MENU
Civil penalties process under the Housing and Planning Act 2016
This guidance outlines the Council’s policy in setting the level of a civil penalty in each case where it has been determined to issue a civil penalty as an alternative to prosecution proceedings.
The Council considers the need for transparency and consistency in the discharge of its functions under the Housing Act 2004 to be of primary importance. The general objective of this policy is, therefore, to promote both transparency and consistency in the imposition of financial penalties under the 2004 Act. So that, for example, those managing and having control of rented properties in the Council
(a) know how the Council will generally penalise relevant offences and
(b) are assured that, generally, like cases will be penalised similarly, and different cases penalised differently.
Terms
In this policy, the term ‘landlord’ should be read as including:
- letting agents,
- managing agents,
- licensors, property owners,
- directors of corporate landlords and
- any other person involved in the letting or management of privately rented accommodation.
In this policy, the terms ‘House of Multiple Occupation’ or ‘HMO’ are defined by the Housing Act 2004.
Reasons for a civil penalty
Section 126 and Schedule 9 of the Housing and Planning Act 2016 provide local authorities with the power, through the insertion of section 249A Housing Act 2004, to impose a civil penalty as an alternative to prosecution in respect of the following offences under the Housing Act 2004:
- Failure to comply with an Improvement Notice [section 30]
- Offences in relation to licensing of Houses in Multiple Occupation (HMOs) under Part 2 [section 72]
- Offences in relation to the Selective Licensing of ‘houses’ under Part 3 [section 95]
- Failure to comply with an Overcrowding Notice [section 139]
- Failure to comply with a management regulation in respect of an HMO [section 234]
In addition, section 23 of the Housing and Planning Act 2016 provides that a civil penalty may be imposed in respect of a breach of a Banning Order.
Offenders
The Council has the power to impose a civil penalty of up to £30,000 for each separate offence. If multiple offenders have committed the same offence at the same property, a separate civil penalty can, and usually will, be imposed on each offender. In each case, the level of civil penalty imposed on each offender will be in line with this policy.
Statutory Guidance
The Government has issued statutory guidance under Schedule 9 of the Housing and Planning Act 2016 entitled “Civil penalties under the Housing and Planning Act 2016. Guidance for Local Housing Authorities”. The Council has regard to this guidance in the exercise of their functions in respect of civil penalties.
Paragraph 3.5 of the statutory guidance states that ‘The actual amount levied in any particular case should reflect the severity of the offence, as well as taking account of the landlord’s previous record of offending’. The same paragraph sets out several factors that should be taken into account to ensure that the civil penalty is set at an appropriate level in each case:
a. Severity of the offence. The more serious the offence, the higher the penalty should be.
b. Culpability and track record of the offender. A higher penalty will be appropriate where the offender has a history of failing to comply with their obligations and/or their actions were deliberate and/or they knew, or ought to have known, that they were in breach of their legal responsibilities. Landlords are running a business and should be expected to be aware of their legal obligations.
c. The harm caused to the tenant. This is a very important factor when determining the level of penalty. The greater the harm or the potential for harm (this may be as perceived by the tenant), the higher the amount should be when imposing a civil penalty.
d. Punishment of the offender. A civil penalty should not be regarded as an easy or lesser option compared to prosecution. While the penalty should be proportionate and reflect both the severity of the offence and whether there is a pattern of previous offending, it is important that it is set at a high enough level to help ensure that it has a real economic impact on the offender and demonstrate the consequences of not complying with their responsibilities.
e. Deter the offender from repeating the offence. The ultimate goal is to prevent any further offending and help ensure that the landlord fully complies with all of their legal responsibilities in future. The level of the penalty should therefore be set at a high enough level such that it is likely to deter the offender from repeating the offence.
f. Deter others from committing similar offences. While the fact that someone has received a civil penalty will not be in the public domain, it is possible that other landlords in the local area will become aware through informal channels when someone has received a civil penalty. An important part of deterrence is the realisation that (a) the local authority is proactive in levying civil penalties where the need to do so exists and (b) that the level of civil penalty will be set at a high enough level to both punish the offender and deter repeat offending.
g. Remove any financial benefit the offender may have obtained as a result of committing the offence. The guiding principle here should be to ensure that the offender does not benefit as a result of committing an offence, i.e. it should not be cheaper to offend than to ensure a property is well maintained and properly managed.
