Landlord database fees to reflect burden on landlords claims Housing Minister

The Housing Minister, Matthew Pennycook, has confirmed fees to register for the landlord database will consider the burden on landlords.

Mr Pennycook also claims the Private Rented Sector (PRS) Ombudsman will not be able to make a profit and the fee will be “proportionate and good value”.

As previously reported on Property118, the government has hinted at combining the registration process for the PRS database and Ombudsman, but stopped short of confirming whether landlords will be required to pay separate fees for each scheme.

Fee is proportionate and good value

In response to a written question about what fees landlords will have to pay under the database and Ombudsman Mr Pennycook claims the government will take into account a range of factors.

He said: “Fees to register on the PRS Database will be set out in secondary legislation and will take account a range of factors, including burden on landlords.

“In line with practice across other Ombudsmen, the PRS Ombudsman will set the fee members would be required to pay. This will be on the basis of their running costs and service provision. The ombudsman would not be able to make profit and the government will ensure that the fee is proportionate and is good value.”

Under the Renters’ Rights Bill, all landlords will need to sign up for the database, which will include information about their properties that tenants can access.

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.

The government claim the PRS Ombudsman will provide quick, fair, impartial and binding resolution for tenants’ complaints about their landlord.

Amendments set to become law

The news comes after government amendments to the Renters’ Rights Bill were agreed to and now look set to become law, but amendments still require approval from the House of Commons before becoming part of the final legislation.

Alongside the PRS Database and Ombudsman, an amendment will allow local authorities to enter private rented properties without giving landlords advance notice.

Previously, councils were required to give tenants and landlords 24 hours’ notice before taking enforcement action. This requirement will still apply to tenants. However, landlords will now be informed within “a reasonable amount of time” after the entry has taken place.

Also, in a double standard, a government amendment also includes purpose-built student accommodation (PBSA) being exempt from the new periodic tenancies.