The Renters’ Rights Act 2025 (Commencement No. 3) Regulations 2026 (the Regulations), made on 16 June 2026, came into force on 22 June 2026, introducing new financial penalty powers for local authorities in relation to category 1 hazards under the Housing Act 2004 (the 2004 Act).

These provisions form part of the ongoing implementation of the Renters’ Rights Act 2025 (the 2025 Act) and represent an important development in local authority enforcement powers.

What has changed?

The Regulations bring into force limited provisions of the 2025 Act focused specifically on category 1 hazards.

Local authorities should note that:

• the new powers are only commenced in relation to category 1 hazards;
• they are not yet in force for type 1 requirements, which are requirements under regulations made under section 2A of the 2004 Act.

New financial penalty powers

The key change is the insertion of section 6A into the 2004 Act (under paragraph 6 of Schedule 4 to the 2025 Act).

This gives local authorities the power to impose a civil penalty of up to £7,000 where:

• a property constitutes qualifying residential premises; and
• in the authority’s opinion, it would have been reasonably practicable for the relevant responsible person to remove a category 1 hazard.

This introduces a direct financial sanction alongside existing enforcement tools, strengthening the response available where serious hazards are not addressed.

Procedure and appeals

The Regulations also bring into force Schedule A1 to the 2004 Act (under paragraph 34 of Schedule 4 to the 2025 Act), which sets out:

• the procedure for imposing financial penalties;
• rights of appeal;
• enforcement of penalties; and
• how authorities must apply penalty income.

This aligns the new regime with existing civil penalty frameworks across housing enforcement.

Other changes

The Regulations include a minor amendment to the Tenant Fees Act 2019, enabling local authorities to use penalty income more flexibly, including in enforcement activity relating to superior landlords.

What should local authorities do now?

Local authorities should ensure they are prepared for the changes to their 2004 Act enforcement regimes by:

• updating enforcement policies and procedures to reflect the availability of financial penalties;
• developing an approach to assessing “reasonable practicability”;
• ensuring robust evidence gathering and record-keeping; and
• considering how these powers will sit alongside the wider Health and Safety Rating System regime and enforcement activity.

These changes are targeted but significant, signalling a continued shift towards financial penalties as a key enforcement tool and an increased focus on tackling the most serious housing hazards.

For more information or advice on what the 2025 Act means for housing enforcement, please get in touch.