Renters’ Rights Act landlord fines and civil penalties explained

The Renters’ Rights Act has sharp teeth.

Local authorities can now impose civil penalties on landlords and letting agents of up to £7,000 for a first breach. The maximum civil penalty rises to £40,000 for offences, including continuing or repeated breaches, and tenants can also apply for a rent repayment order of up to two years’ rent. Landlords face criminal prosecution with an unlimited fine as an alternative to civil penalties.

To use the government’s own words, the reforms in the Renters’ Rights Act are “underpinned by an effective, consistent and proportionate enforcement framework”. For “enforcement framework”, read significantly increased powers for LHAs to investigate breaches and impose civil penalties on landlords and letting agents, complemented by “tenant-led enforcement” through expanded rent repayment orders.

In this blog post, I explain how the enforcement regime works, the civil penalties and offences in the Renters’ Rights Act, and the starting points for civil penalties in the statutory guidance, Civil penalties under the Renters’ Rights Act 2025 and other housing legislation.

I cover the full tenancy cycle, including how to stay compliant and avoid civil penalties, in my bestselling book, The Good Landlord Handbook. If you have questions, you can ask me at twice-monthly livestreams in my membership, The Independent Landlord Hub. I’m unable to answer questions in the comments or by email.

>> Related Post: The new investigation and enforcement powers of councils in Renters’ Rights Act

>> Related Post: Rent Repayment Order rules after the Renters’ Rights Act

Last updated: 7 September 2026

Overview: Renters’ Rights civil penalties

Almost all the obligations in the Renters’ Rights Act come with a significant penalty for breach, whether it’s a civil penalty imposed by the local council, or the right for tenants to apply for a rent repayment order.

Here are some handy tables showing which breaches are subject to civil penalties under the Renters’ Rights Act.

Tables summarising civil penalties introduced by Renters’ Rights Act 2025

The tables below set out the specific breaches in the Renters’ Rights Act 2025 that entitle local authorities to impose a civil penalty of up to £7,000 for a first breach, or up to £40,000 for a repeated or continuing breach.

“Anti-gaming” breaches in Section 13 Renters’ Rights Act 2025

Section 13 RRA introduced a number of duties for “relevant persons” (the landlord, someone acting on their behalf other than as a “legal representative” and someone “purporting to act on behalf of the landlord”). These were inserted into the Housing Act 1988 in a new Section 16E.

The duties in Section 13 RRA prevent landlords from bypassing or evading the new tenancy reforms, or “gaming the system”, by creating a specific list of “prohibited conduct”. A new Section 16I of the Housing Act 1988 gives the right to local councils to enforce these breaches by a civil penalty of up to £7,000 for a first breach, and Section 16K of the Housing Act 1988 states the maximum civil penalty for offences is £40,000.

This table sets out each of the “anti-gaming” duties in Section 13 of the Renters’ Rights Act that can be enforced by the local authority imposing civil penalties:

Duty to provide written statements and the Information Sheet

The Renters’ Rights Act contains obligations on relevant persons to provide certain written statements and prescribed information to tenants.

This table sets out the duties regarding the provision of information and statements to tenants, which are enforceable by civil penalties:

Obligations regarding the PRS Database and PRS Landlord Ombudsman

Once launched, the local authority will be able to impose a civil penalty of up to £7,000 if they are satisfied “beyond reasonable doubt” that there has been a breach of the obligations regarding the PRS Database and PRS Landlord Ombudsman.

There is also a specific offence for which a penalty of up to £40,000 can be imposed by the local authority of “knowingly or recklessly” providing materially false or misleading information to the Database, as well as continued and repeated breaches.

The obligations relating to the PRS Database will not come into force until it is launched, which is likely to be in 2027. The launch of the PRS Landlord Ombudsman is expected in 2028. (See MHCLG Implementation Roadmap).

This table summarises the obligations and the civil penalties in the Renters’ Rights Act regarding the PRS Landlord Ombudsman and the PRS Database:

>> Related Post: The PRS Database: how to register your rental property

Renters’ Rights Act obligations regarding rental discrimination, rental bidding, prohibited pre-tenancy rent payments

Key obligations in the Renters’ Rights Act, such as the prohibitions on rental discrimination and rental bidding, together with an obligation to state the proposed rent in advertising, are enforceable by the local council who may impose civil penalties if they are “satisfied on the balance of probabilities” that there has been a breach.

The burden of proof is beyond reasonable doubt for prohibited pre-tenancy rent payments in breach of the Tenant Fees Act 2019.