The factors detailed in the statutory guidance and policy aims will be considered by the Council when deciding where, within the Civil Penalties matrix, a particular offence and penalty fall.
Other policy aims
The Council is mindful that despite its best efforts, many landlords may operate unlawfully for a significant period of time without detection, and only a proportion of landlords committing relevant offences will be discovered. The Council is, therefore, mindful that when deciding to impose a Civil Penalty, it should create an environment where it is clear to the offender and others that operating unlawfully as a landlord will be financially disadvantageous when compared to operating lawfully.
The Council intends to create an environment where landlords engage with the Council’s requests and demands fulsomely, openly and honestly. This helps creates a level playing field which supports the aims of transparency and consistency. No landlord should be able to financially benefit from withholding information the Council deems relevant that is, or should be, in their control to disclose. It is expected that fulsome and complete supporting evidence is provided to support any Written Representations received in response to a Notice of Intent.
Civil Penalties Matrix
In determining the level of a civil penalty, officers will have regard to the matrix set out, which is to be read in conjunction with the associated guidance. The matrix is intended to provide indicative ‘starting level’ under the various offence categories, with the final level of the civil penalty adjusted in each case, taking into account aggravating and mitigating factors the Council deems significant including, but not limited to, factors relating to the track record and culpability of the landlord and the actual or potential harm to the occupants.
In deciding what level of penalty to impose, officers will conduct the following 4 stage process:
- First, they will consider the seriousness of the relevant housing offence to identify a starting level of the penalty.
- Second, an assessment of the number of rental properties controlled or owned or managed by the landlord and/or their experience in the letting/management of property will be considered, which may have the effect of increasing or decreasing the penalty.
- Third, aggravating and mitigating factors that may relate to a number of factors including, but not limited to, culpability, track record and harm will be considered, which may have the effect of increasing or decreasing the penalty. Fourth, if any of the Discounts, as set out below, apply, the penalty will be decreased.
Once the seriousness of the relevant housing offence has been identified, the starting level of the penalty will be identified using the table, with the headings ‘Seriousness of offence’ and ‘Starting level’. Consideration of the number and type of rental properties controlled or owned or managed may adjust the penalty.
Seriousness of offence and penalty
| Seriousness of offence | Starting level |
|---|
| Mild |
£2,500 |
| Moderate |
£7,500 |
| Serious |
£12,500 |
| Very serious |
£17,500 |
| Severe |
£22,500 |
| Very severe |
£27,500 |
Aggravating factors
If a single aggravating factor is identified, the penalty will normally be increased by up to, but not exceeding, £5000. If there are numerous aggravating factors officers may consider that to amount to exceptional circumstances, so that the penalty may be increased significantly more than £5000 on account of aggravating factors. There may be an increase in the penalty in respect of each such factor. The penalty will normally be reduced by up to, but not exceeding, £5000 if one or more mitigating factors is/are identified. For the avoidance of doubt, the presence of one or more mitigating factors will not of itself amount to exceptional circumstances so that the penalty may not be reduced by greater than £5000 on account of mitigating factors.
The Council has not provided a list of mitigating factors in this policy because it acknowledges that there are myriad possible circumstances that might give rise to mitigation.
The Council may, exceptionally, including for the reason given above, increase the penalty by greater than £5000 on account of aggravating factors or, again exceptionally, decrease it by greater than £5000 on account of mitigating factors. In order to meet the objectives of this policy and of financial penalties in particular, including the need for transparency and consistency in the use of such penalties, the Council will exercise its discretion to increase or decrease a penalty by greater than £5000 on account of aggravating or mitigating factors in exceptional circumstances only excluding any Discounts. The Council will consider on a case-by-case basis whether any such circumstances exist.
Failure to comply with an Improvement Notice - Section 30 of the Housing Act 2004
Maximum Court fine following prosecution that can be levied for failure to comply with an Improvement Notice - Unlimited
An Improvement Notice served under Part 1 Housing Act 2004 specifies repairs/improvements that the recipient should carry out in order to address one or more identified Category 1 and/or Category 2 hazards in a property. Category 1 hazards are the most serious hazards, judged to have the highest risk of harm to the occupiers.The Council has a duty to take appropriate action where a dwelling is found to have one or more Category 1 hazards present.
In some cases, the service of an Improvement Notice will have followed an informal stage, where the landlord had been given the opportunity to carry out improvements without the need for formal action. In such cases, an identified failure to comply with an Improvement Notice will represent a continued failure on the part of the landlord to deal appropriately with one or more significant hazards affecting the occupier[s] of the relevant dwelling.
