Key Facts

• The income from financial penalties will be kept by local authorities.
• No two councils are the same in terms of size and needs, affecting how they implement the Bill.
• Trading standards teams may need additional training on landlord and tenancy law.
• Clause 10 enables enforcement authorities to impose financial penalties on landlords who require leaseholders to pay prohibited rent.
• The maximum penalty has been increased from £5,000 to £30,000 to act as a stronger deterrent.
• Subsection (4) of clause 11 allows an enforcement authority to make a single recovery order for multiple prohibited rent payments relating to the same lease.
• The Impact Assessment has a de minimis impact of less than £5m.
• An additional amount of expenditure of £29,000 per annum is required to provide support within the National Trading Standards function.
• There are concerns about potential costs for enforcement authorities if landlords seek to evade responsibility.
• Clause 13 requires enforcement authorities to consider guidance issued by the Secretary of State or Welsh Ministers depending on property location.
• Penalties can be up to £30,000 per lease to act as a deterrent.
• Excess proceeds beyond enforcement costs will go to the Secretary of State unless imposed in Wales then excess goes to Welsh Ministers.
• Enforcement authorities must give notice and follow specified procedures for imposing penalties or recovery orders.
• The range of penalties for offences is from £500 to £30,000.
• Trading standards authorities must cover their costs through proceeds from fines.
• Money not used by the authority will be paid to the Secretary of State or Welsh Ministers.
• Clause 14 enables leaseholders to apply directly to an appropriate tribunal for a recovery order requiring landlords to repay prohibited rent.
• The person ordered to repay has up to 28 days following the date of the recovery order to make the repayment.
• Clause 15 provides that interest is payable from the date of payment until repaid, at an 8% simple interest rate per annum.
• Clause 17 enables enforcement authorities to assist leaseholders with applications for recovery orders or declarations.
• Clause 18 defines 'tenant' to include former tenants and people acting on behalf of a tenant, but excludes guarantors.
• The clauses are ordered to stand part of the Bill.
• Clause 20 updates the Housing Act 1985 to align with the Leasehold Reform Bill's provisions on ground rent.
• Clause 21 gives power to make consequential amendments through regulations, including amending Acts passed in the same session as this one.
• Clause 22 specifies procedures for making regulations under the Bill, following the negative procedure unless they amend an Act.
• The amendment clarifies the definition of 'premium'.
• The original legislation aimed to apply only to leases where a premium was paid.
• Properties with a repairing covenant are affected by this clarification.
• Clause 24 applies the Bill to Crown land.
• The Bill extends to England and Wales.
• Executive competence is transferred to Welsh Ministers in specific areas.