THE PROPERTY FILTER TAKE
The average fine issued to a managing agent has risen 14.46% since November 2025, reaching £7,300 per offence, as councils intensify licensing enforcement across England.
If you use a managing agent for any licensed property, you may still face a fine alongside them - joint liability is increasingly how councils pursue these cases.
You may wish to check your licence conditions and confirm your agent holds a valid copy of every active licence for properties they manage.
The average fine handed to a managing agent for rental licensing failures has risen 14.46% since November 2025, now sitting at £7,300 per offence, according to analysis by property compliance platform Kamma. London councils alone have levied almost £25 million in fines against landlords and letting agents, with licensing offences accounting for £14.85 million of that total - more than half. Enforcement is no longer occasional. It is systematic.
The Numbers Behind the Crackdown
Kamma's analysis of the Mayor of London's Rogue Landlord Database, reviewed in late May 2026, records £24,125,937 in fines across 4,229 cases involving 2,010 landlords and 1,226 properties. Licensing offences account for £14.85 million of that figure.
The scale of individual exposure has grown sharply. Under the Renters' Rights Act 2025, maximum civil penalties for licensing breaches now reach £40,000 per offence in England, up from the previous £30,000 cap. Tenants can also claim back up to 24 months of rent through a Rent Repayment Order (RRO - a tribunal order requiring a landlord or agent to repay rent where a housing offence has occurred), doubled from the previous 12-month ceiling.
What makes these numbers significant for portfolio investors is the joint liability angle. Haringey fined a landlord and their managing agent a combined £12,500 for a single unlicensed property in Tottenham. The council's position: if your agent manages the property day-to-day, both parties can be liable. Check your management agreement carefully - responsibility for maintaining licences is not always clearly assigned.
Our HMO valuation calculator can help you assess how compliance costs and void risk affect your HMO (House in Multiple Occupation) numbers if a licence problem forces a temporary void.
How Councils Are Building Enforcement Pipelines
Several London boroughs have moved well beyond reactive enforcement. Camden and Islington are running what one analysis describes as a "prosecutorial pipeline" - council convictions feed directly into near-automatic Rent Repayment Order applications by tenants. Tower Hamlets is funding free legal representation for tenants pursuing RROs. Smaller authorities are outsourcing enforcement entirely to firms such as Capita.
Waltham Forest leads London on total fines at £5.9 million from 714 cases. Camden has filed more cases than any other borough at 964, operating a high-volume model. Both represent deliberate strategic choices, not one-off campaigns.
The licensing scheme count itself tells the same story. In 2017, just two discretionary licensing schemes operated in England. By 2025 that had reached 149. Thirteen schemes launched or were confirmed in 2026 alone, bringing the national total to 162. A December 2024 regulatory change removed the requirement for councils to obtain prior Secretary of State approval for selective licensing schemes of any size. That administrative brake is now gone.
Recent scheme launches are worth tracking if you hold properties in these boroughs: Camden renewed borough-wide additional licensing in December 2025; Islington went borough-wide in February 2026; Hackney activated borough-wide additional licensing plus 17-ward selective licensing in May 2026; Croydon follows in September 2026. 88% of London is now covered by some form of property licensing.
Our business and systems resources include guidance on building a compliance tracking system if you manage multiple licensed properties.
What This Means Outside London
London dominates the published enforcement data, but the pattern is not London-exclusive. The December 2024 deregulation of selective licensing approvals gives every English council the same powers without the previous Whitehall bottleneck. Councils across England are watching London's revenue figures and many are building their own enforcement capacity.
The GOV.UK announcement of new £7,000 hazard fines, live from 22 June 2026 under new Housing Act 2004 powers, adds another enforcement layer on top of licensing. Councils now have multiple penalty routes open simultaneously. For landlords with HMOs subject to mandatory licensing (5+ occupants from 2+ households under the Housing Act 2004), additional licensing, or selective licensing, the cumulative exposure from overlapping schemes has grown considerably.
A useful first step is modelling your portfolio stress tolerance using our stress test calculator to understand how a fine of this magnitude would affect cash flow and debt serviceability on each asset.
For a broader look at how licensing risk fits into overall HMO strategy, see our property investment strategies guide.
Key Takeaways
The average fine for managing agents has risen 14.46% since November 2025, now reaching £7,300 per offence.
London councils have issued almost £25 million in total fines, with £14.85 million tied directly to licensing offences.
Maximum civil penalties in England have risen to £40,000 per offence under the Renters' Rights Act 2025.
Joint liability between landlord and managing agent is increasingly how councils pursue unlicensed property cases.
The national licensing scheme count has reached 162 - with 13 schemes launching in 2026 alone - following the removal of Secretary of State approval requirements.
Frequently Asked Questions
Can a council fine both me and my managing agent for the same unlicensed property? Yes, in England councils can pursue both the landlord and the managing agent under the Housing Act 2004 where responsibility for the property is shared. The Haringey case - a combined £12,500 fine - illustrates this approach.
Does the £40,000 maximum fine apply across England or only in London? The £40,000 maximum civil penalty under the Renters' Rights Act 2025 applies across England. Individual councils set their own penalty amounts up to that ceiling; London boroughs currently lead on average fine levels.
What is a Rent Repayment Order and when can a tenant apply? A Rent Repayment Order (RRO) is a tribunal order requiring a landlord or agent to repay rent paid during a period when a housing offence occurred, such as operating without a licence. Under the Renters' Rights Act 2025, tenants in England can now claim back up to 24 months of rent through an RRO, up from the previous 12-month limit.
