New £40,000 fines and criminal prosecutions for errant letting agents announced

Local authorities will be handed powers to fine ‘landlords, letting agents, or anyone acting on their behalf’ when the first phase of the new tenancy rules comes in next year.

RRB fine

From 1 May 2026, landlords and agents who breach the Renters’ Rights Act 2025 could face fines of up to £40,000 or even criminal prosecution, as part of a new enforcement regime designed to toughen compliance across the private rented sector.

The legislation introduces two levels. ‘Breaches,’ such as issuing fixed-term tenancies, ending agreements verbally, or failing to provide tenants with the required written information, will result in penalties of up to £7,000.

More serious or repeated ‘offences’ will carry fines of up to £40,000, or possible prosecution. ‘Offences’ include re-letting a property within the 12-month ‘restricted period’ after using certain possession grounds, knowingly misusing a possession ground to regain a property, or committing repeated breaches within five years.

Beyond reasonable doubt

Local authorities will be responsible for the enforcement of the new rules and must prove cases ‘beyond reasonable doubt’ before issuing penalties. Landlords and agents will then have 28 days to make written representations and may appeal to the First-tier Tribunal within another 28 days.

The new measures will be introduced in three stages, starting with private landlords and agents in May 2026, before extending to social landlords and other tenancy types.

According to the Government’s website, the penalties are intended to “ensure full compliance” with the new tenancy framework, which replaces fixed-term Assured Shorthold Tenancies with rolling periodic agreements.

For more details on fines, click on this link.


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