The government is set to utilise fees collected from the Private Rented Sector (PRS) Database to fund local authority enforcement activities, a move aimed at creating a sustainable funding system for councils as they take on strengthened powers under the new Renters' Rights Act. This approach has been confirmed by Housing Minister Matthew Pennycook in a written Parliamentary answer.
Housing Minister Matthew Pennycook has revealed that the government is enhancing local authorities' enforcement capabilities, including new powers to issue on-the-spot civil penalties of up to £7,000 for severe damp and mould issues in properties. The measures are part of a broader strategy to improve standards within the private rented sector across the UK.
According to Mr Pennycook, the government is committed to ensuring local authorities are fully funded for any additional net costs arising from the Renters' Rights Act, in line with the New Burdens Doctrine. This has led to the allocation of £41.12 million to local housing authorities for the current financial year to assist with their new enforcement responsibilities.
The long-term vision is to establish a 'polluter pays' system, where enforcement costs are primarily covered by revenues from PRS Database fees. While the exact fee structure remains unclear, the government has indicated it will be "fair and proportionate." There have also been suggestions of combining the registration process for the PRS Database with that for the Ombudsman, although separate fees may apply.
The new legislation will empower councils to take enforcement action against landlords who fail to register their properties on the PRS Database. Those found guilty could face civil penalties of up to £7,000, while providing fraudulent information to the database could result in a significantly higher fine of up to £40,000.
The Labour Party has called for stronger enforcement against rogue landlords, with Shadow Housing Secretary Angela Rayner stating that tenants deserve safe and decent homes. The government's move to strengthen tenant protections aligns with their stated aims, although a specific public response from the opposition on the funding mechanism remains elusive.