Renters' Rights Act 2025 and Salford Landlord Licensing: What Changed

The Renters' Rights Act 2025 landed its core provisions on 1 May 2026, and it changed the stakes for every landlord in Salford who hasn't got their licensing in order. The penalty cap jumped, Section 21 evictions disappeared, and the entire tenancy framework shifted to periodic terms.

Civil Penalties Went Up to £40,000

Before the Renters' Rights Act, the maximum civil financial penalty for a licensing offence under Section 249A of the Housing Act 2004 was £30,000 per offence. Since 1 May 2026, the maximum for serious or repeat non-compliance is £40,000 per offence.

"Per offence" is the critical phrase. Operating an unlicensed property is an offence, and breaching a licence condition can be a separate offence. Separate offences can attract separate penalties, up to the statutory maximum for each one — before Rent Repayment Orders are even considered.

Salford City Council can impose these penalties directly as an alternative to prosecution, without first obtaining a Magistrates' Court conviction. The council must follow the statutory notice and representation process, and appeal rights apply.

Section 21 Is Gone

The Renters' Rights Act ended Section 21 "no-fault" evictions. Most existing assured shorthold tenancies automatically transitioned to periodic terms. Landlords now rely on reformed Section 8 grounds for possession — and here's where licensing intersects:

Before the Act, a landlord could not serve a valid Section 21 notice while a required licence was absent, unless a valid application or temporary exemption applied. From 1 May 2026, landlords cannot serve new Section 21 notices, although some possession proceedings started before that date can continue under transitional rules. Licensing remains a separate obligation: operating without a required licence can still lead to a civil penalty or a Rent Repayment Order, but the licensing issue is not itself a general Section 8 defence.

More practically, an unlicensed landlord is already exposed to a Rent Repayment Order. A tenant who knows they're in an unlicensed property now has even more leverage — the RRO claim of up to 24 months' rent (doubled from the previous 12-month limit under the Housing and Planning Act 2016, as expanded by the Renters' Rights Act) is a powerful countermeasure in any possession dispute.

Rent Repayment Orders Expanded

The Renters' Rights Act expanded RRO provisions significantly:

• Maximum recovery period: up to 24 months of gross rent (previously 12 months)
• No deductions: landlords cannot subtract mortgage costs, utilities, or management fees from an RRO award
• Who can apply: both tenants and Salford City Council can apply to the First-tier Tribunal

For a Salford selective licence property renting at £700 per month, a 24-month RRO means up to £16,800 returned to the tenant — on top of whatever civil penalty the council imposes separately.

The Information Notice Deadline

The Act also introduced mandatory tenant information notices. Landlords had to serve the prescribed information sheet on existing tenants by 31 May 2026. Missing this deadline is a separate compliance obligation that sits alongside licensing but doesn't replace it.

Annual Rent Increases Only

Under the Renters' Rights Act, rent increases are now limited to one per year via the Section 13 mechanism. Landlords must serve a formal notice proposing the increase, and tenants can refer it to the First-tier Tribunal if they consider it above market rate.

This doesn't directly affect licensing compliance, but it changes the economics of unlicensed operation. A landlord who's been operating without a licence can't use an above-market increase to offset penalty costs — a tenant can challenge the increase, and the First-tier Tribunal can determine the market rent.

What Salford Landlords Should Do

The combined effect of the Renters' Rights Act and Salford's licensing schemes is that non-compliance is more expensive and harder to escape than it has ever been. The practical response is straightforward:

1. Check whether your property needs a licence (selective areas, HMO thresholds)
2. Apply before the council contacts you — reactive applications after an enforcement letter carry no goodwill
3. Maintain every licence condition throughout the term — the £40,000 cap applies to condition breaches too, not just unlicensed operation

For the complete Salford licensing process — schemes, fees, portal steps, and post-grant conditions — our Salford licensing guide walks through everything.

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