>> Related Post: The rules about asking rents and rental bidding in Renters’ Rights Act

The obligations relating to rental discrimination, rental bidding and prohibited pre-tenancy rent payments, enforceable by civil penalties, are set out in the table below:

* Unlike the other duties (for instance in Section 16E of the Housing Act 1988), if there is a repeated breach within 5 years of the ban on rental discrimination, obligation to state the proposed rent or the ban on rental bidding, it will not be an offence. However, an additional civil penalty may be added to the civil penalty for the repeat breach

Table summarising offences introduced by Renters’ Rights Act 2025

Here is a table that sets out the offences in the Renters’ Rights Act.

Section 58 RRA inserts a new Section 1A into the Protection from Eviction Act 1977 to introduce a new power for local authorities to impose a civil penalty (up to £40,000) for unlawful eviction or harassment, where previously only prosecution was possible.

Civil penalty maximum for offences: £40,000 (as alternative to prosecution), except for breach of the Tenant Fees Act, which is £30,000. These offences also enable tenants or the local authority to bring a rent repayment order for up to two years’ rent.

Overview of local authority powers to impose civil penalties

The Renters’ Rights Act introduced a range of civil penalties and enforcement mechanisms for non-compliance with its provisions. These are mostly enforceable by local housing authorities (LHAs), which now have a statutory duty to investigate and take action against landlords and agents who breach the law.

A new Section 16I(1) of the Housing Act 1988 gives LHAs the right to impose a financial penalty on relevant persons if they are “satisfied beyond reasonable doubt” that they have breached one of the relevant obligations in the Renters’ Rights Act. This is the criminal standard, which means if there is a small doubt that the person breached the obligation, then it is not proven.

Some of the penalties, eg rental discrimination and failing to state the proposed rent, only require the LHA to be “satisfied on a balance of probabilities“, which means more likely than not. This is a lower bar.

For a first or minor non-compliance, the LHA may impose a civil penalty of up to £7,000. For offences, the maximum civil penalty is £40,000. Certain breaches may result in multiple penalties for the same landlord. For offences, LHAs have the option of pursuing a criminal prosecution with an unlimited fine instead.   

The important thing about a civil penalty is that the council can impose it without a court hearing. A bit like a parking ticket. However, a landlord is able to make written representations.

The LHAs’ enforcement responsibilities are funded through the civil penalties they collect. Unlike previous legislation, they are now under a duty to enforce the law rather than having discretion over whether to act.

Where a local authority believes an offence has been committed, they have the option to prosecute the relevant person, which could result in an unlimited fine. However, they may choose instead to issue a civil penalty of up to £40,000. It is expected that imposing a civil penalty will be a popular route for LHAs to enforce obligations under the Renters’ Rights Act as it is simpler than criminal prosecution.

The Act also allows tenants to apply to the First-tier Tribunal for rent repayment orders of up to two years’ rent, and councils may bring a criminal prosecution with an unlimited fine as an alternative to imposing a civil penalty. You can read more on rent repayment orders below.

However, if part of the rent was paid through Housing Benefit or Universal Credit, the local authority can claim a rent repayment order in respect of that rent paid through public funds. 

How do councils set the level of civil penalties?

The statutory guidance Civil penalties under the Renters’ Rights Act 2025 and other housing legislation sets out the rules that local authorities “must have regard to, that is, consider, this guidance when setting their civil penalty policies and imposing civil penalties”. 

Factors for determining the level of civil penalties.

Councils are required to have their own policies for setting an appropriate amount, but the guidance says they should take the following factors into account:

• Severity of the offence – the more serious the breach or offence, the higher the penalty should be.
• Culpability and track record of the offender – a higher penalty will be appropriate where they have a past history of breaches, where it was deliberate or where they knew or ought to have known they were in breach of their duties.
• The harm caused – the greater the actual or potential harm, the higher the penalty.
• Punishment of the offender
• To deter the offender from repeating the offence
• To deter others from committing similar offences

How local authorities calculate civil penalties

Here is the process for calculating the penalty set out in the statutory guidance:

• Take the “starting point” for each of the breaches and offences set out in the guidance.
• Take into account any ”factors specific to the individual breach or offence which mean that the starting point for the civil penalty is adjusted upwards or downwards”.
• Sense check to see if the penalty is fair, and meets the “objectives of punishment, deterrence and removal of financial benefit”.  
• Look at the totality – consider other civil penalties being issued against the same offender at the same time to reach an amount that is “just and proportionate”. 

Any rent repayment orders made against the offender in respect of the same offence “are to be disregarded in assessing the totality of the penalty”.  

