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The Housing and Planning Act 2016 received Royal Assent in May 2016 and is gradually being commenced. Some items affecting the private rented sector in England will - over time - be introduced through the Act, including:
The Housing and Planning Act 2016 (Commencement No. 5, Transitional Provisions and Savings) Regulations 2017 begins this process of introduction for the private rented sector by commencing rent repayment orders and a few other elements on 6 April 2017.
Most of Part 2, Chapter 4 of the Act commenced on 6 April 2017, which allows the First-tier Tribunal (FtT) to make a rent repayment order against a landlord after an offence has been committed by a landlord (whether convicted or not of the crime).
The offences which can allow a rent repayment order are:
In respect of a failure to comply with an improvement notice or prohibition order under the HHSRS, the failure to comply must be about a hazard on premises let by the landlord, so it does not apply to common parts, for example. The offence (or alleged offence) must have been committed on or after 6 April 2017 for a rent repayment order to be available.
A local authority or tenant can apply to the FtT for a rent repayment order.
A tenant may only apply for a rent repayment order if the offence relates to housing that was let to the tenant at the time of the offence. Furthermore, the offence must have been committed within 12 months ending with the day on which the application is made.
A local authority may only apply for a rent repayment order if the offence relates to housing in their area and the authority has previously served a notice of intended proceedings. A notice of intended proceedings must:
The authority must consider any representations made during the notice period and must wait until the notice period has ended before applying for a rent repayment order. A notice of intended proceedings may not be given after 12 months, beginning with the day on which the landlord committed the offence to which it relates. When deciding whether to apply for a rent repayment order, the authority must consider any guidance.
For the FtT to make a rent repayment order, it must be satisfied beyond reasonable doubt that a landlord has committed one of the offences listed earlier. The landlord does not have to have been convicted through the courts for a rent repayment order to be made.
Where an order is made in favour of a tenant, the amount must relate to rent paid during a specified period depending on the offence:
The amount must not exceed the rent paid in respect of that period, less any universal credit paid (to any person) in respect of rent under the tenancy during that period. When the FtT is determining the amount, they must, in particular, take into account:
The amount that the FtT can order after an application by a local authority can only relate to universal credit paid during the periods outlined below, depending on the offence:
The amount ordered in respect of a period must not exceed the amount of universal credit that the landlord received (directly or indirectly) in respect of rent under the tenancy period. When the FtT is determining the amount, they must, in particular, take into account:
If the landlord has been convicted of the offence to which the rent repayment order relates, the FtT must order the maximum amount as outlined above. Suppose a local housing authority becomes aware that a person has been convicted of an offence outlined above about housing in its area. In that case, the authority must consider applying for a rent repayment order.
In addition to rent repayment orders, some other changes affect landlords. The Housing and Planning Act 2016 also introduces, from 6 April 2017, an ability for a local authority to offer a financial penalty to a landlord as an alternative to criminal prosecution for certain offences.
The offences are outlined in schedule 9:
Before offering the penalty as an alternative to prosecution, the local authority must be satisfied beyond reasonable doubt that the offence has been committed. The penalty offered must not exceed £30,000. Given that the crimes listed can carry unlimited fines if successfully prosecuted, the amount of up to £30,000 to avoid prosecution could be an attractive option.
The local authority must first serve a notice of intent, and the person receiving the notice may make representations within 28 days. The local authority must consider those representations. After 28 days, a final notice must be served, which can be appealed by the recipient to the First-tier Tribunal against the decision to impose the penalty or the amount.
A local authority must consider any guidance when deciding whether to impose a financial penalty.
From 6 April 2017, the Housing Act 2004 is amended by inserting a new section 212A. All approved tenancy deposit scheme providers will be required to provide a local authority in England upon request information that relates to a tenancy of premises in the local authority's area. Information obtained by a local authority under this provision may only be used:
An explanatory booklet for Local Housing Authorities has been produced including a sample form for applying for information.