THE PROPERTY FILTER TAKE
Chesterfield Borough Council issued two financial penalties totalling £8,652 to an unnamed letting agent under the Renters' Rights Act 2025, reduced to £7,354.20 for prompt payment.
In England, purporting to let an assured tenancy for a fixed term is now a breach in itself, and the council also penalised the agent after tenants who said they intended to complain were told to leave.
Consider checking every tenancy template your agent uses for fixed end dates, and reading your own council's published penalty policy, because each authority sets its own.
A six-month tenancy agreement was the first of two breaches that cost a Chesterfield letting agent a Renters' Rights Act fine. Chesterfield Borough Council issued two financial penalties totalling £8,652, reduced to £7,354.20 because they were paid within the specified timeframe, according to the council's announcement published on 1 October 2026. The agent had issued a six-month fixed-term tenancy, and the council has not named it.
What did the Chesterfield agent do wrong?
The case began with a complaint about housing standards. Tenants contacted the council's private housing team shortly after moving, according to the council's release (1 October 2026). During the investigation, officers found the agent had issued a six-month fixed-term tenancy agreement (a tenancy with a set end date). The council says fixed-term assured tenancies are prevented under the Renters' Rights Act 2025.
The second penalty is the one I would read twice. When the tenants said they intended to complain, the council found they were told to leave the property. They were then moved into alternative accommodation owned by a different, unknown landlord. The council's release does not state which provision the second penalty was issued under.
The council also served an improvement notice (a formal notice requiring work on a property) to bring the original property up to the required letting standard, according to the release. Our free property resources hub collects practical material on tenancy compliance.
Chesterfield's line is that it warned the market first. Councillor Jean Innes, the council's cabinet member for housing, said its private sector housing team "engaged with landlords and letting agents across the borough" before the law came into force.
What does the Renters' Rights Act say about fixed terms?
The rule sits in the Housing Act 1988, as amended by the Renters' Rights Act 2025. GOV.UK states the measures apply to assured tenancies in England. Under section 4A, terms of an assured tenancy are of no effect so far as they provide for a fixed term. The tenancy instead runs as a periodic tenancy (one that rolls on from one rent period to the next). legislation.gov.uk records section 4A as inserted from 1 May 2026 for specified purposes, by section 1 of the Renters' Rights Act 2025.
Writing an end date in is a breach on its own. Section 16E(1)(a) says a relevant person must not purport to let a dwelling-house on an assured tenancy for a fixed term. Under section 16I, a local housing authority may impose a financial penalty if satisfied beyond reasonable doubt, capped at £7,000 per penalty.
Agents are squarely in scope. GOV.UK's enforcement measures guide for landlords says people acting on a landlord's behalf can also be liable. It adds that only breaches after 1 May 2026 can be enforced against. For wider reading on letting strategy, see our hub on property investment strategies.
How do councils set the size of a fine?
Each council sets its own figure within national guidance. The Ministry of Housing, Communities and Local Government (MHCLG) published its statutory guidance on civil penalties on 13 November 2025. It gives a starting point of £4,000 for attempting to let for a fixed term. Councils then adjust for aggravating and mitigating factors.
The discount is a local choice too. The same guidance leaves prompt-payment discounts to each council, which the guidance says should not exceed one-third of the amount in the Final Notice. Chesterfield's reduction from £8,652 to £7,354.20 works out at £1,297.80, or exactly 15%.
Repeat behaviour costs far more. GOV.UK's enforcement guide treats a breach within five years of a previous offence as an offence in its own right. The same applies within five years of a financial penalty for a previous breach that has not been withdrawn. It can draw a financial penalty of up to £40,000 as an alternative to prosecution.
Separately from this case, licensing penalties are set locally too. The statutory guidance sets no starting point for breaches of HMO (house in multiple occupation) or selective licence conditions, because conditions may vary substantially between councils. Each authority will need to determine and publish its own starting levels, so it may be worth checking your licence against your council's policy. If you hold HMOs, our free HMO valuation calculator estimates an HMO's commercial value.
Key takeaways
Chesterfield Borough Council issued two penalties totalling £8,652 to a letting agent, reduced to £7,354.20 (a 15% discount) for payment within the specified timeframe.
In England, a fixed term written into an assured tenancy has no effect under section 4A of the Housing Act 1988, as amended by the Renters' Rights Act 2025.
Purporting to let on a fixed term breaches section 16E(1)(a), with a maximum penalty of £7,000 under section 16I.
A breach within five years of a previous offence, or of an unwithdrawn penalty for a previous breach, is itself an offence, with a penalty of up to £40,000 as an alternative to prosecution, according to GOV.UK.
Councils set their own penalty policies and prompt-payment discounts, up to one-third of the Final Notice amount under MHCLG guidance.
Frequently asked questions
Can a letting agent be fined under the Renters' Rights Act?
Can I still offer a six-month tenancy in England?
What is the maximum fine for issuing a fixed-term tenancy?
Can a penalty be appealed?