For instance, the starting point for breaches of most of “anti-gaming” duties is £6,000, although the starting point for purporting to let for a fixed term is £4,000. These anti-gaming duties are in a new Section 16E of the Housing Act 1988. They are designed to prevent landlords and agents from “gaming” or ignoring the rules.

The council will then decide whether to adjust it up or down depending on the circumstances, assess whether it is fair, and look at it in the round to ensure it is “just and proportionate”.

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What is a “relevant person” in the Renters’ Rights Act?

The concept of the “relevant person” in the Renters’ Rights Act is key. This is because definition of relevant person not only includes the landlord, but also someone acting on their behalf or purporting to act on their behalf such as a letting agent.

Relevant persons may receive a civil penalty if the LHA is satisfied beyond reasonable doubt or on a balance of probabilities, as the case may be, that they have:

• Failed to comply with specific legal requirements,
• Continued to breach the law after being issued a penalty, and/or
• Committed more than one breach within five years.

Penalties for breaches before the tenancy is entered into

1. “Purporting to let” for a fixed term

A new Section 16E of the Housing Act 1988 prohibits “relevant persons” from purporting to let for a fixed term. The LHA may impose a financial penalty on a relevant person if they are satisfied beyond reasonable doubt that the relevant person contravened this obligation.

This means that if landlords or letting agents unwittingly or deliberately try to grant a fixed term tenancy, they risk having to pay a financial penalty.

It is also likely that this duty extends to a landlord or agent seeking to enforce a fixed term. If a landlord says a tenant must give more than two months’ notice, that won’t be valid as all fixed term tenancies ended on 1 May 2026.

Sanctions: civil penalty of up to £7,000/£40,000 (LHA must be satisfied beyond reasonable doubt). The starting point in the statutory guidance is £4,000.

2. Failing to provide tenant with a Written Statement of Terms

A new Section 16D of the Housing Act 1988 requires landlords to give the tenant a Written Statement of Terms before the tenancy is signed, so that there is a written record of the key information.

There is a long list of mandatory information that must be included in new tenancies from 1 May 2026, which I explain in detail in this post: Renters’ Rights: The new Written Statement of Terms.

Sanctions: civil penalty of up to £7,000/£40,000 (LHA must be satisfied beyond reasonable doubt). The starting point in the statutory guidance is £4,000.

3. Failing to state proposed rent

Section 56 of the Renters’ Rights Act prohibits landlords and other “relevant persons” from advertising or offering in writing a proposed letting unless they specify the exact proposed rent.

Sanctions: civil penalty of up to £7,000/£40,000 (note LHA needs to be satisfied on a “balance of probabilities” and not the usual “beyond reasonable doubt”). The starting point in the statutory guidance is £3,000.

4. Breach of prohibition of rental bidding rule

Section 56 of the Renters’ Rights Act states that landlords and other relevant persons may not “invite or encourage any person to offer to pay an amount of rent under the proposed letting that exceeds the stated rent”. (“Stated rent” means the proposed rent stated in the advert, listing or offer). Also, they may not accept an offer to pay rent that is higher than the stated rent.

Landlords can still accept offers below the advertised rent.

Sanctions: civil penalty of up to £7,000/£40,000 (LHA must be satisfied beyond reasonable doubt). The starting point in the statutory guidance is £4,000.

>> Related Post: The new rules about rent in the Renters’ Rights Act

5. Discrimination in tenant selection

Chapter 3 of Part 1 of the Renters’ Rights Act prohibits landlords and letting agents from discriminating against applicants because of their benefit status (eg if they receive universal credit) or that they have children.

Landlords and letting agents may still assess applicants on the grounds of affordability, but must not automatically reject applicants who receive benefits. They may also reject applicants with children if it is a “proportionate means of achieving a legitimate aim”. For instance, to avoid overcrowding.

Sanctions: civil penalty of up to £7,000/£40,000 (LHA needs to be satisfied on a balance of probabilities). The starting point in the statutory guidance is £6,000.

6. Asking for or accepting prohibited pre-tenancy rent payment

Section 9 of the Renters Rights Act amended the Tenant Fees Act 2019 so the payment of rent for an assured tenancy is now a prohibited payment if it is “payable before the tenancy is entered into”.

This also includes a landlord or letting agent inviting or encouraging someone to make a prohibited payment of rent, or even accepting a pre-tenancy payment of rent, direct to them or via a third party.

Sanctions: civil penalty of up to £5,000 for first prohibited payment, rising to £30,000 if another breach within 5 years (as an alternative to prosecution).

