Landlords face up to £40,000 fines under Renters’ Rights Act as May rules take effect

Private landlords in the United Kingdom could face fines of up to £40,000 for breaches under the Renters’ Rights Act as the rules begin to take effect in May. The government published statutory guidance to local authorities last week outlining penalties for violations and signaling that fines for existing offences will be increased. For example, penalties under Rent Repayment Orders are set to nearly double to as much as two years’ worth of rent, particularly when a property is let to three or more unrelated people without the required licence for a House in Multiple Occupation (HMO).

From December 27, councils will gain greater powers to investigate landlords suspected of noncompliance. Industry figures warn that even well-intentioned landlords could be penalised for technical or procedural mistakes as the regime settles in. Allison Thompson, national lettings managing director at Leaders, warned that some fines could punish well-meaning landlords for rudimentary mistakes, given the rules’ novelty and complexity. Our concern is that the shift from enforcement as a last resort to routine financial penalties may accelerate the number of landlords quitting the market at a time when rental supply is already under pressure. Timothy Douglas, head of policy at the estate agent membership body Propertymark, called the legislation heavy-handed, noting that while punishing bad landlords is positive, increased fines and the doubling of Rent Repayment Orders will be a terrifying prospect for many landlords who are already taxed to the hilt. Experts warn repeat offenders who breach the rules could face fines of £40,000.

The magnitude of the penalties underscores how the regime aims to protect renters, but it also raises questions about the practical impact on a market already grappling with supply pressures. The new framework comes as part of a wider package that tightens enforcement as part of the Renters’ Rights Act, which received Royal assent in October and is designed to give private renters broader protections than at any time in recent memory.

From May 1, the regime will ban so-called no-fault evictions, affording renters greater security and the right to end tenancies with two months’ notice. Landlords may still recover a property if they plan to sell it or to move in themselves, but those grounds cannot be used to evict within the first year of a tenancy. After the initial year, landlords must provide four months’ notice. If a landlord gives notice because they plan to sell and then does not follow through, they cannot re-let the property for a year. Breaches of these rules could trigger penalties of up to £25,000, a figure described by Thompson as especially severe given how easily a landlord could fall foul of it unintentionally due to changes in personal circumstances, failed sales or mortgage issues.

Also under the new rules, landlords who attempt to let a property under a fixed-term tenancy will face a penalty. Beginning May 1, fixed-term assured tenancies and assured shorthold tenancies will be abolished in favor of rolling periodic tenancies, meaning longer-term contracts no longer bind renters. Landlords who continue to let on fixed terms could be fined £4,000.

To curb bidding wars, the act restricts landlords to accepting offers at or below the advertised rent. A landlord found to have accepted more than the listed price could face a £4,000 fine, and they could be fined £3,000 for failing to specify the rent in an advert.

Discrimination against tenants on benefits or those with children is prohibited under the act. Landlords or agents who discriminate in this way could face a £6,000 fine.

Notice procedures have been tightened as well. Landlords must serve notices under a formal Section 8 process, which requires a Form 3 notice for breaches such as owing at least three months’ rent or for anti-social behaviour. Improperly issued notices—by phone, in person, or without a valid reason—could carry a £6,000 penalty.

Unlawful eviction and harassment are now expressly defined under the Protection From Eviction Act 1997, and can include actions such as entering a property without permission, changing locks, or threatening to cut off essential services. Local councils will be empowered to fine landlords up to £35,000 for illegal evictions.

Not keeping a property up to the Decent Homes Standard is another cited breach. The Decent Homes Standard, which includes provisions inspired by Awaab’s Law that set strict timeframes for repairing dangerous hazards like damp and mould, applies to rented homes. Local councils will have the power to issue civil penalties of up to £7,000 for failing to take reasonable steps to keep properties free of serious hazards.

The breadth of penalties reflects the government’s objective to improve tenant protections amid a tight rental market. Supporters argue the rules close loopholes that have long allowed unscrupulous practices, while critics warn that the fines could deter small landlords and accelerate market exit, potentially reducing supply further just as demand remains high. In interviews and policy briefs, professionals in the property sector emphasized the need for landlords to become familiar with the rules quickly to avoid inadvertent breaches and the accompanying penalties. The Renters’ Rights Act, coming into force in May, thus marks a significant shift in enforcement expectations for letting properties and could reshape landlord behavior in the coming year.