The Council would view the offence of failing to comply with the requirements of an Improvement Notice as a significant issue, exposing the tenant[s] of a dwelling to one or more significant hazards.
The seriousness of the offence is viewed by the Council as being a Severe matter, attracting a financial penalty with a starting level of £22,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing 1 or 2 dwellings, including no more than 1 HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £17,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or two HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £22,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5000, attracting a civil penalty of £27,500.
Aggravating features/factors specific to non-compliance with an Improvement Notice
The nature and extent of hazards that are present. Multiple hazards and/or severe/extreme hazards that are considered to have a significant impact on the health and/or safety of the occupant[s] in the property or their guests would justify an increase in the level of the civil penalty
Generic aggravating features/factors
The Council will have regard to general factors in determining the final level of the civil penalty including, but not limited to:
- A previous history of non-compliance would justify an increased civil penalty. Non-exhaustive examples of previous non-compliance would include previous successful prosecutions [including recent convictions that were ‘spent’], receipt of financial penalties, rent repayment orders, works in default of the landlord and breaches of regulations/obligations, irrespective of whether these breaches had been the subject of separate formal action.
- A failure to cooperate with a Council investigation. Non-exhaustive examples of failure to cooperate would include failing to comply with a s.16 Local Government (Miscellaneous Provisions) Act 1976 notice, failing to comply with a s.235 Housing Act 2004 notice, failing to provide a substantive response to a letter of alleged offence.
- Deliberate intent when committing the offence. Non-exhaustive examples of deliberate intent would include knowledge that the offence was occurring, committing the offence after relevant correspondence was sent by the Council.
- The number of residents placed at risk
- Offending over an extended period of time i.e. 6 months or longer
- Whether any vulnerable residents were in occupation at the time of the offence. Non-exhaustive examples of vulnerable residents include young adults and children, persons vulnerable by virtue of age, persons vulnerable by virtue of disability or sensory impairment, persons with a drug or alcohol addiction, victims of domestic abuse, children in care or otherwise vulnerable by virtue of age, people with complex health conditions, people who do not speak English as their first language, victims of trafficking or sexual exploitation, refugees, asylum seekers
Failure to License offences
Maximum Court fine following prosecution that can be levied for failure to license an HMO or Part 3 House – Unlimited
Failure to license a Mandatory ‘HMO’ – Section 72(1) of the Housing Act 2004
Under Part 2 Housing Act 2004, most higher risk HMOs occupied by 5 or more persons forming 2 or more households are required to hold a property licence issued by the local authority. HMO licensing was introduced to allow local authorities to regulate standards and conditions in high risk, multiply occupied residential premises. Through the property licence regime, local authorities ensure that the HMO has sufficient:
- kitchens,
- baths/showers and WCs and
- place a limit on the number of persons permitted to occupy it and the licence holder is required to comply with a set of licence conditions.
The Council would view the offence of failing to license an HMO as a significant failing. Licensing was introduced by the Government in order to regulate management, conditions, standards and safety in the properties considered to represent the highest risk to tenants as regards such matters as fire safety and overcrowding.
This seriousness of the offence is viewed by the Council as being a Very Serious matter, attracting a financial penalty with a starting level of £17,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only 1 HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £17,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £22,500.
Aggravating features/factors specific to failure to licence offences
- The condition of the unlicensed property. The nature and extent of any significant hazards that are present would justify an increase in the level of the civil penalty. Equally, an HMO that was found to be poorly managed and/or lacking amenities/fire safety precautions and/or overcrowded would also justify an increased civil penalty.
- Any demonstrated evidence that the landlord/agent was familiar with the need to obtain a property licence e.g. the fact that they were a named licence holder or manager in respect of an already licensed premises
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice’.
Failure to license a property under the Council’s Additional [HMO] Licensing Scheme – Section 72(1) of the Housing Act 2004
The Council has designated the whole of the borough as an additional licensing area, with the exception of the areas that form the pre 2014 wards of Weavers, Whitechapel and Spitalfields and Banglatown. The scheme came into force on 1 April 2019 and expires on 31 March 2024. Under the scheme, most HMOs occupied by 3 or more persons forming 2 or more households sharing 1 or more basic amenities such as a WC or kitchen, but which fall outside the scope of mandatory HMO licensing, will be required to hold an additional licence in order to be legally let. In addition, many section 257 HMOs will be required to hold an additional licensing to be legally let.
