Landlord Fines and Penalties Under the Renters' Rights Act 2025

The Renters' Rights Act 2025 doesn't just change the rules — it changes what happens when those rules are broken.

To use the government's own framing, the reforms will be "underpinned by an effective, consistent and proportionate enforcement framework." In practice, that means significantly increased powers for local housing authorities (LHAs) to investigate breaches, impose civil penalties, and pursue criminal prosecution. It also means tenants now have their own route to financial redress, with the ability to claim back up to two years' rent for a broadened list of offences.

This guide sets out the new enforcement landscape in full: what the penalties are, when they apply, who they fall on, and how councils will calculate them — including the starting points published in the statutory guidance Civil Penalties Under the Renters' Rights Act 2025 and Other Housing Legislation.

The Enforcement Framework at a Glance

Almost every obligation introduced by the Renters' Rights Act comes with a meaningful sanction attached — whether that's a civil penalty imposed by the local council, a rent repayment order pursued by a tenant or local authority, or the prospect of criminal prosecution with an unlimited fine.
For most breaches, local housing authorities may impose:

• Up to £7,000 for a first or minor breach
• Up to £40,000 for serious, continued or repeated breaches

Certain offences — including unlawful eviction and harassment — carry a maximum civil penalty of £40,000 as an alternative to prosecution. Prohibited payments under the Tenant Fees Act 2019 carry a separate maximum of £30,000.
The majority of these civil penalties will take effect from 1 May 2026, with provisions relating to the PRS Landlord Database and PRS Landlord Ombudsman coming into force later (expected 2027 and 2028 respectively).

Who Do the Penalties Apply To? Understanding "Relevant Person"

Many of the obligations in the Act are not confined to the landlord alone. The concept of a "relevant person" extends liability to anyone acting — or purporting to act — on the landlord's behalf. This includes letting agents, property managers, and intermediaries.
A relevant person may receive a civil penalty where the LHA is satisfied that they have:

• Failed to comply with a specific legal requirement
• Continued to breach the law after a penalty has been issued
• Committed multiple breaches within a five-year period

Civil Penalties: Breaches Before the Tenancy Begins

1) Purporting to Let for a Fixed Term

Once the Act comes into force on 1 May 2026, all new residential tenancies must be periodic. Attempting to grant a fixed-term tenancy — whether deliberately or inadvertently — will be a breach of the new Section 16E of the Housing Act 1988. 

This duty is also likely to extend to enforcing fixed-term obligations, such as requiring more than two months' notice from a tenant.

Sanction: Civil penalty of up to £7,000 (first breach) or £40,000 (repeated/continuing). Starting point: £4,000. Standard of proof: beyond reasonable doubt.

2) Failing to Provide a Written Statement of Terms

A new Section 16D of the Housing Act 1988 requires landlords to give tenants a Written Statement of Terms before the tenancy is signed. This must include a specified list of mandatory information.

Sanction: Civil penalty of up to £7,000/£40,000. Starting point: £4,000. Standard of proof: beyond reasonable doubt.

3) Failing to State the Proposed Rent in Advertising

Any written advertisement, listing or offer for a residential letting must clearly state a specific proposed rent figure. Vague or absent pricing is not permitted.

Sanction: Civil penalty of up to £7,000/£40,000. Starting point: £3,000. Standard of proof: balance of probabilities.

4) Breach of the Rental Bidding Prohibition

Landlords and relevant persons may not invite, encourage or accept offers of rent above the stated advertised figure. The prohibition applies to direct solicitation and to acceptance of unsolicited higher bids.

Landlords remain free to accept offers below the advertised rent.

Sanction: Civil penalty of up to £7,000/£40,000. Starting point: £4,000. Standard of proof: beyond reasonable doubt.

5) Discriminating Against Tenants Due to Benefit Status or Children

The Act prohibits landlords and letting agents from refusing to show or let a property to an applicant on the basis that they receive benefits, or that children will live in or visit the property.

Affordability assessments remain permissible, but blanket exclusions based on benefit status are not. Refusing applicants with children may be justified in limited circumstances — for instance, to prevent overcrowding — provided it is a proportionate means of achieving a legitimate aim.

