Letting agents and landlords now face potential penalties of up to £40,000 for licensing breaches. This comes as councils expand regulation across the private rented sector.
The increase in the maximum civil financial penalty for relevant Housing Act offences, from £30,000 to £40,000, took effect on 1 May 2026. Councils can impose these higher penalties for offences such as operating a House in Multiple Occupation (HMO) or other property without the required licence, or for breaching licence conditions.
Propertymark is urging agents to check local requirements, as councils across England are introducing or consulting on selective and additional licensing schemes. Some councils are also considering Article 4 Directions, which could affect HMOs.
Operating an unlicensed property can lead to consequences beyond civil penalties, including potential liability for those managing or controlling a property. Councils and tenants can also seek rent repayment orders, potentially recovering up to two years' rent, if landlords fail to obtain a required licence.