PRS Database could penalise good landlords while rogue landlords go unregistered

Rogue landlords will simply choose not to register on the PRS Database, warns a software company.

Veco claims the cost and administrative burden of the database will fall on compliant landlords, while rogue landlords could ignore the requirements altogether.

The PRS Database will be rolled out regionally, starting in the West Midlands in December. Landlords will be required to provide property details, including addresses, the number of residents and bedrooms, alongside copies of gas, electricity and EPC documents.

Simply choose not to register

Richard Murray, CEO of Veco, said: “I support measures that raise standards in the Private Rented Sector, but there is an obvious question: will registration really flush out rogue landlords, or will those determined to operate outside the rules simply choose not to register?

“My concern is that the immediate cost and administrative burden will fall most heavily on good landlords who already do the right thing, and on reputable letting agents managing properties professionally on their behalf.

“Regulatory change is never straightforward, particularly for agents managing hundreds or thousands of properties on behalf of different landlords

“The real test will be whether local authorities have the resources and determination to identify and pursue those who fail to register. Otherwise, we risk creating another layer of administration for the compliant majority without effectively tackling the minority who cause the problems.”

£65 annual fee

Under the PRS Database, landlords will have to pay a £65 annual fee per property to register on the PRS Database.

The National Residential Landlords Association (NRLA) has warned that England’s planned landlord database could cost the private rented sector at least £327 million a year, with tenants ultimately footing the bill.

NRLA chief executive Ben Beadle said: “A well-designed database should make it easy for landlords to demonstrate compliance with their obligations; empower tenants; and be truly digital in every way. This looks likely to fail on every count.”

He added: “What we have on offer is a costly mess.

“It expects payment for landlords to provide much the same information as many already give their councils, with no additional benefit to them or their customers.”