Enforcement Watch: Edition 005, March 2026

This Month at a Glance

March 2026 brought a significant NRLA research publication exposing a systemic gap in civil penalty collection across English councils. Freedom of Information requests submitted to 285 local authorities found that approximately £30 million in civil penalties was imposed during 2023/24 and 2024/25, but only £7.5 million — roughly 25 per cent — was collected. London councils collected approximately one third of what they imposed.

The findings are significant for two reasons. First, they suggest the current civil penalty regime has limited deterrent effect where councils do not pursue collection. Second, the incoming statutory enforcement duty under the Renters' Rights Act, combined with the raised £40,000 ceiling, is expected to increase both the volume and value of penalties — placing greater pressure on councils to improve collection rates.

Rotherham, South Yorkshire, launched a new selective licensing designation on 15 March 2026. In Wales, the Welsh Government concluded a consultation on amendments to the Renting Homes Act that would extend anti-discrimination protections to contract-holders.

Cases on Record

Rotherham, South Yorkshire. Following launch of the new selective licensing scheme, Rotherham Council confirmed that enforcement teams would be conducting proactive compliance checks in designated areas from the commencement date. Landlords who had not applied for a licence before 15 March were identified as priority targets for compliance action. Civil penalties of up to £30,000 applied for the period before 1 May 2026, rising to £40,000 thereafter.

England (location not disclosed). A First-tier Tribunal (Property Chamber) decision published in March 2026 awarded a full 12-month rent repayment order against a landlord found to have operated a property as an unlicensed mandatory HMO. The landlord argued that the property was occupied by a single household. The Tribunal rejected this applying the Housing Act 2004 definition. Full rent for all occupants over 12 months was ordered. This is consistent with Tribunal practice of awarding near-maximum orders where no reasonable steps to obtain a licence were demonstrated.

Wales. Rent Smart Wales enforcement figures for the 2025/26 financial year confirmed that 47 fixed penalty notices were issued to unregistered or unlicensed landlords during the year, with six prosecutions referred to the Crown Prosecution Service. Prosecutions under the Housing (Wales) Act 2014 carry an unlimited fine.

Edinburgh, Scotland. The City of Edinburgh Council's Private Rented Sector Team published its annual enforcement report confirming 312 Registration compliance notices issued during 2025/26, 14 civil penalties for condition breaches at HMO properties, and 4 referrals for criminal prosecution. Edinburgh operates mandatory HMO licensing under the Housing (Scotland) Act 2006.

Regulatory Shifts

NRLA FOI findings: civil penalty collection rates. Research published in March 2026 found English councils collected approximately 25 per cent of civil penalties imposed on private landlords during 2023/24 and 2024/25. The NRLA called for a centralised debt collection mechanism ahead of the Renters' Rights Act commencement. The government acknowledged the findings but did not commit to specific legislative action on collection enforcement.

Rotherham selective licensing: in force 15 March 2026. A new selective licensing designation came into effect covering designated areas of Rotherham. Landlords with properties in the designated zones who had not applied for a licence before commencement are operating without a licence and are liable to civil penalty.

Wales: anti-discrimination consultation. The Welsh Government consulted on amendments to the Renting Homes (Miscellaneous Amendments) (Wales) Regulations that would prohibit landlords from discriminating against contract-holders with children or in receipt of welfare benefits. The consultation closed in March 2026. Regulations were anticipated for commencement in mid-2026.

Borough Watch

Brighton & Hove. Brighton & Hove City Council began developing its Private Sector Housing Enforcement Policy aligned to the Renters' Rights Act, ahead of the Cabinet approval process scheduled for April 2026. The policy sets out how the council will exercise new enforcement powers from commencement, including the methodology for calculating civil penalty amounts under the expanded framework.

Camden, London. Camden Council's additional HMO licensing scheme continued active enforcement. The council confirmed that all HMO licence holders in Camden would receive compliance inspection visits during 2026 as part of a proactive audit programme. Licence holders should ensure all conditions are met before inspection.

Newcastle. Newcastle City Council enforcement teams issued notices to landlords in areas covered by selective licensing designations following a winter inspection programme. Improvement notices and civil penalty notices were issued for fire safety and property condition failures identified during inspections.

What to Watch Next Month

Renters' Rights Act commencement: April anticipated. The government has not confirmed the exact commencement date, but April or May 2026 is widely expected. Landlords should prepare for the Information Sheet service obligation, periodic tenancy transition, and Section 21 abolition.

Government enforcement funding announcement. The government is expected to announce the distribution of additional enforcement funding to English councils before the Act commences, to support implementation of the statutory enforcement duty. Reports put the figure at £40-50 million.

Brighton & Hove enforcement policy. Cabinet consideration of the draft Private Sector Housing Enforcement Policy is scheduled for April 2026. If approved, Brighton & Hove will become one of the first councils to publish a comprehensive post-RRA enforcement policy.

Landlord Insights — landlordinsights.co.uk — Sourced to primary legislation, tribunal decisions, and official council enforcement publications. Not legal advice.