London councils collect just a third of landlord fines

While landlords face rising penalties under the Renters’ Rights Act, councils across London are collecting only a fraction of the fines they have issued.

Research from the National Residential Landlords Association (NRLA) show boroughs imposed almost £8.7m in civil penalties between 2023/24 and 2024/25 but recovered less than £3m.

In total, more than 1,300 penalties were issued across the capital in that period.

The organisation’s research has previously highlighted that a quarter of councils in England haven’t collected landlord fines.

Good landlords will be fed-up

The NRLA’s chief executive, Ben Beadle, said: “Tenants and the vast majority of responsible landlords across London will rightly be fed up with our findings.

“For too long a minority of rogue and criminal operators have been allowed to act with impunity, bringing the sector into disrepute.

“It is galling then to see that those breaking the law are still failing to pay the price – leaving good landlords to pick up the tab in licensing fees.”

He added: “This also raises serious questions about how ready councils across the capital are to enforce the Renters’ Rights Act, and about the adequacy of the upfront funding provided to them to support enforcement action.”

Some councils issued no penalties

The NRLA’s research found that five London councils reported issuing no civil penalties at all.

These include the City of London Corporation, alongside Bexley, Bromley, Croydon and Hammersmith and Fulham.

The analysis is based on Freedom of Information requests sent to councils responsible for enforcement in the private rented sector.

RRA increases landlord fines

Meanwhile, the Renters’ Rights Act is due to take effect on 1 May, and it will increase the maximum civil penalty from £7,000 to £40,000.

Civil penalties are intended to fund enforcement work, but where collection rates are low, the NRLA fears councils won’t have the necessary resources.

It is now calling for changes to how enforcement is structured and funded.

It also wants a national Chief Environmental Health Officer, a review of local authority resourcing and annual reporting requirements on enforcement activity.