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Landlords face tougher penalties as rent repayment orders expanded

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Landlords face tougher penalties as rent repayment orders expanded

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

New changes include offences for providing false information to the Private Rented Sector (PRS) Database and knowingly or recklessly misusing a possession ground.

The news comes after the government published a list of civil financial penalties, under which landlords could be fined up to £6,000 for discriminating against those on benefits and children.

The maximum amount of rent a landlord can be ordered to repay will double from 12 to 24 months

A rent repayment order is a mechanism where a landlord who has committed an offence can be ordered to repay an amount of rent to the tenant or local authority.

The Renters’ Rights Act guidance, says the Act will extend rent repayment orders which will now include: “To the offences of knowingly or recklessly misusing a possession ground, breach of a restriction on letting or marketing a dwelling-house, continued tenancy reform breach after imposition of a financial penalty, continued breach of landlord redress scheme regulations after imposition of a financial penalty for this breach, provision of false information to the PRS Database when purporting to comply with PRS Database regulations and continued failure to register with the PRS Database after imposition of a financial penalty for this breach.”

Under the new rules, the maximum amount of rent a landlord can be ordered to repay will double from 12 to 24 months. The period in which a tenant or a council can apply for a rent repayment order after an offence has been committed will also be extended from 12 to 24 months.

Rent repayment orders will also apply to superior landlords and company directors, which the government says will “ensure criminal rent-to-rent arrangements can be properly held to account”.

Crack down on repeat offenders

The government has also announced that landlords who have previously been subject to enforcement action for an offence will be required to pay the maximum rent repayment order amount if they commit the same offence again, in a move the government say will crack down on repeat offenders.

The government guidance says: “Where a landlord has been convicted of or received a financial penalty for licensing offences or any of the relevant offences across the Act, they will be required to pay the maximum rent repayment order amount.

“This will ensure the deterrent effect is equally strong across all listed offences and that the deterrent effect is increased for the offences to which this provision did not previously apply.”

Property118 commercial reality check

Many landlords will read this and feel the ground shifting again beneath their feet. That reaction is understandable. The rules are expanding, the penalties are heavier and the margin for error is narrowing. None of this reflects badly on landlords who already act responsibly. It reflects a policy environment that increasingly assumes bad faith and then regulates accordingly.

What landlords should do next

Protect yourself against misunderstanding, not just misconduct. Keep written evidence explaining why possession grounds are used, even when the reason feels obvious. The risk now sits as much in interpretation as in behaviour.

Prepare for the PRS Database before it exists. Even though the database is not yet operational, begin aligning tenancy records, licensing details and ownership information now. When registration becomes mandatory, readiness will matter more than speed.

Clarify accountability across all arrangements. Where companies, directors or superior landlords are involved, document control and responsibility clearly. This is preparation, not admission of fault.

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