The Council would view the offence of failing to license an HMO under its additional licensing scheme as a significant failing. The Council has introduced additional HMO licensing, amongst other reasons, in order to regulate management, conditions, standards and safety in the properties considered to represent a higher risk to tenants as regards such matters as fire safety and overcrowding compared with properties occupied by a single-family household.
This seriousness of the offence is viewed by the Council as being a Serious matter, attracting a financial penalty with a starting level of £12,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only 1 HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £17,500.
Aggravating features/factors specific to failure to licence offences
- The condition of the unlicensed property. The nature and extent of any significant hazards that are present would justify an increase in the level of the civil penalty. Equally, an HMO that was found to be poorly managed and/or lacking amenities/fire safety precautions and/or overcrowded would also justify an increased civil penalty.
- Any demonstrated evidence that the landlord/agent was familiar with the need to obtain a property licence e.g. the fact that they were a named licence holder or manager in respect of an already licensed premises.
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice’.
Failure to license a property under the Council’s Selective Licensing Scheme – Section 95(1) of the Housing Act 2004
The Council has also exercised their powers under section 80 Housing Act 2004 and designated the areas that form the pre 2014 wards of Weavers, Whitechapel and Spitalfields and Banglatown as designated areas for selective licensing. Under this scheme, which came into force on 1 October 2021 and expires on 1 October 2026, most privately rented homes that do not require licensing under the Mandatory HMO licensing scheme are required to have a property licence to operate in the borough.
The Council would view the offence of failing to ensure that a rented home was licensed under its Selective Licensing Scheme as a significant issue, meaning that the tenants and wider community are not protected by the additional regulatory controls afforded by licensing.
This seriousness of the offence is viewed by the Council as being a Serious matter, attracting a financial penalty with a starting level of £12,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing 1 or 2 dwellings, including no more than 1 HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being s6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £17,500.
Aggravating features/factors specific to non-licensing offences
- The condition of the unlicensed property. The nature and extent of any significant hazards that are present would justify an increase in the level of the civil penalty. Equally, an property that required a Selective Licence and was found to be poorly managed and/or lacking amenities/fire safety precautions and/or overcrowded would also justify an increased civil penalty.
- Any demonstrated evidence that the landlord/agent was familiar with the need to obtain a property licence e.g. the fact that they were a named licence holder or manager in respect of an already licensed premises.
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice’.
Failure to Comply with an Overcrowding Notice – Section 139 of the Housing Act 2004
Maximum Court fine following prosecution that can be levied for failure to comply with an Overcrowding Notice – Unlimited
Section 139 Housing Act 2004 allows the Council to serve an Overcrowding Notice in respect of an HMO that is not required to be licensed under Part 2 Housing Act 2004. The notice specifies, on a room-by-room basis, the maximum number of persons allowed to occupy each room as sleeping accommodation or that the room is not considered suitable for that purpose.
The Council would view the offence of failing to comply with the requirements of an Overcrowding Notice as a significant matter, exposing the tenant[s] of an HMO to unacceptably cramped living conditions.
The seriousness of the offence is viewed by the Council as being a Very Serious matter, attracting a financial penalty with a starting level of £17,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing 1 or 2 dwellings, including no more than 1 HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £17,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £22,500.
Aggravating features/factors specific to non-compliance with an Overcrowding Notice
- The level of overcrowding present – breaches that related to over-occupation of multiple rooms or extreme over-occupation of an individual room would justify a higher civil penalty.
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice’.
Failure to Comply with a Banning Order – Section 21 of the Housing And Planning Act 2016
Maximum Court fine that can be levied for failure to comply with a Banning Order following prosecution – Unlimited. In addition, the Court can also impose a prison sentence for up to 51 weeks.
The Housing and Planning Act 2016 includes provisions and processes for a person to be banned from being involved, for a specified period, in one or more of the following activities:
- Letting housing
- Engaging in letting agency work
- Engaging in property management work
Banning Orders are reserved for what are recognised as being the most serious housing-related offences. In the event that the Council was satisfied that the offence of breaching a Banning Order had occurred, this would normally be the subject of prosecution proceedings. Where it was determined that a civil penalty would be appropriate in respect of a breach of a Banning Order, this would normally be set at the maximum level of £30,000 to reflect the severity of the offence.
