Fines For Landlords & Agents To Increase – Housing Law Updates Explained
On 1 May 2026, the Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026 (the “Regulations”) came into force. The Regulations have amended both the Housing Act 2004 and the Housing and Planning Act 2016.
The purpose of the Regulations is to increase the maximum financial penalties and potential fines for landlords for certain housing offences and breaches of banning orders, with the intention of discouraging landlords and agents from engaging in such misconduct.
The main legislation which will be amended is:
Section 249A(8) and Section 250(2)(b) Housing Act 2004
This relates to the maximum financial penalty amount for certain housing offences, which include but are not limited to:
- Failure to comply with an improvement notice
- Managing or having control of an unlicensed HMO
- Failure to comply with a licence condition for a Part 3 house
- Failure to comply with HMO management regulations
Under previous legislation, the financial penalties for the above offences are capped at £30,000. From 1 May 2026, the limit for the financial penalties increased to £40,000. This is a significant increase in the fines landlords can face for failure to comply with the law.
Section 23(9) and Section 214(6)(a) Housing and Planning Act 2016
Similarly, the financial penalty for breaching a banning order was a maximum of £30,000.
A banning order is a statutory order that prohibits a landlord or property agent from certain activities, such as letting housing, engaging in property management work or engaging in letting agency work. They are aimed at stopping the continuation of ‘rogue landlords’ who commit housing-related offences or fail to comply with legal obligations, such as illegal evictions or unsafe property conditions.
Fines for landlords and agents have increased to a maximum of £40,000.
Local authorities are responsible for enforcing this legislation. It is important for landlords to be aware of the increases in fines and to ensure that they and their properties are compliant with all relevant legislation.
At Kitson Boyce, our specialist property dispute resolution team is well-versed in the landlord and tenant legislation. If you require any assistance related to these changing financial penalties or regarding a wider landlord and tenant matter, please contact Fiona Hannaford on 01803 206209 or email [email protected].
