Almost six months after Phase 1 of the Renters' Rights Act 2025 came into force, enforcement is no longer a future concern. An agent has been fined for breaching the Act and councils across England are now publishing their enforcement policies, setting out exactly what they will be looking for and what breaches will cost landlords and letting agents.
For letting agents, the message is clear, a routine slip - error - omission - repeated across dozens of tenancies, for example, property details, a referencing question that has not been reviewed or a notice template that pre-dates 1st May 2026.
What Councils are looking for?
The Act created a two-tier penalty regime. Breaches, such as issuing fixed-term tenancies, ending agreements verbally or failing to provide tenants with the required written information may result in penalties of up to £7,000.00.
Council enforcement policies give a useful insight into priorities. A typical list of breaches attracting fines of up to £7,000.00 includes accepting offers above the advertised rent, encouraging rental bidding, asking for more than one month's rent in advance, failing to follow the correct legal process for increasing rent and using incorrect or invalid notices to try to end a tenancy.
Rental Discrimination is an area where letting agents could fall foul of the new rules, because the advert is usually written and published by them. Government guidance gives the example of a landlord asking a letting agent to place an advert stating ‘no children allowed’, resulting in a £5,000.00 penalty for breach of the RRA 2025 The guidance goes further stating that if the advert is still online 28 days later, the council can issue a further penalty for a continuous breach, and can do so every 28 days. Letting agents must understand that penalties can be issued to the landlord or anyone acting on their behalf.
What will Councils do?
Before imposing a financial penalty, the local housing authority must first serve a notice of intent. The landlord or agent then has 28 days to make written representations. If the council proceeds, it must serve a final notice, and the recipient may appeal to the First-tier Tribunal (Property Chamber) within 28 days of that final notice. Throughout this process, the council must be satisfied beyond reasonable doubt that the conduct, breach in question occurred. This is the criminal standard of proof, which means a well-documented defence can be tend deciding factor. Clear, up to date records are a letting agent's strongest protection - if a decision cannot be evidenced, it is difficult to defend.
A Letting Agent’s 3 Part Audit
The following checks can be completed in-house and repeated quarterly.
1. Adverts
Does every published advert state a specific rent, with no wording inviting offers the advertised rent?
Have all references to fixed terms or minimum terms been removed?
Is there any wording on the agency website or third-party portals, that excludes or discourages families with children or tenants receiving benefits?
Are withdrawn or let properties removed promptly from every platform, including older listings?
Is there a named person responsible for approving adverts before they go live?
2. Referencing and Offers
Is there a written policy explaining how competing applicants are assessed so that decisions are not driven by rental bidding?
Are employees trained to decline offers above the advertised rent, including offers volunteered by applicants?
Do application forms and referencing criteria assess affordability individually, rather than applying blanket exclusions?
Is rent in advance limited to what the law allows and is this reflected in every template and CRM systems?
Are reasons for declining an applicant kept on file and retained?
3. Notices and Tenancy Documents
Have all tenancy agreements and templates been updated in line with the RRA 2025 ?
Are rent increases issued using the correct statutory process?
Do possession notices use the current Section 8 grounds, wording and notice periods?
Is there a clear audit trail showing when and how each notice has been served?
Has the notice been checked before service?
Compliance Increases Confidence
A well-run agency should see these checks as a selling point. Landlords are increasingly aware that the penalties for non-compliance are real, and many will want reassurance that their agent has robust processes in place. Being able to demonstrate a documented, regular compliance audit is a powerful way to retain clients and win new ones.
GLM supports letting agents with training, guidance and practical resources to help with compliance under the Renters' Rights Act.
Visit guildofletting.com to find out more about our CPD courses, compliance resources and membership.