Councils are struggling to collect millions of pounds in fines from landlords who flout housing regulations, with new data revealing only a quarter of these penalties are recovered. A staggering £22.5 million remains uncollected, despite an increase in property inspections under the Housing, Health and Safety Rating System.
The National Residential Landlords Association (NRLA) obtained figures through Freedom of Information requests showing councils issued almost £30 million in fines to private landlords for housing offences between 2023/24 and 2024/25. However, only an estimated £7.5 million has been successfully collected, leaving a significant shortfall.
Ben Beadle, Chief Executive of the NRLA, warned that the current system is unsustainable, with responsible landlords being forced to subsidise the costs associated with identifying and penalising rogue operators. He argued that this situation erodes the confidence of landlords essential to the rental market.
The Housing Select Committee has also raised concerns about council effectiveness in tackling non-compliance. A recent report advocated for stronger oversight and clearer accountability, as well as the publication of annual enforcement reports detailing income generated from licensing schemes and how these funds are utilised.
The low collection rate is not only a financial issue but also raises questions about the safety and maintenance of homes. The NRLA believes that greater transparency through mandatory annual reports will help ensure money collected from the private rented sector is used effectively to enhance enforcement and protect tenants and good-faith landlords alike.