Enforcement options by the Council
If a landlord/agent fails to provide a safe and warm home for their tenants by failing to maintain the property or by failing to carry out repairs, then the Council can take enforcement action against them.
The Council can also take enforcement action against any Landlords and/or agents who fail to licence a property or House in Multiple Occupation (HMO) which they rent out that requires a licence.
Types of enforcement action:
- Serving a Notice:
- Making a Prohibition Order;
- Serving a Financial Penalty Notice (FPN);
- Prosecution:
- Revoke a property licence;
- Reduce the term (time) of a property licence;
- Banning Orders;
- Management Orders (Interim and Final);
- Compulsory Purchase Order (CPO); and
- Rent Repayment Order (RRO)
Notices and /or Orders
If enforcement action is taken against a landlord/agent then the Council can serve a Notice under a number of different acts including; the Housing Act 2004, Public Health Act 1936, Building Act 1984, Environmental Protection Act 1990, Prevention of Damage by Pests Act 1949, Local Government (Miscellaneous Provisions) Act 1976; and others.
The Council may also make a Prohibition Order (or a Suspended Prohibition Order and or an Emergency Prohibition Order) under the Housing Act 2004.
If a Notice or Order are served under the Housing Act 2004 then the landlord/agent will be charged a fee of £845. This allows the Council to recover their costs of serving and preparing the Notice or Order.
Financial Penalty Notice (FPN)
A Financial Penalty Notice (FPN) is a civil penalty issued against the landlord or agent, as an alternative to prosecution, for offences under the Housing Act 2004.
Relevant offences include:
- failing to comply with an Improvement Notice;
- failing to apply for a property licence;
- failing to comply with the conditions specified in your property licence;
- failing to comply with management regulations for houses in multiple occupation (HMOs); and
- failing to return documents under the conditions of a property licence when requested.
They can be a maximum of £30,000 for each offence.
Prosecution
The Council may prosecute a landlord/agent in the Magistrate’s Court (or in some cases Crown Court) for the following:
- failing to comply with a Notice or Order served;
- failing to licence a property or house in multiple occupation (HMO) which requires a licence;
- failing to comply with the licence conditions (for either Selective, Additional or Mandatory HMO Licences types);
- failing to comply with the house in multiple occupation (HMO) management regulations;
- failing to provide information and return documents for a property when requested; and
- for illegally evicting or harassing a tenant/s.
Fines vary depending on the offence/s and the act that you are being charged under. If found guilty the landlord will also have to cover the Council’s costs in taking the case to Court, including any solicitors and/or barristers fees.
Banning Order
The Council can also apply for a Banning Order against a Landlord/agent after a conviction (for certain offences) or after repeated civil penalties.
The Banning Order would prevent the Landlord/agent from renting out any residential accommodation, engaging in letting agency work and engaging in any property management work across the whole of England, not just in Newham.
It would also prevent the Landlord/agent from holding any property licences.
London Rogue Landlord and Agent Checker
Details of prosecutions, financial penalties and Banning Orders are entered into the London Rogue Landlord and Agent Checker on the london.gov.uk website.
Management Orders (Interim and Final)
The Council can make a Management Order (Interim and Final) to transfer the management of an unlicensed residential property to the Council.
All associated costs of the works and management of the property will be recovered from the rents which will be collected by the Council from the tenants.
Mortgage repayments will however remain the mortgage holder’s responsibility.
Compulsory Purchase Order (CPO)
In some cases, a Compulsory Purchase Order (CPO) may be made, which means that the landlord would lose ownership of their property.
The CPO would transfer the ownership of the property to the Council, without the consent of the owner upon certain criteria being met.
Rent Repayment Order (RRO)
Even if you are not prosecuted, the Council and/or your tenant/s can apply to the First Tier Property Tribunal for a Rent Repayment Order (RRO).
If the Tribunal award the RRO, they can make the landlord repay up to 12 months’ rent to the tenants (or to the Council, if any Housing Benefit/Universal Credit payments were made).