>> Related Post: New rules banning rent in advance

7. Marketing, letting, licensing in restricted period (Grounds 1 and 1A of Section 8)

Where a landlord obtains possession using Ground 1 (landlord or family member intends to occupy the property) or Ground 1A (landlord intends to sell the property), they cannot market the property for letting, let or licence (eg Airbnb) for a period of 12 months from the possession order or the date the tenants moved out if the landlord did not obtain an order for possession.

This restriction applies to the landlord as well as any letting agents or intermediaries involved in marketing the property.

This is an offence under the new Section 16J(2) of the Housing Act 1988.

Sanctions: The maximum civil penalty is £40,000, although the starting point in the statutory guidance is £25,000.

Penalties for breaches during the tenancy

1. Prohibition of rent in advance after lease entered into (except initial rent)

Any term in a tenancy agreement which says that rent is due in advance has no legal effect, and cannot be enforced, except for the payment of the rent for the initial rent period, which cannot be for more than one calendar month.

It is not an offence to receive rent in advance that the tenant pays voluntarily, so long as it is paid after the parties enter into the tenancy agreement.

Sanctions: none, although any rent in advance clauses are not be enforceable.

>> Related Post: New rules banning rent in advance

2. Increasing rent other than by Section 13 process

Landlords can no longer increase rent unless they use the Section 13 process (the new Form 4A). Any other method is invalid.

Sanctions: none, although trying to increase rent by any other method has no effect.

3. Refusing to accept request from tenant to have pet without good reason

The Renters’ Rights Act gives tenants an implied right to keep a pet if they follow the process set out in the Act to ask the landlord for consent.

The landlord must not unreasonably refuse to give their consent, and one good reason will be if the freeholder does not give consent or the lease prohibits it.

Sanctions: none but the tenant may refer the matter to the PRS Landlord Ombudsman, once launched, or bring an action in the courts.

Penalties for other breaches

1. Breaches of obligations regarding PRS Landlord Database

There will need to be an “active entry” on the database for both the property and the landlord before marketing, advertising and letting a property, and the information will need to be kept up to date. The precise information and documentation is due to be confirmed by the end of 2026.

If a landlord uses an agent, the agent will be responsible for ensuring there is an active up-to-date entry for the landlord and property.

It will be an offence for a landlord or agent to “knowingly or recklessly” provide information to the database which is “false or misleading in a material respect”. It will also be a separate offence not to rectify the false or misleading information within 28 days of a penalty being imposed.

Of relevance to corporate landlords and agents, if the offence is committed with the “consent or connivance of, or to be attributable to any neglect on the part of” an officer (ie director, manager, company secretary), both the company and the officer will be deemed to have committed the offence.

Also, landlords will not be able to regain possession of their property except in cases of serious crime or anti-social behaviour if they do not register with the database.

Sanctions: civil penalty of up to £7,000/£40,000 (LHA must be satisfied beyond reasonable doubt) and rent repayment order. Starting point TBD.

>> Related Post: The PRS Database: how to register your rental property

2. Breaches of obligations regarding PRS Landlord Ombudsman

All landlords will be required to join the PRS Landlord Ombudsman, even if they use an agent who will belong to a redress scheme. It is expected that the Ombudsman will launch in 2028.

An LHA will be able to impose a civil penalty for breaches of these regulations. If the landlord doesn’t rectify the breach within 28 days of receiving the final notice imposing the penalty (if it’s not withdrawn or successfully appealed), then the landlord will also commit an offence.

The tenants and the LHA will also be able to apply for a rent repayment order for continuing breaches (if the landlord doesn’t rectify the breach within 28 days) or repeat breaches.

Sanctions: civil penalty of up to £7,000/£40,000 (LHA must be satisfied beyond reasonable doubt) and rent repayment order. Starting point TBD.

>> Related Post: PRS Landlord Ombudsman – Renters’ Rights landlord redress scheme

3. Breaches relating to Decent Homes Standard (Category 1 hazard)

The Renters’ Rights Act will introduce a Decent Homes Standard (DHS) to the private rented sector, proposals for which were set out in the January 2026 Policy Statement Consultation, which will come into effect from 2035.

The new DHS will integrate with the existing Housing Health and Safety Rating System (HHSRS), classifying breaches as either Type 1 requirements (serious issues, similar to Category 1 hazards – see Section 100 RRA, which introduces a new s.2A(a) HA 2004) or Type 2 requirements (less serious) under a new s.2A HA(b) 2004, details of which will be set out in regulations.

