Digital Private Rented Sector Database

Introduction

1. The Private Rented Sector Bill includes provision for a database to improve the management and oversight of privately rented properties and landlords in England. 

2. Whether you are a tenant or a landlord, staying informed about these changes is crucial. If you are a landlord, make sure to register and keep your information current. If you are a tenant, you can use the database to verify properties and landlords, giving you peace of mind in your rental decisions. 

The PRS database and its purpose

Clause 73: The database

3. The Bill includes provision for setting up a comprehensive database to record information about all private landlords and the properties they rent out.

4. This database will include:

1. details about landlords – who they are and how to contact them.
2. information about rental properties – addresses and important details about the properties available for rent.
3. records of landlords who have broken rules – information about landlords who have received banning orders or penalties for not following housing laws.

5. The main goals of the PRS database are to:

1. ensure that rental properties meet safety and quality standards;
2. help tenants find reliable information about landlords and properties; and
3. allow local authorities to enforce housing regulations effectively.

Who operates the database?

Clause 74: The database operator

6. The Bill envisages that the database will be managed by the Secretary of State or an organisation appointed by them.

7. The operator is responsible for:

1. ensuring the database functions properly;
2. handling registrations and entries; and
3. potentially working with local authorities or other bodies to verify information and support users.

Registering landlords and properties

Clause 75: Making entries in the database

8. Landlords are required to register themselves and each of their rental properties on the database.

9. This process involves:

1. providing necessary information – such as contact details and property addresses;
2. submitting supporting documents – like gas safety certificates and electrical installation reports; and
3. paying a registration fee – to cover the costs of maintaining the database.

10. Once these requirements are met, their entries become active, meaning they can legally rent out their properties.

Clause 76: Keeping entries up-to-date

11. Landlords must keep their information on the database current.

12. This includes:

1. updating any changes to their contact information;
2. uploading new safety certificates when old ones expire; and
3. reporting changes in property status (e.g., if the property is sold or no longer rented out).

13. There is no fee for updating entries, but updates must be made within a specified time frame.

Clause 77: Active and inactive Entries

14. An entry becomes inactive if:

1. the landlord doesn’t renew their registration after a certain period; and
2. required information isn’t updated on time.

15. Inactive entries mean that landlords cannot legally advertise or rent out their properties until they reactivate their entries, possibly by paying a renewal fee or a late fee.

Clause 82: Allocation of unique identifiers

16. Each landlord and property will receive a unique identifier, a special code made up of letters and/or numbers.

17. This helps:

1. keep track of entries in the database; and
2. make it easier for tenants and authorities to find and verify information.

Verifying and Correcting Information

Clause 78: Verification, Correction, and Removal of Entries

18. To ensure the database is accurate and reliable:

1. verification – the government will set rules for checking the information landlords provide, such as verifying identities and safety documents;
2. correction – processes will be in place to fix mistakes or incorrect entries; and
3. removal – invalid entries can be removed, such as those made in error or that don’t meet the criteria for inclusion.

Fees for Registration

Clause 79: Fees for Landlord and Dwelling Entries

19. Landlords may have to pay fees when:

1. registering – initial entry into the database;
2. Renewing entries – keeping their registrations active over time; and
3. Late renewals – if they fail to renew on time, they might have to pay an additional late fee.

20. These fees cover the costs of running and maintaining the database.

Restrictions on Marketing and Letting

Clause 80: Restrictions on Marketing, Advertising, and Letting Dwellings

21. To protect tenants and ensure compliance:

1. registration requirement – landlords and letting agents cannot advertise or rent out properties unless both they and their properties have active entries on the database.
2. advertising rules – any advertisements must include the unique identifiers assigned to the landlord and property.
3. purpose – this helps tenants verify that a property and landlord are legitimate and meet required standards.

Enforcement and Penalties

Clause 81: Entries Related to Banning Orders, Offences, Financial Penalties, etc.

22. Local authorities are required (or have the power) to make entries about these on the database, if a landlord:

1. receives a banning order;
2. is convicted of certain offences; and
3. is penalised for breaking housing laws.

