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Rogue landlords could face £25,000 fine under new private rent ombudsman plan
Rogue private landlords could be ordered to pay up to £25,000 in compensation to tenants by a powerful new ombudsman for the sector, the government’s rental reform white paper has said.
Alongside measures to scrap Section 21 ‘no-fault’ evictions and limit rent increases to once per year, the formation of a new ombudsman is part of the reforms that are set to bring in the biggest shake-up’s of the private rental market in decades.
All landlords will now be mandated by law to register with a new digital property portal, which, according to the Department for Levelling Up, Housing and Communities (DLUHC), will provide a single “front door” to help landlords understand and demonstrate compliance with their legal requirements.
The new ombudsman will also have powers to compel landlords to reimburse rent to tenants where the service or standard of a property they provide falls short of the mark.
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According to the government, the ombudsman’s decision will be binding on landlords, should the complainant accept the final determination. Failure to comply with a decision may result in repeat or serious offenders being banned from renting out properties.
The government said that under the current system, many tenants find out too late that they are renting a substandard property from landlords that wilfully fail to comply with requirements. It also said the current system means councils often do not know who to track down when serious issues arise.
The aim of the new portal is to introduce accountability into the private rental system, with landlords legally obliged to register. Local councils will be able to take enforcement action against private landlords that fail to join the portal.
The Decent Homes Standard would also be extended to the private rented sector, with a legally binding agreement that landlords keep their properties free from serious health and safety hazards and in a good state of repair.
DLUHC said that just over a fifth of private renters live in unfit homes. It said the “new deal” for the private rented sector will extend tenants’ rights and ensure they have clean, appropriate and useable facilities.
The white paper outlines what will form a new bill to go before the current parliament, as promised by housing secretary Michael Gove.
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