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What is Civil penalty?
Last verified 31 October 2026
A civil penalty is a financial sanction a local housing authority can impose on a landlord as an alternative to prosecution for certain housing offences in England. It is not a criminal conviction.
Why it matters to landlords
Section 249A of the Housing Act covers failure to comply with an improvement notice, HMO licensing and licensing of other houses, failure to comply with an overcrowding notice, and breach of the HMO management regulations. The council must be satisfied beyond reasonable doubt that your conduct amounts to the offence. It cannot impose one if you have already been convicted for that conduct or criminal proceedings are pending, and you can face only one penalty for the same conduct under that section.
The process, appeals and enforcement are set out in a separate schedule. Disputes about financial penalties issued by local authorities go to the First-tier Tribunal (Property Chamber). A maximum is set in law. Because several different housing duties can lead here, the sensible approach is to keep a compliance file for each property and to reply to every council letter within its deadline, in writing.
Example
Nadia lets a five-bedroom HMO in Reading without a licence. The council writes to her, then proposes a civil penalty instead of prosecuting. Nadia replies within the deadline, applies for a licence, and sends her evidence of compliance so the council can take it into account.
How to Prove Your Rental Property Is Compliant →
Related terms
- Rent repayment order
- Banning order
- Mandatory HMO licensing
- Improvement notice
- First-tier Tribunal (Property Chamber)