Editor's note: This brief was summarised by The Property AI Newsroom from a report by Letting Agent Today. Read the original article for full details.

Letting Agents Urged to Review Licensing as Penalties Rise Under New Act

Propertymark is calling on letting agents and landlords to ensure they are up to date with expanding local licensing requirements. This comes as the Renters’ Rights Act 2025 increases the financial penalties for non-compliance.

The first phase of the Renters’ Rights Act has raised the maximum civil financial penalty for relevant Housing Act offences from £30,000 to £40,000. Offences covered include operating a House in Multiple Occupation (HMO) or other property without the required licence, as well as failing to comply with licence conditions.

At the same time, councils across England are consulting on new and expanded selective and additional licensing schemes. Article 4 Directions affecting HMOs are also under review in several areas.

Letting agents and inventory clerks are advised to stay informed about these changes to avoid the increased penalties now in force.