Labour address landlords’ concerns around the PRS database

Although the Renters’ Rights Act has passed into law, some policies like the planned PRS (private rental sector) database had been hanging in limbo, without clear strategies for implementation.

Recently, Labour have released official guidance clarifying some details about the database, but there is still a lack of explanation about how exactly they intend to go about building this ambitious project.

In terms of expected timeframes, industry experts estimate that the database will be rolled out in late 2026, while registration to the new ombudsman service will be implemented in 2028.

What will be included in the database?

Currently, much of the available data about the PRS is compiled together from various non-government sources, which has led to doubts about its reliability.

To rectify this, an official governmental database intends to fill any knowledge gaps and paint a clearer picture of the current state of the sector.

It is also meant to provide tenants with a more accurate information resource when they are looking for properties to rent out.

The government’s roadmap of the Renters’ Rights Act states that the database will require every landlord’s contact details, as well as detailed information about their properties.

This includes the address, property classification (e.g. single let, HMO), number of bedrooms, number of residents, safety information, and more. The property’s EPC (Energy Performance Certificate) would also be publicly posted on the database, albeit these are already publicly available via the government’s “Find a certificate” web page.

The government guidance states that not all of the collected information may be publicly accessible to everyone. However, it has not yet been clarified which details will remain private. 

Costs and privacy concerns

Since it was first announced, landlords have expressed concerns about privacy and costs relating to the database.

Landlords may face a fee to register to the database, which housing minister Matthew Pennycook said would be “proportionate and good value”. 

However, these fees are not finalised yet. Pennycook promised that these would be set out in secondary legislation after the Renters’ Rights Act reaches Royal Assent. Now that has happened, the public will have to wait for updates on how the subordinate legislation will progress.

A major concern is Labour’s promise of severe penalties for failure to comply with the standards of the database. 

By not registering to it, landlords risk a £7,000 fine. This would also apply if they are found to be letting or marketing their properties before completing their registration. Providing false or fraudulent information to the database will carry an even harsher civil penalty of up to £40,000.

Non-compliant landlords would lose the ability to obtain a possession order on their properties, unless they are within their rights to use possession grounds 7A or 14, in response to tenants’ anti-social behaviour.

Labour have assured that, for landlords without reliable access to the internet, there will be alternative offline registration methods.

Other lingering questions

What separates the PRS database plan from many policies in the Renters’ Rights Act is that it is not a change in existing legislation (e.g. removing Section 21 evictions from law), but a promise to build something entirely new from scratch.

Labour have yet to confirm which arm of the government will be responsible for building the database and gathering the necessary data. 

The Government Digital Service, the unit that created and maintains the Gov.uk website, may be given this task, but there is no confirmation either way.

Labour have said that this new database will be similar to the Database of Rogue Landlords and Property Agents, which was introduced in April 2018. While this may provide something of a blueprint for how they will construct the larger PRS database, the scale of the latter project is astronomically larger. 

We will update you when these lingering questions get satisfactory answers.