New government guidance has clarified the powers councils hold under the Renters’ Rights Act to enter landlords’ business premises and seize documents during inspections. This update outlines the conditions under which councils can act, the evidence they must provide, and the limits to their authority, particularly concerning premises used mainly as homes.

Councils’ Powers to Enter Business Premises

Since December last year, councils have been granted powers to inspect rental sector business premises under the Renters’ Rights Act. The recent guidance specifies that these powers apply only to premises connected with letting residential accommodation in England, creating licences to occupy, marketing, or managing such accommodation. Crucially, the guidance emphasises that councils cannot use these powers to enter premises that are wholly or mainly residential homes.

For non-routine inspections where at least 24 hours’ notice cannot be given, councils may apply to a justice of the peace for a warrant to enter specified rental sector business premises. To obtain such a warrant, councils must provide written evidence on oath demonstrating one of several conditions, such as refusal of entry or reasonable grounds to believe entry will be refused, risk of evidence being tampered with if notice is given, or absence of an occupier where waiting would defeat the purpose of entry.

Requirements for Evidence and Identification

The guidance requires councils to prove they are acting officially and have reasonable grounds to suspect the premises are used for rental sector business rather than being mainly residential. Additionally, councils must have reasonable grounds to expect relevant documents are held on the premises, which may be required for production or seizure under the Act.

Officers entering business premises without a warrant must provide at least one person present with evidence of their identity and authority. However, if it is not reasonably practicable to do so, the information gathered during the inspection may still be used. Councils have the power to seize and detain documents, whether in electronic or written form, if there is reasonable suspicion that these documents may be required as evidence in proceedings for breaches or offences under rented accommodation legislation.

Extent of Council Powers Compared to Police

Phil Turtle, a landlord law expert at Landlord Licensing & Defence, has highlighted that councils possess more extensive powers than the police when it comes to property inspections. He notes that councils can inspect properties even without tenant or landlord permission, and can enter homes under the Housing Act’s Section 239 within 24 hours of an official complaint.

Furthermore, in cases involving unlicensed properties, councils do not need to provide 24-hour notice and can enter immediately if they suspect offences under the Housing Act 2004 related to HMO or selective licensing. Mr Turtle describes instances where councils conduct early morning raids with multiple officers, sometimes dressed similarly to police, and use intimidation tactics to gain entry.

Obstructing council entry can result in a level four fine of up to £2,500, yet councils retain the right to enter regardless of obstruction. Mr Turtle also mentions reports of councils threatening foreign nationals with deportation to compel entry and conducting inspections to count occupants, treating unlicensed HMOs with significant severity.

What this means for landlords

Landlords should be aware that councils have broad investigatory powers to enter business premises connected to rental activities, seize documents, and conduct inspections without prior notice in certain circumstances. The guidance clarifies that these powers do not extend to premises used mainly as homes, offering some protection for residential properties.

However, landlords must ensure compliance with rental legislation to avoid triggering council investigations. Given the potential for unannounced inspections and the serious consequences of obstructing entry, maintaining clear records and cooperation with council officers is advisable. Understanding these powers can help landlords better prepare for inspections and protect their interests.

Source: Based on reporting from Property118

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