A new investigation by the National Residential Landlords Association (NRLA) has revealed something that should concern every landlord in England.
Councils are collecting just 25% of the fines issued to rogue landlords.
That statistic alone should change how every professional landlord thinks about compliance risk. It’s staggering.
Because when enforcement becomes about raising revenue, councils will inevitably focus on those who actually pay.
And that means you.
The Data: £30 Million Issued – Just £7.5 Million Collected
The NRLA investigation, based on Freedom of Information requests sent to 285 English councils, found that between 2023/24 and 2024/25:
- Nearly £30 million in civil penalties were issued to landlords
- Only £7.5 million was actually collected
- Around 3,700 penalties were issued in total
In simple terms:
Councils collected just 25% of the fines they issued.
That means roughly £22 million in penalties went unpaid.
The narrative that enforcement is primarily about targeting rogue landlords does not hold up well when you look at the outcomes.
Why Rogue Landlords Rarely Pay
This is not particularly surprising.
The landlords who operate outside the rules often:
- Disappear
- Dissolve companies
- Ignore enforcement
- Challenge penalties through lengthy appeals
- Or simply never pay
These are the same operators who already ignore licensing rules, safety requirements and tenant protections.
If they were concerned about compliance, they wouldn’t be rogue landlords in the first place.
The Problem for Councils: Enforcement Is Expensive
Local authorities rely heavily on licensing schemes and civil penalties to fund enforcement activity.
But when 75% of fines go uncollected, that creates a major funding problem.
And with the Renters’ Rights Act increasing maximum civil penalties from £7,000 to £40,000, the financial incentives become even stronger.
Councils need revenue to fund enforcement teams.
Which raises an obvious question.
Who Is More Likely to Pay a £40,000 Fine?
Let’s apply basic business logic.
If a council issues a civil penalty, who is more likely to pay?
A rogue landlord who ignores the law?
Or
A professional landlord who runs their portfolio properly and wants to protect it?
The answer is obvious.
Responsible landlords pay 100% of the time.
Rogue landlords pay 25% of the time.
From a revenue perspective, enforcement teams know exactly where the money is.
The Real Risk Facing Good Landlords
This is why the compliance landscape is changing.
Historically many landlords treated compliance as a box-ticking exercise.
But under the Renters’ Rights Act, enforcement is becoming far more aggressive and penalties significantly higher.
And crucially:
It is no longer just about what you do.
It is about what you can prove.
If you cannot demonstrate compliance with a clear audit trail, you are exposed.
Licensing Is the Biggest Trap
Licensing remains one of the most common areas where landlords get caught out.
That includes:
- Selective licensing schemes
- Additional HMO licensing
- Local authority scheme expansions
- Missed renewals
- Properties moving into licensing areas without landlords realising
These issues often lead to:
- Civil penalties
- Rent Repayment Orders
- Prosecution
- £40,000 fines under the new regime
And importantly — these cases frequently involve otherwise responsible landlords.
Why Compliance Systems Now Matter
The reality is that the regulatory environment has changed.
Professional landlords now need:
- Verified compliance records
- Licensing monitoring
- Documented audit trails
- Structured processes
- Ongoing regulatory monitoring
Because when enforcement increases, manual systems and spreadsheets are no longer enough.
Compliance Is Now a Business Decision
Landlords now face a simple calculation.
Do you manage compliance yourself and risk:
- Licensing breaches
- Civil penalties
- Rent Repayment Orders
- Fines up to £40,000
Or do you invest in structured compliance support?
That is exactly why services like Licence Pro and Compliance Shield exist.
For £80 per month, landlords can put professional systems in place that:
- Monitor licensing requirements
- Track compliance obligations
- Maintain a verified audit trail
- Protect against avoidable regulatory breaches
In an environment where a single mistake could cost tens of thousands of pounds, the decision becomes fairly straightforward.
The Bottom Line
The NRLA investigation exposes a fundamental problem.
The landlords the system is designed to catch rarely pay the fines.
But responsible landlords do.
Which means the compliance burden is increasingly falling on the very landlords who are already trying to do the right thing.
And that is exactly why compliance support has never been more important.
If you want to protect your portfolio from avoidable licensing fines, learn more about Licence Pro. If you want protection from the Renters Rights Act then learn more about Compliance Shield.
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