Legislation – Renters’ Rights Act 2025

“Landlords etc: financial penalties and offences

16IFinancial penalties

(1)

A local housing authority may impose a financial penalty on a person if satisfied beyond reasonable doubt—

(a)

that the person contravened section 16D or any paragraph of section 16E(1) other than paragraph (e), or

(b)

that—

(i)

the person contravened paragraph (e) of section 16E(1), and

(ii)

the tenant surrendered the tenancy within the period of four months beginning with the date of the contravention, without an order for possession of the dwelling-house being made.

(2)

Where a landlord fulfils the requirement in section 16D, a local housing authority may not impose a financial penalty on a person who contravenes section 16D only by virtue of subsection (8) of that section.

(3)

More than one penalty may be imposed on the same person in relation to a contravention of section 16D only if—

(a)

the contravention continues after the end of 28 days beginning with the day after that on which the previous penalty for the contravention was imposed, unless the person appeals against the decision to impose the penalty within that period, or

(b)

if the person appeals against that decision within that period, the contravention continues after the end of 28 days beginning with the day after that on which the appeal is finally determined, withdrawn or abandoned.

(4)

Subsection (3) does not enable a penalty to be imposed after the final notice in respect of the previous penalty has been withdrawn or quashed on appeal.

(5)

Where a local housing authority has imposed a financial penalty on a person in relation to a contravention of paragraph (b) or (d) of section 16E(1), the local housing authority may not impose a financial penalty in relation to a contravention of the other of those two paragraphs arising from the same conduct.

(6)

The amount of a financial penalty imposed under this section is to be determined by the authority imposing it, but must not be more than £7,000.

(7)

Where—

(a)

a local housing authority is satisfied as mentioned in subsection (1) in relation to two or more persons, and

(b)

the contraventions in relation to which the local housing authority is so satisfied arise from the same conduct by one or more of the persons acting on behalf of the others,

the local housing authority may impose a financial penalty under this section on the persons (or some of them) jointly, and if the local housing authority does so, the persons on whom the penalty is imposed are jointly and severally liable to pay it.

(8)

No financial penalty may be imposed under this section in respect of any conduct if—

(a)

the person has been convicted of an offence under section 16J in respect of the conduct,

(b)

criminal proceedings under that section have been instituted against the person in respect of the conduct and the proceedings have not been concluded,

(c)

criminal proceedings under that section in respect of the conduct have been concluded and the person has not been convicted of the offence, or

(d)

a financial penalty has been imposed under section 16K in respect of that conduct.

(9)

The Secretary of State may give guidance to local housing authorities about the exercise of their functions under this section.

(10)

Local housing authorities must have regard to any guidance issued under subsection (9).

(11)

For the purposes of this section and section 16J—

(a)

a financial penalty is imposed under this section or section 16K on the date specified in the final notice as the date on which the notice is given, and

(b)

“final notice” has the meaning given by paragraph 6 of Schedule 2ZA.

16JOffences

(1)

A relevant person is guilty of an offence if, in relation to an assured tenancy—

(a)

the person relies on a ground in Schedule 2, knowing that the landlord would not be able to obtain an order for possession on that ground, or being reckless as to whether the landlord would be able to do so, and

(b)

the tenant surrenders the tenancy within the period of four months beginning with the date the ground was relied on, without an order for possession of the dwelling-house being made.

(2)

A person is guilty of an offence if the person contravenes section 16E(2) or (3) but it is a defence for a person who contravenes section 16E(3) otherwise than as a landlord to show that they took all reasonable steps to avoid contravening it.

(3)

A person is guilty of an offence if—

(a)

a relevant penalty has been imposed on the person and the final notice imposing the penalty has not been withdrawn, and

(b)

the conduct in respect of which the penalty was imposed continues after the end of the period of 28 days beginning with—

(i)

the day after that on which the penalty was imposed on the person, or

(ii)

if the person appeals against the final notice in respect of the penalty within that period, the day after that on which the appeal is finally determined, withdrawn or abandoned.

(4)

A person is guilty of an offence if—

(a)

the person conducts themselves in a manner giving rise to liability to a financial penalty under section 16I, and

(b)

within the period of five years ending with the day on which the conduct occurs—

(i)

a relevant penalty has been imposed on the person for different conduct and the final notice imposing the penalty has not been withdrawn, or

(ii)

the person has been convicted of an offence under this section for different conduct.

