The Complete Compliance Guide for Letting Agents 2026

Compliance chaos. That's what 60% of letting agents say is their biggest challenge in 2026.

Gas safety with unlimited fines. EICR deadlines that catch people out. Damp enforcement that ramps up daily. Right to Rent checks getting stricter. EPCs changing. Deposit protection still tripping agencies up.

Six compliance areas. Different deadlines. Different penalties. Different documentation requirements. And councils, the Home Office, and regulators all enforcing more aggressively than ever.

This guide covers all of it. Every requirement. Every deadline. Every fine you need to know about. Use it as your reference for 2026 compliance.

The Compliance Landscape in 2026

Before we dive into specifics, here's the overview. These are the six core compliance areas for UK letting agents, ranked by penalty severity.

Area	Maximum Fine	Enforcing Body	Key Change in 2025/26
Gas Safety	Unlimited	HSE	Enforcement up 23%
EICR	£30,000	Local councils	5-year renewals hitting
Damp/Mould (HHSRS)	£30,000	Local councils	December 27 powers
Right to Rent	£20,000	Home Office	Digital checks mandatory
Deposit Protection	3x deposit	Courts	No change, still catching agents
EPC	£5,000	Trading Standards	Minimum rating changes coming

Let's work through each one.

1. Gas Safety: The Unlimited Fine Risk

Gas safety carries the biggest potential penalty—unlimited fines under the Gas Safety (Installation and Use) Regulations 1998. And unlike other compliance areas, you can face criminal prosecution and imprisonment.

The Requirements

Annual Gas Safety Check

Every property with gas appliances or fittings must have an annual safety check by a Gas Safe registered engineer. The certificate (CP12) must be:

• Renewed annually (within 12 months of the previous check)
• Completed before a new tenant moves in
• Provided to tenants within 28 days of the check
• Kept on file for 2 years

What Gets Checked

The engineer must inspect:

• Gas pipework, fittings, and appliances
• Flues and ventilation
• Pressure and let-by testing
• Safe operation of all gas appliances

The CP12 Certificate

The Gas Safety Certificate (often called CP12) must include:

• Property address
• Engineer's Gas Safe registration number
• Date of inspection
• Appliances tested and results
• Any defects identified
• Engineer's signature

The Penalties

Criminal Penalties:

• Unlimited fine
• Up to 6 months imprisonment
• Corporate manslaughter charges possible in worst cases

Civil Penalties:

• Rent repayment orders
• Licensing implications in selective licensing areas
• Insurance invalidation

The Real Risk:

• HSE prosecuted 412 landlords in 2024/25
• Average fine: £8,500
• Highest fine: £1.3 million (multiple violations, fatality)

How to Stay Compliant

1. Book 10-11 Months in Advance Don't wait for the anniversary. Book 4-6 weeks before expiry. This gives you buffer time if appointments fall through.

2. Track Every Property Separately Different properties have different renewal dates. You need a system that tracks each one individually.

3. Use the 2-Month Rule If you complete the check within 2 months of expiry, the new certificate dates from the old expiry date, not the check date. This prevents "certificate drift."

4. Document Tenant Access Issues If tenants repeatedly refuse access, document every attempt. Three documented attempts with reasonable notice provides some defence—but only if documented properly.

5. Provide Certificates Proactively Don't wait to be asked. Provide certificates to tenants within 28 days of the check and at the start of any new tenancy.

For a comprehensive guide to gas safety requirements, read our Gas Safety Certificates guide.

2. EICR: The £30,000 Deadline

Electrical Installation Condition Reports (EICRs) became mandatory for private rentals in April 2021. Now, five years later, the first wave of renewals is hitting—and agencies that were late getting their initial reports are finding themselves overdue.

The Requirements

Initial and Renewal Inspections

• EICR required for all private rental properties
• Valid for 5 years (or less if the report specifies)
• Must be completed by a qualified electrician
• Any unsatisfactory report requires remediation within 28 days

What Gets Inspected

The inspection covers the fixed electrical installation:

• Consumer unit (fuse box)
• Wiring throughout the property
• Sockets and switches
• Light fittings and fixtures
• Any hardwired appliances

It doesn't cover portable appliances—that's a separate check (recommended but not legally required).

The Report Categories

EICRs use coding to indicate condition:

Code	Meaning	Action Required
C1	Danger present	Immediate action required
C2	Potentially dangerous	Urgent remediation required
C3	Improvement recommended	No legal requirement but advised
FI	Further investigation needed	Must investigate before signing off

An EICR with C1 or C2 codes is "unsatisfactory" and requires remediation within 28 days. You must then get written confirmation the work is done.