Sanction: Civil penalty of up to £7,000/£40,000. Starting point: £6,000. Standard of proof: balance of probabilities.

6) Asking For or Accepting Prohibited Pre-Tenancy Rent

The Act amends the Tenant Fees Act 2019 so that any rent payment for an assured tenancy made before the tenancy agreement is signed becomes a prohibited payment. This includes inviting or encouraging such a payment, and accepting it via a third party.

Sanction: Civil penalty of up to £5,000 for a first breach; up to £30,000 if a further breach occurs within five years (as an alternative to prosecution).

7) Marketing or Re-Letting During a Restricted Period (Grounds 1 and 1A)

Where possession is obtained under Ground 1 (landlord or family intends to occupy) or Ground 1A (landlord intends to sell), a 12-month restriction applies. During this period, the landlord — and any agent or intermediary acting for them — may not market the property for letting, let it, or license it (including short-term lets such as Airbnb).

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

Sanction: Maximum civil penalty of £40,000. Starting point: £25,000.

Civil Penalties: Breaches During the Tenancy

1) Requiring Rent in Advance After the Tenancy Has Begun

Any contractual term requiring rent in advance is unenforceable once the tenancy agreement has been entered into — except in relation to the initial rent period, which cannot exceed one calendar month. Voluntarily receiving rent in advance from a tenant who chooses to pay early is not an offence.
Sanction: No civil penalty — but such clauses will not be legally enforceable.

2) Increasing Rent Outside the Section 13 Process

From 1 May 2026, rent increases will only be valid if made via the Section 13 process using the new Form 4A. Any other method will have no legal effect.
Sanction: No civil penalty — but the increase will be void.

3) Unreasonably Refusing a Tenant's Request to Keep a Pet

The Act grants tenants an implied right to keep a pet, subject to following the prescribed request process. Landlords must not refuse consent without reasonable grounds. Legitimate reasons may include a freeholder withholding consent or a lease prohibition.
Sanction: No civil penalty — but the tenant may refer the matter to the PRS Landlord Ombudsman.

Civil Penalties: Other Breaches

1) Breaches of PRS Landlord Database Obligations (expected from 2027)

Once live, the Database will require active entries for both the landlord and each property before any marketing, advertising or letting can take place. Information must be kept current.

Knowingly or recklessly providing false or misleading information to the Database is a specific offence, as is failing to correct such information within 28 days of a penalty being imposed.

Where the offence is committed with the consent, connivance or negligence of a company officer, both the company and the individual may be held liable. Landlords in breach may also lose the ability to regain possession of their property, except in cases involving serious crime or anti-social behaviour.

Sanction: Civil penalty of up to £7,000/£40,000. Starting point: TBC. Standard of proof: beyond reasonable doubt.

2) Breaches of PRS Landlord Ombudsman Obligations (expected from 2028)

All landlords — including those using a letting agent — will be required to join the PRS Landlord Ombudsman. The full details will be set out in secondary legislation. Failure to rectify a breach within 28 days of a final penalty notice constitutes a further offence and opens the door to a rent repayment order.

Sanction: Civil penalty of up to £7,000/£40,000. Starting point: TBC. Standard of proof: beyond reasonable doubt.

3) Breaches of the Decent Homes Standard (Category 1 Hazards) (expected from 2035)

The Renters' Rights Act will extend a Decent Homes Standard (DHS) to the private rented sector, integrating with the existing Housing Health and Safety Rating System (HHSRS). Breaches will be classified as either Type 1 (serious hazards, akin to Category 1 HHSRS hazards) or Type 2 (less serious).

For Type 1 breaches, LHAs will be able to impose a civil penalty at the point of enforcement — they will not need to wait for a landlord to fail to comply with an improvement notice first.

For Type 1 and Type 2 breaches, the LHA may serve an improvement notice setting out required works and a timeframe (usually at least 28 days). Failure to comply with an improvement notice will now carry a maximum civil penalty of £40,000 (increased from the previous £30,000 limit). Tenants and LHAs will also be able to apply for a Rent Repayment Order.

