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When Do the Fines Come Into Force?
All the provisions in the Renters' Rights Act 2025 covered by the civil penalties guidance will be brought into legal force on 1 May 2026. From that date, local housing authorities in England will be empowered to issue fines directly, without the need for a court hearing, and their enforcement duty will be mandatory rather than discretionary.
Local housing authorities already received enhanced investigatory powers and stronger enforcement actions on 27 December 2025, meaning councils are actively building capacity and readiness well ahead of the May 2026 deadline.
The Two Tiers of Fines Under the Renters' Rights Act
The Act establishes a two-tier penalty structure, distinguishing between "breaches" (administrative or lower-level non-compliance) and "offences" (serious or repeated violations).
Tier 1: Up to £7,000 — Breaches
The term "breach" refers to non-compliance by landlords where the local authority may impose a civil penalty of up to £7,000 and there is not an option to prosecute. These tend to be administrative failures: missing paperwork, incorrect advertising, or procedural oversights. However, even these relatively modest penalties represent serious financial exposure for landlords managing multiple properties.
Tier 2: Up to £40,000 — Offences (or Criminal Prosecution)
The term "offence" refers to non-compliance by landlords where a local authority may either prosecute or impose a civil penalty of up to £40,000. For the most serious or persistent breaches, local councils will alternatively be able to pursue criminal prosecution with an unlimited fine.
Full Schedule of Fines: Every Breach and Offence Explained
Pre-Tenancy Breaches (Up to £7,000)
- Failing to provide a Written Statement of Terms
The Renters' Rights Act introduces a requirement for landlords to provide tenants with a written statement of the tenancy terms before or at the start of the tenancy. Failure to do so carries a starting penalty of £2,500.
- Offering or advertising a fixed-term tenancy
Fixed-term assured tenancies are abolished from 1 May 2026. All new tenancies will be periodic (rolling) from day one. Advertising or granting a fixed-term tenancy after this date is a breach. The example starting penalty in the government's statutory guidance is £4,000.
- Failing to state the proposed rent in an advert
The Renters' Rights Act prohibits landlords and other relevant persons from advertising or offering a proposed letting unless they specify the exact proposed rent. The starting point in the statutory guidance is £3,000.
- Rental bidding — inviting or accepting above-advertised rent
Landlords and relevant persons may not invite or encourage any person to offer to pay an amount of rent under the proposed letting that exceeds the stated rent, nor accept an offer to pay rent higher than the stated rent. The example starting penalty is £3,500.
- Discrimination against prospective tenants
It is a breach to discriminate against prospective tenants during the letting process on the grounds that those tenants are in receipt of benefits or have children. This ends the long-standing practice of "No DSS" rental discrimination in property listings. The starting penalty is £3,000, rising steeply for repeat or deliberate discrimination.
- Failing to notify existing tenants of changes introduced by the Act
Landlords must give existing tenants a government-produced Information Sheet by 31 May 2026 or face a fine of up to £7,000. The government has published this Information Sheet and landlords must distribute the exact PDF version — emailing a link to the document does not count as valid notification.
During-Tenancy Breaches (Up to £7,000)
- Demanding rent in advance beyond the first month
Any tenancy clause requiring rent in advance beyond the initial rent period (capped at one calendar month) is void under the Act. During the tenancy, any provision requiring more than one month's rent in advance is void. Whilst there is no direct civil penalty attached to this specific breach, any such clause is entirely unenforceable.
- Increasing rent outside the Section 13 process
Landlords will be allowed to raise rents only once a year via a Section 13 notice. Previous rent review clauses in contracts, renewal processes, and mutual written agreements will no longer be valid. Circumventing this process exposes landlords to tenant challenges at the First-tier Tribunal and potential rent repayment orders.
- Unreasonably refusing a tenant's request to keep a pet
The Act introduces a presumption in favour of tenants keeping pets. Landlords who refuse a request without reasonable grounds, or who fail to respond in a timely manner, risk a civil penalty of up to £7,000.
Serious Offences (Up to £40,000)
- Illegal eviction or harassment of a tenant
Illegal eviction or harassment under the Protection from Eviction Act 1977 carries an example starting penalty of £35,000, making it one of the most heavily penalised offences under the entire framework. Councils can also prosecute criminally, with an unlimited fine.
- Misuse of possession grounds — claiming to sell or move in without honest intent
Serious misuse of possession grounds — for example, claiming intent to sell or move in without reasonable belief — carries example starting penalties of between £15,000 and £25,000. If a tenant then surrenders the tenancy and the landlord subsequently relists the property, the fine escalates further.
- Re-letting within the 12-month restricted period (Grounds 1 and 1A)
This is one of the most significant new restrictions for landlords who also operate short-term rental properties. Where a landlord obtains possession using Ground 1 (landlord or family member intends to occupy) or Ground 1A (landlord intends to sell), they cannot market the property for letting, let or license it — including via Airbnb — for a period of 12 months from the possession order or the date the tenants moved out.
