Rogue landlords avoid penalties as London councils struggle to collect fines

New data shows London councils are collecting only a fraction of fines issued to private landlords for housing offences.

Figures compiled by National Residential Landlords Association (NRLA) indicate that, between 2023/24 and 2024/25, 32 London boroughs issued nearly £8.7m in civil penalties, but recovered just under £3m—around a third of the total.

More than 1,300 penalties were issued over the period. Five authorities – City of London Corporation, London Borough of Bexley, London Borough of Bromley, London Borough of Croydon and London Borough of Hammersmith and Fulham – reported issuing no penalties during this time.

The data, based on Freedom of Information requests to councils across England, comes ahead of the Renters’ Rights Act, due to take effect on 1 May, which will increase the maximum civil penalty from £7,000 to £40,000.

The NRLA said limited enforcement resources risk allowing non-compliant landlords to avoid penalties and called for a review of local authority funding, greater transparency on enforcement activity and the introduction of a national lead for environmental health.

Ben Beadle, chief executive of the NRLA, said: “Tenants and the vast majority of responsible landlords across London will rightly be fed up with our findings.

“For too long a minority of rogue and criminal operators have been allowed to act with impunity, bringing the sector into disrepute. It is galling then to see that those breaking the law are still failing to pay the price – leaving good landlords to pick up the tab in licensing fees.

“This also raises serious questions about how ready councils across the capital are to enforce the Renters’ Rights Act, and about the adequacy of the upfront funding provided to them to support enforcement action.”

 

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