Local authorities can now issue substantial financial penalties to landlords who fail to meet their legal duties. Landlords may also face rent repayment orders in some cases.
If a landlord breaches the Renters Reform Bill, they may receive a civil penalty of up to £7,000. Local authorities can also choose to prosecute more serious breaches.
An “offence” means landlord non-compliance that may lead to prosecution or a civil penalty. In some cases, the penalty can be as high as £40,000.
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What Types of Offences Can Lead to Civil Penalties?
The offences covered include:
Tenancy, Possession and Letting-Related Offences
- Unlawful eviction and harassment of an occupier.
- Failure to provide a written statement under the terms of Section E of the Housing Act 1988.
- Failure to give existing tenants information about changes made by the Renters Reform Bill, under paragraph 7(2) of Schedule 6 to the Renters Rights Act 2025.
- Attempting to let a property on a fixed-term basis under Section 16E of the Housing Act 1988.
- Terminating a tenancy early, or by serving a notice to quit, under Section 16E of the Housing Act 1988.
- Serving an eviction notice that attempts to end a tenancy outside the prescribed Section 8 process.
- Relying on a possession ground where the landlord does not reasonably believe they are able to obtain possession under Section 16E of the Housing Act 1988.
- Relying on a ground while knowing that the landlord will not be able to obtain possession under Section 16J of the Housing Act 1988.
- Reletting or remarketing a property before the end of the 12-month no-let period after using moving or selling grounds under Sections 16E and 16J of the Housing Act 1988.
- Discriminating against potential tenants during the letting process because they receive benefits or have children, under Sections 33 and 34 of the Renters Rights Act 2025.
- Marketing a property to let without stating the proposed rent, under Section 56 of the Renters Rights Act 2025.
- Inviting or encouraging any person to offer an amount of rent above the stated rent, under Section 56 of the Renters Rights Act 2025.
- Accepting an offer from any person to pay rent above the stated rent, under Section 56 of the Renters Rights Act 2025.
Property Standards, Licensing and Compliance Offences
- Failure to comply with an improvement notice under Section 30 of the Housing Act 2004.
- Offences relating to the licensing of houses in multiple occupation, commonly known as HMOs, under Section 72 of the Housing Act 2004.
- Offences relating to the licensing of other houses under Section 95 of the Housing Act 2004.
- Contravention of an overcrowding notice under Section 139 of the Housing Act 2004.
- Failure to comply with management regulations in respect of houses in multiple occupation under Section 234 of the Housing Act 2004.
- Breach of a banning order under Section 21 of the Housing and Planning Act 2016.
Civil Penalties as a Sanction
Civil penalties will be used as a sanction for both breaches and offences. These penalties are issued by the local authority.
This approach has already been used for some time in Wales, where it has become common for multiple civil penalties to be issued against landlords. Where a landlord receives multiple civil penalties, or continues to breach their obligations, a banning order may also be imposed.
Repeat breaches can now result in an offence carrying a civil penalty of up to £40,000.
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How Local Authorities Decide Whether to Prosecute
Local housing authorities must have a policy in place to guide their decisions. This policy should explain when they may choose to prosecute and when they may issue a civil penalty instead.
Each case will be considered individually and in line with the local authority’s policy.
Financial Consequences of Civil Penalties
The potential penalties include:
Tenancy, Possession and Letting-Related Penalties
- Unlawful eviction and harassment of an occupier: £35,000
- Failure to provide a written statement under Section E of the Housing Act 1988: £4,000
- Failure to give existing tenants information about changes made by the Renters Reform Bill, under paragraph 7(2) of Schedule 6 to the Renters Rights Act 2025: £4,000
- Attempting to let a property on a fixed-term basis under Section 16E of the Housing Act 1988: £4,000
- Terminating a tenancy early, or by serving a notice to quit, under Section 16E of the Housing Act 1988: £6,000
- Attempting to end a tenancy orally, or requiring it to be ended orally: £6,000
- Serving an eviction notice that attempts to end a tenancy outside the prescribed Section 8 process: £6,000
- Relying on a possession ground where the landlord does not reasonably believe they are able to obtain possession under Section 16E of the Housing Act 1988: £6,000
- Relying on a ground while knowing that the landlord will not be able to obtain possession under Section 16J of the Housing Act 1988: £30,000
- Reletting or remarketing a property before the end of the 12-month no-let period after using moving or selling grounds under Sections 16E and 16J of the Housing Act 1988: £25,000
- Discriminating against potential tenants during the letting process because they receive benefits or have children, under Sections 33 and 34 of the Renters Rights Act 2025: £6,000
- Marketing a property to let without stating the proposed rent, under Section 56 of the Renters Rights Act 2025: £3,000
- Inviting or encouraging any person to offer rent above the stated amount, under Section 56 of the Renters Rights Act 2025: £4,000
Property Standards, Licensing and Safety Penalties
- Failure to comply with an improvement notice under Section 30 of the Housing Act 2004: £25,000
- Offences relating to licensing houses in multiple occupation, commonly known as HMOs, under Section 72 of the Housing Act 2004: £17,000
- Offences relating to the licensing of other houses under Section 95 of the Housing Act 2004: £17,000
- Contravention of an overcrowding notice under Section 139 of the Housing Act 2004: £20,000
- Failure to comply with management regulations in respect of houses in multiple occupation under Section 234 of the Housing Act 2004: £12,000
- Failure to take safety measures: £20,000
- Failure to maintain water supply and drainage: £10,000
- Failure to supply and maintain gas or electricity, or provide a gas certificate: £12,000
- Failure to maintain living accommodation: £7,000
- Failure to provide adequate waste disposal facilities: £7,000
- Breach of a banning order under Section 21 of the Housing and Planning Act 2016: £35,000
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