HHSRS: New £7k on-the-spot fines introduced

New health and safety rules affecting landlords could see you hit with an on-the-spot fine of £7,000 for each hazard found in your property. 

The changes are planned to come in for inspections from 22nd June as part of the revised Housing, Health and Safety Rating System (HHSRS) introduced in England. 

At present, if a property inspector finds a Category One hazard in your rental you will be issued with an improvement notice, giving you a set period of time to carry out repairs or otherwise remedy the issue. 

Under the new rules fines can be issued on the spot, with no compulsory requirement to give you any notice to fix the problem.  

Inspectors can levy fines of £7,000 per hazard – with civil penalties of up to £40,000 if you fail to remedy the issue or continue to breach the rules. 

These rules are set out in the Renters’ Rights Act – although the Government needs to legislate to bring them into force. We understand they plan to do so in line with the updated HHSRS regulations and guidance.

What constitutes a Category One hazard?

Historically the most common Category One hazards found in PRS relate to falls, excess cold, fire and damp and mould, with a full list of all 21 types of hazard available here.  

While the HHSRS has been updated to include the new penalties and hazard types reorganised to make rules easier to understand, it has not introduced any new standards per se, with no new Category One hazards added.

How will councils decide whether to issue a civil penalty?

The Government has published draft guidance for local authorities, telling councils on-the-spot fines should be levied ‘if, in the opinion of the local housing authority, it would have been reasonably practicable for that person to secure the removal of the hazard’.  

In other words if it is something the inspector believes you, as the landlord, should have been aware of and remedied. 

The guidance is clear that councils will be able to fine landlords £7,000 per Category One hazard identified, or can opt to impose a single £7,000 civil penalty for multiple breaches. 

It says a single fine would be appropriate where multiple hazards can be attributed to a single problem, for example Category One hazards of both ‘excess cold’ and ‘damp and mould’ caused  by a broken boiler. 

However where multiple hazards are unrelated, for example a broken bannister and exposed wiring, it would be appropriate to issue multiple fines. 

When deciding on the level of fines inspectors have been told to take into account: 

• The severity of the offence and the harm or potential for harm caused – with higher penalties for the most serious breaches.
• Your track record as a landlord, and your history when it comes to meeting standards. This will also take into account any intention – and whether you knew about the issue and did nothing to sort it out.
• The level of ‘punishment’ appropriate for failure to meet your obligations. The inspectors will also need to decide what level of fine would be an appropriate deterrent to prevent you – and other landlords – from failing to meet required standards.  

It also says the level of fine must remove any financial benefit you may have gained from not tackling the issue. Local authorities have been told they must also take into account any mitigating factors, including the length of time you have known about the hazard and its severity, any steps taken to address it and any admission of guilt.

How do I stay compliant and protect myself?

It’s important to familiarise yourself with the updated risks and hazards and the forthcoming case studies which will illustrate their application in properties. The updated HHSRS is designed to make it easier for both landlords and tenants to understand the requirements in rented homes. 

If you are complying with all current health and safety guidance under the HHSRS you don’t need to do anything fundamentally different, however it is vital that you continue to carry out regular inspections of your properties to make sure they are hazard free and safe for your tenants to live in.  

Documenting these, and other safety checks, is also essential when it comes to proving you are taking your health and safety responsibilities seriously. 

You should also be sure to log and action any reports or complaints from your tenants when it comes to potential hazards and keep a record of any remedial work carried out by yourself or tradespeople.

Find out more at our exclusive member webinar:

In the wake of the HHSRS announcement we have organised an exclusive member webinar to explain what the changes mean for you. 

The webinar ‘HHSRS: Understanding the Updated Standards’ will be held on 24th June at 11am. The hour-long session will include an overview of the changes and how to ensure you remain compliant – with a Q&A session to address the issues that matter to you. 

To register for the free webinar click here, and to submit a question email [email protected]

More information

• You can read more about HHSRS and your responsibilities in our members’ guide here. 
• The NRLA also runs a property standards and safety course outlining your obligations, which is being updated to include the new rules. To find out more and to book your place click here.