Landlords and agents are increasingly receiving notices under Section 114 of the Renters’ Rights Act, which can compel them to compile fresh tenancy records for council investigators. This is distinct from simply handing over existing documents, warns David Smith, a leading property lawyer.
Mr Smith notes that unlike powers under Section 115, officers do not need reasonable grounds to suspect a breach before issuing a Section 114 notice. These powers apply to anyone who owned, let, managed, or marketed accommodation in the preceding 12 months, even if their involvement has ended.
Notices typically give landlords 14 or 28 days to comply, a timeframe Mr Smith describes as tight, especially when new documents need to be created or information is held by a former agent. He advises that these notices should be addressed immediately upon receipt, and extensions sought politely and early if the deadline is unachievable.
Requests can include schedules of tenancies, rent histories, lists of managed properties, or written accounts of events. Failure to comply with a properly imposed requirement without reasonable excuse is an offence, carrying a fine of up to £1,000 on summary conviction. Knowingly or recklessly making a materially false or misleading statement also carries the same penalty. Such notices may also initiate investigations that could lead to further penalties or prosecution.
Mr Smith clarifies that GDPR does not prevent landlords and agents from providing tenant information required by a valid Section 114 notice, as complying with a legal obligation provides a lawful basis for processing. However, he advises recipients to provide only what is requested, keep a record of their response, and verify that the council has authorised the officer in writing. The Act preserves the right not to provide information that might incriminate the recipient, and legal professional privilege is also protected.