Civil penalty notice

A civil penalty notice is a financial penalty that a local housing authority can impose on a landlord or agent instead of prosecuting in the magistrates’ court for certain housing offences. It is used for breaches such as operating a licensable HMO without a licence, serious management failures, harassment or illegal eviction, and some Renters’ Rights Act related offences. For example failing to join the PRS Database or Ombudsman, or taking prohibited payments.

From a landlord’s perspective, a civil penalty notice is not a slap on the wrist. Councils can impose penalties per offence, often up to tens of thousands of pounds, taking into account seriousness, previous history, harm to tenants and whether there has been cooperation or obstruction. You usually have a right to make representations and, if confirmed, to appeal to the First-tier Tribunal, but strict time limits apply.

Civil penalties can also be used as evidence when deciding whether to issue banning orders, enter your details on rogue landlord databases, restrict use of certain possession grounds, or pursue rent repayment orders.

Professional landlords minimise the risk of civil penalties by understanding local licensing schemes, keeping up with Renters’ Rights Act duties, responding promptly to council correspondence, and fixing issues quickly and thoroughly.

Also see our landlord blog articles.