Agenda item

ORDERED that Executive:

1.     APPROVES the General Enforcement Policy 2026-2031

2.     APPROVES the Public Protection Private Sector Housing Enforcement Policy 2026-2031.

3.     APPROVES the Public Protection Civil Penalties Policy 2026-2031 (under the Renters’ Rights Act 2025 and other housing legislation)

4.     APPROVES a further report be brought to provide an update on the demands and the resource costs of delivering the Renters’ Rights Act 2025.

5.     DELEGATES authority to the Corporate Director of Regeneration and Housing to make minor changes to the above policies in response to changes to governance guidance or legislation.

The Executive Member for Neighbourhoods submitted a report for Executive consideration. The purpose of the report sought approval of three new policies relating to the general and regulatory functions delivered by Public Protection, Neighbourhoods and Environmental Enforcement functions. The new policies would enable the Council to satisfy its statutory obligations in line with the provisions of the Legislative and Regulatory Reform Act 2006 and the Regulators Code made under it as well as the Renters’ Rights Act 2025 and associated housing legislation.   

In terms of the private rented sector housing enforcement policy, the Renters’ Rights Act 2026 represented a fundamental shift in the regulation of the private rented housing sector. Tenants would see stronger protections, including the replacement of assured shorthold tenancies with periodic assured tenancies, improved rights and better security of tenure, and greater protection from unlawful interference from landlords or their agents.

The Renters’ Rights Act 2026 placed a statutory duty on local housing authorities to enforce landlord and rented accommodation legislation, altering the balance between informal action and formal enforcement. Where breaches in legislation were identified, the Council needed to actively consider enforcement action to meet this duty, rather than defaulting to advice or informal resolution in the first instance.

Consequently, the Regulators’ Code was not to be relied upon to justify informal action as the starting point for compliance under the Renters’ Rights Act 2025. This explained the need for a separate Private Sector Housing Enforcement Policy 2026-2031 which did not rely on the principles set out in the Regulators’ Code.

Historically, enforcement of private rented sector legislation had varied significantly between local housing authorities, with markedly different enforcement outcomes. This inconsistency risked undermining confidence in the regulatory system, created uncertainty for landlords operating across multiple areas and increased the likelihood of challenge to enforcement decisions. This also resulted in discrepancies to the level of tenant protections.

To address those concerns, the Association of Chief Environmental Health Officers (ACEHO) developed a suite of national model policies, including a Civil Penalty Policy. The policies aimed to promote greater consistency, transparency and robustness in local authority enforcement approaches, whilst allowing for appropriate local discretion, where appropriate. The Private Sector Housing Enforcement Policy 2026-2031 and The Civil Penalties Policy 2026-2031 were aligned with this nationally recognised framework, strengthening the Council’s ability to meet its statutory duties under the Renters’ Rights Act 2026.

The implementation of the Renters’ Rights Act 2025 required a coordinated and timely update to the Civil Penalties Policy and the previous Public Protection Enforcement Policy. Failure to update the policies risked inconsistency in enforcement decisions and activities, increasing exposure to challenge, as well as an inability to demonstrate the Council was meeting its statutory duties to enforce landlord legislation under section 107 of the Renters’ Rights Act 2025.

Regarding the Civil Penalties Policy, there was a current Civil Penalty Policy which had been developed prior to the introduction of the Renters’ Rights Act 2025. This policy had been revised to reflect the suite of new offences and amendments to the penalty and evidential thresholds used when calculating the level of civil penalty, and to new statutory guidance.

Civil penalties offered a faster, less resource-intensive enforcement route compared to the time-consuming process of criminal prosecution, which placed a burden on the court system. This allowed regulatory bodies to deal with more cases effectively and quickly

The statutory guidance on civil penalties, under the Renters’ Rights Act 2025 and other housing legislation, informed Councils’ that civil penalties were available as an alternative to criminal prosecution for relevant landlord and rented accommodation. It also advised there was no expectation that Councils needed to take informal steps to address breaches or offences under the Renters Rights Act 2025 and other housing legislation. The guide included starting points which Councils needed to refer to for setting civil penalties, based on the seriousness of the offending.

The Council had the power to impose a civil penalty of up to £40,000, with a level of civil penalty imposed decided on a case-by-case basis in line with the Civil Penalties Policy. The policy set out the level of civil penalty in each case where it has been determined to issue a civil penalty as an appropriate enforcement option.

The Council, through the policy, had to determine the level of penalty after having taken into consideration factors specific to the offending, including aggravating and mitigating factors, and financial considerations. In setting a final civil penalty amount, the Council needed to take account of any information supplied by the offender about their financial circumstances which would usually include all gains from rental income. It was recognised that in areas where rents were lower, or higher, than the national average, the Council could apply a general adjustment via its civil penalties policy and issue a penalty that was proportionate to the local rental market. This adjustment needed to maintain a level of civil penalty in order that the offender did not financially benefit from their offending behaviour and that the level of fine was relevant to the impact of the offending on tenants and the Council.

The legislation stated that any income received from civil penalties was retained by the Council and used to further the Council’s statutory functions in relation to its enforcement activities covering the private rented sector. Adopting the polices referred to in the report would ensure the Council could continue to effectively deliver regulatory functions and use appropriate enforcement sanctions.

Thanks were expressed to all those involved in the development of the policies and there were questions from Members.

OPTIONS

Not to approve the new policies. This would have meant an increased risk of a legal challenge against enforcement decisions action, particularly in respect of the new / amended enforcement functions and powers.

ORDERED that Executive:

1.     APPROVES the General Enforcement Policy 2026-2031

2.     APPROVES the Public Protection Private Sector Housing Enforcement Policy 2026-2031.

3.     APPROVES the Public Protection Civil Penalties Policy 2026-2031 (under the Renters’ Rights Act 2025 and other housing legislation)

4.     APPROVES a further report be brought to provide an update on the demands and the resource costs of delivering the Renters’ Rights Act 2025.

5.     DELEGATES authority to the Corporate Director of Regeneration and Housing to make minor changes to the above policies in response to changes to governance guidance or legislation.

REASONS

To ensure the Council had an approved framework for delivering Public Protection, Neighbourhoods and Environmental Enforcement regulatory functions.

To ensure the Council satisfied its obligations under the Legislative and Regulatory Reform Act 2006, and the Regulators Code made under it, the Renters’ Rights Act 2025 and associated housing legislation.

To avoid or mitigate the risk of inconsistent enforcement, legal challenge to decisions and reduced ability to demonstrate compliance with statutory guidance and best practice.

Delegation to the Director of Regeneration and Housing to make minor changes to policies ensured that changes to new legislation and guidance were accounted for and policies could be applied effectively without need for full Executive approval.

To inform Executive about the additional demands of the Renters’ Rights Act and the impact on staffing resources and costs.