This restriction applies to the landlord as well as any letting agents or intermediaries involved in marketing the property, and constitutes an offence under the new Section 16J(2) of the Housing Act 1988, with a maximum civil penalty of £40,000 and a starting point of £25,000.
For property owners who intend to convert a previously long-let property into a short-term Airbnb-managed let, this is a critical compliance point. Any breach — even inadvertent — can result in a six-figure loss when the fine, lost rental income, and reputational damage are combined.
- Non-compliance with an Improvement Notice
Non-compliance with an Improvement Notice carries example starting penalties of between £20,000 and £30,000. Continued failure to carry out required works after an initial penalty can result in further penalties issued every 28 days until the breach is resolved.
- HMO licensing offences — operating an unlicensed HMO
HMO licence breaches or operating an unlicensed HMO attract example starting penalties of between £25,000 and £35,000. Where multiple licensing failures are identified at the same property, each constitutes a separate offence and a separate fine.
- Providing false information to the Private Rented Sector Database
Providing knowingly false information to the landlord database carries example starting penalties of between £30,000 and £40,000. Landlords who repeatedly breach the Act's provisions will also commit a criminal offence for which an unlimited fine may be imposed.
How Councils Calculate the Level of a Fine
The government's statutory guidance sets out a four-step methodology that local housing authorities must follow when determining the amount of a civil penalty.
Curious what your property could earn?
Step one is to identify the starting point: each breach and offence has a designated example figure in the guidance. Step two involves adjusting the starting point upwards or downwards based on the specific circumstances — the landlord's culpability, any harm caused to the tenant, whether the breach was deliberate or negligent, the landlord's history of compliance, and whether financial gain was made from the breach. Step three is a sense-check to ensure the total penalty is fair, punitive, and genuinely removes any financial benefit from the breach. Step four applies a totality assessment: where multiple penalties are being imposed against the same person at the same time, the overall figure should be just and proportionate.
Crucially, the concept of the "relevant person" in the Renters' Rights Act is key, as many obligations are not just owed by the landlord, but also by someone acting on their behalf — such as a letting agent. This means that both a landlord and their appointed agent can each receive a separate civil penalty for the same breach.
Ongoing Breaches: Penalties That Keep Accumulating
Unlike a one-off court fine, civil penalties under the Renters' Rights Act can compound rapidly. Where a breach continues after the initial civil penalty, additional penalties may be issued every 28 days until the breach is resolved, with fines escalating toward the £40,000 maximum where harm to the tenant increases over time.
This escalation mechanism is designed specifically to prevent landlords from treating a fine as merely a cost of doing business. A landlord who ignores an Improvement Notice, for example, could accumulate multiple five-figure penalties within a matter of months.
What Happens If You Don't Pay a Fine?
If a landlord does not pay, the penalty becomes a civil debt, and councils can pursue enforcement through the courts. Enforcement mechanisms available to local authorities include County Court Judgments (CCJs), charging orders over property, attachment of earnings, enforcement agents (bailiffs), and applying the debt against rent collected.
Beyond the financial consequences, outstanding debts can affect a landlord's credit rating, complicate mortgage applications, and impact future property licensing approvals.
Rent Repayment Orders: Fines on Top of Fines
Civil penalties are not the only financial risk under the new enforcement framework. The Renters' Rights Act significantly expands the scope and scale of Rent Repayment Orders (RROs).
Tenants whose landlords have committed an offence will have up to two years — up from 12 months previously — to apply to the First-tier Tribunal for a rent repayment order, and can recover up to two years' worth of rent. On average London rental incomes, two years of recoverable rent could represent an exposure of £30,000 to £60,000 or more — entirely separately from any civil penalty imposed by the council.
How to Challenge a Civil Penalty
Landlords who receive a Civil Penalty Notice do have the right to respond. Upon receiving the notice, the landlord has the opportunity to submit written representations setting out why the penalty should be reduced or cancelled. If the penalty is not withdrawn following representations, the landlord can appeal to the First-tier Tribunal (Property Chamber), which has the power to confirm, vary or cancel the penalty. The Tribunal operates independently of the council and can take a fresh look at both the facts and the penalty level. However, tribunals can also increase a penalty if they find the original amount was insufficient, so professional legal advice before appealing is strongly recommended.
A Critical Compliance Point for Short-Term Rental Landlords
Landlords who currently operate or are considering operating their properties as short-term lets — on platforms like Airbnb, Vrbo, or Booking.com — face a specific and underappreciated compliance risk under the new Act.
The 12-month restricted period following use of Grounds 1 or 1A applies not only to new long-term lettings but also explicitly to short-term licensing arrangements. Landlords are prohibited from re-letting the property on a lease of 21 years or less or permitting occupation under licence for payment — which would include Airbnb-style lettings — or marketing the property for any of those arrangements during the restricted period of 12 months.
For landlords considering a transition from long-term to short-term rental, the sequencing of this move requires careful legal and operational planning. Converting too early after using a possession ground exposes you to a maximum £40,000 fine with a starting point of £25,000.
