The Renters' Rights Act 2025 has increased the maximum civil penalty for housing offences from £30,000 to £40,000. This applies to offences including failure to obtain required licences, breach of licensing conditions, and failure to comply with improvement notices.
The increase from £30,000 to £40,000 applies to civil penalties imposed by local authorities.
Combined with rent repayment orders now covering up to two years' rent, the financial risk of non-compliance has materially increased.
Action required
Review your compliance across all properties. The increased penalties significantly raise financial exposure for licensing breaches, unlicensed lettings, and failure to meet safety standards.
Effective
1 May 2026
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