Landlords and letting agents across London are facing increasing financial penalties as local authorities ramp up enforcement of property licensing regulations. Recent data reveals that fines related to licensing breaches are approaching £25 million, signalling a significant shift in how councils are tackling non-compliance.

Rising fines reflect tougher enforcement

Analysis by Kamma highlights that London councils have issued £24.1 million in fines against landlords and agents, as recorded on the Mayor of London Sadiq Khan’s Rogue Landlord Database. Licensing offences alone account for £14.85 million of this total, representing more than half of all recorded penalties.

Orla Shields, chief executive of Kamma, emphasises the changing enforcement landscape: “The £25 million figure is striking, but the real story is how councils are enforcing.” She notes that boroughs such as Camden and Islington have developed prosecutorial pipelines that convert council convictions into near-automatic Rent Repayment Orders for tenants, while Tower Hamlets offers free legal representation to support renters.

Widespread licensing coverage across London

Since the Rogue Landlord Database was launched in 2018, property licensing has evolved from a niche enforcement area to the leading source of penalties in the capital. Currently, 162 active licensing schemes operate across London, with a third introduced within the last year.

These schemes now cover approximately 88% of London, with 28 out of 32 boroughs implementing discretionary licensing restrictions. This expansion reflects councils’ growing commitment to regulating the private rented sector more rigorously.

Increasing fines for managing agents

Fines for managing agents have also risen notably. Since November 2025, the average fine per offence has increased by 14.46%, reaching £7,300. For example, in January 2026, Haringey issued a combined fine of £12,500 to a landlord and managing agent for operating an unlicensed property in Tottenham.

Waltham Forest leads in total fines, having collected £5.9 million from 714 cases, while Camden has pursued the highest number of cases at 964. Kensington & Chelsea, although issuing fewer prosecutions, has averaged over £108,000 per case through high-value penalties.

New enforcement strategies and legal support

Councils are shifting away from relying solely on self-reporting or complaint-driven enforcement. Tower Hamlets, for instance, provides legal assistance to tenants pursuing Rent Repayment Orders at the First-tier Tribunal, having secured more than £1.3 million for renters so far.

Camden and Islington combine prosecution efforts with tenant support for Rent Repayment Orders, increasing the financial consequences landlords face following convictions. The Renters’ Rights Act has further strengthened enforcement powers by raising the maximum civil penalty from £30,000 to £40,000 per offence and doubling the potential Rent Repayment Order amount to 24 months’ rent.

What this means for landlords

The expanding scope of licensing schemes and the intensification of enforcement measures mean landlords and agents in London must prioritise compliance more than ever. The assumption that licensing complexities are someone else’s concern is no longer tenable, especially for managing agents who face rising average fines.

With councils adopting more proactive enforcement and supporting tenants in recovering penalties, landlords should ensure all properties meet licensing requirements to avoid substantial financial and legal repercussions.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/