Councils gain new enforcement powers as the Renters’ Rights Act comes into force. The penalties target serious hazards including damp, mould, fire risks and unsafe electrics in privately rented homes. Private renters living in unsafe housing could see faster action from local authorities after new financial penalties for landlords took effect on 22 June 2026.
The measure forms part of the Renters’ Rights Act and allows councils in England to issue fines of up to £7,000 when landlords fail to address serious hazards in rented properties. According to the Ministry of Housing, Communities and Local Government, the penalties apply where hazards are assessed at the most dangerous “Category 1” level under the Housing Health and Safety Rating System (HHSRS).
The government says the new sanction is intended to strengthen existing enforcement powers already available to councils. These include requiring repairs within a specified timeframe, carrying out emergency works where there is an immediate danger, and recovering costs from landlords who fail to act.
New Powers Target Serious Housing Hazards
The new fines cover 21 types of hazards classified as serious under the HHSRS. According to the government’s announcement, these include severe damp and mould, freezing conditions, faulty electrical systems, fire hazards, structural problems and unsafe property layouts.
The Ministry of Housing, Communities and Local Government estimates that around 10% of privately rented homes contain at least one serious health and safety hazard. Councils can now impose financial penalties where landlords refuse to remedy such conditions.
Housing Secretary Steve Reed said renters “deserve a safe, secure place to call home” and stated that the Renters’ Rights Act gives councils additional options to take action against landlords who fail to maintain safe housing standards.
According to the government, the new penalty works alongside existing enforcement mechanisms rather than replacing them. Local authorities already have powers to compel repairs and intervene directly where conditions present an immediate risk to tenants. The government has also written to mayors across England urging councils to make full use of the powers available to tackle unsafe housing and improve conditions for renters.
Updated Safety Assessment System Introduced
The introduction of the fines coincides with reforms to the Housing Health and Safety Rating System, which is used to assess risks in residential properties. According to the Ministry of Housing, Communities and Local Government, the framework is being updated for the first time since 2006 and comes into force on 23 June 2026.
The revised system reduces the number of hazards from 29 to 21 by combining those considered statistically similar in likelihood and harm. The government says the changes include an updated assessment and scoring process, along with new descriptive terminology designed to make hazards easier to identify and address.
Tenant groups welcomed the new powers. Ben Twomey, chief executive of Generation Rent, said no renter should have to live with mould, dampness or other conditions that threaten health. He said councils would need to actively identify landlords who ignore unsafe conditions if tenants are to benefit from the changes.
Clara Collingwood, director of the Renters’ Reform Coalition, said many renters had been living in substandard homes that affect health and wellbeing. She added that tenants should be aware of their rights and report serious disrepair to councils, noting that Section 21 evictions have been abolished under the new legislation. The government has indicated that further guidance, case studies and safety indicators will be published to support enforcement of the updated rules.
