Council Fines for Damp: What Letting Agents Actually Face

Councils aren't sending warning letters anymore. They're sending invoices.

Since enforcement powers expanded on 27 December 2025, local authorities across England have been issuing civil penalties for damp and mould violations at record rates. The question isn't whether councils will fine you—it's how much and how fast.

Here's what the numbers actually look like, how fines are calculated, and what triggers council enforcement in the first place.

The Fine Structure Explained

Council fines for damp and mould fall under two main frameworks: the Housing Health and Safety Rating System (HHSRS) and civil penalty provisions under the Housing and Planning Act 2016.

Here's what you're looking at:

Violation Type	Fine Range	Typical Amount
HHSRS Category 1 hazard (first offence)	£5,000 - £30,000	£7,000 - £12,000
HHSRS Category 2 hazard	£500 - £5,000	£1,500 - £3,000
Failure to comply with improvement notice	Up to £30,000	£10,000 - £20,000
Repeat offences	Up to £30,000	Often maximum
Prosecution (magistrates' court)	Unlimited	£5,000 - £50,000+

The numbers that matter: most first-time damp violations result in fines between £7,000 and £12,000. But if you ignore an improvement notice or have previous violations on record, expect £20,000+.

How Councils Calculate Fines

Here's something most agencies don't realise: civil penalties aren't arbitrary. Councils follow published matrices—actual spreadsheets—that score offences across several factors.

The Scoring Factors

1. Culpability (How blameworthy are you?)

• Deliberate breach: Highest score
• Reckless: High score
• Negligent: Medium score
• Low culpability: Lowest score

Knowing about damp for six months and doing nothing? That's deliberate. Getting caught out by a fast-developing issue? That's lower culpability.

2. Seriousness of Harm

• Level A (high risk of serious harm): Highest score
• Level B (medium risk): Medium score
• Level C (low risk): Lowest score

Damp in a child's bedroom affecting respiratory health scores higher than cosmetic mould in a utility room.

3. Track Record

• Previous convictions or penalties: Increases fine
• Clean record: Reduces fine

4. Financial Means

• Portfolio landlords and agencies: Higher fines
• Small landlords: May be reduced

A letting agency managing 200 properties will face higher penalties than a landlord with one buy-to-let. Councils adjust for ability to pay.

Real Example: How a £8,500 Fine Was Calculated

One West Midlands agency received an £8,500 civil penalty for Category 1 damp. Here's how the council broke it down:

• Base starting point for Category 1: £10,000
• Culpability (negligent—knew about issue for 3 months): +£2,000
• Harm (tenant with asthma, child in household): +£1,500
• Track record (first offence, cooperated with investigation): -£3,000
• Financial circumstances (medium-sized agency): -£2,000
• Final penalty: £8,500

The council's matrix was public—the agency could see exactly why they were fined that amount. Most councils publish their penalty policies. If yours doesn't, request it.

What Triggers Council Enforcement

Councils don't go looking for damp violations. They respond to complaints. Understanding what triggers action helps you avoid it.

The Complaint Pathways

Tenant complaints direct to council: The most common trigger. A tenant calls environmental health, describes damp and mould, and requests an inspection.

Housing Ombudsman referrals: If a tenant complains to the Ombudsman and the case involves hazards, it often gets referred to the local council for enforcement.

Routine inspections: HMO licensing inspections, selective licensing checks, or proactive housing standards visits can uncover damp issues you didn't know about.

Awaab's Law notifications: Under the new framework, certain complaints automatically trigger council involvement.

What Happens After a Complaint

Here's the typical enforcement timeline:

1. Complaint received: Council logs the case
2. Initial assessment (1-5 days): Officer reviews complaint, may contact tenant
3. Inspection scheduled (5-15 days): Environmental health officer visits property
4. HHSRS assessment: Officer scores hazards using the rating system
5. Decision point: Improvement notice, hazard awareness notice, or civil penalty

If the council finds a Category 1 hazard, they must take action. It's not discretionary. The only question is which enforcement tool they use.

Category 1 vs Category 2: Why It Matters

The HHSRS classifies hazards into two categories based on risk scores. The category determines your exposure.

Category 1 Hazards

Score of 1,000 or higher. Council must take enforcement action.

For damp, this typically means:

• Extensive mould covering multiple surfaces
• Penetrating damp causing structural damage
• Damp affecting bedrooms or living areas
• Vulnerable occupants (children, elderly, respiratory conditions)

Category 1 = mandatory enforcement = likely fine.

Category 2 Hazards

Score below 1,000. Council may take action but isn't required to.

For damp, this might be:

• Localised condensation in bathroom
• Minor mould in isolated areas
• Damp that doesn't affect living spaces

Category 2 = warning letter or improvement notice, less likely to result in immediate fine.

Here's the catch: the line between categories isn't always obvious. That "minor" bathroom mould you dismissed? It can score as Category 1 if the occupant has asthma. We've seen it happen.

The 2025 Enforcement Shift

December 27, 2025 changed the game. New enforcement powers under the Renters Reform Act gave councils:

• Faster penalty processes: Civil penalties can be issued without prosecution
• Higher fine ceilings: Maximum penalties increased
• Clearer guidance: Updated HHSRS operating guidance specifically addresses damp
• More resources: Central government funding for council enforcement teams

Several councils—Manchester, Birmingham, Liverpool, Bristol—hired additional housing enforcement officers in late 2025 specifically to handle increased caseloads.

