Landlords face £7,000 fines for damp and mould under new council powers
Key Points
- Councils in England can fine landlords up to £7,000 from 22 June 2026
- Penalty introduced under the Renters' Rights Act for serious property hazards
- Covers 21 Category 1 hazards including damp, mould, faulty electrics and fire risks
- Around 10% of private rented homes have at least one serious hazard
- Housing Health and Safety Rating System updated for first time in 20 years, effective 23 June
Councils in England can fine landlords up to £7,000 from Monday if they fail to fix serious hazards such as damp and mould in rented homes.
The new penalty took effect on 22 June under the Renters’ Rights Act, handing local authorities a fresh enforcement tool to use against landlords who refuse to address dangerous conditions.
It applies to 21 categories of hazard assessed as serious, the most dangerous level, including freezing conditions, faulty electrics, fire hazards, structural defects and unsafe layouts, as well as severe damp and mould.
The government estimates that around 10% of privately rented homes have at least one of these health and safety problems classified as serious.
Housing Secretary Steve Reed wrote to mayors across England on Monday, urging councils to use every power available to them to tackle unsafe housing and protect tenants.
The fine sits alongside enforcement measures councils already hold, which include forcing repairs, carrying out emergency works and recovering the cost from landlords who fail to act.
Reed said the Renters’ Rights Act gave councils more options to move quickly against rogue landlords. He described the £7,000 penalty as a measure councils can impose where a hazard such as severe damp or mould is present in a privately rented home, calling it a situation no family should have to live with.
New safety system replaces 20-year-old framework
Alongside the fines, the government is updating the Housing Health and Safety Rating System, used to assess health and safety risks across all types of housing, for the first time in 20 years. The system was last reviewed in 2006.
The revised framework comes into force on Tuesday (23 June).
The government says it is simpler and easier to use, with an updated assessment and scoring process, new descriptive terms, and hazards that are statistically similar in their likelihood and harm grouped together.
The change reduces the number of listed hazards from 29 to 21, which the government says makes them easier to identify.
The 21 hazards subject to the new fines are those rated at the most dangerous Category 1 level under the system, where councils have a duty to act. Final enforcement guidance setting out how the penalty operates is due to be published on 23 June.
Renter groups back stronger enforcement
Ben Twomey, Chief Executive of Generation Rent, said the power to fine landlords up to £7,000 for ignoring repairs was an essential step towards raising the quality of rented homes.
He said councils must seek out and act against landlords who ignore unsafe conditions for renters to feel the benefit.
Clara Collingwood, Director at the Renters’ Reform Coalition, said hundreds of thousands of renters had been living in substandard homes that harmed their health, and that authorities must start using the new powers immediately.
She added that with section 21 evictions scrapped, tenants could not be evicted for complaining and should report landlords who leave serious disrepair or damp and mould unaddressed.
The Ministry of Housing, Communities and Local Government said it would publish a set of illustrated case studies and new baseline indicators for achieving safety against each hazard.
