Councils given power to penalise landlords for unenforceable tenancy clauses

Councils given power to penalise landlords for unenforceable tenancy clauses

0:02 AM, 9th January 2026, About 6 days ago 86

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The government has confirmed councils will be able to act against unenforceable clauses in tenancy agreements under the Renters’ Rights Act.

From 1 May 2026, all fixed-term tenancies will be banned and turn into periodic tenancies.

The government also warn landlords must provide prescribed information, a summary of tenancy and deposit details, or face a £7,00 fine.

Landlords will face heavy civil financial penalties enforced by councils

In response to a written question from Conservative MP Andrew Rosindell asking whether the Government would criminalise unenforceable clauses in tenancy agreements, Housing Minister Matthew Pennycook confirmed that such clauses will not be treated as criminal offences.

However, landlords could still face civil financial penalties enforced by local councils.

Mr Pennycook said: “Upon commencement on 1 May 2026, the relevant provisions of the Renters’ Rights Act 2025 will require landlords to provide their tenants with certain information about the terms of the tenancy in writing.

“Landlords will be able to comply with this requirement by including the information in a written tenancy agreement. Landlords who fail to provide the prescribed information could face a fine of up to £7,000 from their local authority.

“The Renters’ Rights Act also provides local authorities with powers to act against unenforceable clauses, such as requiring a tenant to sign a fixed term.”

Under the Renters’ Rights Act, councils now have the power to carry out surprise inspections, including entering premises where tenancy records are kept with or without a warrant.

Councils can also compel landlords, letting agents, and third parties (e.g., prop tech companies, banks, accountants, contractors) to provide documents and information related to housing compliance.


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DavidM

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Member Since December 2025 - Comments: 38

12:48 PM, 10th January 2026, About 5 days ago

David

That’s my point to others they really won’t worry about such clauses at all not least because they don’t have access to the millions of tenancy agreements out there.

They will only concern themselves with these if it gets raised by a tenant – so if there is a 12month ast and after 1may the LL tries to hold the tenant to the full 12 months despite RRA then they have powers.

If you have legislation saying something is illegal someone has to have powers to punish when illegal things are done. In this case Parliament decided it would be councils not the courts.

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DavidM

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Member Since December 2025 - Comments: 38

13:09 PM, 10th January 2026, About 5 days ago

Reply to the comment left by David at 10/01/2026 – 12:14
David

Also to some extent it’s a legal thing and about deterrence. The best way to stop LLs automatically increasing rent by CPI (which will no longer be allowed) is not just to punish those who try to automatically increase rents by CPI in future but also to say such clauses are unenforceable and will carry a big fine if they get included in future tenancy agreements. Then everyone drafting a new tenancy agreement will be careful to not have such clauses in future. Lettings agents; nrla, openrent, and others will remove such clauses from their standard draft ASTs.

I get your concern about over zealous Councils tho..

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PH

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Member Since May 2021 - Comments: 373

13:57 PM, 10th January 2026, About 5 days ago

Reply to the comment left by DavidM at 10/01/2026 – 10:55
Not wishing to be pedantic but councils have been wasting public money for many many years however I do understand the point you’re making and reading your comments on this thread has made this topic slightly easier to understand.

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PH

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Member Since May 2021 - Comments: 373

14:01 PM, 10th January 2026, About 5 days ago

Reply to the comment left by Peter G at 10/01/2026 – 10:16
Maybe this will all become clearer when we see what the government releases in March but let’s hope it’s much more readable as opposed to the RRA.

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Badger

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Member Since September 2013 - Comments: 374

16:27 PM, 10th January 2026, About 4 days ago

Reply to the comment left by David at 09/01/2026 – 12:01
I have often observed that the agreements drawn up by solicitors on behalf of letting agents are defective.

Do not rely upon them.

I once had a major disagreement with no less an outfit than the “mighty” Reeds Raines whose solicitors did not understand the importance of specifying that the rollover to a periodic after the fixed period needed to be clearly flagged as being “contractual” (and not “statutory” or even silent altogether on the point).

The argument went up through three levels of management all the way to but just short of the board.

They continued to champion their ignorance all the way to the bitter end in that unique way that is so very common in those who “know better” than you.

Result: they lost all my business as I moved all of my properties to another letting agent.

This is just one of the most egregious examples but there have been plenty of others down through the decades.

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Peter G

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Member Since March 2018 - Comments: 175

16:40 PM, 10th January 2026, About 4 days ago

Reply to the comment left by Badger at 10/01/2026 – 16:27
I agree with you, having had similar experience with so called legal experts.

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David

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Member Since April 2018 - Comments: 258

17:14 PM, 10th January 2026, About 4 days ago

Reply to the comment left by Badger at 10/01/2026 – 16:27
Same problem with “contractual” vs “statutory” which some letting agents have no idea about. Really they should be aware and asking the client which one he wants.

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Badger

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Member Since September 2013 - Comments: 374

17:35 PM, 10th January 2026, About 4 days ago

Reply to the comment left by David at 10/01/2026 – 17:14
IMO the universal default for letting agent ASTs should be to specify that the tenancy becomes a contractual periodic one after the fixed period.

Can anyone cite a single example of why a landlord would want things to be otherwise?

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DavidM

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Member Since December 2025 - Comments: 38

18:03 PM, 10th January 2026, About 4 days ago

“IMO the universal default for letting agent ASTs should be to specify that the tenancy becomes a contractual periodic one after the fixed period.
Can anyone cite a single example of why a landlord would want things to be otherwise?”
Badger

Yes. From 1 may under RRA there will be no such thing as an initial fixed period. It will be illegal. I’d prefer to have a longer initial period first but what I want is a legal AST. Sorry to be pedantic..

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Badger

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Member Since September 2013 - Comments: 374

18:08 PM, 10th January 2026, About 4 days ago

Reply to the comment left by DavidM at 10/01/2026 – 18:03
Yes, okay, but that is to somewhat miss the point.

We know that the rules are to change.

The example cited is clearly historical.

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