Landlords face crackdown under Renters’ Rights Act as councils gain powers to issue hefty fines

The government has warned landlords they could face fines of up to £40,000 under the Renters’ Rights Act.

The government has issued guidance for landlords on what constitutes an offence, with £40,000 penalties for serious or repeated breaches and £7,000 fines for other breaches of the rules.

Under the Renters’ Rights Act, councils will gain more investigatory powers and, from December this year, will have the authority to enter private rented properties without needing a warrant in certain circumstances.

Landlords could be given £7,000 fine for breaches

According to the government guidance, from the 1 May 2026, landlords could be given a £7,000 penalty by the council for breaching the rules including:

• Claim to let the property on a fixed-term tenancy instead of a rolling tenancy, for example, by adding an end date
• Claim to end a tenancy verbally
• Require a tenancy to be ended verbally
• Fail to give a tenant written notice that a specified ground might be used where this is required by law – for example, Ground 1B, sale of dwelling-house after rent to buy agreement
• Fail to give a written statement of terms containing the information required by regulations
• Fail to give existing tenants an information sheet which tells them about changes made by the act on or after 1 May 2026
• Use a possession ground in a section 8 notice, ‘purported’ notice of possession or claim form when you do not reasonably believe that a possession order will be granted by the court on that ground
• Try to end the tenancy using a ‘notice to quit’ or purported notice of possession

£40,000 fine for landlords

Landlords could also be given a £40,000 fine as an alternative to prosecution if they are found to have done one or more of the following, the guidance says:

• Relet or remarketed a property within the 12 month no relet and remarketing ‘restricted period’ after using statutory grounds for possession 1 or 1A, unless you took all reasonable steps not to or an exception applies
• Knowingly used a ground for possession despite knowing that a court would not order possession on it, or being reckless about that, resulting in the tenant leaving within 4 months without an order for possession being made
• Committed a breach within 5 years of a previous offence
• Committed a breach within 5 years of receiving a financial penalty for a previous breach that has not been withdrawn
• Continued to commit a breach for more than 28 days after receiving a financial penalty for that breach that has not been withdrawn and is not the subject of an ongoing appeal

Landlords should be aware the 12-month restricted period following use of possession grounds 1 or 1A will not apply or will end early if:

• you or a close family member moves in and use the property as an only or main home
• a licence to occupy is entered into where the licensee has agreed to buy the property or lease it for more than 21 years
• the new lease being marketed or granted will be for more than 21 years
• the court makes an order for possession of the property on a ground other than Ground 1 or 1A

Only people to benefit from Renters’ Rights Act will be councils

As previously reported on Property118, critics argue the only people to benefit from the Renters’ Rights Act will be councils as they gain more enforcement powers.

The council will be able to fine the landlord, letting agent or anyone acting on a landlord’s behalf, except a qualified legal representative.

The government guidance says councils will need to be satisfied beyond reasonable doubt that a breach or offence has taken place before they take action.

Local authorities will need to gather evidence and give you notice that they will issue a fine. Landlords will then have 28 days from the day the notice is issued to make written representations. After this, the local authority will be able to decide whether to issue a final notice.

Property118 commercial reality check

The Renters’ Rights Act places more weight on landlords who already carry most of the operational burden. Councils gain powers, yet the expectations placed on responsible housing providers keep rising. The landscape is tougher, not fairer.

What serious landlords should do next

Reassert control over compliance files. Treat this as protection, not punishment. A clean, well-organised record on each tenancy makes it harder for councils to misinterpret your actions and easier for you to defend professional decisions.

Map every date that creates risk. Model the timing of notices, documentation deadlines and any potential use of Grounds 1 or 1A. Build a simple calendar so you never fall foul of a technical breach that has nothing to do with the quality of your management.

Strengthen possession planning. Clarify which grounds you might rely on in the next 12 to 24 months. Keep a written justification for each route. This protects you from accusations of recklessness and reinforces that your decisions are commercially rational.

Systemise written communication. Verbal agreements are now liabilities. Standard templates for notices, terms, renewal discussions and statutory information sheets shield you from disputes and keep the council’s narrative in check.

Advantage through professionalism

Councils may have sharper teeth, yet well-run landlords still outperform enforcement pressure. Professional systems convert anxiety into leverage and show that credible operators are not the problem.

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