Failure to Comply with The Management of Houses in Multiple Occupation [England] Regulations 2006 and The Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007
Maximum Court fine following prosecution that can be levied for failure to comply with each individual regulation - unlimited
The Management of Houses in Multiple Occupation (England) Regulations 2006 impose duties on the persons managing HMOs in respect of:
- Providing information to occupiers [Regulation 3]
- Taking safety measures, including fire safety measures [Regulation 4]
- Maintaining the water supply and drainage [Regulation 5]
- Supplying and maintaining gas and electricity, including having these services/appliances regularly inspected [Regulation 6]
- Maintaining common parts [Regulation 7]
- Maintaining living accommodation [Regulation 8]
- Providing sufficient waste disposal facilities [Regulation 9]
The Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007 impose duties on the persons managing HMOs as defined by Section 257 Housing Act 2004 in respect of:
- Providing information to occupiers [regulation 4]
- Taking safety measures, including fire safety measures [regulation 5]
- Maintaining the water supply and drainage [regulation 6]
- Supplying and maintaining gas and electricity, including having these services/appliances regularly inspected [regulation 7]
- Maintaining common parts [regulation 8]
- Maintaining living accommodation [regulation 9]
- Providing sufficient waste disposal facilities [regulation 10]
It is important that the manager of an HMO complies with all regulations, but the Council recognises that a failure to comply with certain regulations is likely to have a much bigger impact on the safety and comfort of residents than others.
Failure to comply with the duty of manager to provide information to occupier
The Council would view the seriousness of the offence of failing to comply with the duty of the manager to provide information to occupier as a Mild matter, attracting a financial penalty with a starting level of £2,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only 1 HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £2,000, attracting a civil penalty of £500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or two HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £2,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £2,000, attracting a civil penalty of £4,500.
Aggravating features/factors specific to Management Regulation breach offences
- The number and nature of the management regulation breaches
- The nature and extent of deficiencies within each regulation
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice’
Duty of manager to take safety measures
The Council would view the seriousness of the offence of failing to comply with the duty of the manager to take safety measures as a Very Serious matter, attracting a financial penalty with a starting level of £17,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only 1 HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £17,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors , will increase by £5,000, attracting a civil penalty of £22,500.
Aggravating features/factors specific to Management Regulation breach offences
As set out under ‘Failure to comply with the duty of manager to provide information to occupier’
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice'.
Duty of manager to maintain water supply and drainage
The Council would view the seriousness of the offence of failing to comply with the duty of the manager to maintain the water supply and drainage as a Serious matter, attracting a financial penalty with a starting level of £12,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only one HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £17,500.
Aggravating features/factors specific to Management Regulation breach offences
As set out under ‘Failure to comply with the duty of manager to provide information to occupier’
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice’
Duty of manager to supply and maintain gas and electricity
The Council would view the seriousness of the offence of failing to comply with the duty of the manager to maintain the gas and electricity supply as a Serious matter, attracting a financial penalty with a starting level of £12,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only 1 HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £5000, attracting a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £17,500.
Aggravating features/factors specific to Management Regulation breach offences
As set out under ‘Failure to comply with the duty of manager to provide information to occupier’
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice’
Duty of manager to maintain common parts, fixtures, fittings and appliances
The Council would view the seriousness of the offence of failing to comply with the duty of the manager to maintain the common parts, fixture, fittings and appliances as a Moderate matter, attracting a financial penalty with a starting level of £7,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only 1 HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £2,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or two HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £12,500.
Aggravating features/factors specific to Management Regulation breach offences
As set out under ‘Failure to comply with the duty of manager to provide information to occupier’
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice'.
Duty of manager to maintain living accommodation
The Council would view the seriousness of the offence of failing to comply with the duty of the manager to maintain the living accommodation as a Moderate matter, attracting a financial penalty with a starting level of £7,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only 1 HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £2,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £12,500.
Aggravating features/factors specific to Management Regulation breach offences
As set out under ‘Failure to comply with the duty of manager to provide information to occupier’
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice'.
Duty to provide waste disposal facilities
The Council would view the seriousness of the offence of failing to comply with the duty of the manager to provide waste disposal facilities as a Moderate matter, attracting a financial penalty with a starting level of £7,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing only 1 HMO dwelling and no more than 1 other dwelling that is not an HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £2,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £12,500.
Aggravating features/factors specific to Management Regulation breach offences
As set out under ‘Failure to comply with the duty of manager to provide information to occupier’
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice'.
