Charges for notices and financial and civil penalties
6.1 - Charges for notices
6.2
Enforcement means an action carried out in exercise of or against the background of enforcement powers. This is not limited to formal enforcement action such as prosecution, service of legal notices, and application for a rent repayment order or the issue of civil penalty notices. It includes inspections or investigations related to property or land and any relevant person where the purpose is checking compliance with legislation or to give advice to help comply with the law.
6.3
Having regard to the relevant statutory power, and where the law allows, a financial charge will be made for the service of all Housing Act notices and the making of Prohibition Orders. There is no maximum charge, and the final charge will be based on the full cost to the Council of taking the action including inspection, preparation, and service of the notices. Any action to recover costs and expenses will be in accordance with the requirements of the relevant Acts. (See Appendix 2 Charges for Notices).
6.4
In respect of formal notices served in relation to significant Category 2 hazards, this charge may be waived at the Council's discretion when required works as specified within the Notice are completed to the satisfaction of the Officer within the specified timeframe (See Appendix 2 Charges for Notices).
6.5
Costs incurred carrying out Work in Default or Remedial Action will be charged separately. When the charge demand becomes operative, the sum recoverable will be a local land charge. Costs will be charged at an hourly rate for the enforcement officer, administration and management costs. For more information see the Council's Works in Default Procedure. (See Appendix 2 Charges for Notices).
6.6 - Civil penalties
The Government has introduced legislation that gives the Council the option to impose a financial penalty of up to £30,000 as an alternative to prosecution for certain housing offences. These powers were introduced to help local authorities take more enforcement action against rogue landlords. The Council adopted a policy for applying Civil Penalties for Housing Offences in February 22.
6.7
Specifically, there is legislation which gives the Council the power to issue Civil Penalty notices of up to £30,000 as an alternative to prosecution, where there is evidence beyond reasonable doubt of certain offences i.e. failure to:
- comply with an improvement notice;
- license a property which requires a licence;
- comply with licence conditions or occupancy requirements;
- comply with an overcrowding notice;
- comply with HMO management regulations requirements;
- failing to licence a house in multiple occupation ('HMO');
- knowingly permitting the over-occupation of a licensed HMO;
- failing to comply with the condition of an HMO licence;
- failing to comply with an overcrowding notice in respect of a non-licensable HMO;
- failing to comply with HMO management regulations; and
- breaching a banning order
6.8
Local authorities are entitled to retain any monies collected, provided they are used to fund private sector housing enforcement functions. However, before any financial penalties can be issued, statutory guidance requires the Council to develop and document a policy which sets out when it should prosecute and when it should impose a financial penalty, and the level of financial penalty it should impose in each case.
6.9
Civil Penalties can be used where a breach is serious and the Council may determine that a significant financial penalty (or penalties if there have been several breaches), rather than prosecution, is the most appropriate and effective sanction in a particular case. The government have issued statutory guidance to Councils on the use of Civil Penalty notices under the 2016 Act. The Council has published its own policy on how it will decide on the level of financial penalty which is in accordance with the government guidance. This policy has already been adopted by the Council in February 2022, and is included in this policy at Appendix 3 (Civil Penalties Policy for Housing Offences).
The decision when to prosecute, agree a simple caution or when to issue a civil penalty will made on a case-by-case basis in line with this adopted policy and current guidance.
6.10
The upper limit for fines in the magistrates' court has been removed; this means if found guilty of an offence, there is no maximum fine. In some cases, the Council can apply to court to recover rent from a landlord if a property has been let illegally. Officers will provide Legal Services with all the relevant information to enable the recovery of costs to be sought at court. Any costs application made is likely to include the time officers have spent investigating a case and the legal costs involved.
6.11
Verdicts and sentences in criminal cases are given in open court and are a matter of public record. The Council will decide whether to publicise sentences following prosecution on a case-by-case basis. Publicising guidance has a presumption in favour of publicising outcomes of criminal cases and basic personal information about convicted offenders.
6.12
In addition to charges for Notices served under the Housing Act 2004 other Notices served under other legislation or regulations which have penalties attached, usually where the Notice served has been contravened. These include (but are not limited to):
- The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 (£30,000 maximum) (See Appendix 4);
- The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 (£5000 maximum) (See Appendix 5 Statement of Intent);
- The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (£5000 maximum)
6.13
Each case will be considered on its own merits and the relevant statutory appeal rights are provided with any notice served.