Civil and financial penalties
Local authorities can impose civil penalties of up to £7,000 for a first or minor breach — for example, a failure to provide the required terms, to register on the PRS Database, or to join the Ombudsman scheme.
For serious, continuing or repeated offences — such as unlawful eviction, harassment, misusing possession grounds or unlicensed letting — penalties rise to up to £40,000 as an alternative to prosecution. Separate penalties of up to £30,000 apply under the Housing Act 2004 for breaching an improvement notice or licensing requirement, and up to £30,000 under the Tenant Fees Act 2019 for prohibited payments.
Rent Repayment Orders and enforcement
Rent Repayment Orders (RROs) have been strengthened. From 1 May 2026 the maximum increased from 12 to 24 months' rent, the scope was widened to cover matters such as misusing eviction grounds, and tenants and councils now have a two-year window in which to apply.
Where a property contains a 'High' risk (formerly Category 1) HHSRS hazard, the local authority has a duty to act and can serve improvement notices, prohibition orders or emergency remedial action. Failure to comply with a notice is itself an offence carrying a financial penalty.
Prosecution and banning orders
Unpaid penalties or serious offences can lead to prosecution and an unlimited fine. Persistent offenders can be subject to banning orders that prevent them from letting property, and convictions can result in an entry on the rogue landlord database.
Penalty levels are set by the relevant local authority and may vary with culpability and severity, so two similar breaches can attract very different outcomes.
How O Law Ventures can help
The most reliable protection against penalties is good evidence and sound process. We provide court-ready HHSRS reports and compliance reviews that help landlords and agents demonstrate the condition of their properties and put problems right before they escalate to enforcement.
If you have received a notice or penalty, we can help you understand it and identify the next steps. This article is general information and is not legal advice; figures reflect the position from 1 May 2026.