Breach of licence conditions – Section 72(3) Housing Act 2004 and Section 95(2) Housing Act 2004
Maximum Court fine following prosecution that can be levied for failure to comply with a licence condition - unlimited
All granted property licences impose a set of conditions on the licence holder. These conditions impose a variety of obligations relating to the letting, management and condition of the rented property including, but not limited to:
- Undertaking Gas Safe and electrical checks
- Installing and maintaining smoke alarms
- Obtaining tenant references, providing written tenancy agreements and protecting deposits
- Notifying the Council in any specified changes in circumstances
- Carrying out specified measures to prevent or address anti-social behaviour
- Maintaining the property in reasonable repair
- Ensuring that the gardens are tidy and free from refuse
- For HMO, licences granted under part 2, carrying out works that were a condition of the granted licence or reducing occupation levels as necessary
It is important that the manager of a licensed property complies with all imposed conditions, but the Council recognises that a failure to comply with certain licence conditions is likely to have a much bigger impact on the safety and comfort of residents than others.
Failure to comply with licence conditions related to:
- Signage or the provision of information for tenants
- Provision of written terms of occupancy for tenants
- Procedures regarding complaints
- Procedures regarding vetting of incoming tenants
- Compliance with deposit protection legislation
- The provision of information regarding occupancy of the property
- The provision of information regarding change of managers or licence holder details
- Attending training courses
The Council would view the seriousness of the offence of failing to comply with a licence condition relating to signage or information for tenants as a Mild matter, attracting a financial penalty with a starting level of £2,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing one or two dwellings, including no more than 1 HMO, with no other relevant factors or aggravating features, will reduce by £2,000, attracting a civil penalty of £500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £2,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £2,000, attracting a civil penalty of £4,500.
Aggravating features/factors specific to Licence Condition breach offences
- The number and nature of the licence condition breaches
- The nature and extent of deficiencies within each licence condition breach
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice'.
Failure to comply with licence conditions related to:
- Procedures and actions regarding Inspections
- Procedures regarding Repair issues
- Maintenance and use of common parts (including gardens and outbuildings) and living areas
- Safeguarding occupiers and minimising disruption during works
- Providing information regarding alteration and constructions works
- Procedures regarding emergency issues
- Waste and waste receptacles, pests, minor repairs, alterations or decoration.• Giving written notice prior to entry
- Procedures and actions regarding ASB
The Council would view the seriousness of the offence of failing to comply with a licence condition relating to procedures for dealing with:
- complaints,
- ASB,
- vetting of incoming tenants,
- licence conditions relating to maintenance of common parts and living areas,
- licence conditions relating to waste receptacles,
- minor repairs, alterations or decoration as a Moderate matter, attracting a financial penalty with a starting level of £7,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing 1 or 2 dwellings, including no more than 1 HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £2,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £12,500.
Aggravating features/factors specific to Licence Condition breach offences
- The number and nature of the licence condition breaches
- The nature and extent of deficiencies within each licence condition breach
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice'.
Failure to comply with licence conditions related to:
- The provision of documentation regarding fire detection, emergency lighting, gas installations and electric installations
- Notification of legal proceedings and contraventions
The Council would view the seriousness of the offence of failing to comply with a licence condition relating to the provision of documentation regarding:
- fire detection,
- emergency lighting,
- gas installations or electricity installations as a Serious matter, attracting a financial penalty with a starting level of £12,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing 1 or 2 dwellings, including no more than 1 HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £7,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £17,500.
Aggravating features/factors specific to Licence Condition breach offences
- The number and nature of the licence condition breaches
- The nature and extent of deficiencies within each licence condition breach
Generic aggravating features/factors
As set out under ‘Failure to comply with an Improvement Notice'.
Failure to comply with licence conditions related to:
- Minimum floor areas
- Occupancy rates
- Occupancy of rooms that are not to be used as sleeping accommodation
- Limits on number of households allowed to occupy the property or part of the property
The Council would view the seriousness of the offence of failing to comply with a licence condition relating to minimum floor areas as a Very Serious matter, attracting a financial penalty with a starting level of £17,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing 1 or 2 dwellings, including no more than 1 HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £12,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or two HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £17,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being 6 or more dwellings, and/or 3 or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £22,500.
