Council Highlights Challenges in Enforcing Civil Financial Penalties on Rogue Landlords
Rotherham Metropolitan Borough Council has revealed difficulties in enforcing civil financial penalties against rogue landlords, having issued only three such penalties since 2019. The council also confirmed it has not yet issued any rent repayment orders, underscoring the challenges local authorities face in using civil penalties as an effective enforcement tool.
This development is significant for landlords and agents as it reflects ongoing enforcement challenges within the private rented sector (PRS), particularly regarding unlicensed properties. Understanding these enforcement dynamics is crucial for landlords to ensure compliance and for agents advising clients on regulatory risks.
Enforcement of Civil Financial Penalties in Rotherham
In response to a written question from Councillor Simon Ball, Rotherham Council’s cabinet member for housing, Councillor Linda Beresford, disclosed that the council trialled civil financial penalties in 2019 during the first selective licensing period. Only three penalties, each up to £30,000, were issued as alternatives to prosecution for unlicensed properties.
However, Councillor Beresford emphasised that these civil penalties have proven difficult to enforce and recover. One penalty remains outstanding but is scheduled to be fully recovered by mid-2026. The council has not issued any rent repayment orders to date, which are another enforcement mechanism available under housing legislation.
Prosecution and Other Sanctions for Unlicensed Properties
While civil penalties have been challenging to apply, Rotherham Council has pursued criminal prosecutions with more success. Since 2015, the council has prosecuted 49 cases under the Housing Act 2004 relating to unlicensed properties. These prosecutions have resulted in a range of fines, from conditional discharges to fines up to £13,300.
Additionally, the council reported 100 arrests over three years connected to cannabis production, highlighting the broader enforcement activity linked to problematic properties. This mix of sanctions demonstrates the council’s multi-faceted approach to tackling non-compliance in the PRS.
Comparisons with Other Local Authorities
Rotherham is not alone in finding civil financial penalties less effective as a standalone enforcement tool. Bradford Council has similarly expressed concerns that financial penalties alone do not sufficiently deter rogue landlords. Bradford recently issued its first banning order against a landlord with a large portfolio of Houses in Multiple Occupation (HMOs), who had already been fined £40,000 in civil penalties.
This suggests a trend among councils to combine civil penalties with more robust measures such as banning orders and prosecutions to improve compliance and protect tenants.
Rotherham Council’s Approach to Improving Enforcement
Sam Barstow, service director for community safety and street scene at Rotherham Council, acknowledged the challenges but stressed the council’s commitment to enhancing the effectiveness of civil penalties. He noted that while criminal prosecution remains the preferred enforcement method where appropriate, civil penalties are increasingly important, especially for first-time or less serious breaches.
During the last selective licensing scheme, Rotherham issued 2,574 formal enforcement notices, including housing, environmental, and emergency prohibition notices. Over half of the 49 prosecution cases prepared related to unlicensed properties, demonstrating a firm stance on serious breaches.
Mr Barstow explained that the council aims to strengthen processes and recovery methods to make civil penalties more effective. This will complement prosecutions and banning orders, particularly for persistent offenders, helping to raise standards and hold landlords accountable.
Support for Landlords and Tenants under the New Selective Licensing Scheme
Rotherham’s selective licensing scheme, commencing 15 February 2026, includes measures designed to support landlords and tenants while maintaining high standards. These include training opportunities, enhanced tenancy support, regular market updates, and a dedicated landlord licensing inbox for efficient communication.
The council will also engage landlords through a stakeholder steering group and provide advice on managing anti-social behaviour. Landlords who previously received rebates under the 2020–2025 scheme will benefit from a 37% discount on maintenance charges, with an additional 5% discount for timely licence applications.
Implications for Landlords and Agents
For landlords and agents, these developments highlight the importance of compliance with licensing requirements and property standards. The challenges councils face in enforcing civil penalties mean that non-compliance may still lead to prosecution or banning orders, which carry significant consequences.
Staying informed about local licensing schemes and enforcement trends is essential for managing risk and maintaining good tenant relations. Engaging proactively with councils and utilising available support can help landlords meet their obligations and avoid enforcement action.
Upcoming TLA Initiative
The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.
Source: www.property118.com
The Landlord Association (TLA)