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Renters’ Rights Bill: What’s the new Private Rented Sector Database and how will it work? - Total Landlord Insurance

October 18, 2024
Renters’ Rights Bill: What’s the new Private Rented Sector Database and how will it work? - Total Landlord Insurance

Note: Articles on the Renters’ Rights Bill will be continuously updated as details emerge

Last updated 11 October 2024

One of the biggest challenges for those seeking to regulate and oversee the private rented sector in England is that no one knows how many landlords operate within the sector, where they are, or how many rental properties exist.

Best ‘guestimates’ put the number at around 2.6 million landlords and some 4.5 million households.

But all that will change once the Government’s proposed Private Rented Sector Database goes live.

The database will be similar to, but more comprehensive than, the ones already in operation in Wales, Scotland and Northern Ireland. It will use the address of each private rented property in England to create a database of homes and their landlords/agents, possibly linked to the existing UPRN numbers councils give every address in the UK.

As with the schemes already in operation in the rest of the UK, the information is likely to include the owner of the property, the company managing it (if applicable) and a contact address for the owner/management. There will also be some information about offences and penalties, and the Government has stated it intends for this database to replace the functionality of the Database of Rogue Landlords.

“We will make certain details relating to offences viewable to tenants and prospective tenants. Opening up this information will ensure tenants can make a more informed rental decision – leading to a better rental experience. However, we will also ensure that this aim is proportionate to landlords’ right to privacy.”

As well as allowing tenants to make checks on their prospective landlord, the database will make it much easier for local councils to focus their enforcement action.

The database may also record the rent paid for each property.  This will assist the First-Tier Tribunal when it is assessing rents referred to it under the Section 13 rent increase procedure, which is set to become the only method landlords can use to raise rents.

The database is envisaged to help with compliance and applying the Decent Homes Standard (DHS). The requirements for the database could mirror those of the DHS and either be populated by the person registering the property or, where possible, link to other databases where compliance data is stored.  

Up-to-date safety certification, energy efficiency and other legal requirements could then be easily checked.

Importantly, the database will also act as a ‘one stop shop’ for landlords, with guidance to help them understand and comply with their legal obligations and responsibilities. Changes to legislation and requirements will be communicated via the database.

Mandatory registration for landlords

Landlords will be legally required to register on the database before a property is marketed or let. There will be a fee, but the Government has said it will “work to ensure that the fee is proportionate and good value”.

If landlords fail to properly register themselves or their properties, the local council will have the power to issue a civil penalty of up to £7,000. For repeated breaches, or if landlords are found to have provided fraudulent information to the database, they may be issued with a civil penalty of up to £40,000 or could face criminal prosecution.

“I am excited about the introduction of this database, as it has the potential of improving the transparency and information available to tenants, but also allows for the opportunity to help and assist landlords, and indeed agents, to understand and comply with their obligations and be able to measure themselves on what ‘being good’ looks like. It will also make it harder for bad operators to hide and help focus enforcement effectively on those who flout the law.”

- Sean Hooker, Head of Redress at the Property Redress Scheme

He does however caution that the technology needs to be correct, and the process of registering and complying straightforward and affordable, and adds, “we await the details of how this will be achieved in a realistic timescale as it is the lynchpin of so many of the other reforms proposed”.

Keep up to date on the Renters’ Rights Bill

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You can also visit Total Landlord's Renters’ Rights Bill hub which will be regularly updated as the Bill progresses.

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