Landlords are facing a sharp new reality under the Renters Rights Act fines, with councils now able to issue penalties of up to £7,000 a month for rental discrimination. It’s a major shift in the private rented sector and one that has already caught the attention of buy-to-let owners who simply want to understand where the line now sits.
A tougher stance on rental discrimination
The Renters Rights Act became law last month and is being described by government as the biggest shake-up of renting in a generation. One of the headline changes is the clampdown on discrimination against tenants on benefits or families with children. According to the English Housing Survey, 38 percent of landlords said they were unwilling to rent to benefit claimants and 13 percent were unwilling to rent to families. These patterns are exactly what the new rules aim to challenge.
Under the guidance published last week, councils can now fine landlords up to £7,000 if they find evidence of discrimination. That fine can be repeated every 28 days if the issue isn’t resolved. Messages such as “No DSS” in adverts, blocking someone on benefits from viewing a property, or refusing to sign a tenancy agreement once a landlord discovers a tenant has children all fall under the definition of discriminatory conduct.
When the fines can escalate further
If a landlord breaches the rules again within five years, the penalty can jump to £14,000. That includes a fine of up to £7,000 for the new breach and an additional £7,000 because it is classed as a repeat offence. Even more striking is that landlords can still be fined if the offence was committed without their knowledge. So if a letting agent publishes an advert that excludes benefit claimants, the landlord is still responsible unless they can show that they took reasonable steps to prevent it.
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A landlord’s right to assess affordability
The government hasn’t removed the ability for landlords to assess whether a tenant can afford the rent. The Act allows landlords to decline an applicant if there is clear evidence that the rent would be unaffordable. What they cannot do is make blanket decisions based purely on benefit status or family circumstances.
Chris Norris from the National Residential Landlords Association summed it up neatly, saying the ban on discrimination should have “minimal impact on the vast majority of landlords who do not engage in such practices”. He added that the real barrier for many tenants remains the freeze on Local Housing Allowance, noting that “if ministers genuinely wish to help remove obstacles, the solution is obvious: unfreeze Local Housing Allowance rates”.
How landlords can stay compliant without the stress
For many landlords, the biggest change will be tightening up how properties are advertised and how enquiries are handled. The safest route is a clear paper trail showing that decisions are based on affordability checks rather than assumptions about benefit claimants or families. Letting agents should be briefed too, as an agent’s advert or actions can still expose the landlord to fines.
It’s worth remembering that this is arriving alongside wider reform. The Act also removes no-fault evictions from May, shifting the balance of the sector yet again. With so many changes landing at once, the calm, steady approach is usually best: understand the rules, document decisions and make sure any staff or agents working on your behalf know the boundaries.
Staying on top of legal responsibilities helps protect your investment, your tenants and your peace of mind. And in a market where compliance expectations keep rising, clarity is usually a landlord’s strongest ally.