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Letting agent’s huge fine is largest in five year compliance clampdown

An analysis of the Mayor of London’s Rogue Landlord and Letting Agent Checker shows that since it was introduced in 2018 some £6.5m in penalties have been applied to agents and landlords. 

The largest single fines ever recorded are £167,000 for a letting agent and £100,000 for a landlord and respectively.

Now the PropTech firm undertaking the analysis - Kamma - says there’s a renewed clampdown because fines levied in May this year totalled just £22,000 but in July the total of fines had soared to a huge £139,146.

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Part of that may be accounted for by the increase in court hearings as a result of the pandemic easing, but Kamma says it’s also down to local authorities deploying Rent Repayment Orders and other penalties with more vengeance than before.

Councils have been under pressure throughout the pandemic with budgets under strain and housing conditions under the spotlight. 

Kamma chief executive Orla Shields says: “Whilst the pandemic seems to have reduced enforcement levels, it did not slow the level of regulation which is higher now than at any time before. With a complex web of regulations now governing the sector and growing levels of enforcement, it is business critical that both agents and their landlords stay on top of compliance requirements”.

 

Tower Hamlets council alone has issued almost 70 RROs with the total amount of reclaimed rent at £200,000. 

Shields continues: “As the NRLA has recently pointed out, it’s right that councils enforce their own regulations, which otherwise would be a tax on good landlords, with rogue individuals continuing as before. The danger is that good landlords and letting agents offering high quality homes to market could still get caught out by a change in regulation. With tenants acting as enforcers, agents and landlords have to stay one step ahead.”

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    " but Kamma says it’s also down to local authorities deploying Rent Repayment Orders and other penalties with more vengeance than before." They key word here is vengeance. Local authorities act tough on bad landlords, not bad tenants. That frightens the good landlords who see the PRS under increased legislation as an attack.

    Then the same local authorities wonder why they have homeless and landlords do not wnat to work with them. Any chance Citizen Khan will create a Rogue Tenants and Politicians Checker or would it be too large?

    Kristjan Byfield

    Vengeance is an editorial choice of language not a council position. Thje rules are clear- deliver compliant housing and you have nothing to fear from your local council. Don't and you only have yourself to blame. Aside from ASB councils are not there to protect businesses- that is the job of solicitors and courts. Use a quality agent to ensure you are compliant, put quality insurance in place and you have very little to fear. By and large we don't need a Tenants register as that is what (quality) referencing is for. The only recent change I personally disagree with is the removal of mortgage rate relief- everything else is largely legitimate. Councils should;d also be required by central government to ringfence (say) 1/3 of licensing revenue for pro-actiove enforcement and they should also be required legally to complete a license application within 90 days (in relaity- this should be 28 days).

     
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    Kristjan who are you, with your Nordic name? And who is paying you to do this job ?

  • Roger  Mellie

    Kristjan knows his stuff Edwin and I agree with him. Do it properly or get whats coming to you.

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    You and Kristjan miss the point I was making. Perhaps I was too subtle or did not explain myself clearly enough.

    The professional landlords who employ agents will, if they choose wisely, be protected. It is the smaller landlord with one or two properties who self-manage that are likely to worry. While they may be compliant with all legislation, they read how landlords are punished by RRO etc. They have to judge if it is all worth it. Those are the ones who are selling up.

     
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    Roger Mellie. how are you connected to Kristjan ? And what sort of expert are you and Kristjan ?

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    Click on their profile name and you find the information they have supplied.

     
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