The Penalties

Civil Penalties:

• Up to £30,000 per property
• Issued by local councils
• Repeat offences attract higher fines

Remedial Action Orders: Councils can require you to commission work and recover costs from you.

Rent Repayment Orders: Tribunals can order repayment of up to 12 months' rent.

How to Stay Compliant

1. Know Your Renewal Dates Track every property's EICR expiry. If reports specify less than 5 years, use that date instead.

2. Schedule 8-12 Weeks Early Electricians are busy. Book well ahead of expiry to ensure completion in time.

3. Address Unsatisfactory Reports Immediately 28 days isn't long. The moment you receive an unsatisfactory report, book remediation work.

4. Keep Completion Evidence Get written confirmation that C1/C2 issues are resolved. This is a legal requirement, not just good practice.

5. Provide to Tenants Within 28 days of the report, provide a copy to existing tenants. Within 28 days of the start of a new tenancy, provide to new tenants.

3. Damp and Mould (HHSRS): The December 27 Enforcement

Damp and mould compliance has been the big story of 2025/26. The Housing Health and Safety Rating System (HHSRS) has always covered damp as one of 29 hazard categories—but December 27, 2025 gave councils new teeth.

The Requirements

HHSRS Hazard Categories

Damp and mould growth is one of 29 HHSRS hazards. When present at significant levels, it becomes either:

• Category 1: Serious hazard requiring mandatory council action
• Category 2: Hazard where councils have enforcement discretion

What Constitutes a Hazard

Factors councils consider:

• Extent of visible mould growth
• Location (bedrooms worse than storage)
• Whether the cause is property defects vs lifestyle
• Vulnerable occupants (children, elderly, immunocompromised)
• Health impacts reported

Response Expectations

While strict Awaab's Law timelines don't apply to private agents yet, councils expect:

• Investigation within 10 working days
• Written summary to tenant within 3 days of investigation
• Repairs based on severity (serious = 5-10 days, moderate = 2-4 weeks)

The Penalties

Civil Penalties:

• £5,000-£30,000 depending on severity and history
• Issued under Housing Act 2004

Improvement Notices: Requiring specific works within set timeframes

Emergency Remedial Action: Council does the work, charges you

Criminal Prosecution: For failure to comply with Improvement Notices—unlimited fines, potential imprisonment

The December 27, 2025 Powers

These powers changed enforcement dramatically:

1. Instant document demands: Councils can require your records with no notice period
2. Business premises entry: They can enter your office to seize records
3. Streamlined penalties: Easier process for issuing civil penalty notices
4. Obstruction offences: Failure to comply with requests is a separate offence

For detailed coverage of Housing Act enforcement, see our Housing Act Damp Enforcement guide.

For real enforcement data and fine information, see Council Fines for Damp.

4. Right to Rent: Digital Checks Required

Right to Rent checks have been mandatory since 2016, but 2025 brought significant changes. Digital checks are now the norm, and Home Office enforcement is increasing.

The Requirements

Before Every Tenancy

You must verify that every adult tenant has the right to rent in the UK. This applies to:

• All adult occupants (18+)
• Anyone listed on the tenancy agreement
• Any adult who will live at the property

What You Must Check

For British/Irish Citizens:

• Valid passport, or
• Birth certificate plus supporting ID

For Others:

• Valid passport with immigration status, or
• Biometric residence permit/card, or
• Home Office online share code verification

Digital Right to Rent Checks

Since April 2022, digital checks via the Home Office online service are required for:

• Biometric residence card holders
• Biometric residence permit holders
• Frontier worker permits
• Anyone with an eVisa

You cannot accept physical documents from these groups—you must use the online checking service.

The Penalties

Civil Penalties:

• Up to £20,000 per tenant (increased from £3,000)
• Per tenant, not per property

Criminal Prosecution: Where landlord/agent "knew or had reasonable cause to believe" the person didn't have the right to rent

Repeat Penalties: Second violations within 3 years attract higher fines

How to Stay Compliant

1. Check Before Occupation Complete all checks before the tenant moves in. Post-occupation checks don't provide a defence.

2. Use the Online Service For biometric documents, use https://www.gov.uk/view-right-to-rent. Don't accept physical documents when online checks are required.

3. Keep Records for the Tenancy Plus 2 Years You need records of what you checked and when, retained for the duration of tenancy plus 2 years.

