Join Our Latest Webinar! Register Now

Landlords Face Tougher Penalties as Rent Repayment Orders Expanded

19th Jan 2026
Landlords Face Tougher Penalties as Rent Repayment Orders Expanded

The government has announced further changes to rent repayment orders under the Renters’ Rights Act.

The changes introduce new offences, including providing false information to the Private Rented Sector (PRS) Database and knowingly or recklessly misusing a possession ground.

This announcement follows the recent publication of civil financial penalty guidance, which includes fines of up to £6,000 for discriminating against applicants on benefits or those with children.

One of the most significant changes is the increase in the maximum amount of rent a landlord can be ordered to repay. This will double from 12 months’ rent to 24 months’ rent.

A rent repayment order allows a tenant or a local authority to reclaim rent from a landlord who has committed a qualifying offence.

Under the Renters’ Rights Act guidance, rent repayment orders will now be extended to cover the following offences:

·         Knowingly or recklessly misusing a possession ground

·         Breaching restrictions on letting or marketing a property

·         Continuing a tenancy reform breach after a financial penalty has been imposed

·         Continuing to breach landlord redress scheme regulations after a financial penalty has been imposed

·         Providing false information to the PRS Database when claiming to comply with database requirements

·         Continuing to fail to register with the PRS Database after a financial penalty has been imposed

Under the new rules, the period in which a tenant or a council can apply for a rent repayment order will also double. Applications can now be made up to 24 months after an offence has occurred, compared with the previous 12-month limit.

The scope of rent repayment orders is also being widened. They will now apply to superior landlords and company directors. The government says this change is intended to ensure that criminal rent-to-rent arrangements can be properly held to account.

Crackdown on Repeat Offenders

The government has also announced stricter measures for repeat offenders.

Landlords who have previously faced enforcement action for an offence and then commit the same offence again will be required to pay the maximum rent repayment order amount.

Government guidance states that where a landlord has been convicted or received a financial penalty for licensing offences or other relevant offences under the Act, they will be required to repay the maximum amount of rent.

The stated aim is to strengthen the deterrent effect across all offences and to increase penalties where this approach did not previously apply.

 Commercial Reality Check

Many landlords will read this update and feel the rules shifting once again. That response is understandable. The scope of regulation is expanding, penalties are increasing, and tolerance for error is shrinking.

This does not reflect poorly on landlords who already act responsibly. Instead, it reflects a policy environment that increasingly assumes bad faith and then regulates on that basis.

What Landlords Should Do Next

Landlords should protect themselves against misunderstanding as well as misconduct. Written records explaining why possession grounds are used should be kept, even where the reasoning feels obvious. The risk now lies as much in interpretation as in behaviour.

Preparation for the PRS Database should begin before it goes live. Even though registration is not yet mandatory, landlords should start aligning tenancy records, licensing information, and ownership details now. When the system launches, readiness will be more important than speed.

Accountability should also be clearly defined across all arrangements. Where companies, directors, or superior landlords are involved, roles and responsibilities should be documented carefully. This is sensible preparation, not an admission of fault.

AngelMoves Compliance Insight

AngelMoves focuses on property compliance education, helping landlords and letting agents understand how to operate safely as enforcement powers expand and financial exposure increases.

The expansion of rent repayment orders means that mistakes involving possession grounds, documentation, registration, or interpretation of duties can now result in substantial rent loss on top of financial penalties. AngelMoves helps landlords understand where these risks arise, how to document decisions properly, and how to prepare records and processes that stand up to scrutiny.

As the Renters’ Rights Act widens both penalties and time limits, compliance errors are becoming more costly and harder to undo. Education, preparation, and clear documentation are essential for landlords who want to remain in the sector without facing avoidable enforcement action.

SOURCE:https://www.property118.com/landlords-face-tougher-penalties-as-rent-repayment-orders-expanded/


Book a Meeting