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How will Housing and Planning Act affect landlords

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Landlords NewsletterWe are still awaiting more guidance about the Housing and Planning Act 2016, but there will be a number of points for landlords to consider.

We are aware the Act is likely to include:

  • Introduction of Banning Orders: this will enable landlords to be banned from operating and renting out properties. Details of what constitutes an “offence” and duration of any ban are yet to be determined
  • Provision of a national database of rogue landlords – this will be centrally controlled but each local authority will be able to update the database and identify rogue landlords who may be based in other areas but also operating across authority boundaries
  • Rent Repayment Orders – these are to be extended to cover offences other than purely licensing and be used as an extra financial penalty against landlords
  • Introduction of financial penalties – an opportunity for a local authority to consider the imposition of a civil penalty where a landlord breaches specified legislation as opposed to taking a prosecution. This is likely to see a maximum penalty of £30K and the money recovered can be retained by the authority to be re-used in the housing field
  • Electrical safety – likely introduction of increased requirements on landlords in regards to the electrical safety within their properties
  • Data sharing – the introduction of processes that will allow local authorities to access landlord details and information held by the Tenancy Deposit Schemes to help improve intelligence
  • Mandatory HMO Licensing – the response to previous consultation on the potential expansion of the role of Mandatory HMO Licensing will be revealed in summer 2016. It is possible that the scope of licensing could be significantly increased but no details are available as yet

There is no exact timescale for the introduction of these changes but April, 2017 will be the earliest and it may be late 2017 before all parts of the Act come into effect..

Housing and Planning Act 2016 legislation

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