Landlords face £3.5bn HHSRS penalty exposure
12:01 AM, 4th August 2026, 2 hours ago
Landlords face civil penalties of up to £7,000 where councils identify an initial Category 1 hazard, putting inspection records and repairs under closer scrutiny.
Inventory Base estimates the private rented sector’s theoretical exposure could reach £3.53bn across England.
Its calculation applies the maximum initial penalty to 504,808 privately rented dwellings estimated to contain at least one Category 1 hazard.
The revised HHSRS framework took effect on 23 June, although penalties will depend on individual cases and council enforcement decisions.
Inspection records under scrutiny
Sián Hemming-Metcalfe, the firm’s operations director, said: “The £7,000 penalty may grab the headlines, but the deeper risk is a broken evidential record.
“A 15-minute property inspection is not an HHSRS risk assessment, and it should not be treated as one.”
She added: “Where those records are disconnected, outdated or inconsistent, landlords and agents may struggle to show what was identified, when it was escalated and what was done about it.
“That is where regulatory exposure grows.”
HHSRS hazard system changes
The HHSRS framework has been reduced from 29 hazards to 21, with statistically similar risks brought together under broader categories.
Its former A to J scoring bands have been replaced by high, medium and low ratings.
A high-rated risk remains a Category 1 hazard, requiring the council to take enforcement action.
Authorities may issue an initial £7,000 civil penalty without going to court, rising to £40,000 for continuing or repeated breaches.
Most common hazards
Falls on stairs affect an estimated 244,032 privately rented dwellings, while excess cold is recorded in 130,748.
Damp affects 64,422 homes, with falls on the level found in 48,445 and falls between levels in 36,040.
Inventory Base says inspection templates, assessment records, maintenance procedures and internal guidance should be reviewed together.
It is also urging property professionals to update staff training so reports reflect the new statutory guidance.