The result? Enforcement that was theoretical is now routine.

How to Avoid Council Fines

Prevention beats response. Here's what actually works.

1. Respond to Damp Reports Within 48 Hours

Not 10 days. Not a week. 48 hours.

Why? Because tenants who feel ignored call councils. Tenants who feel heard wait for you to fix it.

A same-day acknowledgement and next-day inspection prevents most council complaints. The tenant knows you're taking it seriously.

2. Document Everything

If you can't prove you responded, you didn't respond.

For every damp report, log:

• Date and time you became aware
• Date and time you inspected
• Timestamped photos of the property
• Severity assessment
• Remedial action plan
• Date repairs completed
• Tenant confirmation

When the council asks—and they will ask—hand them a complete file. Good documentation has saved agencies from fines even when violations occurred.

3. Fix the Root Cause

Treating mould without fixing the underlying damp is pointless. The mould returns, the tenant complains again, and now you have a repeat offence on record.

Root causes include:

• Inadequate ventilation
• Leaking pipes or roofs
• Rising damp from failed DPC
• Cold bridging at external walls
• Blocked gutters causing penetrating damp

A £2,000 ventilation upgrade is cheaper than a £10,000 fine.

4. Inspect Proactively

Don't wait for complaints. Build damp checks into your routine property visits.

Quarterly inspections should include:

• Check window frames for condensation
• Look behind furniture on external walls
• Check bathroom and kitchen extraction
• Inspect roof spaces and loft areas
• Review tenant usage (drying clothes indoors, heating patterns)

Finding damp before tenants report it means fixing it before councils get involved.

5. Know Your Local Council's Approach

Enforcement varies by area. Some councils issue warnings first. Others go straight to civil penalties.

Request your council's:

• Civil penalty policy
• Housing enforcement policy
• HHSRS operating procedures

Understanding their approach helps you respond appropriately when issues arise.

What to Do If You Receive an Improvement Notice

An improvement notice isn't a fine—but ignoring it leads to one.

Step 1: Read the deadline carefully. Most improvement notices give 28 days to complete works. Some give less for serious hazards.

Step 2: Respond in writing immediately. Acknowledge receipt, confirm you understand the requirements, provide your remediation plan.

Step 3: Complete the works before the deadline. Not on the deadline—before it. Allow buffer time for unexpected issues.

Step 4: Request a re-inspection. Once works are complete, ask the council to confirm compliance. Get it in writing.

Step 5: Keep all evidence. Invoices, photos, contractor certifications, tenant sign-offs. You may need these years later.

Failure to comply with an improvement notice is a separate offence with its own fine—up to £30,000 on top of any penalty for the original hazard.

When to Appeal

You can appeal civil penalties to the First-tier Tribunal within 28 days. But appeals aren't free and success isn't guaranteed.

Consider appealing if:

• The council made procedural errors
• The hazard assessment was incorrect
• Your circumstances weren't properly considered
• The penalty amount is disproportionate

Don't appeal just because:

• You disagree with the law
• You think £10,000 is too much
• You fixed the problem afterward

Tribunals often uphold council penalties. Bluntly: if you appeal and lose, you've burned time and legal fees for nothing. Pick your battles.

The Bottom Line

Council fines for damp aren't edge cases anymore. They're routine enforcement.

The maths is simple:

• Fix damp proactively: £500 - £3,000 in repairs
• Get caught by council: £7,000 - £12,000 fine plus repair costs
• Ignore improvement notice: £20,000+ in penalties

The agencies getting fined aren't the ones who miss problems entirely. They're the ones who know about issues and respond too slowly.

Speed matters. Documentation matters. Root cause fixes matter.

Get ahead of it, or the council will get ahead of you.

For a complete breakdown of response timeframes and documentation requirements, see our Complete Guide to Awaab's Law.

FAQs

How much can councils fine landlords for damp?

Civil penalties for damp violations range from £5,000 to £30,000 depending on severity, culpability, and track record. First-time Category 1 hazards typically result in fines between £7,000 and £12,000.

What is a Category 1 damp hazard?

Under HHSRS, Category 1 hazards score 1,000 or higher and require mandatory council enforcement. For damp, this usually means extensive mould, penetrating damp affecting living areas, or conditions affecting vulnerable occupants.

Can I appeal a council damp fine?

Yes, you can appeal civil penalties to the First-tier Tribunal within 28 days. However, tribunals often uphold council penalties. Appeals are most successful when councils made procedural errors.

How long do I have to fix damp after an improvement notice?

Most improvement notices give 28 days to complete remedial works, though serious hazards may have shorter deadlines. Failure to comply is a separate offence with fines up to £30,000.

Do councils fine for all damp problems?

No. Category 2 hazards (lower risk) may receive warning letters or hazard awareness notices rather than fines. However, councils must take enforcement action for Category 1 hazards.

Key Takeaways

• Council fines for damp typically range from £7,000 to £12,000 for first offences
• Category 1 hazards require mandatory enforcement—councils have no discretion
• Fines are calculated using matrices scoring culpability, harm, track record, and financial means
• December 2025 enforcement powers made civil penalties faster and more common
• 48-hour response times to tenant reports prevent most council complaints
• Documentation quality can be the difference between a fine and a warning
• Improvement notice non-compliance carries additional fines up to £30,000

Guide

The Complete Awaab's Law Guide

Everything you need to know about deadlines, documentation, and compliance.