This edition goes out ahead of schedule because what happens tomorrow directly affects every private landlord in England.
Landlords whose properties are found to have serious defects will be liable for civil penalties of up to £40,000 under the new Housing Health and Safety Rating System coming into force on 23rd June. Landlord Studio
Tomorrow — Monday 23 June 2026 — the rules around how councils inspect your property and what they can fine you change significantly. This isn't a future proposal. It isn't Phase 2 or Phase 3. It happens in less than 24 hours.
What changes tomorrow
Under the new rules fines can be issued on the spot, with no compulsory requirement to give you any notice to fix the problem. Inspectors can levy fines of £7,000 per hazard — with civil penalties of up to £40,000 if you fail to remedy the issue or continue to breach the rules. NRLA
That's the critical change. Previously, if a council inspector found a Category 1 hazard in your property, they issued an improvement notice — giving you time to fix the problem before any penalty was applied.
From tomorrow, that grace period is gone. Under the new rules fines can be issued on the spot, with no compulsory requirement to give you any notice to fix the problem. NRLA
The new penalty structure
A breach may carry a civil penalty of up to £7,000, while an offence may carry a civil penalty of up to £40,000. Total Landlord Insurance
In plain English:
£7,000 — per Category 1 hazard found during inspection
£40,000 — if you fail to remedy the hazard after enforcement action or continue to breach
The maximum civil penalty for offences committed before 1 May 2026 is £30,000. The increase to £40,000 is part of the Renters' Rights Act changes now coming into force. Website
What is a Category 1 hazard?
Under the Renters' Rights Act, councils will be able to impose civil penalties of up to £7,000 where a Category 1 hazard exists, enforcement action has been taken, and the landlord could reasonably have addressed the issue. Banner Jones
Category 1 hazards are serious risks to tenant health or safety. The most common ones found in private rented properties include:
Damp and mould — the most frequently identified Category 1 hazard. Any visible mould growth or persistent damp that affects habitability is a serious risk.
Excess cold — properties that cannot maintain adequate heating, particularly affecting vulnerable tenants.
Electrical hazards — unsafe wiring, overloaded circuits, exposed conductors.
Falls on stairs — broken handrails, damaged steps, inadequate lighting on stairs.
Fire — inadequate fire detection, blocked escape routes, unsafe gas appliances.
Structural collapse — any element of the property at serious risk of collapse.
The new three-band system
The new system has three bands: High (score 1,000+), Medium (100-999), and Low (under 100). The Category 1 and Category 2 threshold stays the same (1,000), so "High" equals Category 1. Rightmove
The old A-J rating system is replaced by a simpler three-band approach. High means Category 1 — councils must take enforcement action. Medium and Low replace the old D through J bands and give councils discretion.
The threshold for mandatory enforcement hasn't changed — the new system just makes it clearer and easier for councils to apply. Which means more consistent enforcement.
What the guidance says about on-the-spot fines
The government has published draft guidance for local authorities, telling councils on-the-spot fines should be levied 'if, in the opinion of the local housing authority, it would have been reasonably practicable for that person to secure the removal of the hazard.' NRLA
In other words — if the inspector believes you knew about the hazard and could have fixed it — the fine can be applied immediately. No warning. No improvement notice first.
The guidance is clear that councils will be able to fine landlords £7,000 per Category One hazard identified, or can opt to impose a single £7,000 civil penalty for multiple breaches. It says a single fine would be appropriate where multiple hazards can be attributed to a single problem — for example Category One hazards of both 'excess cold' and 'damp and mould' caused by a broken boiler. NRLA
What hasn't changed
While the HHSRS has been updated to include the new penalties and hazard types reorganised to make rules easier to understand, it has not introduced any new standards per se, with no new Category One hazards added. NRLA
The standard itself hasn't changed. What's changed is the enforcement. The same hazards that were Category 1 yesterday remain Category 1 tomorrow — but the financial consequences of an inspector finding them are now significantly higher and can be applied immediately.
The rent repayment order risk
There is also a rent repayment order risk where a landlord commits certain housing-related offences. Failure to comply with an Improvement Notice is an offence that can support a rent repayment order. Total Landlord Insurance
If you receive an improvement notice and fail to comply — you don't just face the penalty. Your tenant can apply for a rent repayment order covering up to 12 months of rent on top of any fine.
What to do right now — today
The NRLA has urged landlords to carry out regular inspections of their properties to make sure they are hazard-free. Documenting these, and other safety checks, is also essential when it comes to proving landlords are taking their health and safety responsibilities seriously. Landlords should also be sure to log and action any reports or complaints from tenants when it comes to potential hazards and keep a record of any remedial work carried out. NRLA
Do this today before the changes take effect:
✅ Walk through every property mentally — is there any damp, mould, electrical concern, heating failure or structural issue you're aware of?
✅ Check your tenant communications — has any tenant reported a repair issue you haven't actioned? That correspondence is evidence.
✅ If a tenant has reported damp or mould — act today — contact your tenant, acknowledge the report and arrange inspection. Having a record of proactive response protects you.
✅ Document everything — photos, repair records, contractor invoices, tenant communications. Your evidence pack is your defence.
✅ If you're aware of a Category 1 hazard — instruct a contractor today. Having evidence of instruction is better than having evidence of inaction.
✅ Don't wait for an inspection to find problems — self-inspect or instruct a property inspection before the council does.
The bottom line
The revised framework aims to make enforcement more consistent, in a climate where many councils are already starting to skip warnings and move straight to penalties under the Renters' Rights Act. Shelter England
This is not a future risk. From tomorrow morning, a council inspector visiting your property can issue a £7,000 fine on the spot for each Category 1 hazard they find — with escalation to £40,000 for continued non-compliance.
The landlords who are at risk are those with known issues they haven't addressed, or properties carrying unresolved tenant complaints about damp, mould, heating or electrical concerns.
If your properties are maintained and hazard-free — you don't need to do anything fundamentally different. But you should know the rules changed.
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The Landlords Brief is published for UK landlords. Subscribe free at thelandlordsbrief.co.uk. This newsletter is for general information only and does not constitute legal or financial advice.
