Landlords and letting agents face new fines of up to £40,000, along with potential criminal prosecution, under measures introduced in the upcoming Renters’ Rights Bill. The government has outlined a series of penalties aimed at tightening regulations in the private rental sector, with significant consequences for those who fail to comply.
New fines for non-compliance
One of the key provisions in the Renters’ Rights Bill includes fines for agents who market properties on behalf of landlords who haven’t signed up to the government’s new Private Rented Sector Landlord Ombudsman. Agents could face an initial penalty of up to £7,000, with fines rising to £40,000 or even criminal prosecution for ongoing breaches.
These fines are higher than existing penalties, such as those for breaching selective licensing rules, which currently top out at £30,000. The Renters’ Rights Bill, expected to become law later this year or in early 2025, will introduce tougher sanctions to ensure stricter compliance across the rental sector.
Penalties for landlords
Landlords will also be required to register their properties on a new Private Rented Sector Database, providing essential details such as Gas Safety Certificates and compliance with minimum property standards. Failure to join the database could result in fines similar to those levied for ombudsman non-compliance—starting at £7,000 and rising to £40,000 for repeat offenders.
Local authorities will be granted new enforcement powers under the legislation, allowing them to impose fines and prosecute landlords who fail to sign up to the ombudsman scheme or rent out properties without joining the database. As part of the wider reforms, both the ombudsman and the database will be free for tenants to access, while landlords will be required to pay a “proportional and good value” fee to participate.
Further fines for discrimination and unsafe homes
In addition to penalties related to the ombudsman and database, the Renters’ Rights Bill introduces fines for landlords and agents who discriminate against tenants with children or those on benefits. Agents and landlords found encouraging competitive bidding for tenancies or operating properties that do not meet the new Decent Homes Standard will also face fines of up to £7,000.
The bill also expands the powers of local councils, enabling them to demand information from landlords and agents, and granting officers “powers of entry to business and residential premises.” For the first time, councils will have the authority to issue civil penalties to landlords who carry out illegal evictions, marking a significant shift in enforcement capabilities.
Impact on landlords and agents
As the Renters’ Rights Bill moves closer to becoming law, landlords and letting agents are being urged to prepare for the new regulations. With fines reaching up to £40,000 for serious breaches, the consequences for non-compliance will be severe.
The introduction of the ombudsman, the database, and stricter enforcement measures is set to reshape the private rental sector, bringing greater transparency and accountability. While the reforms aim to improve tenant protections, they also raise important questions about the financial and operational burdens on landlords and agents as they navigate these new requirements.