(5)

In subsections (3) and (4) “relevant penalty” means a financial penalty which is imposed under section 16I or 16K where—

(a)

the period for bringing an appeal against the penalty under paragraph 10(2) of Schedule 2ZA has expired without an appeal being brought,

(b)

an appeal against the financial penalty under that paragraph has been withdrawn or abandoned, or

(c)

the final notice imposing the penalty has been confirmed or varied on appeal.

(6)

A person may not be convicted of an offence under subsection (1), (2) or (4) in respect of any conduct if a financial penalty has been imposed under section 16I or 16K in respect of that conduct.

(7)

Where an offence under this section committed by a body corporate is proved to have been committed with the consent or connivance of an officer of a body corporate, the officer as well as the body corporate commits the offence and is liable to be proceeded against and punished accordingly.

(8)

Where an offence under subsection (2) committed by a body corporate is proved to be attributable to any neglect on the part of an officer of a body corporate, the officer as well as the body corporate commits the offence and is liable to be proceeded against and punished accordingly.

(9)

Where the affairs of a body corporate are managed by its members, subsections (7) and (8) apply in relation to the acts and defaults of a member in connection with the member’s functions of management as if the member were an officer of the body corporate.

(10)

A person guilty of an offence under this section is liable on summary conviction to a fine.

16KFinancial penalties as an alternative to prosecution under section 16J

(1)

A local housing authority may impose a financial penalty on a person if satisfied beyond reasonable doubt that the person is guilty of an offence under section 16J.

(2)

No financial penalty may be imposed under this section in respect of any conduct if—

(a)

the person has been convicted of an offence under section 16J in respect of the conduct,

(b)

criminal proceedings under that section in respect of the conduct have been instituted against the person and the proceedings have not been concluded, or

(c)

criminal proceedings under that section in respect of the conduct have been concluded and the person has not been convicted of the offence.

(3)

The amount of a financial penalty imposed under this section is to be determined by the authority imposing it, but must not be more than £40,000.

(4)

Where—

(a)

a local housing authority is satisfied as mentioned in subsection (1) in relation to two or more persons, and

(b)

the offences in relation to which the local housing authority is so satisfied arise from the same conduct by one or more of the persons acting on behalf of the others,

the local housing authority may impose a financial penalty under this section on the persons (or some of them) jointly, and if the local housing authority does so, the persons on whom the penalty is imposed are jointly and severally liable to pay it.

(5)

The Secretary of State may give guidance to local housing authorities about the exercise of their functions under this section.

(6)

Local housing authorities must have regard to any guidance issued under subsection (5).

16LFinancial penalties: supplementary and interpretation

(1)

The Secretary of State may give financial assistance (by way of grant, loan guarantee or in any other form) or make other payments to a local housing authority in respect of the local housing authority’s functions under or by virtue of sections 16I to 16K.

(2)

The Secretary of State may by regulations amend the amount specified in section 16I(6) or 16K(3) to reflect changes in the value of money.

(3)

Regulations under this section are to be made by statutory instrument.

(4)

A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.

(5)

Schedule 2ZA makes provision about—

(a)

the procedure for imposing financial penalties under sections 16I and 16K,

(b)

appeals against financial penalties under sections 16I and 16K,

(c)

enforcement of financial penalties under sections 16I and 16K, and

(d)

how local housing authorities are to deal with the proceeds of financial penalties under sections 16I and 16K.”

“Schedule 2ZAFinancial penalties under sections 16I and 16K

section 16L

Notice of intent

1

Before imposing a financial penalty on a person under section 16I or 16K a local housing authority must give the person notice of its proposal to do so (a “notice of intent”).

2

(1)

The notice of intent must be given before the end of the period of 6 months beginning with the first day on which the authority has sufficient evidence of the conduct to which the financial penalty relates.

(2)

But if the person is continuing to engage in the conduct on that day, and the conduct continues beyond the end of that day, the notice of intent may be given—

(a)

at any time when the conduct is continuing, or

(b)

within the period of 6 months beginning with the last day on which the conduct occurs.

3

The notice of intent must set out—

(a)

the date on which the notice of intent is given,

(b)

the amount of the proposed financial penalty,

(c)

the reasons for proposing to impose the financial penalty, and

(d)

information about the right to make representations under paragraph 4.

