The government has published updated civil penalty guidance for local authorities, setting out starting point figures for common housing offences under the Renters' Rights Act 2025. Maximum penalties have increased to £40,000.
Civil penalty starting points confirmed for housing offences
The Ministry of Housing, Communities and Local Government (MHCLG) has published updated civil penalty guidance for local authorities in England. The guidance sets out the starting point figures councils should use when calculating civil penalties for housing offences and confirms the increased maximum penalty of £40,000 introduced by the Renters' Rights Act 2025.
The penalty framework
Civil penalties for housing offences are set by individual local authorities within the statutory maximum. The new guidance introduces indicative starting points to promote consistency across councils.
Starting points are adjusted upward or downward based on aggravating and mitigating factors including the landlord's previous compliance record, the number of tenants affected, and whether the landlord cooperated with the investigation.
Aggravating factors that increase penalties
- Previous civil penalty notices issued to the same landlord
- Deliberate concealment of the offence
- Vulnerable tenants affected (families with children, benefit recipients)
- Multiple tenants or properties affected
- Profit motive — landlord benefited financially from the breach
Mitigating factors that reduce penalties
- No previous enforcement history
- Early admission and cooperation
- Prompt remediation of the issue
- Financial hardship (evidence required)
Rent repayment orders — increased cap
Alongside the civil penalty changes, rent repayment orders under the Renters' Rights Act 2025 now cover up to 24 months of rent (increased from 12 months). Tenants can apply to the First-tier Tribunal for an RRO where a landlord has committed a relevant offence, including operating without a licence or serving an illegal eviction notice.
What this means for landlords
The combination of higher maximum penalties and published starting points signals that enforcement is becoming more systematic. Councils that previously imposed low penalties inconsistently are now expected to follow the guidance. Landlords with any outstanding licensing or compliance issues should treat resolution as urgent.
Landlord Insights — landlordinsights.co.uk — Sourced from gov.uk MHCLG civil penalty guidance. Not legal advice.
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