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Enforcement Policy - Leasehold Reform (Ground Rent) Act 2022

Step 2 - Starting points and category range

Having determined the category that the breach falls into, the Council will refer to the starting points and category ranges below to reach an appropriate level of financial penalty. The Council will then consider further adjustment within the category range for aggravating and mitigating features.

Range

Starting Point (£)

Min (£)

Max (£)

Low/No Culpability

 

 

 

Low Harm

1,000

500

1,500

Medium Harm

1,500

1,000

2,000

High Harm

2,000

1,500

2,500

Medium Culpability

 

 

 

Low Harm

3,500

2,500

4,500

Medium Harm

4,500

3,500

5,500

High Harm

5,500

4,500

6,500

High Culpability

 

 

 

Low Harm

8,000

6,000

10,000

Medium Harm

9,500

7,500

11,500

High Harm

11,000

9,000

13,000

Very High Culpability

 

 

 

Low Harm

15,000

11,000

19,000

Medium Harm

16,500

13,000

21,000

High Harm

22,500

15,000

30,000

 

Multiple Breaches

A landlord, or person on their behalf, who commits multiple breaches in relation to the same lease is generally only liable to one financial penalty[1].  However, they will be liable for a further penalty if, having previously had a financial penalty imposed for an earlier breach, they then commit a further breach in relation to that same lease.[2]

Where a person has committed one or more breaches in relation to two or more leases, the Council may also choose to impose a single financial penalty in respect of all those breaches collectively[3]. If a single penalty is imposed in respect of multiple breaches, the amount of the penalty must not be less than the total minimum amount, and must not exceed the total maximum amount, that could or would have been imposed if each breach had been penalised separately.

Obtaining financial information

The statutory guidance advises that obtaining financial information from the landlord may assist with considering what is an appropriate starting point and range, based upon the means of the landlord.  In the case where the landlord is a corporate body, the Council may consider information available on its turnover or equivalent[4]

The Council has investigatory powers under Schedule 5 of the Consumer Rights Act 2015 to investigate breaches of the Act.

 

 


 

[1]Section 9(3)Leasehold Reform (Ground Rent) Act 2022

[2]Paragraph 5.2 of theWelsh Government Statutory Guidance

[3]Section 9(5)Leasehold Reform (Ground Rent) Act 2022

[4]Paragraph 6(4)(b) of theWelsh Government Statutory Guidance