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Chapter 1 of Part 4 of the Renters' Rights Act 2025 makes a number of enforcement changes that landlords and agents should be aware of. This article covers Chapter 1 of Part 4 of the Renters' Rights Act 2025 (sections 102 to 105).
Not every landlord now faces heavy enforcement. It is that, where compliance is handled through a company, agent, rent-to-rent operator or other intermediary, it will be harder to rely on paperwork alone if something goes wrong.
These changes are most relevant to HMOs, selective licensing, guaranteed rent and rent-to-rent arrangements, company lets, and portfolios where day-to-day compliance is delegated.
The main changes are:
Section 102 introduces Schedule 5, which sets out the procedure for certain financial penalties under the Act.
It applies to penalties linked to matters such as discrimination, rental bidding and rent adverts, redress scheme requirements, and the private rented sector database. It sets out the notice process, the right to make representations, appeals and recovery.
If a local authority proposes a penalty, there should be a formal notice and a chance to respond. Do not ignore it or assume it is just a warning letter.
Section 103 amends the rent repayment order provisions in the Housing and Planning Act 2016.
The main change is that an order can now cover up to two years' rent rather than 12 months. That does not mean every order will be for the full amount, but it does increase the risk where a licensing issue has gone unnoticed for some time.
Landlords should know whether a property is in an HMO or selective licensing area, whether the right person has applied for the licence, and whether a change in occupation or management has altered the position.
Section 103 also allows rent repayment orders to be served on superior landlords who have committed a relevant offence.
This matters in rent-to-rent, guaranteed-rent, company-let, and subletting arrangements. An owner may grant rights to an operator, who then lets to occupiers. The new wording allows the tribunal to look beyond the immediate landlord where the superior landlord committed the offence.
Owners are not automatically liable just because they own the property. But they should not assume that handing the property to an operator removes all enforcement risk.
Section 104 adds a new rule for company landlords.
Where a company landlord commits an offence that can lead to a rent repayment order, a director, manager, secretary or similar officer may also be treated as having committed the offence in some cases. For certain offences, neglect can be enough.
This is not automatic personal liability. But directors and managers who ignore known problems or fail to implement basic compliance systems may be exposed.
Section 105 widens the offences for unlicensed HMOs and unlicensed properties in selective licensing areas.
The offence can now extend beyond the immediate landlord or manager to include a superior landlord higher up the chain. This is particularly relevant where an owner lets to a company, agent or rent-to-rent operator, and that person then lets to occupiers.
The Act also makes clear that a clause stating that the operator must obtain the licence is not sufficient by itself. The real question will be what the landlord actually did: whether they checked the licensing position, asked for evidence, followed up and kept records.
The safest approach is to make compliance visible. Keep a clear record of the licensing position for each property, check what operators or agents are actually doing, and keep evidence of applications, licences, renewals and decisions.
A good contract still helps, but under the Renters' Rights Act 2025, it will not be enough on its own if the facts point the other way.