The court ruled that not only does consumer protection legislation apply to residential leases, when the landlord is a business and the tenants are not dealing by way of business, but that a court is obliged to investigate the point on its own motion if it arises, even if it is not argued by the parties. Furthermore, if it decides that a penalty is unfair it must disallow it, and cannot just reduce the amount.
Further confirmation (if any were needed) that the Consumer Rights Act 2015 applies to residential leases. Source: Coventry View
