The government has announced further changes to
rent repayment orders under the Renters’ Rights Act.
The changes introduce new offences, including
providing false information to the Private Rented Sector (PRS) Database and
knowingly or recklessly misusing a possession ground.
This announcement follows the recent publication
of civil financial penalty guidance, which includes fines of up to £6,000 for
discriminating against applicants on benefits or those with children.
One of the most significant changes is the
increase in the maximum amount of rent a landlord can be ordered to repay. This
will double from 12 months’ rent to 24 months’ rent.
A rent repayment order allows a tenant or a local
authority to reclaim rent from a landlord who has committed a qualifying
offence.
Under the Renters’ Rights Act guidance, rent
repayment orders will now be extended to cover the following offences:
·
Knowingly or recklessly misusing a possession
ground
·
Breaching restrictions on letting or marketing a
property
·
Continuing a tenancy reform breach after a
financial penalty has been imposed
·
Continuing to breach landlord redress scheme
regulations after a financial penalty has been imposed
·
Providing false information to the PRS Database
when claiming to comply with database requirements
·
Continuing to fail to register with the PRS
Database after a financial penalty has been imposed
Under the new rules, the period in which a tenant
or a council can apply for a rent repayment order will also double.
Applications can now be made up to 24 months after an offence has occurred,
compared with the previous 12-month limit.
The scope of rent repayment orders is also being
widened. They will now apply to superior landlords and company directors. The
government says this change is intended to ensure that criminal rent-to-rent
arrangements can be properly held to account.
Crackdown
on Repeat Offenders
The government has also announced stricter
measures for repeat offenders.
Landlords who have previously faced enforcement
action for an offence and then commit the same offence again will be required
to pay the maximum rent repayment order amount.
Government guidance states that where a landlord
has been convicted or received a financial penalty for licensing offences or
other relevant offences under the Act, they will be required to repay the
maximum amount of rent.
The stated aim is to strengthen the deterrent
effect across all offences and to increase penalties where this approach did
not previously apply.
Commercial Reality Check
Many landlords will read this update and feel the
rules shifting once again. That response is understandable. The scope of
regulation is expanding, penalties are increasing, and tolerance for error is
shrinking.
This does not reflect poorly on landlords who
already act responsibly. Instead, it reflects a policy environment that
increasingly assumes bad faith and then regulates on that basis.
What
Landlords Should Do Next
Landlords should protect themselves against
misunderstanding as well as misconduct. Written records explaining why
possession grounds are used should be kept, even where the reasoning feels
obvious. The risk now lies as much in interpretation as in behaviour.
Preparation for the PRS Database should begin
before it goes live. Even though registration is not yet mandatory, landlords
should start aligning tenancy records, licensing information, and ownership
details now. When the system launches, readiness will be more important than
speed.
Accountability should also be clearly defined
across all arrangements. Where companies, directors, or superior landlords are
involved, roles and responsibilities should be documented carefully. This is
sensible preparation, not an admission of fault.
AngelMoves
Compliance Insight
AngelMoves focuses on property compliance
education, helping landlords and letting agents understand how to operate
safely as enforcement powers expand and financial exposure increases.
The expansion of rent repayment orders means that
mistakes involving possession grounds, documentation, registration, or
interpretation of duties can now result in substantial rent loss on top of
financial penalties. AngelMoves helps landlords understand where these risks
arise, how to document decisions properly, and how to prepare records and
processes that stand up to scrutiny.
As the Renters’ Rights Act widens both penalties
and time limits, compliance errors are becoming more costly and harder to undo.
Education, preparation, and clear documentation are essential for landlords who
want to remain in the sector without facing avoidable enforcement action.
SOURCE:https://www.property118.com/landlords-face-tougher-penalties-as-rent-repayment-orders-expanded/