Do the new hazard fines announced in June 2026 replace licensing penalties? No. The £7,000 hazard fines (live from 22 June 2026) are a separate enforcement power for serious property hazards. Councils can apply licensing penalties and hazard fines simultaneously where a property has multiple compliance failures.
The average fine handed to a managing agent for rental licensing failures has risen 14.46% since November 2025, now sitting at £7,300 per offence, according to analysis by property compliance platform Kamma. London councils alone have levied almost £25 million in fines against landlords and letting agents, with licensing offences accounting for £14.85 million of that total - more than half. Enforcement is no longer occasional. It is systematic.
The Numbers Behind the Crackdown
Kamma's analysis of the Mayor of London's Rogue Landlord Database, reviewed in late May 2026, records £24,125,937 in fines across 4,229 cases involving 2,010 landlords and 1,226 properties. Licensing offences account for £14.85 million of that figure.
The scale of individual exposure has grown sharply. Under the Renters' Rights Act 2025, maximum civil penalties for licensing breaches now reach £40,000 per offence in England, up from the previous £30,000 cap. Tenants can also claim back up to 24 months of rent through a Rent Repayment Order (RRO - a tribunal order requiring a landlord or agent to repay rent where a housing offence has occurred), doubled from the previous 12-month ceiling.
What makes these numbers significant for portfolio investors is the joint liability angle. Haringey fined a landlord and their managing agent a combined £12,500 for a single unlicensed property in Tottenham. The council's position: if your agent manages the property day-to-day, both parties can be liable. Check your management agreement carefully - responsibility for maintaining licences is not always clearly assigned.
Our HMO valuation calculator can help you assess how compliance costs and void risk affect your HMO (House in Multiple Occupation) numbers if a licence problem forces a temporary void.
How Councils Are Building Enforcement Pipelines
Several London boroughs have moved well beyond reactive enforcement. Camden and Islington are running what one analysis describes as a "prosecutorial pipeline" - council convictions feed directly into near-automatic Rent Repayment Order applications by tenants. Tower Hamlets is funding free legal representation for tenants pursuing RROs. Smaller authorities are outsourcing enforcement entirely to firms such as Capita.
Waltham Forest leads London on total fines at £5.9 million from 714 cases. Camden has filed more cases than any other borough at 964, operating a high-volume model. Both represent deliberate strategic choices, not one-off campaigns.
The licensing scheme count itself tells the same story. In 2017, just two discretionary licensing schemes operated in England. By 2025 that had reached 149. Thirteen schemes launched or were confirmed in 2026 alone, bringing the national total to 162. A December 2024 regulatory change removed the requirement for councils to obtain prior Secretary of State approval for selective licensing schemes of any size. That administrative brake is now gone.
Recent scheme launches are worth tracking if you hold properties in these boroughs: Camden renewed borough-wide additional licensing in December 2025; Islington went borough-wide in February 2026; Hackney activated borough-wide additional licensing plus 17-ward selective licensing in May 2026; Croydon follows in September 2026. 88% of London is now covered by some form of property licensing.
Our business and systems resources include guidance on building a compliance tracking system if you manage multiple licensed properties.
What This Means Outside London
London dominates the published enforcement data, but the pattern is not London-exclusive. The December 2024 deregulation of selective licensing approvals gives every English council the same powers without the previous Whitehall bottleneck. Councils across England are watching London's revenue figures and many are building their own enforcement capacity.
The GOV.UK announcement of new £7,000 hazard fines, live from 22 June 2026 under new Housing Act 2004 powers, adds another enforcement layer on top of licensing. Councils now have multiple penalty routes open simultaneously. For landlords with HMOs subject to mandatory licensing (5+ occupants from 2+ households under the Housing Act 2004), additional licensing, or selective licensing, the cumulative exposure from overlapping schemes has grown considerably.
A useful first step is modelling your portfolio stress tolerance using our stress test calculator to understand how a fine of this magnitude would affect cash flow and debt serviceability on each asset.
For a broader look at how licensing risk fits into overall HMO strategy, see our property investment strategies guide.
Key Takeaways
The average fine for managing agents has risen 14.46% since November 2025, now reaching £7,300 per offence.
London councils have issued almost £25 million in total fines, with £14.85 million tied directly to licensing offences.
Maximum civil penalties in England have risen to £40,000 per offence under the Renters' Rights Act 2025.
Joint liability between landlord and managing agent is increasingly how councils pursue unlicensed property cases.
The national licensing scheme count has reached 162 - with 13 schemes launching in 2026 alone - following the removal of Secretary of State approval requirements.
Frequently Asked Questions
Can a council fine both me and my managing agent for the same unlicensed property? Yes, in England councils can pursue both the landlord and the managing agent under the Housing Act 2004 where responsibility for the property is shared. The Haringey case - a combined £12,500 fine - illustrates this approach.
Does the £40,000 maximum fine apply across England or only in London? The £40,000 maximum civil penalty under the Renters' Rights Act 2025 applies across England. Individual councils set their own penalty amounts up to that ceiling; London boroughs currently lead on average fine levels.
What is a Rent Repayment Order and when can a tenant apply? A Rent Repayment Order (RRO) is a tribunal order requiring a landlord or agent to repay rent paid during a period when a housing offence occurred, such as operating without a licence. Under the Renters' Rights Act 2025, tenants in England can now claim back up to 24 months of rent through an RRO, up from the previous 12-month limit.
Do the new hazard fines announced in June 2026 replace licensing penalties? No. The £7,000 hazard fines (live from 22 June 2026) are a separate enforcement power for serious property hazards. Councils can apply licensing penalties and hazard fines simultaneously where a property has multiple compliance failures.
