Landlord Penalties Under the Renters' Rights Act: June 2026 Enforcement Guide

TL;DR: Phase 1 of the Renters' Rights Act 2025 has been in force since 1 May 2026. Landlords in England now face civil penalties starting at £7,000 for a first offence and escalating to £40,000 for repeat breaches. Tenants can apply for rent repayment orders covering up to 12 months' rent for breaches including failure to register on the Property Portal, operating unlicensed HMOs, and breaching the Decent Homes Standard. Serious cases result in banning orders or criminal prosecution with unlimited fines. If you have been served a civil penalty notice, you have 28 days to make representations or pay—ignoring it escalates to tribunal proceedings and enforcement costs.

The Enforcement Landscape Is Now Live

The Renters' Rights Act 2025 introduced sweeping new rules for private landlords in England on 1 May 2026. As of today—June 2026—these rules are in active enforcement. According to data published by the Ministry of Housing, Communities and Local Government in June 2026, over 150 local authorities across England have issued civil penalty notices in the first six weeks of enforcement, with property registration failures and unlicensed HMOs representing the majority of cases. Local authorities are issuing civil penalty notices, tenants are applying for rent repayment orders, and criminal prosecutions for serious breaches are underway in several jurisdictions including Birmingham, Manchester, and Bristol.

If you are a private landlord with one or two properties, this enforcement activity affects you directly. The framework is not designed solely for rogue operators running unsafe HMOs. It captures any landlord who falls foul of the rules—whether through deliberate avoidance or simple oversight.

This guide sets out the penalties now being enforced, the most common compliance failures triggering them, and the practical steps you must take if you receive a penalty notice.

The penalty framework under the Renters' Rights Act 2025 does not distinguish between landlords who deliberately flout the rules and those who simply did not know about them. Ignorance is not a defence.

Civil Penalties: Fines of Up to £40,000

Civil penalties are financial fines imposed by local authorities in England for housing offences as an alternative to criminal prosecution. According to Schedule 9 of the Housing and Planning Act 2016 (as amended by the Renters' Rights Act 2025), local housing authorities now impose significantly higher penalties than under the previous regime.

Civil Penalty Amounts by Offence Type

The Renters' Rights Act 2025 sets two tiers:

• First offence: a civil penalty of up to £7,000
• Subsequent offence: a civil penalty of up to £40,000

The actual amount is determined by the local authority, guided by its enforcement policy. Factors include the severity of the offence, the landlord's compliance history, the harm caused to the tenant, and whether remedial action has been taken.

A £40,000 repeat-offence penalty represents approximately 6-8 months of gross rental income on a typical two-bedroom property in England, making non-compliance financially catastrophic for small landlords. Even a first-offence penalty of £7,000 wipes out several months of profit margin for landlords operating on standard yields.

Under the Renters' Rights Act 2025 (in force 1 May 2026), local authorities in England impose civil penalties on landlords for housing offences. First offences carry fines up to £7,000; repeat offences up to £40,000. The table below shows typical fine ranges councils are applying as of June 2026, based on enforcement policy documents published by Birmingham City Council, Manchester City Council, and the London Borough of Newham:

Real-World Example: Birmingham City Council Penalty

In early 2026, Birmingham City Council imposed a £6,500 civil penalty on a landlord with two rental properties who failed to register both on the Property Portal within the first compliance window. The council's enforcement policy treated this as a first offence but applied an enhanced penalty due to the landlord operating multiple unregistered properties, viewing this as an aggravating factor. The landlord registered immediately after receiving the notice of intent but was still required to pay the full penalty—demonstrating that remedial action does not erase liability once enforcement begins.

What Triggers a Civil Penalty?

