Housing enforcement penalties set for reset as Sentencing Council consults
New national guidance and a major sentencing consultation signal a step-change in how housing offences will be punished, with important implications for local authorities. In this article, we explore the changes and highlight a dedicated private sector housing enforcement event for councils this March.
The Housing Act 2004 created a number of offences related to residential accommodation. Those offences include:
- Failing to comply with an improvement notice: s.30(1).
- Knowingly using, or permitting premises to be used, in contravention of a prohibition order: s.32(1).
- Managing or having control of an unlicensed house in multiple occupation (“HMO”) that requires to be licensed: s.72(1).
- Knowingly permitting another person to occupy an HMO so that the house is occupied in excess of what is authorised by the licence: s.72(2).
- Failing to comply with any condition of an HMO licence: s.72(3).
- Failing to comply with management regulations in respect of HMOs: s.234(3).
Any such offence is punishable by an unlimited fine upon summary conviction at the Magistrates’ Court (ss.30(2), 32(2), 72(6)-(7), 234(5)) or alternatively by a civil penalty notice of up to £30,000 (s.249A(4)). There has previously been no guidance on how the amount of any such fine or penalty should be calculated, leading to wildly different outcomes in apparently similar cases.
On 13 November 2025 MHCLG published guidance, which will come into force on 1 May 2026, indicating the following starting points for any penalty imposed by a local housing authority:
- Failing to comply with an improvement notice: £25,000.
- Knowingly using, or permitting premises to be used, in contravention of a prohibition order: N/A.
- Managing or having control of an unlicensed HMO that requires to be licensed: £17,000.
- Knowingly permitting another person to occupy an HMO so that the house is occupied in excess of what is authorised by the licence: £20,000
- Failing to comply with any condition of an HMO licence: Explicitly excluded.
- Failing to comply with regulations made under s.234(3): £3,000-£20,000.
Authorities will need to update any housing enforcement policy they have adopted which sets out how they calculate the amount of civil penalties issued within their districts, in order to reflect the new guidance.
On 15 January 2026 the Sentencing Council also opened a consultation in which it is suggested that the fine for the offence of failing to licence an HMO under s.72(1), when committed by a company upon summary conviction should range from £100 to £2,400,000, depending on the company’s turnover. Fines imposed upon an individual for this and other offences would be calculated as a percentage of their weekly income. It is not clear why no consultation has been opened in respect of managing or having control of an unlicensed Part 3 house, contrary to s.95(1).
The Sentencing Council consultation also includes draft sentencing guidelines on unlawful eviction and harassment of occupiers, and for failure to comply with improvement notices and prohibition orders.
Cornerstone Barristers will be hosting an event on private sector housing enforcement after the Renters’ Rights Act 2025 for local housing authorities, and those who assist them, on 3 March 2026. You can book here.
