UK Increases Housing Offence Penalties to £40,000

UK New Legislation

Published May 1st, 2026

Detected March 21st, 2026

Summary

The UK Secretary of State has increased the maximum financial penalty for certain housing offences and breach of banning orders in England from £30,000 to £40,000. These changes, made through the Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026, come into effect on May 1st, 2026.

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What changed

The Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026 amend the Housing Act 2004 and the Housing and Planning Act 2016 to raise the maximum financial penalty for specific housing offences and breaches of banning orders from £30,000 to £40,000. These amendments are made by the Secretary of State and are based on powers conferred by sections 249A(8) and 250(2)(b) of the Housing Act 2004, and sections 23(9) and 214(6)(a) of the Housing and Planning Act 2016.

Regulated entities, particularly those involved in housing management and property rentals in England and Wales, must be aware of the increased penalty cap. The new penalties apply to conduct occurring on or after May 1st, 2026. Compliance officers should ensure that internal policies and procedures reflect the updated maximum penalty amounts to avoid potential financial repercussions for housing offences and breaches of banning orders.

What to do next

Update internal policies to reflect the increased maximum penalty of £40,000 for housing offences and breach of banning orders.
Ensure all housing-related conduct on or after May 1st, 2026, is assessed against the new penalty limits.

Penalties

Maximum penalty increased from £30,000 to £40,000 for certain housing offences and breach of banning orders.

Source document (simplified)

Status:

This is the original version (as it was originally made). This item of legislation is currently only available in its original format.

Statutory Instruments

2026 No. 319

HOUSING, ENGLAND

The Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026

Made

18th March 2026

Laid before Parliament

20th March 2026

Coming into force

1st May 2026

The Secretary of State makes these Regulations in exercise of the powers conferred by sections 249A(8) and 250(2)(b) of the Housing Act 2004(1) and sections 23(9) and 214(6)(a) of the Housing and Planning Act 2016(2).

Citation, commencement and extent

—(1) These Regulations may be cited as the Financial Penalties (Housing Offences and Breach of Banning Orders) Regulations 2026.

(2) These Regulations come into force on 1st May 2026.

(3) These Regulations extend to England and Wales.

Amendment to section 249A of the Housing Act 2004

In section 249A(4) of the Housing Act 2004 (financial penalties for certain housing offences in England), for “£30,000” substitute “£40,000”.

Amendment to section 23 of the Housing and Planning Act 2016

In section 23(5) of the Housing and Planning Act 2016 (financial penalty for breach of banning order), for “£30,000” substitute “£40,000”.

Transitional provision

The amendments made by regulations 2 and 3 do not apply where the conduct amounting to the offence occurred before the coming into the force of these Regulations.

Signed by authority of the Secretary of State for Housing, Communities and Local Government

Matthew Pennycook

Minister of State

Ministry of Housing, Communities and Local Government

18th March 2026

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Housing Act 2004 (c. 34) and the Housing and Planning Act 2016 (c. 22) to increase the maximum penalty which may be imposed for certain housing offences and breach of banning orders under section 249A(1) of the Housing Act 2004 and section 23(1) of the Housing and Planning Act 2016.

A full impact assessment has not been produced for this instrument as no significant impact on the private, voluntary or public sector is foreseen.

(1) 2004 c. 34; section 249A was inserted by paragraph 7 of Schedule 9 to the Housing and Planning Act 2016 (c. 22).

(2) 2016 c. 22.

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Named provisions

Citation, commencement and extent Amendment to section 249A of the Housing Act 2004 Amendment to section 23 of the Housing and Planning Act 2016 Transitional provision