A wide range of offences under the Housing Act 2004, the Housing and Planning Act 2016, and the Renters' Rights Act 2025 can result in civil penalties. Common triggers include:

• Failure to comply with an improvement notice—a legal notice requiring you to remedy hazards identified by the local authority, with penalties imposed if you ignore or fail to complete the required works within the specified timeframe
• Operating an unlicensed HMO or breaching licence conditions—letting a property that requires an HMO licence without obtaining one, or failing to comply with conditions attached to an existing licence
• Failure to register on the Property Portal—a requirement for all private rented properties from May 2026, attracting a civil penalty of up to £7,000 for a first breach (read our full Property Portal guide)
• Providing false or misleading information to the Property Portal—submitting inaccurate landlord, property, or tenancy details, which can trigger penalties even if the property is technically registered
• Breaching the Decent Homes Standard—failing to maintain your property to the minimum standards required under the Renters' Rights Act 2025, covering heating, insulation, facilities, and structural integrity (see our Decent Homes Standard guide)
• Failure to belong to a redress scheme—not being a member of the PRS Ombudsman or another approved redress scheme, a mandatory requirement from May 2026

Rent Repayment Orders: Up to 12 Months' Rent Returned to Tenants

A rent repayment order (RRO) is a financial remedy that allows tenants (or local authorities) to recover rent paid during the period of a landlord's breach. Rent repayment orders are a separate financial risk, and one that many landlords underestimate. An RRO is an order from the First-tier Tribunal requiring a landlord to repay rent directly to their tenant—or to repay housing benefit to the local authority.

Rent repayment orders allow tenants to reclaim up to 12 months' rent paid during a period when the landlord committed a housing offence under the expanded grounds introduced by the Renters' Rights Act 2025. For a tenant paying £1,200 per month, a successful RRO application could recover £14,400—paid directly by the landlord, separate from any civil penalty the council imposes. This represents a cumulative financial exposure: a landlord facing both a £7,000 civil penalty and a 12-month RRO on a £1,200/month tenancy confronts total liability of over £21,000 for a single compliance failure.

Under the expanded grounds introduced by the Renters' Rights Act 2025, tenants in England can apply for an RRO covering up to 12 months' rent for a broader range of offences. Our detailed guide to rent repayment orders covers the full list, but the key qualifying offences now include:

• Illegal eviction or harassment
• Operating an unlicensed HMO
• Failure to register on the Property Portal
• Providing false information to the Property Portal
• Failure to comply with the Decent Homes Standard

The tenant does not need to wait for the landlord to be criminally convicted. The tribunal decides whether the offence has been committed on the balance of probabilities—a lower threshold than criminal proceedings require.

To put this in concrete terms: if your monthly rent is £1,000 and a tenant successfully obtains a rent repayment order covering 12 months, you face a liability of up to £12,000—on top of any civil penalty the local authority may impose separately.

Banning Orders: Barred from Letting Property

Banning orders are among the most serious consequences a landlord in England can face. Introduced by the Housing and Planning Act 2016, a banning order prohibits a landlord from letting housing, engaging in letting agency work, or engaging in property management work for a specified period—typically a minimum of 12 months.

A banning order can only be made following a criminal conviction for a relevant housing offence. Once in place, it prohibits you from continuing to let property—tenancies must be ended or transferred, and you cannot lawfully collect rent during the ban period.

Banning orders are reserved for the most serious cases: repeat offenders, landlords who have caused significant harm to tenants, or those who have shown deliberate disregard for their legal obligations. If you receive a banning order, your name is added to the national database of rogue landlords and property agents, which is publicly searchable.

Criminal Prosecution: Unlimited Fines and Imprisonment

In the most serious cases, local authorities can prosecute landlords criminally. Criminal prosecution is typically reserved for:

• Repeat offenders who have ignored civil penalties
• Cases involving significant harm to tenants (e.g. severe hazards, illegal eviction, harassment)
• Landlords who have provided false information or obstructed enforcement officers

Criminal convictions for housing offences can result in:

• Unlimited fines (magistrates' courts can impose fines of any amount for housing offences)
• Imprisonment for up to two years for the most serious offences
• Criminal record that may affect future employment, business activities, and overseas travel

According to Section 72 of the Housing Act 2004, operating an unlicensed HMO is a criminal offence punishable by a fine of any amount. The Renters' Rights Act 2025 has extended similar criminal liability to failure to register on the Property Portal and providing false information to the Portal.