Aggravating features/factors specific to Licence Condition breach offences
- The number and nature of the licence condition breaches
- The nature and extent of deficiencies within each licence condition breach
Failure to comply with licence conditions related to:
- The condition or existence of smoke alarms, carbon monoxide alarms, emergency lighting, gas installations, electric installations or fire detection
- The prevention including provision of safe means of escape
The Council would view the seriousness of the offence of failing to comply with a licence condition relating to the condition of:
- smoke alarms,
- carbon monoxide
- alarms,
- emergency lighting,
- gas installations,
- electric installations or fire detection and prevention including provision of safe means of escape as a Severe matter, attracting a financial penalty with a starting level of £22,500.
Under the Council’s policy the civil penalty for a landlord controlling/owning/managing 1 or 2 dwellings, including no more than 1 HMO, with no other relevant factors or aggravating features, will reduce by £5,000, attracting a civil penalty of £17,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a significant property portfolio, being 3, 4, or 5 dwellings, and/or 2 HMOs, with no other relevant factors or aggravating features, will attract a civil penalty of £22,500.
Under the Council’s policy, the civil penalty for a landlord controlling/owning/managing a large property portfolio, being six or more dwellings, and/or three or more HMOs and/or has demonstrated experience in the letting/management of property (irrespective of the size of the portfolio), with no other relevant factors or aggravating factors, will increase by £5,000, attracting a civil penalty of £27,500.
Aggravating features/factors specific to Licence Condition breach offences
- The number and nature of the licence condition breaches
- The nature and extent of deficiencies within each licence condition breach
Process for imposing a civil penalty and the right to make representations
Before imposing a financial penalty on a person, the Council will give the person a Notice of Intent.
A person who is given a Notice of Intent may make written representations to the Council about the proposal to impose a financial penalty. Any representations must be made within a 28-day period. This period starting the day after the date on which the Notice of Intent was given. As the burden lies with the recipient of any such notice to explain why, exceptionally, the Council should, or should not, depart from the Civil Penalties Matrix and guidance, the Council will expect the recipient of a Notice of Intent to explain and provide fulsome and cogent evidence to support the existence of any such circumstances when they make representations in response to the notice.
In the event of 2 or more persons receiving separate Notices of Intent for the same matter, it should be noted that acceptance/payment of a civil penalty by 1 person will not negate the Council’s intention to impose a civil penalty on the second or further persons. Each person served with the Notice of Intent is considered individually liable to pay the civil penalty notified to them. It is therefore important that any recipient of a Notice of Intent takes the opportunity to make representations should they consider for any reason a civil penalty should not be individually imposed upon them.
After the end of the period for representations the Council will:
(a) Decide whether to impose a financial penalty on the person, and
(b) If it decides to impose a financial penalty, decide the amount of the penalty
In determining whether to impose a financial penalty, and the level of any penalty, the Council will consider any written representations received in the appropriate time period.
Furthermore, an offender’s compliance with the identified breach during the representation period would not, in itself, be reason for the Council to determine that the imposition of a financial penalty was inappropriate i.e. compliance at that stage would be relevant to the amount of any imposed financial penalty.
If, following the receipt of written representations and/or the expiry of the time period to make written representations, the Council decides to impose a financial penalty on the person, it will give the person a Final Notice imposing that penalty.
The Final Notice will set out and summarise:
a) The amount of the financial penalty,
b) The reasons for imposing the penalty,
c) Information about how to pay the penalty,
d) The period for payment of the penalty,
e) Information about rights of appeal, and
f) The consequences of failure to comply with the notice
Discounts
The Council will automatically apply the following discounted rates to any imposed financial penalties in the following circumstances:
- A discount of 15% off the original calculated financial penalty will be deducted from the penalty imposed in the Final Notice should the penalty be paid within a specified time period (normally 28 days). This discount would be in addition to any reduction applied as a result of compliance at the Notice of Intent stage.
Example
The landlord of a Mandatory HMO property fails to obtain a licence. They only operate 2 HMO properties and there are no other relevant factors or aggravating features. The offence is regarded as a Very Serious matter. Upon receipt of the ‘Notice of Intent’ to impose a £17,500 financial penalty, the landlord makes a complete application for the HMO licence, including all required documentation and paying all relevant application fees, within the period allowed for representations. Written representations are made to the Council.
On account of the written representations received by the landlord, without the landlord having rectified the breach, the council would have imposed a financial penalty of £16,000 (“the original calculated financial penalty”). In the event the landlord pays within 28 days of the date of the Final Notice a 15% discount is given so that the landlord makes a discounted payment of £13,600.