23. This information helps:

1. authorities keep track of non-compliant landlords; and
2. tenants be aware of landlords who have broken the rules.

Clause 89: Financial Penalties

24. Local authorities can impose fines on landlords who:

1. fail to register or renew their entries;
2. provide false or misleading information; and
3. continue to rent out properties when their entries are inactive.

25. Guidance will be provided on how these penalties are applied, and there are limits on the amounts that can be charged.

Clause 90: Offences

26. It’s a criminal offence for landlords to:

1. knowingly or recklessly provide false or misleading information;
2. continue breaking rules after being fined; and
3. repeat offences within a five-year period.

27. Penalties can include significant fines, and in some cases, the responsible individuals within a company can also be held liable.

Access to the Database

Clause 84: Access to the Database

28. Certain information will be made publicly available, such as:

1. landlord names;
2. property addresses; and
3. details of any unspent convictions, penalties, or regulatory actions.

29. Local councils, enforcement agencies, and specific government bodies will have full access to the database to carry out their duties.

30. This transparency helps tenants make informed decisions and aids authorities in enforcing housing standards.

Clause 85: Disclosure by Database Operator

31. The database operator must keep private information confidential unless authorized by law or specific regulations.

32. Unauthorized sharing of restricted information is a criminal offence, punishable by fines.

Clause 86: Use of Information from the Database

33. Authorities can only use the database information:

1. for official purposes related to housing and landlord regulations; and
2. they cannot use it for unrelated activities.

Removal of Entries from the Database

Clause 87: Removal of Entries

34. [Lead in …]

1. inactive entries – landlord or property entries that have been inactive for five years must be removed from the database; and
2. offence entries – entries related to banning orders or offences are removed after ten years unless the ban is still in effect.

35. The purpose is to ensures the database remains current and relevant, protecting the privacy of individuals over time.

Restrictions on Gaining Possession

Clause 88: Restriction on Gaining Possession

36. If a landlord hasn’t complied with the requirement to register on the database (Clause 80(3)(a)), they may be prevented from obtaining a court order to evict a tenant. This does not apply in cases like tenant anti-social behavior. This rule encourages landlords to comply with registration requirements and protects tenants from unlawful evictions.

Other Important Provisions

Clause 83: Other Duties

37. The database operator has additional responsibilities:

1. non-digital registration – providing ways for landlords to register without using the internet, for those who are unable or prefer not to register online;
2. editing entries – allowing local authorities to edit entries when necessary;
3. reporting breaches – offering a method for people to report suspected breaches of the database requirements; and
4. guidance – providing information and support to landlords and tenants about their rights and obligations.

Clause 91: Power to Direct Database Operator and Local Housing Authorities

38. The Secretary of State (government) can give directions to the database operator and local housing authorities on how to carry out their functions related to the database. This ensures consistency and effective implementation of the law.

Clause 92: Minor and Consequential Amendments

39. Some existing laws are amended to align with the new database system. This ensures that all housing regulations work together smoothly and effectively.

Clause 93: Different provisions for different purposes: joint landlords

40. The law allows for specific rules to be made for situations involving joint landlords. For example, joint landlords might be able to have a single entry in the database to simplify the process.

Clause 94: Interpretation of Chapter 3

41. This section provides definitions of terms used in the legislation. Examples include clarifying what is meant by “residential landlord,” “unique identifier,” and “relevant banning order.” Having clear definitions ensures everyone understands their rights and responsibilities.

Conclusion

42. The introduction of the Private Rented Sector Database marks a significant step forward in improving the quality and safety of rental properties in England.

43. By requiring landlords to register themselves and their properties, the Government aims to:

1. protect tenants – providing access to reliable information may help tenants to make informed decisions and ensures they are renting safe, compliant properties;
2. hold landlords accountable – landlords must meet certain standards and keep their information up-to-date, or they risk penalties and legal action; and
3. enhance enforcement – local authorities have better tools to monitor compliance and take action against those who break the rules.

44. For tenants, this means greater transparency and safety when renting a property. For landlords, it emphasises the importance of complying with regulations and maintaining high standards.