New Rules, Bigger Risks: A Landlord’s Guide to Renters’ Rights Act Fines and Enforcement
The Renters’ Rights Act 2025 does more than rewrite tenancy rules, it raises the cost of getting them wrong. With stronger council powers, higher civil penalties and wider rent repayment claims, landlords and agents need to understand where the risks sit, when fines apply and what compliant practice looks like before the changes take effect.
The Renters’ Rights Act 2025 does not just introduce new rules for the private rented sector, it also changes what happens when those rules are broken.
In the government’s own words, these reforms will be supported by an “effective, consistent and proportionate enforcement framework.” In reality, that means local housing authorities will have far greater powers to investigate breaches, issue civil penalties and pursue criminal prosecution where needed. It also means tenants will have stronger routes to financial redress, including the ability to seek back up to two years’ rent for a wider range of offences.
For landlords and letting agents, this marks a significant shift. Compliance is no longer something to think about later. It will need to be built into the way properties are marketed, managed and let from the very beginning. In this guide, we break down the new enforcement landscape, the penalties involved, when they apply, and what practical steps landlords should be taking now.
A Quick Overview of the New Enforcement Framework
Almost every major obligation introduced by the Renters’ Rights Act comes with a meaningful consequence attached. Depending on the breach, that could mean a civil penalty from the local council, a rent repayment order brought by a tenant or local authority, or in more serious cases, criminal prosecution and an unlimited fine.
For many breaches, local housing authorities will be able to impose civil penalties of up to £7,000 for a first or lower-level offence, rising to as much as £40,000 where the breach is serious, repeated or ongoing. Some offences, including unlawful eviction and harassment, can attract a civil penalty of up to £40,000 as an alternative to prosecution. Breaches involving prohibited payments under the Tenant Fees Act 2019 carry a separate maximum of £30,000.
Most of these civil penalty provisions are expected to take effect from 1 May 2026, while obligations linked to the PRS Landlord Database and PRS Landlord Ombudsman are expected to follow later, likely in 2027 and 2028.
Who Can Be Penalised?
One of the most important things landlords need to understand is that liability does not stop with the landlord alone.
The Act uses the term “relevant person”, which widens responsibility to include anyone acting, or claiming to act, on the landlord’s behalf. That means letting agents, property managers and other intermediaries may all fall within scope if they are involved in a breach.
A relevant person may face a civil penalty where the local housing authority believes they have failed to comply with a legal requirement, continued a breach after a penalty has already been issued, or committed multiple breaches within a five-year period. In other words, responsibility can sit across the full chain of instruction and management, not just with the property owner.
Breaches Before a Tenancy Begins
A number of the new rules apply before a tenant has even moved in, which makes the pre-tenancy process more important than ever.
Attempting to Let on a Fixed Term
From 1 May 2026, all new residential tenancies must be periodic. That means attempting to grant a fixed-term tenancy, whether intentionally or by mistake, will breach the new Section 16E of the Housing Act 1988.
This is also likely to include trying to enforce fixed-term style obligations, such as requiring a tenant to give more than two months’ notice.
The penalty for this can be up to £7,000 for a first breach, rising to £40,000 for a repeated or continuing breach.
The statutory starting point is £4,000.
Failing to Provide a Written Statement of Terms
Landlords will also be required to provide a Written Statement of Terms before the tenancy agreement is signed. This must include certain mandatory information, and failing to provide it could result in the same penalty range of up to £7,000 or £40,000 for more serious cases.
Again, the suggested starting point in the guidance is £4,000.
Advertising a Property Without a Clear Rent Figure
Under the new rules, any written advert, listing or offer for a residential tenancy must clearly show a specific proposed rent. Vague wording or missing pricing will no longer be acceptable.
A breach here can lead to a civil penalty of up to £7,000, increasing to £40,000 for repeated or continuing failures.
The guidance gives a starting point of £3,000.
Rental Bidding
One of the headline reforms is the ban on rental bidding above the advertised price. Landlords and agents must not invite, encourage or accept offers over the stated rent, even where the offer is made voluntarily.
Offers below the advertised rent may still be accepted, but anything above it is prohibited.
The penalty for breaching this rule is up to £7,000 for a first offence or £40,000 for a repeated or serious breach, with a starting point of £4,000.
Discrimination Against Applicants on Benefits or With Children
The Act also prohibits blanket refusals against applicants because they receive benefits or because children will live in or visit the property.
That does not mean affordability checks disappear. Landlords can still assess whether the rent is affordable, but broad “no DSS” style restrictions will not be permitted. Similarly, refusing applicants with children may only be justified in limited circumstances, such as genuine overcrowding concerns, and must be proportionate.
This is one of the more heavily penalised areas, with a suggested starting point of £6,000 and a maximum of £7,000 or £40,000 depending on the seriousness of the breach.
Taking Rent Before the Agreement Is Signed
The Act also amends the Tenant Fees Act 2019 so that rent requested or accepted before an assured tenancy agreement is signed will become a prohibited payment. This includes not only taking the payment directly, but also encouraging it or accepting it through a third party.
A first breach can carry a civil penalty of up to £5,000, with further breaches within five years potentially leading to a penalty of up to £30,000 as an alternative to prosecution.
Marketing or Re-Letting During a Restricted Period
Where a landlord regains possession using Ground 1 or Ground 1A - for owner occupation or sale - a 12-month restriction will apply. During that period, the property cannot be marketed for letting, re-let or licensed, including as a short-term let such as Airbnb.
This is treated particularly seriously, with a maximum civil penalty of £40,000 and a suggested starting point of £25,000.
