With so many regulations for the letting industry, it is no surprise that landlords face an increasing risk of being fined if they don’t comply with rules. However, given that there are over 150 regulations for the letting sector, many landlords struggle to remain informed of the rules they must adhere to when letting property.
This outcome is a worrying state of affairs because breaching some regulations lead to a landlord being fined. There are even some regulation breaches which can lead to a banning order or a prison sentence. These penalties are affected when there has been a severe breach, but landlords can be fined for many actions.
Here is a list of ten areas where landlords face fines if they don’t comply with regulations:
- Breaching HMO regulations
- Deposit protection
- Electrical Safety
- Evicting tenants illegally
- Failing to comply with EPC regulations
- Fire Safety
- Gas Safety
- Illegally converting houses into flats
- Right to rent
- Tenancy Fee Ban
Breaching HMO regulations
Failing to apply for an HMO licence, exceeding the maximum permitted numbers or failing to comply with licence conditions could result in a fine of up to £30,000 for each offence.
If a deposit protection case goes to court, a landlord could be fined up to £20,000.
A landlord that fails to maintain adequate safety standards concerning wiring and installations could face a fine of up to £20,000.
Evicting tenants illegally
Illegally removing a tenant leaves a landlord liable to a £5,000 fine and six months in prison under the Protection from Eviction Act 1977.
Failing to comply with EPC regulations
Landlords who fail to comply with EPC regulations could be fined up to £5,000.
Given the potential risks associated with fire, landlords that don’t comply with fire safety regulations face potentially unlimited fines.
A landlord faces six months in prison or a fine of up to £6,000 for each offence if they fail to provide a Gas Safety Certificate.
Illegally converting houses into flats
The fine for illegally turning houses into apartments will depend on the work involved and the number of properties. However, landlords should note that one landlord in Norwich was fined £1.4 for converting properties into flats. There have also been numerous six-figure fines for this offence.
Right to rent
The maximum penalty imposed on a landlord, per tenant, is £3,000 but numerous fines could lead to a sizable fine a prison sentence of up to five years.
Tenancy Fee Ban
A first offence under the Tenancy Fee Ban could see a landlord fined £5,000 and a further breach could lead to a £30,000 fine.
If you are a landlord and you are concerned about complying with regulations and the threat of being fined, you need help. I am happy to offer support and guidance to all landlords, especially when it comes to the increasing ways that landlords face severe punishments. Many industry experts agree that landlords have been treated shockingly, and there is a need for all letting market professionals to be fully aware of what impacts on their business.
I have helped many local landlords, and as a specialist in this sector, I am always happy to assist you.
CEO, Kings Accommodation