London councils have issued nearly £8.7 million in civil penalties to landlords between 2023 and 2025 but have recovered less than a third of that amount. This shortfall raises concerns about enforcement effectiveness and funding under the forthcoming Renters’ Rights Act.

Low recovery of landlord fines across London

Research by the National Residential Landlords Association (NRLA) reveals that over 1,300 civil penalties were imposed on landlords in London boroughs during the 2023/24 and 2024/25 period. Despite this, councils have collected less than £3 million of the total fines issued, indicating a significant gap between penalties levied and payments received.

The NRLA’s findings also highlight that a quarter of councils in England have not collected any landlord fines, suggesting widespread challenges in enforcement and debt recovery.

Concerns from the NRLA leadership

Ben Beadle, chief executive of the NRLA, expressed frustration on behalf of responsible landlords and tenants. He said: “Tenants and the vast majority of responsible landlords across London will rightly be fed up with our findings.”

He criticised the continued impunity of a minority of rogue landlords, stating: “It is galling then to see that those breaking the law are still failing to pay the price – leaving good landlords to pick up the tab in licensing fees.”

Beadle also questioned the readiness of councils to enforce the Renters’ Rights Act effectively, noting concerns about the adequacy of upfront funding to support enforcement actions.

Some councils issue no penalties at all

The NRLA’s analysis, based on Freedom of Information requests, found that five London councils reported issuing no civil penalties during the period studied. These were the City of London Corporation, Bexley, Bromley, Croydon, and Hammersmith and Fulham.

This lack of enforcement activity in some boroughs contrasts sharply with others that have imposed multiple fines, highlighting inconsistency across the capital.

Impact of the Renters’ Rights Act on penalties

The Renters’ Rights Act, which comes into effect on 1 May, will increase the maximum civil penalty for landlords from £7,000 to £40,000. This substantial rise aims to strengthen enforcement and deter non-compliance in the private rented sector.

However, the NRLA warns that if councils continue to struggle with collecting fines, the intended funding mechanism for enforcement work may be compromised. This could leave local authorities without sufficient resources to carry out their duties effectively.

Calls for reform in enforcement and funding

In response to these challenges, the NRLA is calling for a review of how enforcement is structured and funded. It advocates for the appointment of a national Chief Environmental Health Officer to oversee standards and consistency.

Additionally, the NRLA recommends a comprehensive review of local authority resourcing and the introduction of annual reporting requirements on enforcement activity to improve transparency and accountability.

What this means for landlords

For landlords, the low recovery of fines and uneven enforcement across London may create an uneven playing field. Responsible landlords who comply with regulations could face higher costs indirectly, as councils seek to recoup enforcement expenses through licensing fees.

The increased penalties under the Renters’ Rights Act signal a tougher regulatory environment, but without effective enforcement and collection, the impact may be limited. Landlords should stay informed about local enforcement practices and prepare for the changes the new legislation will bring.

Source: Based on reporting from Property118

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