Government signals enforcement may be funded via PRS Database fees

The government has hinted that fees collected from the Private Rented Sector (PRS) Database will be used to fund council enforcement.

In a written Parliamentary question, housing minister Matthew Pennycook confirmed the government is strengthening council enforcement powers under the Renters’ Rights Act.

The news comes as councils now have the power to issue on-the-spot fines of £7,000 to landlords for severe damp and mould in their properties.

Sustainable funding system for PRS enforcement

Mr Pennycook said: “Through the Renters’ Rights Act, the government is strengthening local authorities’ enforcement powers and extending and increasing ring-fenced civil penalties to support a ‘polluter pays’ approach to enforcement of the new tenancy system.

“In accordance with the New Burdens Doctrine, we will ensure additional net costs on local authorities resulting from the act are fully funded. To that end, my Department is providing £41.12 million to local housing authorities for this financial year to help them undertake their new enforcement responsibilities. This funding is in addition to the £18.2 million provided in 2025/26.

“Our aim over the long term is to establish a sustainable funding system for private rented sector enforcement based on future Private Rented Sector Database fee revenues. We will set out further details in due course.”

As previously reported by Property118, the government says the PRS Database fee will be “fair and proportionate” and has hinted at combining the registration process for the PRS Database and the Ombudsman, but has not confirmed whether landlords will need to pay separate fees for each.

Landlords face fine for failing to register on PRS Database

Councils will also gain the power to take enforcement action against landlords who fail to register on the PRS Database.

If a landlord lets or advertises a property without it first being registered on the database, they can be issued with a civil penalty of up to £7,000 or a £40,000 fine if they provide fraudulent information to the database.