Maximum civil penalties for landlords to be increased

Fines for Non-Compliance Increased to £40,000

Councils can already fine a landlord up to £30,000 without having to go to court. The Renters’ Rights Bill is raising this to £40,000 and extending the types of non-compliance that can be penalised via civil penalties.

Key changes:

• The maximum civil penalty will be raised from £30,000 to £40,000.
• Councils will be able to issue civil penalties for illegal evictions – currently these can only be prosecuted in court.
• Landlords could be fined up to £7,000 by councils for other offences, including:
  • Failing to keep a property free from serious hazards.
  • Failing to register on the new Private Rented Sector Database.
  • Encouraging bidding wars between tenants.

Additional changes to rent repayment orders (RROs):

• The maximum amount for which an RRO can be made is doubling, from 12 to 24 months’ rent.
• RROs will be extended to any landlord in the rental chain – currently they can only be made against the immediate landlord.
  
  

What This Means for Landlords

• The financial consequences of breaking the law will become more severe.
• Councils will have greater power to penalise non-compliant landlords without having to take them to court.
• It will be easier for councils to take action over illegal evictions.
• It will become even more important to maintain properties well and comply with the new Decent Homes Standard when it comes into force.
  
  

Steps for Landlords to Stay Compliant

• Conduct regular property inspections to make sure they meet all minimum standards for safety, maintenance and condition.
• Keep careful records of inspections, safety checks, repairs and tenant communications.
• Ensure the correct legal process is followed when ending a tenancy, seeking advice from an eviction specialist if necessary, in order to avoid any illegal eviction claims.
• Have a reliable way of staying up to date with the latest legal requirements for rental properties.
• Seek advice on compliance from lettings professionals.
  
  

What This Means for Tenants

• Tenants should feel more confident that if they report non-compliant landlords to the council, action will be taken.
• There should be fewer illegal evictions, as councils will have greater power to penalise landlords.
  
  

Get a Free Compliance Health Check

If you are unsure whether your property meets the latest legal standards, we will be happy to carry out a free Health Check and advise you on any improvements that need to be made.

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FAQs

1) What are the maximum fines landlords will face?

For serious and persistent non-compliance, councils will be able to issue a civil penalty of up to £40,000 for each offence. For other types of offence, they will be able to fine landlords up to £7,000. If landlords are prosecuted in court, they could face unlimited fines – as is currently the case.

2) What types of violations carry the highest penalties?

Unsafe properties, endangering the lives of tenants, failing to meet minimum property standards and illegal evictions.

3) Can landlords appeal a fine?

Yes, but appeals must be based on valid grounds and follow the proper legal process.

4) How do local authorities enforce penalties?

Councils can issue fines directly without needing a court order.

5) What happens if a landlord repeatedly breaks the rules?

Councils can issue a civil penalty of up to £40,000 and the most persistent offenders could face a banning order, which would prevent them from letting properties.

6) How can landlords avoid fines?

By ensuring every property they let meets the legally required minimum safety standards at the start of the tenancy and throughout, and the tenancy is managed and brought to an end following the correct legal procedures.

7) Are there specific checks landlords should do?

• Periodical fire risk assessments to identify and eliminate potential hazards.
• Annual gas safety check, carried out by a Gas Safe registered engineer.
• Electrical safety installation inspection carried out by a qualified electrician at least once every five years – more often if indicated on the last report.
• Annual PAT testing on electrical items provided for tenants (not a legal requirement, but advisable).
• Legionella risk assessment.

8) Can tenants report landlords for non-compliance?

Yes, tenants can report landlords to the local council if they believe their rented home does not meet legal standards.

9) What should landlords do if they receive a penalty notice?

Seek legal advice immediately and take required remedial action within the specified timeframe. The property should be inspected regularly in the future to ensure it remains up to standard.

10) Where can landlords get help to stay compliant?

The most reliable way to ensure properties remain legally compliant is to use the services of a qualified professional property lettings and management company. If self-managing, landlords should seek advice from legal specialists.