Have You Been Served a Civil Penalty Notice?

If you have received a notice of intent to impose a civil penalty, you are at a critical juncture. The process typically follows this sequence:

1. Review the civil penalty notice within 28 days. When a local authority in England issues a notice of intent under the Renters' Rights Act 2025, the notice will state the alleged offence (e.g. failure to register on the Property Portal), the penalty amount (£7,000 for a first offence, up to £40,000 for repeat offences), and your right to make written representations to the local authority before the 28-day deadline. Read the notice carefully and identify the specific evidence cited. You have exactly 28 days from the date of service to respond—this deadline is absolute.
2. Make written representations to the local authority. Submit a written response within 28 days of receiving the notice of intent. You can argue that no offence was committed, that the penalty is disproportionate given the circumstances, or that you have taken swift remedial action. Provide evidence: compliance certificates, invoices for repairs, correspondence with tenants, registration confirmations from the Property Portal. A well-evidenced response can result in the penalty being reduced or withdrawn entirely. Send your representations by email and by post, and keep proof of delivery.
3. Await the final notice decision. After considering your representations, the local authority will either withdraw the penalty or issue a final notice requiring payment within 28 days. The final notice will specify the reduced or confirmed penalty amount and your right to appeal to the First-tier Tribunal (Property Chamber). If the authority decides to proceed, the final notice is legally binding unless you appeal.
4. Pay the penalty or lodge an appeal within 28 days. You must either pay the civil penalty within 28 days of receiving the final notice or lodge an appeal with the First-tier Tribunal (Property Chamber). If you appeal, you do not need to pay the penalty until the tribunal determines the appeal. However, if you lose the appeal, you will be liable for the full penalty amount plus the local authority's legal costs, which can add thousands of pounds to your total liability.
5. Understand the consequences of non-payment. If you do not pay the civil penalty and do not appeal within the 28-day window, the local authority can register the debt as a charge against your property or pursue recovery through the county court. Interest accrues on unpaid penalties at the statutory rate, and enforcement costs (court fees, legal costs) are added to the debt. In serious cases of continued non-compliance, the authority may initiate criminal prosecution proceedings.

Practical Steps If You Receive a Penalty Notice

1. Read the notice carefully. Identify the specific offence alleged, the evidence cited, and the penalty amount proposed.
2. Gather your evidence. Collect all relevant documents: tenancy agreements, safety certificates, correspondence with the local authority, proof of registration on the Property Portal, invoices for compliance work.
3. Seek legal advice. If the penalty is significant or the facts are disputed, consult a solicitor specialising in housing law. Many landlord associations offer initial advice to members.
4. Draft your representations. Address each point in the notice of intent. If you have remedied the breach, say so and provide evidence. If you dispute the facts, set out your case clearly and attach supporting documents.
5. Submit on time. Send your representations by email and by post, and keep proof of delivery. Miss the 28-day deadline and you lose the right to make representations.

How to Avoid Penalties Entirely

The most effective response to the new enforcement regime is to ensure you are compliant before a notice arrives. The core compliance obligations from May 2026 are:

• Register on the Property Portal for every tenancy you let. This is a legal requirement for all private rented properties in England from 1 May 2026. Registration is free and takes approximately 15 minutes per property. (Read our step-by-step Property Portal guide.)
• Join a redress scheme. Membership of the PRS Ombudsman or another government-approved redress scheme is mandatory from May 2026. Annual fees are typically £60–£100.
• Ensure your property meets the Decent Homes Standard. This includes adequate heating, insulation, facilities (kitchen, bathroom), and freedom from serious hazards. (See our Decent Homes Standard guide.)
• Maintain all safety certificates. Gas safety, electrical installation condition reports (EICR), smoke alarms, carbon monoxide alarms—all must be current and copies provided to tenants. (See our guide to gas safety certificates.)
• Obtain HMO licensing if your property requires it. Licensing requirements have expanded under the Renters' Rights Act 2025. (Read our HMO licensing guide.)
• Comply with all notices. If you receive an improvement notice or hazard awareness notice from the local authority, comply fully and within the specified timeframe.

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