This is precisely the kind of compliance complexity that a professional short-term property management company is positioned to navigate on your behalf.
How Hostmynest Helps Landlords Stay Compliant
The Renters' Rights Act 2025 has fundamentally changed the risk calculus for private landlords in England. The combination of higher civil penalties, mandatory council enforcement, tenant-led rent repayment orders, and the prospect of criminal prosecution means that the era of informal, ad hoc property management is over.
At Hostmynest, we specialise in managing short-term rental properties in London and across the UK. Our service is purpose-built for landlords who want the returns of the short-term lettings market without the administrative burden and compliance exposure that comes with managing a property themselves.
Here is how we protect your investment:
Our team ensures that properties under our management are operated in full compliance with all applicable housing legislation, including the Renters' Rights Act 2025, local HMO licensing requirements, and short-term letting regulations specific to each London borough. We track every regulatory deadline so you don't have to — from the distribution of the government's statutory Information Sheet to the management of possession notices and restricted letting periods.
We handle all advertising across Airbnb and other platforms, ensuring pricing is stated clearly, no rental bidding is solicited, and all listings meet the requirements of the Act. We manage guest communications, maintenance coordination, and safety compliance, producing documented evidence of compliance that would serve as your first line of defence if a local authority ever investigated your property.
Most importantly, we take the stress of compliance entirely off your plate. For landlords who own property in London, the risk of a £40,000 fine — or a two-year rent repayment order — dwarfs the management fee you would pay a professional operator.
If you are a landlord seeking to maximise your returns from short-term letting while ensuring your property is fully managed and legally protected, get in touch with the Hostmynest team today.
Renters' Rights Act Fines — Frequently Asked Questions
When do Renters' Rights Act fines come into force?
The civil penalty provisions come into force on 1 May 2026. Any breach or offence committed on or after this date falls under the new regime, with fines of up to £7,000 for standard breaches and up to £40,000 for serious offences.
What is the maximum fine a landlord can receive under the Renters' Rights Act?
The maximum civil penalty for a single offence is £40,000. However, where a landlord commits multiple separate offences, each one can attract its own penalty — meaning total fines can significantly exceed £40,000. For the most serious or persistent breaches, local authorities can also pursue criminal prosecution, which carries an unlimited fine.
Can I be fined even if I use a letting agent?
Yes. The Act defines a "relevant person" broadly to include both the landlord and anyone acting on their behalf, including a letting agent. Both parties can receive separate civil penalties for the same breach. However, working with a fully compliant, professional management company significantly reduces the likelihood of a breach occurring in the first place.
Does the Renters' Rights Act apply to short-term lets and Airbnb properties?
The Act's assured tenancy reforms apply to properties let under assured tenancies, which typically means longer-term residential lettings rather than short-term holiday lets. However, the Act directly affects landlords who have recently evicted long-term tenants and wish to convert to short-term letting, due to the 12-month restricted re-letting period that applies after use of Grounds 1 or 1A. Converting a property to a short-term let during this period is a specific offence carrying a starting penalty of £25,000 and a maximum of £40,000.
What is a Rent Repayment Order and how does it relate to Renters' Rights Act fines?
A Rent Repayment Order (RRO) is a separate legal mechanism allowing a tenant to recover rent they have paid to a landlord who has committed a specified offence. Under the new Act, tenants have up to two years to apply, and can recover up to two years' worth of rent — entirely separately from any civil penalty the council imposes. The two sanctions can be applied concurrently.
Can a landlord appeal a Renters' Rights Act fine?
Yes. Upon receiving a Civil Penalty Notice, the landlord can submit written representations to the issuing local housing authority. If the penalty is not reduced or cancelled following those representations, the landlord can appeal to the First-tier Tribunal (Property Chamber). The Tribunal can confirm, vary, or cancel the penalty. Note that tribunals can also increase the penalty if they consider the original amount insufficient.
How does the government's statutory guidance affect the size of a fine?
The Ministry of Housing, Communities and Local Government has published statutory guidance setting out example starting points for each category of breach and offence. Councils must have regard to this guidance when setting and issuing penalties, but they can adopt the example figures, adjust them, or create their own enforcement policies — provided the overall approach is fair, consistent, and proportionate.
What is the fine for not providing the government's Information Sheet to existing tenants?
Landlords who fail to provide the statutory Information Sheet to all existing tenants by 31 May 2026 face a fine of up to £7,000. The document must be the exact PDF published on GOV.UK — emailing a link to the document is not valid.
Will repeat offenders face higher fines?
Yes. The statutory guidance explicitly directs local authorities to increase penalties for repeat or persistent non-compliance. Landlords who breach the Act across multiple properties, or who fail to remedy a breach after an initial penalty, face escalating fines issued every 28 days and potential inclusion on the national Private Rented Sector Database, which will be visible to future tenants and other landlords.
This article has been produced by Hostmynest for informational purposes only and does not constitute legal advice. Landlords should consult a qualified solicitor or property compliance specialist for advice specific to their circumstances. The law described reflects provisions in force or coming into force as at April 2026.