One of the leading legal experts on the Private Rental Sector has suggested extra cash given to councils for enforcement may not make a significant difference.
The government is giving an extra £41.12m in new funding following an initial £18.2m given to councils last year.
The high profile announcement was made by the government yesterday, less than a month before the local elections and the start of the Renters Rights Act.
But David Smith, property litigation partner at London law firm Spector Constant & Williams, says: “Spread across more than 300 local authorities, the additional funding is unlikely to transform enforcement overnight.
“Many councils already struggle with limited housing enforcement teams, and the new ‘duty to enforce’ could place significant pressure on existing resources.
“No amount of money will resolve the shortage of qualified and experienced environmental health officers.
“In practice, compliant landlords are unlikely to notice immediate changes, but those operating outside the rules may face increased scrutiny and higher financial penalties.
“We are likely to see an increase in disputes as the new legislation beds in and areas of uncertainty are tested through the courts.”
A statement from the government says: “To ensure justice is delivered for both renters and landlords up to £50m will be invested to modernise the civil courts and this includes digitalising court processes.
“Further still, an additional £5m is being invested into fee uplifts for the housing legal aid sector each year, so all renters can continue to access free help and support in the event of facing eviction from their home.”
New powers for councils coming on May 1 include:
- A duty to enforce: councils will be legally obliged to make sure landlords are complying with the new rules that ban old practices like rental bidding wars, discrimination against tenants with kids or receiving benefits and ‘no-fault’ evictions;
- Bigger fines: landlords seriously or repeatedly breaking the law will now face higher fines of up to £40,000 – up from £30,000;
- Rent Repayment Orders will also be heftier if the rules aren’t being followed – going from one year’s worth of rent to two years – and tenants can challenge offences going back to two years, up from one year.
This follows expanded investigatory powers that came into force last December for councils to carry out ramped up, more thorough investigations where they suspect landlords are breaking the law – from the entering the premises without having to give prior notice to landlords to accessing information from third-parties like banks and accountants.
