Penalty Policy in relation to relevant Letting Agency Legislation
Sanctions
The Tenant Fees Act 2019 provides that enforcement authorities may impose financial penalties of up to £30,000 depending on the breach, as follows:
a. in respect of a first breach of S.1 & S.2, or a breach of Schedule 2 of the T FA 2019, a financial penalty not exceeding £5,000
b. under S.12 of the T FA 2019, a second or subsequent breach of S.1 or S.2 within 5 years of the previous breach provides for a financial penalty not exceeding £30,000 and there is alternative power to prosecute in the Magistrates Court where an unlimited fine may be imposed
In respect of a failure of Letting Agents to publicise their fees as required by S.83(3) of the Consumer Rights Act 2015, a financial penalty not exceeding £5,000 applies.
In respect of a failure by any person engaged in Letting Agency or Property Management work who fails to hold membership of a Redress Scheme as required by Article 3 Redress Schemes for Let tings Agency Work and Property Management Work (requirement to belong to a Scheme for example) (England) Order 2014 (in respect of Let tings Agency work) or Article 5 (in respect of property management work), a financial penalty not exceeding £5,000 applies. Note that it is not sufficient to simply register for redress - the correct category of membership must be obtained depending on the work carried out.
In respect of Client Money Protection Schemes for Property Agents (Requirements to Belong to a Scheme for example) Regulations 2019:
a. a failure by a property agent who holds client money to belong to an approved or designated Client Money Protection ("C MP") Scheme as required by Regulation 3, a financial penalty not exceeding £30,000 applies
A failure to display a certificate of membership; or publish a copy of that certificate on the relevant website (where one exists); or produce a copy of the certificate free of charge to
a. any person reasonably requiring it as required; or notify any client in writing within 14 days of a change in the details of a underwriter to the C MP scheme or that the membership of the C MP scheme has been revoked, as required by Regulation 4, a financial penalty not exceeding £5,000 applies.
Stockton-on-Tees Borough Council will determine what is the most appropriate and effective sanction and whether it is appropriate to impose a financial penalty or prosecute having due regard to its Regulatory Services Enforcement Policy.
Other types of enforcement action that may be taken
In appropriate circumstances, consideration will be given to less formal action such as warning letters or advice, in an effort to secure compliance, and will be done so in accordance with the relevant SBC Regulatory Services Enforcement Policy.