The Renters’ Rights Act comes into force on May 1 and carries hefty penalties for non-compliance. Ensuring you meet your legal obligations will help protect both your business and your reputation as a landlord, but what do you need to beware of and who will enforce the rules?
Who is responsible for enforcement
Housing authorities in England are responsible for enforcing the new provisions within the act. County councils that are not a housing authority will enforce provision in their areas. Local housing authorities are responsible for setting their own civil penalty policies in line with the government guidance.
What does enforcement entail?
Under the Renters’ Rights Act, there are both housing offences and breaches to be considered. In a breach, the landlord has failed to comply with a term under the act and a civil penalty of up to £7,000 can be imposed, but there is no option to prosecute. For offences, the local authority can prosecute or impose a civil penalty of up to £40,000. This increases from the existing £30,000 limit. Prosecution carries the risk of an unlimited fine.
The government will update its guidance once the Landlords Redress Schemes and the Private Rented Sector Database are live and the Decent Homes Standard is introduced. Both the redress scheme and the database will be key tools in the enforcement process. Landlords will also be fined if they don’t register on the database once it’s live.
Who can face action?
Civil penalties for illegal eviction and harassment may be imposed on anyone who has committed an offence. Meanwhile, breaches and offences related to assured tenancy landlord duties may be imposed on any landlord and anyone acting or purporting to act on their behalf, who is responsible for the breach or offence.
Both landlords and those acting, or purporting to act, on their behalf can also face penalties for breaches and offences relating to rental discrimination and rental bidding. Civil penalties for offences relating to HMOs and houses subject to selective licensing may be imposed on the person managing, the person having control defined under section 263 of the Housing Act 2004 and any landlord, including any superior landlord (section 104 of the Renters’ Rights Act 2025 amending sections 72 and 95 of the Housing Act 2004).
When breaches become offences
In some cases, breaches will become offences and then penalties will increase. Multiple penalties can also be imposed. So, for instance, continuous breaches for rental discrimination don’t become an offence but could incur additional civil penalties of up to £7,000.
However, where a civil penalty has been imposed for a breach relating to a landlord’s duties under assured tenancies and the behaviour exceeded 28 days after the original penalty was imposed, or after the conclusion of an appeal, then the breach escalates to an offence and is liable for prosecution or the maximum £40,000 civil penalty.
In some instances, if someone is penalised for a different breach within five years of the original then the breach changes to an offence, with the risk of prosecution or a civil penalty of up to £40,000.
The right of appeal
Appeals will be heard at the First-Tier Tribunal, the same people who will also serve rent repayment orders and rule on challenged rent increases.
We Can Help
At Progressive Lets, we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. Get in touch to find out more.
