For years, landlords have been told that councils need ever greater powers to tackle poor housing standards. Successive governments have increased civil penalties, expanded enforcement powers and promised tougher action against rogue landlords.
But a simple question now needs to be asked.
If councils are not collecting the fines they already issue, what is the point of imposing them in the first place?
The latest research from the National Residential Landlords Association (NRLA) raises serious concerns about whether local authority enforcement is achieving its stated objectives.
The Numbers Tell a Surprising Story
According to Freedom of Information research carried out by the NRLA across 285 English councils:
- Councils issued almost £30 million in civil penalties to landlords during 2023/24 and 2024/25.
- Yet only around £7.4 million was actually collected.
- That means just 24.9% of the fines imposed were ever recovered.
- During the same period approximately 3,695 civil penalties were issued to landlords for housing-related offences.
At the same time, inspections under the Housing Health and Safety Rating System (HHSRS) increased by just over 7%, suggesting councils are carrying out more inspections than before.
Enforcement Only Works If It Is Enforced
No responsible landlord wants rogue operators damaging the reputation of the private rented sector.
Landlords who ignore safety regulations, fail to carry out repairs or deliberately provide poor accommodation undermine confidence in the industry and create unfair competition for those who invest properly in their properties.
Equally, bad tenants can cause enormous financial damage to landlords and neighbours alike.
The overwhelming majority of landlords accept that genuine rogues should face meaningful penalties.
However, penalties only work if they are actually collected.
If councils impose fines but then fail to pursue payment, the deterrent effect is dramatically reduced.
A landlord who receives a penalty but never has to pay it is hardly receiving a meaningful punishment.
Who Ultimately Pays?
This is where the issue becomes even more difficult.
Councils frequently argue they need:
- higher licensing fees;
- additional Government funding;
- more enforcement officers; and
- increased civil penalty powers.
Yet if they are recovering only around one quarter of the penalties they already issue, taxpayers and compliant landlords are entitled to ask whether existing enforcement is being managed effectively.
Civil penalties were intended to help fund future enforcement.
Instead, millions of pounds appear to be left uncollected.
The Wrong People End Up Carrying the Cost
Every rogue landlord who escapes paying a civil penalty creates two problems.
First, tenants may continue living in poor housing.
Secondly, councils lose revenue that could have been used to fund further enforcement activity.
The result is that responsible landlords—who already pay licensing fees, registration charges, compliance costs and increasing taxation—often end up contributing more towards a system that is failing to recover money from those breaking the rules.
As NRLA Chief Executive Ben Beadle commented:
“Whilst an increase in property inspections suggests more proactive enforcement, councils are failing to collect the money they should from those flouting their obligations.”
Better Enforcement Is Better Than More Enforcement
This debate should not become one of landlords versus councils.
Everyone benefits when poor housing is removed from the market.
Good landlords benefit.
Good tenants benefit.
Neighbourhoods benefit.
The question is whether introducing ever tougher legislation and larger fines achieves anything if local authorities cannot effectively enforce the penalties already available to them.
Before Government introduces additional enforcement powers or increases maximum civil penalties even further, perhaps attention should first be focused on making sure existing penalties are actually collected.
Raising Standards Means Following Through
Improving standards in the private rented sector requires credible enforcement.
That means:
- identifying genuinely poor landlords;
- issuing proportionate penalties;
- collecting those penalties robustly; and
- reinvesting the money into further enforcement.
Without that final step, enforcement risks becoming little more than a paperwork exercise.
The vast majority of landlords who comply with the law deserve to see rogue operators removed from the sector.
Tenants deserve safe, well-managed homes.
Both objectives depend not simply on issuing fines—but on making sure those fines are actually paid.
Disclaimer: NetRent does not provide legal advice. This article represents our general understanding of developments affecting the private rented sector and is provided for information only.
If you would like to discuss landlord compliance, licensing or any aspect of managing your rental property, contact NetRent on 01352 721300 or email info@netrent.co.uk.