Unlike the previous system, there will be a specific sanction for failures to meet these standards when implemented:

• Civil Penalty (Type 1 requirement): If the Local Housing Authority (LHA) identifies a Type 1 requirement breach they can impose a civil penalty of up to £7,000 immediately when taking enforcement action. They will not need to wait for a landlord to fail to comply with a notice before issuing this fine. (New s.6A Housing Act 2004, inserted by Schedule 4, Para 6 RRA).
• Improvement Notices
  • For Type 2 requirements (and Type 1), the LHA will typically serve an improvement notice specifying the remedial work and timeframe (usually at least 28 days). (See Section 11 & 12 Housing Act 2004).
  • If a landlord fails to comply with an improvement notice, the maximum civil penalty for this offence is £40,000.
  • Tenants and the local authority are able to apply for a Rent Repayment Order (RRO) if an improvement notice is not complied with.

>> Related Post: The Decent Homes Standard for the private rented sector under the Renters’ Rights Act

>> Related Post: HHSRS changes: the new 21 hazards in 2026

4. Serving invalid notices or misleading tenants about possession

The Renters’ Rights Act abolished Section 21 on 1 May 2026, and landlords are now prohibited from seeking to terminate a tenancy by any means other than a valid Section 8 ground.

Landlords can now only use the Section 8 prescribed form (Form 3A) when serving notice on tenants, and cannot do any of the following:

• Serve a notice to quit or ask a tenant to leave without using the prescribed form. This would include serving a Section 21 notice after the commencement date, or even asking students to leave at the end of an academic year, unless they have served a Ground 4A Section 8 notice.
• Ask a tenant to leave orally.
• Knowingly or recklessly misuse a Section 8 notice
• Mislead a tenant into leaving by using a false possession notice
• Unlawfully evict tenants or engage in harassment.

A tenant can apply for a rent repayment order if the landlord knowingly or recklessly misused a possession ground, or breached Section 1 Protection from Eviction Act 1977.

Sanctions: civil penalty of up to £7,000/£40,000 (LHA must be satisfied beyond reasonable doubt) and rent repayment order. The starting point in the statutory guidance is £6,000. If the tenant moves out within 4 months of the landlord serving a notice relying on a Section 8 ground, but knowing the landlord would not be able to obtain possession or being reckless as to whether they would (s16J(1)), this will be an offence and the civil penalty will be up to £40,000 and the starting point in the statutory guidance is £25,000.

>> Related Post: How to evict tenants using Section 8 with Form 3A (Renters’ Rights)

>> Related Post: Grounds 1A and 1: How to evict tenants to sell up or move in

How can landlords and letting agents challenge civil penalties?

Before imposing a civil penalty, the LHA must give the landlord or agent a notice of intent. This includes the amount of the penalty, the reasons for proposing to impose a penalty, and information about the right to make representations.

The landlord or agent, as the case may be, has the right to make written representations to the LHA within 28 days of receiving the notice of intent. 

If the LHA wishes to impose the penalty after the period for representations ends, they must give a final notice to the person which includes the amount of the penalty, the reasons for imposing it, when and how it is payable, and their rights of appeal.

The person who receives the penalty has 28 days to appeal to the First-tier Tribunal against both the decision to impose the penalty and the amount of the penalty.

The new Rent Repayment Orders (RROs) in Renters’ Rights Act

The Housing and Planning Act 2016 introduced the right for tenants and local authorities to apply for an RRO for up to one year’s rent. The Renters’ Rights Act not only increased the number of offences subject to an RRO, but also increased the maximum amount of rent to two years’ rent.

The Renters’ Rights Act also extended personal liability to company directors and managing officers if they are responsible for the offence.

Superior landlords may also be ordered to repay rent, even if they received it via an agent or intermediary, reversing the decision in the Supreme Court in Rakusen v Jepsen.

The Renters’ Rights Act added the following 6 new offences to the list in Housing and Planning Act 2016:

>> Related Post: The Rent Repayment Orders after the Renters’ Rights Act

>> Related Post: Grounds 1A and 1: How to evict tenants to sell up or move in

Final thoughts

The day of the amateur, passive landlord ended on 1 May 2026. With civil penalties of up to £40,000 and rent repayment orders of up to two years’ rent, the cost of getting it wrong is significant. Landlords need to understand their new responsibilities, and that applies even if they use letting agents. Not all agents understand all the new rules.

My bestselling book, The Good Landlord Handbook: Succeed as a Landlord Under the Renters’ Rights Act*, covers all of this in plain English, taking you through each stage of a tenancy and explaining what you need to do to stay compliant.

You can also keep up to date for free by signing up for my weekly newsletter, and for extra support, The Independent Landlord Hub has in-depth courses, templates and twice-monthly livestreams where you can ask me questions directly.

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