The Labour government has now made its position very clear, and it has done so with fine levels so extreme they make a mockery of criminal sentencing.

The new penalties revealed by Property118 show that the Renters’ Rights Act is not about “levelling the playing field” between landlords and tenants. Instead, they reveal a system that treats landlords as a source of revenue, not as housing providers.

When the fines were first published, they read less like regulation and more like punishment designed to ensure nobody dares step out of line again.

For example, landlords who repeatedly fail to register their personal details on the new landlord database could face a £40,000 penalty. On top of that, their personal information would be publicly accessible.

This issue was also highlighted by The Times, which noted that repeated non-compliance could even result in criminal prosecution.

This raises an obvious question. Why is an administrative mistake in the private rented sector treated as a greater public danger than offences such as dangerous driving, assault in some cases, or corporate negligence?

Landlords on the Property118 forum have been quick to point out that the statutory maximum fine for driving at 100mph in a 30mph zone is £1,000.

Yet failing to register your name and address on a database could now cost forty times that amount.

If this is the response to resistance over one landlord register, it raises concerns about what might happen to those who resist Labour’s wider Digital ID plans.

Councils Keep the Cash

The government insists these penalties are proportionate. But proportionate to what?

Councils already have a history of inconsistent enforcement and, in some cases, aggressive behaviour towards landlords.

Under selective licensing, civil penalties have been used by some councils to plug budget gaps, with the revenue remaining at local level.

Giving those same councils a new set of fines reaching £35,000 or more, while allowing them to keep the money, creates serious concern.

The RRA guidance does state, right at the very bottom, that councils can retain funds for enforcement and must pass on any unused money to central government.

Few landlords believe that will happen in practice.

Can Landlords Trust Councils?

There is little reason for landlords to trust councils to apply these powers fairly. Recent experience does not inspire confidence.

Many landlords have already received disproportionate penalties for minor paperwork errors.

Soon, councils will also gain a statutory right to enter rental properties from Christmas.

It is difficult to believe this will be exercised with restraint.

There are growing concerns that councils will carry out inspections in search of faults, particularly when they now have a strong financial incentive to do so.

“Landlords Have Nothing to Fear”

Ministers frequently claim that good landlords have nothing to fear and that the RRA is not intended to push landlords out of the private rented sector.

That claim is hard to accept.

A landlord hit with a £35,000 penalty is unlikely to recover financially. In most cases, they will sell the property.

That reduces housing supply and pushes rents higher. The so-called “bad landlords” may be removed, but criminal landlords are unlikely to be affected.

This situation is deeply concerning.

Some landlords reading this may believe these warnings are exaggerated. But even a £12,000 penalty for failing to supply a Gas Safety Certificate would wipe out an entire year’s profit for many small landlords.

There is also a £25,000 penalty for re-letting too soon after using a possession ground.

An obvious question follows. Will Labour MPs who quietly move tenants out of their own rental properties and re-let them face the same penalties?

Or are these rules only enforced against those who rent homes professionally?

Affordability Tests and Discrimination

Consider the £6,000 fine for discrimination against applicants with children or those on benefits.

For years, landlords have been told to assess affordability. Mortgage lenders require it. Insurers require it.

Now councils may decide that assessing income against rent is discriminatory.

All it takes is one unhappy applicant and an enforcement officer under pressure to meet targets for a landlord to face serious penalties.

The uncomfortable truth is that these fines do not align with criminal penalties because this is not really about enforcement.

It is about political theatre.

If it were not, the same penalties would apply to councils and housing associations.

If that were the case, many local authorities would already be bankrupt.

The same councils threatening £20,000 fines for overcrowding routinely place families in temporary accommodation with shared kitchens, serious hazards, and no security of tenure.

Enforcement appears to operate in only one direction.

The sector is now reaching a breaking point. Landlords cannot operate where a single administrative mistake carries a penalty equal to a full year’s salary.

If the intention was to empty the private rented sector, this approach would achieve exactly that.

Excessive fines, intrusive inspections, and mandatory registers will not improve housing standards.

They will drive out decent landlords who provide safe homes.

And when rents rise sharply and housing choice disappears, tenants will rightly ask why.

At that point, Labour MPs will have to explain how a policy built on punishing landlords ended up punishing everyone.

AngelMoves Compliance Insight AngelMoves focuses on property compliance education, helping landlords and letting agents understand how to operate safely within an enforcement environment where penalties are now severe and mistakes are costly.

Many of the fines discussed in this article arise from administrative errors, incorrect processes, missing documents, or misunderstandings of updated legal requirements. AngelMoves helps landlords identify these risk points early, understand what compliance now requires in practice, and prepare documentation and advertising correctly to reduce exposure to fines, bans, and enforcement action.

In the current regulatory climate, good intentions are no longer enough. Compliance failures can now result in business-ending consequences. Education, preparation, and disciplined processes are essential for landlords who intend to remain in the sector.

SOURCE: https://www.property118.com/why-the-ridiculous-rra-fines-expose-labours-anti-landlord-agenda/