A property licence is easy to think of as another administrative task. Missing a licensing requirement can have consequences far beyond a late form or an unexpected fee.

In England, the maximum civil penalty for certain Housing Act offences is now £40,000. Operating a property without a required licence, or failing to comply with licence conditions, can fall within that enforcement framework.

For landlords with properties in several council areas, knowing which rules apply to each address is an essential part of managing the investment.

£40,000 is a maximum, rather than an automatic charge

Government guidance confirms that the increased maximum applies to relevant offences committed on or after 1 May 2026. It includes offences relating to HMO and selective licensing. Earlier offences remain subject to the relevant previous framework.

A council’s decision and the amount imposed depend on the case and applicable enforcement policy. Civil penalties are an alternative to prosecution for the same offence.

A licensing failure can also expose a landlord to a rent repayment order. Operating an unlicensed property can be a qualifying offence, with repayment of up to 24 months’ rent potentially available under the rules applying from 1 May 2026. The tribunal assesses the case; two years’ repayment is not automatic. Dates, the qualifying period and transitional rules matter.

Local proposals need watching too

As at 12 October 2026, Preston’s consultation on proposed selective licensing in the City Centre, St Matthew’s and Plungington wards has reached its published closing date of 11 October.

Burnley’s consultation is scheduled to run until 18 October. Its proposals concern redesignating Burnley Wood with Healey Wood and the Leyland Road area, and introducing a designation in the Lyndhurst Road area.

A proposal does not, by itself, create a new licensing duty. Landlords need to track the council’s decision, any confirmed boundaries and the date a designation takes effect.

Check the address and the conditions

When reviewing a property, establish which council is responsible and check its current licensing information. Scheme maps and street lists deserve attention: a general description of an area may be insufficient to establish whether a particular address is included.

Property use and occupancy can also affect the position. HMO licensing, selective licensing and planning controls need to be checked separately rather than treated as interchangeable.

Where a licence is required, record its expiry date and conditions. Obtaining it is only the beginning; the management arrangements need to support compliance throughout its term.

Keep evidence of applications, correspondence and any advice received. If the position is unclear, seek confirmation promptly rather than relying on what applied when the property was purchased.

Put compliance into everyday property management

A sensible property record brings licensing requirements together with inspections, safety documents and the work needed to meet conditions. It also identifies who is responsible for each next step.

At True North Property Partners, we help landlords keep track of the requirements affecting their properties. To discuss landlord compliance support and property management, call 01253 486 996 or email This email address is being protected from spambots. You need JavaScript enabled to view it..


Sources

  • GOV.UK: Civil penalties guidance
  • Norwich City Council: Rent repayment orders
  • Preston City Council: Selective licensing consultation
  • Burnley Council: Proposed selective licensing areas

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