Help for landlords against local authority fines and penalties

I suspect that one of the big differences when the Renters’ Rights Act 2025 comes into force after 1 May 2026 is that there will be more enforcement action from local authorities.

Not initially, maybe.  But local authorities, after 1 May, will be under a legal duty, under section 107 of the act,  to enforce the landlord legislation in their area.  So, if they don’t, they will face Judicial Review proceedings from tenants’ organisations.

Already, I understand tenants’ organisations are gearing up for this.

Funding enforcement work

The government is going to provide a certain amount of ‘seed funding’ to local authorities to get them going, but after that, they will be expected to fund this work from Civil Penalty Notice fines and Rent Repayment Claim awards. The legislation provides for them to keep this money if it is used for enforcement work.

The fees and RRP awards have been bumped up considerably to provide for this.

In a way, this is good for the good landlords, if it means that rogue and criminal landlords are targeted (which hopefully they will be).  Rogue and criminal landlords are a blot on society and give all good landlords a bad name.

What about the good landlords?

However, landlords who are not rogues or criminals cannot expect to be let off from penalties if they breach the rules, just because they are nice people and well-meaning, but just didn’t know they were breaking the law.  Ignorance of the law is rarely accepted by courts as a valid defence.

So, what should landlords do to protect their position?

The main thing is to know the law and ensure that you comply with it.  100% compliance = 100% protection.

The Dealing with Local Authority Enforcement Kit

To protect your position properly, you need to know what you are dealing with.  So, I have now created a detailed kit or guide for landlords which sets out all you need to know.

The kit is in four parts.

Part 1 – Local Authority investigations and decision making

This part introduces the subject and then looks at Local Authority investigations (i.e., how they find out about non-compliant landlords and obtain evidence).  And their decision-making once they have it.

Issuing a Civil Penalty Notice is a quasi-judicial act, and Local Authorities need to be sure that they have sufficient evidence before they can proceed to issue the notice.

However, many landlords will provide all the evidence they need for this themselves.  For example:

• If, after 1 May, you give a tenant a tenancy agreement with a fixed term, you can be fined up to £7,000
• Likewise, if your tenancy agreements do not include the government’s prescribed terms (not published yet at the time of writing)
• If you don’t give a proposed rent for your property in to let adverts, or
• If you serve an incorrect possession notice, for example, a section 21 notice after 1 May 2026

Local authorities have also been given extensive new powers (now in force) to enter business premises (and even residential premises in some circumstances) and seize documents.  Although I suspect this action will be aimed more at the rogue/criminal landlords and agents.

However, they don’t need to use these powers if a tenant shows them a section 21 notice served by you on them on 15 May 2026!

I also look, in Part 1, at the factors local authorities need to take into account when deciding whether to issue a Civil Penalty Notice and the level of fine to impose if they do.

For example, a portfolio landlord who has been prosecuted in the past is likely to get a heavier fine than someone who just made a mistake.

Indeed, the person who just made an honest mistake may not get fined at all if they are able to persuade the Local Authority Officer that it would not be in the public interest to do so.

Part 2 – all the breaches and offences

• A breach is when there is no option for the local authority to prosecute, and the maximum penalty they can award is £7,000
• An offence is when the local authority has a choice whether to prosecute or issue a Civil Penalty, and the maximum civil penalty they can award is £40,000.

In most cases, local authorities are likely to issue a Civil Penalty Notice unless the landlord/agent concerned is someone they want to issue a banning order against.

Civil Penalty Notices are quicker, easier, and they can keep the money!

Part 2 of my Kit lists all the different breaches and penalties, the maximum penalty that can be awarded for each and the government-recommended starting point.

I also provide guidance and advice for each of the different items.

Continuing or repeated breaches

Note by the way that if, after one Civil Penalty Notice has been issued, you commit the same or another breach or offence within 5 years, that in itself is an offence for which you can be fined up to £40,000, as well as the fine for the second breach/offence you committed.

So, if you have received one Civil Penalty Notice, you need to make jolly sure you don’t commit any further breaches or offences.

Part 3 – Civil Penalty Notice procedure

This section sets out the procedure that local authorities follow when they have decided to issue a Civil Penalty Notice, and also the appeal procedure.

However, the most important thing is to take legal advice as soon as you become aware that the Local Authority have you in their sights.  DON’T try to deal with it yourself!

One of the solicitors on our Telephone Advice service panel would be suitable for this, or Landlord Licensing & Defence, which specialises in helping landlords in this situation.

Part 4 – Rent Repayment Orders

Some of the breaches and offences can form the basis of a Rent Repayment Order application.  Local authorities can apply for these if all or part of the rent has been paid by benefit.

They are more likely to do this after a Civil Penalty Order has been served (and has not been challenged or any challenge has been rejected), as then they get a higher award.

The maximum RRO award is increasing to two years worth of rent, which is a massive sum, on top of what you will already have been fined.

And finally

Don’t think Local Authorities won’t enforce because they don’t know how to (which many of them don’t).

The not-for-profit organisation Justice for Tenants has developed Civil Penalty Notice generator software which can draft a valid notice within ten minutes.

They also provide an advice service for Local Authorities and are setting up a legal firm specifically to carry out enforcement work if fines are not paid.

Many Local Authorities already use their service, and more will follow.

If you are interested in reading and using my Kit, it is part of my Landlord Law service and is available to all Landlord Law members as part of their membership entitlement.

You can find out more about membership here.

Tessa Shepperson

Tessa is a specialist landlord and tenant solicitor and runs the Landlord Law online information service at www.landlordlaw.co.uk.  You can sign up for her free weekly bulletin (and get a free pet form) at www.landlordlaw.co.uk/bulletin.

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