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Rogue landlords dodge millions as councils fail to collect fines

Councils across London are collecting only a fraction of the fines issued to rogue landlords, according to new figures that raise concerns about the effectiveness of enforcement in the private rented sector.

Data obtained by the National Residential Landlords Association through Freedom of Information requests shows that between 2023/24 and 2024/25, local authorities imposed almost £8.7 million in civil penalties on landlords for housing offences. However, less than £3 million of that total was actually recovered, meaning councils collected just over a third of the fines issued.

In total, 32 London boroughs responded to the request, reporting that 1,301 penalties were issued over the two-year period for a range of offences linked to poor conditions and breaches of housing regulations. Despite this level of enforcement activity, the gap between fines issued and money collected has prompted warnings that rogue landlords may be escaping meaningful consequences.

The figures also reveal inconsistencies in enforcement across the capital. Five authorities – the City of London Corporation, and the councils of Bexley, Bromley, Croydon and Hammersmith & Fulham – reported that they had not issued any civil penalties to landlords during the same period.

The NRLA said the findings highlight a wider problem with enforcement capacity, particularly as new legislation is set to increase the stakes. Under the forthcoming Renters’ Rights Act, due to come into force in May, the maximum civil penalty for housing offences will rise sharply from £7,000 to £40,000.

The organisation warned that without stronger enforcement and better resourcing, the new powers risk being ineffective. It argues that councils are already struggling to recover fines and may lack the capacity to pursue more complex or higher-value cases, allowing some rogue and criminal landlords to avoid accountability.

Beyond the financial shortfall, the NRLA says the issue has wider consequences for tenants and the sector as a whole. Weak enforcement can leave renters exposed to unsafe or substandard housing, while also damaging the reputation of responsible landlords who comply with regulations.

To address the problem, the NRLA is calling on the government to strengthen oversight and support for local authorities. Its proposals include creating a national Chief Environmental Health Officer role to lead enforcement standards, conducting a full review of council resources, and requiring annual public reporting on enforcement activity in the private rented sector.

Ben Beadle, Chief Executive of the National Residential Landlords Association, said: ‘Tenants and the vast majority of responsible landlords across London will rightly be fed up with our findings.

‘For too long a minority of rogue and criminal operators have been allowed to act with impunity, bringing the sector into disrepute. 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.

‘This also raises serious questions about how ready councils across the capital are to enforce the Renters’ Rights Act, and about the adequacy of the upfront funding provided to them to support enforcement action.’

Photo: Yamu_Jay

Paul Day
Paul is the editor of Public Sector News.
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