Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
Letting Agent Fined Over £8,600 for Breaching Renters' Rights Act
A letting agent has been fined more than £8,600 for breaching the Renters' Rights Act after issuing a prohibited fixed-term tenancy and telling tenants to leave once they raised concerns about their property. Chesterfield Borough Council imposed two financial penalties totalling £8,652 following an investigation into the agent's conduct.
How the Case Unfolded
The case began when tenants complained to the council about the condition of their rented home shortly after moving in. During its investigation, the council found that the agent had issued a six-month fixed-term tenancy agreement, something now banned under the new legislation, which prohibits fixed-term assured tenancies.
The Renters' Rights Act 2025 came into force on 1 May 2026.
The council then imposed a second penalty after discovering that the agent had told the tenants to leave when they indicated they intended to complain. The tenants subsequently moved into alternative accommodation owned by a different landlord, whose identity was unknown.
Alongside the financial penalties, the council served an improvement notice requiring the original property to meet the necessary housing standards.
Reduced Payment After Early Settlement
While the penalties totalled £8,652, the agent paid a reduced amount of £7,354.20 after settling within the specified timeframe.
The local authority has not named the letting agency involved.
Council Warns Agents Over Compliance
Councillor Jean Innes, Chesterfield Borough Council's cabinet member for housing, said the authority had engaged with local landlords and agents before the legislation took effect.
Innes commented: "We are committed to putting our communities first and making sure renters have the protection they need."
"That's why before the new legislation came into force, our private sector housing team engaged with landlords and letting agents across the borough to make sure they understood the changes and what was expected of them," she added.
She continued: "This case demonstrates that we will take action where landlords and agents fail to comply with their duties. We also hope it serves as a reminder to letting agents across Chesterfield to ensure they fully understand the recent changes to the law and their responsibilities."
What This Means for Agents and Inventory Clerks
For letting agencies still adjusting to the post-May 2026 rules, the case highlights two clear enforcement risks: continuing to issue fixed-term agreements where they are prohibited, and taking steps against tenants who raise legitimate concerns about property conditions. With councils demonstrating willingness to impose multiple penalties per breach, ensuring documentation, notices and tenancy paperwork reflect current requirements should be a priority for every office handling lettings and inventories.
Source: Property Industry Eye