Letting Agents Sheffield

From 1 May 2026 the Renters Rights Act introduces a new enforcement framework that gives local authorities stronger powers and significantly higher financial penalties.

Understanding how breaches and offences are defined and how they’re enforced is essential for staying compliant and protecting investments.

Below we outline the key differences the risks landlords face and how the appeals process works.

Breaches vs offences: what’s the difference?

The Act separates non compliance into two levels:

  • Breaches – lower level issues with fines of up to £7,000
  • Offences – more serious or repeated non compliance with penalties of up to £40,000 as an alternative to prosecution

Only conduct linked to the new rules from 1 May 2026 onwards can be enforced under this framework.

What counts as a breach?

Breaches are often procedural or administrative errors but they can still be costly.

Examples include:

  • Advertising or issuing tenancies as fixed term instead of periodic
  • Ending a tenancy verbally or asking tenants to do so
  • Failing to provide required written notices or statements of terms
  • Not issuing existing tenants with the government information sheet after the Act changes
  • Serving a Section 8 notice when you don’t reasonably believe the ground will succeed
  • Attempting to end a tenancy using an invalid “notice to quit” or informal notice

These issues often come down to paperwork or process mistakes but penalties can still reach £7,000 so accuracy matters.

What is an invalid notice?

A notice to quit or purported notice of possession can include any written communication even texts or WhatsApp messages that:

  • States the tenancy must end by a certain date or
  • Claims to be a legal notice when it doesn’t meet statutory requirements

Informal or incorrectly served notices may expose landlords to penalties. Always follow the correct legal process.

What counts as an offence?

Offences are more serious and typically involve deliberate misuse of the rules or repeated non-compliance.

Examples include:

  • Reletting or remarketing within the 12 month restricted period after using certain possession grounds
  • Knowingly or recklessly relying on a possession ground that would not be upheld by the court
  • Repeated breaches within five years
  • Failing to remedy a breach more than 28 days after receiving a penalty

Penalties can reach £40,000, reflecting the higher level of risk.

When the 12-month restriction may not apply

The reletting restriction may not apply or may end early in certain circumstances such as:

  • You or a close family member moving in as a main residence
  • Granting or marketing a long lease (21+ years)
  • Possession being granted on a different legal ground

“Remarketing” includes advertising or instructing a letting agent.

How enforcement works

Local authorities are responsible for enforcement. They can issue fines to landlords, agents or anyone acting on a landlord’s behalf.

The process typically involves:

  • Evidence gathering
  • A notice of intent
  • A 28 day period to make written representations
  • A final decision and if applicable, a penalty notice

Authorities must be satisfied beyond reasonable doubt before issuing a penalty.

Appeals

Landlords can appeal a final notice to the First-tier Tribunal.

Appeals can challenge:

  • The decision itself
  • The amount of the fine

Appeals must be lodged within 28 days.

Staying compliant

Most penalties arise from avoidable administrative errors or using outdated processes. Keeping documentation accurate, following the correct legal steps and staying informed about the new framework will reduce risk and protect the business.

For further guidance refer to official government resources or landlord association support.

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The Horizon Group