The Renters (Reform) Bill was formally introduced into parliament in May, and whilst it is not expected to be effective until the latter half of 2024, as soon as the Bill is given Royal Assent, the government has announced it will also be introducing a new Private Rented Sector Database with a legal requirement for all landlords to register themselves and their properties on the Property Portal.
What is the Renters Reform Bill?
The new legislation is intended to benefit both landlords and tenants with improvements to current laws and procedures, for example strengthening the Section 8 possession grounds, abolishing Section 21 evictions, the introduction of an Ombudsman for disputes to be resolved without referring a matter to court and a new property portal for landlords, all to ensure obligations are met by both parties. Many elements of the Bill are already causing concern for landlords including the Property Portal.
Landlord obligations under the new Property Portal
Once the Property Portal has been launched, landlords will have to pay a fee to be registered and will then be able to use the database to:
- Register their details – legal requirement.
- Register all properties – legal requirement.
- Access relevant guidance.
- Keep themselves updated with changes to their responsibilities.
Potential landlord penalties
Local councils who have access to landlord information and will be able to take enforcement action against private landlords that fail to join the Property Portal. If a landlord lets or advertises a property without it first being registered on the Property Portal, they can be fined up to £5,000 by the local council. If a landlord repeatedly breaches the requirement, or if they commit a serious offence such as providing fraudulent information to the Property Portal, they may be fined up to £30,000 or could face criminal prosecution and a Banning Order.
HMRC could potentially have access to data in the new Property Portal meaning they will easily be able to locate and penalise landlords that are not adhering to their tax obligations including Capital Gains Tax on Residential Property Disposals and Making Tax Digital requirements.
Further information
For more information about the new Property Portal as part of the Renters Reform Bill, visit Gov.uk here: https://www.gov.uk/guidance/privately-rented-property-portal-renters-reform-bill
At LWA we work closely with our property landlord clients ensuring they not only meet all of their tax obligations but also maximise on property tax breaks. If you are a landlord and want to learn more about how the Renters Reform Bill might affect you, please get in touch with your dedicated contact at LWA on 0161 905 1805 in our Manchester office, or 01925 830 830 in our Warrington office.
