Sections 16I, 16J, 16K, and 16L are all new provisions being added to the Housing Act 1988 to ensure appropriate financial penalties for prohibited behaviour under the new system. These provisions are intended to deter non-compliance and help local authorities proportionately target enforcement activity against those landlords, former landlords and relevant persons who wilfully or recklessly disregard their obligations to tenants.
Example 1: Offering a fixed-term contract
A landlord offers a tenant a fixed-term contract, which is in contravention of the new tenancy system (so, the landlord committed a breach under section 16I(1)). No criminal proceedings have been initiated against the landlord. If the local housing authority is satisfied beyond reasonable doubt that this has taken place, they could fine the landlord up to £7,000.
Example 2: Misuse of the moving in ground
A landlord evicted a tenant using the moving in ground, claiming they were planning to move in their brother. The tenant moved out four months after the eviction notice was issued. The landlord had never intended for their brother to move into the property and was waiting for the restricted period, where letting and marketing is prohibited, to end to re-let the property at a higher rent (so, the landlord committed an offence under section 16J(1)). If the local housing authority was satisfied beyond reasonable doubt that this had happened, they would have the choice to impose a fine of up to £40,000 as an alternative to criminal prosecution.
Part 1: Tenancy reform Chapter 1: Assured Tenancies Section 15: Landlords etc: financial penalties and offences Background