Councils collect only 25% of fines issued to landlords
Local authorities in England are collecting just a quarter of fines issued to landlords for housing offences, despite a 7% increase in property inspections, according to new data from the National Residential Landlords Association (NRLA).
Freedom of Information Act requests show that councils conducted 91,620 inspections under the Housing, Health and Safety Rating System (HHSRS) between 2023/24 and 2024/25, up from 85,326 in the previous two-year period.
Collection rates remain low
However, data published earlier this year revealed that of almost £30 million in fines issued to private landlords by 285 English councils between 2023/24 and 2024/25, only £7.5 million has been collected.
The low collection rate has implications for the rental market’s enforcement framework, with compliant landlords bearing the costs of licensing schemes designed to fund enforcement action. This comes as regulatory changes continue to impact the rental sector.
Ben Beadle, Chief Executive of the NRLA, said: “While an increase in property inspections suggests more proactive enforcement, councils are failing to collect the money they should from those flouting their obligations.”
He added that responsible landlords paying licensing and other fees are effectively subsidising the costs of enforcement action against non-compliant operators, describing the situation as “not sustainable”.
Calls for transparency
The NRLA has called for all councils to publish annual reports detailing income from licensing schemes and enforcement outcomes. This recommendation has been supported by the cross-party Housing Select Committee, which recently warned that the Government needs to do more to hold councils accountable for tackling rogue landlords.
The committee’s report highlighted concerns that the activities of a minority of non-compliant landlords are undermining the reputation of the compliant majority in the sector. The enforcement challenges add to broader operational difficulties facing the property market.
Beadle stated that without greater transparency around enforcement funding and outcomes, “both tenants and good faith landlords seeking to do the right thing will continue to be let down by a failing system.”
The findings raise questions about the effectiveness of the current enforcement framework and whether the polluter-pays principle is being properly applied in the private rental sector, with implications for regulatory oversight across property transactions.
