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Improvement Notice

Quick answer

A formal notice served by the local housing authority under section 11 (Category 1 hazard) or section 12 (Category 2 hazard) of the Housing Act 2004 requiring a landlord to remedy hazards identified through the Housing Health and Safety Rating System (HHSRS). The notice specifies the works, the deadline and the route of appeal to the First-tier Tribunal. Failure to comply is a criminal offence with civil penalty up to £30,000, and triggers a 12-month Rent Repayment Order window.

Reviewed by Erdem VolkanLast reviewed 19 April 2026Editorial policy

At a glance

Issued under
Housing Act 2004, following an HHSRS assessment
Triggered by
A Category 1 hazard (or a serious Category 2)
If ignored
The council can do the works and recover the cost
Knock-on risk
Letting in breach can expose you to a Rent Repayment Order

Full guide

Read the complete landlord guide on Improvement Notice

Deadlines, fines and step-by-step compliance in our in-depth resource.

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Why Improvement Notice matters for landlords

An improvement notice is the point at which a repair problem stops being a private matter between you and the tenant. It follows a council HHSRS inspection, usually prompted by a tenant complaint, and it sets out works and a deadline. The cost of the works is rarely the real exposure: continuing to let in breach of the notice is an offence that can trigger a Rent Repayment Order of up to twelve months’ rent, and it appears on your record for any future licensing or banning-order decision. Engaging early and completing the works genuinely reduces what follows, because cooperation is a scoring factor in every council’s enforcement policy.

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Official sources

LetCompliance editorial reviews this entry every quarter against the sources above. Always confirm specific duties with a qualified solicitor or your local council.

Related terms

Civil Penalty Notice

A financial penalty up to £30,000 a local housing authority can impose as an alternative to criminal prosecution under the Housing and Planning Act 2016, the Housing Act 2004 (HMO offences) and various tenancy offences. Common triggers: failure to comply with an Improvement Notice, breach of HMO licensing, unlawful eviction, breach of selective licensing or letting an unsafe property. The landlord can appeal to the First-tier Tribunal within 28 days; unpaid penalties are recoverable in the County Court.

HHSRS (Housing Health and Safety Rating System)

The risk-assessment framework used by local authorities to judge whether housing is safe (Housing Act 2004). It has historically scored 29 categories of hazard, from damp and mould to falling on stairs, though a 2026 government review is streamlining the list — so check the current set. Category 1 hazards are the most serious and trigger enforcement powers including Improvement Notices and Prohibition Orders.

Rent Repayment Order (RRO)

A First-tier Tribunal order requiring a landlord to repay up to 12 months’ rent (24 months under the Renters Rights Act 2025 for some offences) for specified housing offences: unlicensed HMO, breach of selective licensing, illegal eviction, harassment, failure to comply with an Improvement Notice or Banning Order. Sought by the tenant or, separately, by the local council. Triggered without needing a criminal conviction — the tribunal applies the criminal standard of proof to the underlying offence, then orders repayment.

Allowable Expenses

The day-to-day running costs a landlord can deduct from rental income before tax. They must be wholly and exclusively for the letting — letting agent fees, repairs and maintenance (not improvements), landlord insurance, ground rent and service charges, accountancy, and utility or council tax you pay. Mortgage interest is handled separately as a 20% tax credit under Section 24, not as an expense.

Capital Expenditure vs Revenue Expenditure

The line that decides whether a cost reduces your rental profit now or your Capital Gains Tax later. Revenue expenditure (repairs, maintenance, replacing like-for-like) is deducted from rental income in the year you spend it. Capital expenditure (improvements, extensions, first-time installation of something new) is added to the property’s cost base and only counts against CGT when you sell.

Replacement of Domestic Items Relief

The tax relief that lets landlords deduct the cost of replacing furnishings and appliances in a let property — beds, sofas, carpets, curtains, white goods, crockery. It replaced the old Wear and Tear Allowance in April 2016. It covers the like-for-like replacement cost only, not the first-time purchase of an item and not any improvement element.