Right to make representations

4

(1)

A person who is given a notice of intent may make written representations to the local housing authority about the proposal to impose a financial penalty.

(2)

Any representations must be made within the period of 28 days beginning with the day after that on which the notice was given (“the period for representations”).

Final notice

5

After the end of the period for representations the local housing authority must—

(a)

decide whether to impose a financial penalty on the person, and

(b)

if it decides to impose a financial penalty, decide the amount of the penalty.

6

If the authority decides to impose a financial penalty on the person, it must give the person a notice (a “final notice”) imposing that penalty.

7

The final notice must require the penalty to be paid within the period of 28 days beginning with the day after that on which the notice was given.

8

The final notice must set out—

(a)

the date on which the final notice is given,

(b)

the amount of the financial penalty,

(c)

the reasons for imposing the penalty,

(d)

information about how to pay the penalty,

(e)

the period for payment of the penalty,

(f)

information about rights of appeal, and

(g)

the consequences of failure to comply with the notice.

Withdrawal or amendment of notice

9

(1)

A local housing authority may at any time—

(a)

withdraw a notice of intent or final notice, or

(b)

reduce the amount specified in a notice of intent or final notice.

(2)

The power in sub-paragraph (1) is to be exercised by giving notice in writing to the person to whom the notice was given.

Appeals

10

(1)

A person to whom a final notice is given may appeal to the First-tier Tribunal against—

(a)

the decision to impose the penalty, or

(b)

the amount of the penalty.

(2)

An appeal under this paragraph must be brought within the period of 28 days beginning with the day after that on which the final notice was given.

(3)

If a person appeals under this paragraph, the final notice is suspended until the appeal is finally determined, withdrawn or abandoned.

(4)

An appeal under this paragraph—

(a)

is to be a re-hearing of the local housing authority’s decision, but

(b)

may be determined having regard to matters of which the authority was unaware.

(5)

On an appeal under this paragraph the First-tier Tribunal may confirm, vary or cancel the final notice.

(6)

The final notice may not be varied under sub-paragraph (5) so as to make it impose a financial penalty of more than the local housing authority could have imposed.

Recovery of financial penalty

11

(1)

This paragraph applies if a person fails to pay the whole or any part of a financial penalty which, in accordance with this Schedule, the person is liable to pay.

(2)

The local housing authority which imposed the financial penalty may recover the whole or part of the penalty on the order of the county court as if it were payable under an order of that court.

(3)

In proceedings before the county court for the recovery of a financial penalty or part of a financial penalty, a certificate which is—

(a)

signed by the chief finance officer of the local housing authority which imposed the penalty, and

(b)

states that the amount due has not been received by a date specified in the certificate,

is conclusive evidence of that fact.

(4)

A certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.

(5)

In this paragraph “chief finance officer” has the same meaning as in section 5 of the Local Government and Housing Act 1989.

Proceeds of financial penalties

12

Where a local housing authority imposes a financial penalty under this Act, it may apply the proceeds towards meeting the costs and expenses (whether administrative or legal) incurred in, or associated with, carrying out any of its enforcement functions under this Act or otherwise in relation to the private rented sector.

13

Any proceeds of a financial penalty imposed under this Act which are not applied in accordance with paragraph 12 must be paid to the Secretary of State.

14

(1)

In paragraph 12, enforcement functions “in relation to the private rented sector” means enforcement functions relating to—

(a)

residential premises in England that are let, or intended to be let, under a tenancy,

(b)

the common parts of such premises,

(c)

the activities of a landlord under a tenancy of residential premises in England,

(d)

the activities of a superior landlord in relation to such a tenancy,

(e)

the activities of a person carrying on English letting agency work within the meaning of section 54 of the Housing and Planning Act 2016 in relation to such premises, or

(f)

the activities of a person carrying on English property management work within the meaning of section 55 of the Housing and Planning Act 2016 in relation to such premises.

(2)

For the purposes of this paragraph “residential premises” has the meaning given by section 1 of the Housing Act 2004 except that it does not include social housing within the meaning of Part 2 of the Housing and Regeneration Act 2008.

(3)

For the purposes of this paragraph “tenancy” includes a licence to occupy.”