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Civil Penalty Notice

A financial penalty a local housing authority can impose instead of prosecuting for many housing offences, such as breaching HMO or selective licensing or failing to comply with an Improvement Notice. Under section 249A of the Housing Act 2004 the maximum is £40,000 for offences from 1 May 2026 (previously £30,000). The landlord can appeal to the First-tier Tribunal, and unpaid penalties are recoverable in the county court.

Reviewed by Erdem VolkanLast reviewed 16 September 2026How we check facts

RRA breach
Up to £7,000 (council cannot prosecute)
RRA offence
Up to £40,000 (prosecute or penalise)
Process
Notice of intent → written representations → final notice
Appeal
First-tier Tribunal (Property Chamber)

Why it matters

What Civil Penalty Notice means for a landlord

Civil penalties are how housing law is actually enforced now: no criminal court, no prosecution threshold, just a council officer, a matrix and a notice. The Renters’ Rights Act split non-compliance into a **breach** (up to £7,000, no prosecution option) and an **offence** (up to £40,000, prosecute or penalise), with severity setting the figure. Two practical points decide what you pay. You get a notice of intent first and can make written representations, landlords who put the facts in writing at that stage frequently see the figure cut, while those who ignore letters do not. And cooperation and prompt remediation are express scoring factors, so fixing the problem is worth money, not just principle.

Worked example

How it plays out

A council finds a landlord in Leeds letting an HMO without the licence it needs. It sends a notice of intent proposing a £12,000 penalty. The landlord replies within 28 days with evidence that he applied for the licence as soon as the council raised it and has since fitted the fire doors it asked for. The council takes this into account and sets a lower figure in the final notice, which the landlord could still appeal to the First-tier Tribunal.
An illustrative example. Names, places and figures are made up.

Common mistakes

Where landlords go wrong

  1. 01Ignoring the notice of intent and missing the 28 days for representations.
  2. 02Paying without checking the facts are right.
  3. 03Arguing about the amount without fixing the underlying problem.

What to do

A short checklist

  • Diary the representations deadline the day a notice arrives.
  • Send evidence of any steps already taken.
  • Fix the breach straight away and keep proof.

Sources

Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.