Breaches During the Tenancy
Not every breach during a tenancy will lead to a civil penalty, but some will still have important consequences.
Requiring Rent in Advance
Once a tenancy has begun, any clause requiring rent in advance will generally be unenforceable, except for the initial rent period, which must not exceed one calendar month. A tenant can still choose to pay early, but landlords cannot rely on contractual wording to demand it.
There is no civil penalty attached here, but the term itself will not be enforceable.
Increasing Rent Outside the Section 13 Process
From 1 May 2026, rent increases will only be valid if they are carried out using the Section 13 process and the prescribed Form 4A.
Any attempt to increase rent outside that process will simply be void. Again, there is no civil penalty here, but the increase will have no legal effect.
Unreasonably Refusing a Pet Request
The Act introduces an implied right for tenants to request permission to keep a pet. Landlords cannot refuse unreasonably, although reasonable grounds may still exist, such as a superior lease preventing pets or a freeholder refusing consent.
A refusal that is considered unreasonable will not trigger a civil penalty, but the tenant may be able to escalate the matter to the PRS Landlord Ombudsman.
Other Important Breaches to Watch
PRS Landlord Database Duties
Expected from 2027, the PRS Landlord Database will require landlords and their properties to have active, accurate entries before marketing or letting can begin.
Knowingly or recklessly providing false information will be an offence, as will failing to correct incorrect information after a penalty has been issued. In some situations, both a company and its officers may be held liable.
There are also wider consequences here. A landlord who is not compliant with the database may lose the ability to recover possession, except in certain serious circumstances.
PRS Landlord Ombudsman Duties
All landlords, including those who use a letting agent, are expected to be required to join the PRS Landlord Ombudsman from 2028.
The full detail is still to come in secondary legislation, but failure to join or failure to rectify a breach after a final penalty notice may lead to further enforcement action, including civil penalties and potential rent repayment orders.
Decent Homes Standard and Hazards
Further ahead, expected from 2035, the Decent Homes Standard will be extended into the private rented sector.
For serious hazards, councils are expected to have power to issue civil penalties at the point of enforcement, rather than waiting for a landlord to ignore an improvement notice first. For both serious and less serious breaches, failure to comply with an improvement notice may result in penalties of up to £40,000, alongside the possibility of a rent repayment order.
Misleading Tenants About Possession
Once Section 21 is abolished on 1 May 2026, landlords will only be able to seek possession using the prescribed Section 8 process and Form 3.
Trying to end a tenancy another way, whether verbally, by notice to quit or by relying on a ground that does not genuinely apply, will amount to a breach.
Knowingly or recklessly misusing a possession ground, such as claiming a family member will move in when that is not true, may lead to a maximum civil penalty of £40,000 or prosecution with an unlimited fine.
How Councils Will Calculate Civil Penalties
The statutory guidance sets out a four-stage approach for councils when deciding the level of any civil penalty.
First, they identify the starting point for the relevant breach.
Second, they adjust the figure up or down depending on the circumstances.
Third, they sense-check whether the amount is fair and meets the aims of punishment, deterrence and removing financial gain.
Finally, they consider totality, particularly where multiple penalties are being issued at the same time, to make sure the overall amount is proportionate.
In deciding the final figure, councils will look at the seriousness of the breach, whether it was deliberate, whether the landlord or agent has a poor track record, the harm caused or risked, and the need to deter future non-compliance.
The “Anti-Gaming” Rules
Section 13 of the Act introduces a set of measures specifically designed to stop landlords and agents from trying to work around the new tenancy reforms.
These prohibited actions include attempting to offer a fixed-term tenancy, trying to end a tenancy orally, serving the wrong form of notice, relying on a possession ground without a reasonable belief that it applies, failing to provide certain written information before the tenancy begins, and re-letting during the restricted period after using Ground 1 or 1A.
These provisions make it clear that the government is not only changing the law, it is also trying to close off the obvious routes around it.
Rent Repayment Orders Are Expanding Too
The Renters’ Rights Act also significantly widens the scope of Rent Repayment Orders.
Both tenants and local authorities will be able to apply to the First-tier Tribunal to recover up to two years’ rent for a broader list of offences. These include unlawful eviction, harassment, failures linked to the PRS Database or Ombudsman, and non-compliance with improvement notices.
Importantly, rent repayment orders can sit alongside civil penalties.
They are not an either-or choice, which increases the financial exposure for landlords who fail to comply.
Can Civil Penalties Be Challenged?
Yes. A civil penalty can be issued by the council without going through court first, but that does not mean there is no right to challenge it.
Landlords and agents will be able to make written representations before a penalty is finalised. If the council still decides to proceed, the matter can then be appealed to the First-tier Tribunal, which may confirm, reduce, vary or cancel the penalty.
Final Thoughts
The Renters’ Rights Act 2025 represents a major change in the balance of power between landlords, agents and tenants — and the enforcement regime shows just how seriously the new rules are being framed.
Higher civil penalties, greater council powers, tenant-led rent repayment claims and the possibility of criminal prosecution all point in the same direction: non-compliance is becoming a far more costly risk than ever before.
For landlords, the message is simple. Understand your responsibilities, make sure your processes are up to date, and keep clear records that show you are doing things properly from day one. For letting agents, the same principle applies. Acting on behalf of a landlord will not shield you from liability if the rules are breached.
At Cope & Co., we know that legislation like this can feel overwhelming, especially when the detail is still evolving. But with the right advice, clear processes and proactive support, landlords can move forward with confidence rather than concern.
If you would like help understanding how the Renters’ Rights Act 2025 could affect your property, your tenancy agreements or your compliance processes, get in touch with our team. We are here to help you stay one step ahead.
