Effect of registration scheme on tenants

If it comes to a tenant's attention that their landlord is not registered, s/he should inform the landlord of their obligation. If the landlord fails to apply for registration, the tenant should report this to their local authority. In most cases, the landlord will be given a period of grace in which to register. [1] If the landlord fails to do so they may then be served with a rent penalty notice or be charged with a criminal offence. [2] For more information, please see the section on failure to register.

Service of a rent penalty notice means that no rent or other charges are payable under any lease or occupancy agreement applying to the landlord's property. [3] This effectively means that the tenant or occupier is not obliged to pay rent until the notice is lifted or revoked. If the tenant receives housing benefit, s/he will no longer be entitled as s/he is not liable to pay rent. [4] Registration officers are strongly advised to notify the housing benefit department when a rent penalty notice is issued in connection with a property where the tenant is in receipt of housing benefit. [5] It is up to the tenant to reclaim housing benefit if the rent penalty notice is revoked. [6]

Tenants should be aware that it is possible for their landlord to make an appeal against the service of a rent penalty notice. [7] If the landlord decides to lodge such an appeal then s/he should give her/his tenants written notice of this. [8] The tenants should receive the notice at the time the appeal is lodged or as soon as reasonably practicable thereafter. The notice should inform the tenants that the appeal is taking place and that, if it is successful, the tenant will be obliged to pay all sums that would have been payable had the rent penalty notice not been served. [9]

If the landlord does not give the tenant the correct notice that the appeal is taking place then the tenant may not need to pay the sums that would otherwise have been due in the event of a successful appeal. [10]

Tenants should be advised to put their rent money aside if they are served with a rent penalty notice so that they will be able to cope with the eventuality of a successful appeal without falling into arrears.

If the tenant's housing benefit was stopped because a penalty notice was served, then, following a successful appeal, the decision to stop housing benefit will be revised. Housing benefit will be paid to the landlord in respect of any payments that would have been made but for the service of the notice. [11] The tenant does not need to submit a new claim. [12]

If a local authority refuses to register a landlord or removes her/him from the register, it must send notification of this to the occupants of the property involved. [13] Notification should include information on the tenant's rights. [14]

The local authority must also provide to the tenant advice and assistance should the lanlord be removed from the register or if a notice stating that no rent is payable in served on the tenant. [15] The advice should include: [16]

• information on the general position of tenants or occupants where a landlord terminates a tenancy or occupancy agreement

• advice on sources of help, including money advice and benefits advice, should the landlord terminate the tenancy or occupancy agreement

• details of the assistance that could be available from a local authority in terms of homelessness legislation.

Such advice should be provided as soon as reasonably practicable after the relevant decision has been made. [17]

The landlord will normally be expected to take action to end the tenancy or occupancy agreement as soon as possible within the law. How long this will take will depend upon the tenancy type. Whilst deregulation is not a ground for eviction for assured tenants, short assured tenants may be at risk. Deregulation can be used as an eviction ground for private residential tenants. For more information, please see the section on security of tenure.

Local authorities must now provide 'general advice' to anyone who is a tenant (or who is a thinking about becoming a tenant) of a private landlord (and is, therefore affected by the registration scheme [18]) if the tenant or prospective tenant asks for advice [19]. The regulations do not specify what is meant by 'general' advice. The regulations came into force on 12 January 2009.