Sanction: Civil penalty of up to £7,000 for a Type 1 breach at point of enforcement; up to £40,000 for failure to comply with an improvement notice.

4) Serving Invalid Notices or Misleading Tenants About Possession

Section 21 will be abolished on 1 May 2026. From that date, landlords will only be able to use the prescribed Form 3 when serving a Section 8 notice. Attempting to end a tenancy by any other means — whether orally, by serving a notice to quit, or by relying on a ground the landlord does not reasonably believe applies — will constitute a breach.

Knowingly or recklessly misusing a possession ground (for example, falsely claiming a family member intends to move in) is a criminal offence, carrying a maximum civil penalty of £40,000 or, alternatively, prosecution with an unlimited fine.

How Councils Will Calculate Civil Penalties

The statutory guidance Civil Penalties Under the Renters' Rights Act 2025 and Other Housing Legislation sets out the framework councils must follow. The process involves four steps:

1) Identify the starting point — each breach has a designated starting figure set out in the guidance (e.g. £4,000 for purporting to let for a fixed term; £6,000 for most anti-gaming duties; £25,000 for re-letting during a restricted period).

2) Adjust up or down based on factors specific to the individual breach.

3) Sense-check that the penalty is fair and meets the objectives of punishment, deterrence and removal of financial benefit.

4) Consider totality — where multiple penalties are being imposed against the same person at the same time, the overall figure should be just and proportionate.

Note that rent repayment orders issued in respect of the same offence are disregarded when assessing the totality of civil penalties.
Key factors in determining the appropriate level include:

• Severity — the more serious the breach, the higher the penalty
• Culpability and track record — deliberate breaches and repeat offenders will attract higher penalties
• Harm caused — actual or potential harm to the tenant increases the appropriate figure
• Deterrence — the penalty should discourage both the individual offender and others from similar conduct

The "Anti-Gaming" Duties: Section 13 Renters' Rights Act

Section 13 of the Act introduces a specific list of "prohibited conduct" designed to prevent landlords and agents from circumventing the new tenancy reforms. These duties are inserted into the Housing Act 1988 as a new Section 16E, and are enforceable by civil penalties of up to £7,000 (first breach) or £40,000 (serious or repeated breach).

Prohibited conduct includes:

• Attempting to grant a fixed-term tenancyServing a notice to quit to end a tenancy
• Attempting to end a tenancy orally
• Serving a Section 8 notice outside the prescribed process
• Relying on a Section 8 ground without a reasonable belief that possession can be obtained
• Failing to provide a written statement of terms detailing certain grounds before the tenancy starts
• Re-letting or marketing during the 12-month restricted period following use of Ground 1 or 1A

Rent Repayment Orders Under the Renters' Rights Act

The Renters' Rights Act significantly widens the scope of Rent Repayment Orders (RROs). Both tenants and local housing authorities will be able to apply to the First-tier Tribunal for an RRO covering up to two years' rent for an expanded list of offences.

These include unlawful eviction, harassment, breaches of the PRS Database and Ombudsman obligations, and failure to comply with improvement notices. An RRO can run alongside a civil penalty — the two are not mutually exclusive — though RROs are disregarded when assessing the totality of civil penalties.

Challenging Civil Penalties

A civil penalty under the Renters' Rights Act does not require a court hearing to impose — councils may issue one directly, in a manner broadly analogous to a penalty charge notice. However, landlords and letting agents will have the right to make written representations before a penalty is finalised.

If the penalty is not withdrawn following representations, the recipient may appeal to the First-tier Tribunal (Property Chamber), which has the power to confirm, vary or cancel the penalty.

Final Thoughts

The Renters' Rights Act 2025 represents a significant shift in the balance of power between landlords, letting agents and tenants — and its enforcement framework reflects that. The combination of higher civil penalties, a duty (rather than a discretion) for councils to enforce, tenant-led rent repayment orders and the prospect of criminal prosecution means that non-compliance is no longer an affordable risk.

For landlords and letting agents, the imperative is clear: understand your obligations in detail, act within them from day one, and keep documentation to demonstrate compliance.