Leasehold Reform (Ground Rent) Act 2022

9 Financial penalties

(1) An enforcement authority may impose a financial penalty on a person if the authority is satisfied beyond reasonable doubt that the person has breached section 3(1).

(2) The amount of the financial penalty under subsection (1) is to be such amount as the authority determines but—

(a) is not to be less than £500 (the “minimum amount”), and

(b) is not to be more than £30,000 (the “maximum amount”).

(3) Where the same landlord has committed more than one breach of section 3(1) in relation to the same lease, only one financial penalty may be imposed on the landlord in respect of all of those breaches committed in the period—

(a) before the imposition of the penalty, and

(b) where a penalty has previously been imposed on the landlord for a breach of section 3(1) in relation to the same lease, after the imposition of that earlier penalty.

(4) In subsection (3), the “landlord” includes a person who has ceased to be a landlord.

(5) Where a person has committed one or more breaches of section 3(1) in relation to two or more leases, an enforcement authority may impose a single financial penalty on the person under subsection (1) in respect of all of those breaches.

(6) In such a case, the amount of the penalty—

(a) is not to be less than the sum of the penalties that would be imposed if a separate penalty of the minimum amount were imposed on the person for each of the breaches, and

(b) is not to be more than the sum of the penalties that would be imposed if a separate penalty of the maximum amount were imposed on the person for each of the breaches.

(7) For the purposes of subsection (6), the effect of subsection (3) is to be taken into account when determining the minimum and maximum amount of the penalty that could be imposed on a person for breaches of section 3(1) in relation to the same lease.

(8) An enforcement authority may not impose a penalty on a person in respect of a breach of section 3(1) if another enforcement authority has imposed a penalty on the person in respect of the same breach.

(9) The relevant authority may by regulations amend this section so as to change the minimum amount or the maximum amount.

(10) The power in subsection (9) may be exercised only where the relevant authority considers it expedient to do so to reflect changes in the value of money.