.g. a coal fire, wood burning stove). After that, the landlord must make sure the alarms are in working order at the start of each new tenancy.

On the 11th of May 2022 the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 were laid before Parliament and later approved, introducing amendments to the Regulations that will come into force on the 1st of October 2022.

The amendment regulations will mean:

• social landlords will be required to provide a smoke alarm on every storey of their properties where there is a room used wholly or partly as living accommodation; and
• both social and private landlords will be required to provide carbon monoxide alarms in any room of their properties used wholly or partly as living accommodation where a fixed combustion appliance is present (excluding gas cookers); and
• there will be a new obligation on all landlords to repair or replace any alarm which is found to be faulty during the period of a tenancy, and landlords will be required to repair or replace alarms as soon as reasonably practicable.

The penalty for non-compliance is to issue a remedial notice requiring a landlord to fit and/or test the alarms within 28 days. If the landlord fails to comply with the notice, the Council can arrange for the alarms to be fitted and/or tested with the occupiers consent. Failure to comply can also incur a civil penalty charge on the landlord of up to £5,000.

It is anticipated that powers under Part 1 of the Housing Act 2004 will continue to take precedence to ensure adequate fire safety on the basis that remedial works can be carried out with more expediency.

The Immigration Act 2014

Right to Rent was introduced under Part 3 of the Immigration Act 2014 as part of the government’s reforms to build a fairer and more effective immigration system. The first phase was trialled in parts of the West Midlands and was applied nationally from February 1st 2016. UK Visas and Immigration are the enforcing authority. Under the new regulations, landlords will be required to check a potential tenant’s ‘Right to Rent’ and those who fail to do so may face a penalty of up to £3,000 per tenant. The regulation will mean that private landlords, including those who sub-let or take in lodgers must check the right of prospective tenants to be in the country. The government has portrayed the issue of ‘beds in sheds’ as being about illegal immigration and tackling it has become part of wider government measure to clamp down on undocumented migrants as has the Housing and Planning Act.

The Tenant Fees Act 2019

The Tenant Fees Act 2019 (Act) came into force on 1 June 2019.

The key provisions of the Act restrict the kinds of payments that landlords and letting agents can require and prohibit certain arrangements in connection with the letting of housing in England.

In addition, the Act sets out stringent regulations for the treatment of holding deposits (i.e. deposits paid to reserve a property prior to the signing of a tenancy agreement). The Act applies to tenancies of housing in England. For the purposes of the Act, "tenancy" means:

• assured shorthold tenancies (other than ones of social housing and certain long leases);
• student lettings falling within paragraph 8 of Schedule 1 of the Housing Act 1988; and
• licences to occupy (excluding holiday lets and licences to occupy social housing).

The inclusion of licences in the definition of "tenancy" is a clear anti-avoidance provision designed to stop those involved in the letting of housing exploiting the lease/licence distinction to avoid complying with the new provisions.

The Caravan and Control of Development Act 1960

The Caravan and Control of Development Act 1960 prohibits the use of land as a caravan site unless the occupier holds a site licence issued by the local authority. 

Before a licence can be granted, a caravan site must first be granted Planning Consent.  Once a Planning Consent has been granted, a Caravan Site Licence must be applied for and will be issued.

A caravan site licence contains provisions relating to the maintenance and running of the park. The primary purposes of the licence being to ensure that the risk of spread of fire is minimised, that there is appropriate access to the site for emergency services and that the facilities provided are appropriate to the nature and size of the site.

To ensure that this is done the licence is issued subject to the conditions based on the adopted model standards for caravan sites and a copy of the licence is displayed on site.  The Council will carry out site inspections to ensure that the conditions are being complied with.  

In addition to the site licence, The Mobile Homes (Requirement for Manager of Site to be Fit and Proper Person) (England) Regulations 2020 ("the Regulations") introduces a fit and proper person test for mobile home site owners or the person appointed to manage the site. 

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015

These regulations introduced a Minimum Energy Efficiency Standard (MEES) of Energy Performance Certificate (EPC) E for the PRS. From 1 April 2018, private rented properties in scope of the MEES Regulations had to meet the minimum EPC E before they can be let on a new tenancy, unless a valid exemption has been registered. The MEES Regulations applied to all domestic properties in scope from 1 April 2020. Failure to comply with the Regulations is an offence which can result in the issuing of a financial penalty.

The Redress Schemes for Lettings Agency Work and Property Management Work (Requirement To Belong To A Scheme Etc) (England) Order 2014

The Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc) (England) Order 2014 made it a legal requirement for all letting agents and property managers in England to join a government-approved redress scheme by 1 October 2014.

Tenants, prospective tenants, landlords dealing with lettings agents in the PRS; as well as leaseholders and freeholders dealing with property managers in the residential sector can complain to an independent person about the service received.

The Council can impose a fine of up to £5,000 where it is satisfied, on the balance of probability that someone is engaged in letting or management work and is required to be a member of a redress scheme but has not joined.

The expectation is that a £5,000 fine should be considered the norm and that a lower fine should only be charged if the enforcement authority is satisfied that there are extenuating circumstances. It will be up to the enforcement authority to decide what such circumstances might be, taking into account any representations the lettings agent or property manager makes during the 28 day period following the authority’s notice of intention to issue a fine.