Stronger Enforcement and Higher Penalties

Edited

Overview

The Renters’ Rights Act gives local authorities greater powers to enforce housing standards, investigate offences, and issue financial penalties for non-compliance.

These measures aim to ensure fairness, protect tenants, and hold landlords accountable for breaches such as illegal evictions, discrimination, or failure to meet property standards.

For most landlords, compliance will be straightforward, but it’s important to understand what enforcement now looks like and the potential consequences for breaches.

What’s Changing

  • Expanded local authority powers:

    Councils now have stronger investigatory and enforcement powers, similar to those held by Trading Standards. They can enter premises, gather evidence, and issue financial penalties where landlords breach legislation. 

  • Civil penalties introduced:

    Local councils can issue fines of up to £7,000 for a first offence, rising to £40,000 for repeat or serious breaches

  • Rent Repayment Orders (RROs):

    Tenants can apply to the First-tier Tribunal for a Rent Repayment Order of up to 24 months’ rent if their landlord has committed certain offences, including illegal eviction, non-registration, or failing to comply with the Decent Homes Standard. 

  • Multiple offences covered:

    Penalties and RROs can apply for breaches including:

    • Illegal eviction or harassment.

    • Non-compliance with property standards or repair orders.

    • Operating without registration on the PRS Database.

    • Failing to join the Landlord Ombudsman.

    • Misusing possession grounds or providing false information.

  • Local authority investigations:

    Councils do not need 24 hours’ notice before entering a property for enforcement purposes (though tenants must still be given notice). This allows faster response to unsafe conditions or illegal practices. 

Why It Matters

These new enforcement powers are designed to weed out rogue landlords and strengthen public confidence in the rental sector.

For compliant landlords, this provides a level playing field, ensuring that those who follow the rules aren’t undercut by poor practice.

But it also means that record-keeping, documentation, and proactive maintenance are more important than ever. Fines and repayment orders can be substantial, even for administrative oversights.

Practical Steps for Landlords

  • Stay registered: Ensure you are listed on the PRS Database and are a member of the Landlord Ombudsman.

  • Maintain standards: Regularly inspect properties and address issues promptly.

  • Keep documentation: Retain copies of tenancy agreements, inspection records, repair logs, and communications with tenants.

  • Follow correct notice procedures: Use the appropriate forms for rent increases or possession.

  • Work transparently with tenants: Early communication helps prevent complaints escalating into formal disputes.

Penalty Reference Table

Type of Breach

First Offence Penalty

Repeat or Serious Offence

Additional Consequences

Failure to register with PRS Database

Up to £7,000

Up to £40,000

Rent Repayment Order (up to 24 months’ rent)

Failure to join Landlord Ombudsman

Up to £7,000

Up to £40,000

Suspension from letting

Breach of Decent Homes Standard

Up to £7,000

Up to £40,000

Improvement Notice / Rent Repayment Order

Misuse of possession grounds

Up to £7,000

Up to £40,000

Rent Repayment Order / Prosecution

Illegal eviction or harassment

Up to £40,000

N/A

Criminal prosecution possible

Discrimination in letting

Up to £7,000

Higher for repeated breaches

Enforcement by local authority

Non-compliance after notice period

Additional £7,000 fine

Further action after 28 days

Escalation to Tribunal


FAQs

1. Who enforces these penalties?

Local authorities are responsible for enforcement and may retain fines to fund further investigations.

2. Can a landlord appeal a penalty?

Yes. Landlords can appeal civil penalties through the First-tier Tribunal.

3. What’s the difference between a fine and a Rent Repayment Order?

A fine is issued by the council; a Rent Repayment Order is made by the Tribunal and reimburses tenants directly.

4. Can company directors be held liable?

Yes. Directors and “superior landlords” can face penalties or repayment orders for breaches made under their management. 

5. How long can tenants claim a Rent Repayment Order?

Tenants and councils have 24 months from the date of the offence to apply. 


In Summary

The new enforcement framework ensures that standards are upheld and that non-compliance has real consequences.

For responsible landlords, these changes simply reinforce good practice, but they underline the need for accurate records, compliance with procedures, and proactive management of properties and tenants.

By staying compliant, landlords can avoid penalties, protect their reputation, and operate confidently within the new framework of the Renters’ Rights Act.