A council has served its first civil penalty notice under a strengthened policy using new powers under the Renters Rights Act.

A £13,090 penalty imposed by Bristol council relates to an alleged failure by a portfolio landlord to apply for a licence for an HMO under Bristol’s citywide additional licensing scheme. 

The government has expanded councils’ powers to issue civil penalties as an alternative to prosecution for housing-related offences and breaches.  

Penalties for alleged offences and breaches are several times higher than they were before, the maximum being £40,000. 

In this Bristol case, the landlord in question had previously been found to be managing other HMOs without applying for the required licences until they became aware of the council investigations.  

This history of non-compliance was considered in the decision to serve a penalty notice and when the proposed penalty was calculated. 

The starting amount for the offence, as set by government and adopted in the council’s policy, was £17,000. 

The council increased the amount to reflect the landlord’s history of non-compliance, before applying a reduction because a licence application was submitted within 14 days. The resulting proposed penalty is £13,090. 

The property was rented below the Local Housing Allowance rate, so no uplift was applied for higher rent levels. Had it been rented above the Local Housing Allowance rate, a further £1,309 would have been added to the proposed penalty. 

The council has issued a statement saying: “Tenants who occupied the property while it was unlicensed may also be able to apply for a Rent Repayment Order, which can be for up to two years’ rent.”

The landlord is entitled to make representations about the notice. If, the council still decides to serve a final penalty notice, the landlord will have a legal right of appeal to a Tribunal.