4. Set Follow-Up Reminders If a tenant has time-limited permission, set reminders to re-verify before expiry.

5. Train Your Team Right to Rent mistakes often come from staff not knowing the rules. Regular training matters.

5. Deposit Protection: The 3x Penalty

Deposit protection rules haven't changed recently, but they still catch agents out. The penalties are significant—up to three times the deposit amount.

The Requirements

Protection Within 30 Days

All tenancy deposits must be protected in a government-approved scheme within 30 days of receipt. The three approved schemes are:

• Deposit Protection Service (DPS)
• MyDeposits
• Tenancy Deposit Scheme (TDS)

Prescribed Information

Within 30 days of protection, you must provide tenants with:

• Which scheme protects the deposit
• The scheme's contact details
• How to apply for release
• What happens if there's a dispute
• Information on alternative dispute resolution

What's Covered

This applies to:

• All assured shorthold tenancies
• Any money taken as "security for the tenant's obligations"
• Holding deposits (different rules but still regulated)

The Penalties

Financial Penalties:

• Tenant can claim 1-3x the deposit amount
• Plus return of the deposit itself
• Court determines the multiplier

Section 21 Issues:

• Cannot serve valid Section 21 notice if deposit wasn't protected properly
• Must return deposit before serving Section 21

Common Mistakes That Trigger Claims:

• Protected late (after 30 days)
• Wrong amount protected
• Prescribed information not provided
• Information provided late
• Information incomplete

How to Stay Compliant

1. Protect Immediately Don't wait for 30 days. Protect deposits within 24-48 hours of receipt.

2. Automate Prescribed Information Use templates that include all required information. Send immediately after protection.

3. Document Everything Keep proof of when the deposit was received, when it was protected, and when prescribed information was sent.

4. Update When Details Change If the scheme's contact details or terms change, you must re-serve the prescribed information.

5. Audit Regularly Check that all current deposits are protected and information is on file. Gaps emerge over time.

6. EPC: The £5,000 Fine

Energy Performance Certificates (EPCs) are the lowest-penalty compliance area, but changes are coming. The current minimum rating is E, but proposals exist to raise it to C.

The Requirements

Valid EPC Required

Every rental property needs a valid EPC:

• Valid for 10 years
• Must be minimum rating E (or have an exemption)
• Must be provided to prospective tenants
• Must be included in property advertisements

Minimum Rating

Currently, properties must achieve:

• Minimum rating E to be let
• Properties below E need improvement or exemption

Exemptions

Exemption categories include:

• All possible improvements made but still below E
• Cost of improvements exceeds £3,500
• Improvements would damage the property
• Wall insulation not recommended due to property type
• Consent refused (listed buildings, conservation areas)

Exemptions last 5 years and must be registered on the PRS Exemptions Register.

The Penalties

Civil Penalties:

• Up to £5,000
• Typically £2,000-£4,000 for first offences
• Issued by Trading Standards

Breakdown:

• Renting without valid EPC: up to £200
• Renting with sub-E rating without exemption: up to £2,000
• Providing false information on exemption register: up to £1,000
• Failure to comply with compliance notice: up to £2,000

What's Coming

The government has signalled intent to raise the minimum to C, potentially by 2028. While not yet law, agencies should:

• Identify properties currently rated D or E
• Start conversations with landlords about improvements
• Factor potential upgrade costs into management discussions

How to Stay Compliant

1. Check Expiry Dates EPCs last 10 years but energy ratings can drop on reassessment. Know when renewals are due.

2. Verify Ratings Before Marketing Don't rely on old records. Confirm the current rating before advertising any property.

3. Include in All Advertisements EPC ratings must appear in all property advertisements. This includes online listings.

4. Advise Landlords on Improvements If a property is D-rated, discuss improvement options. Better to prepare than scramble when rules change.

The Compliance Calendar: Key 2026 Dates

Month	What's Due	Action Required
Ongoing	Gas Safety renewals	Track monthly, book 4-6 weeks ahead
Ongoing	EICR renewals (5-year cycle hitting)	Track individual property dates
April	Right to Rent digital check anniversary	Review processes, ensure online checks used
Quarterly	Deposit protection audit	Verify all deposits protected with info provided
December	EPC rule consultation expected	Monitor government announcements

The Compliance Chaos Problem

Here's what makes compliance difficult in 2026: it's not one thing. It's six different things, with different deadlines, different documentation requirements, different enforcing bodies, and different penalty structures.

What Goes Wrong:

• Gas safety renewals fall through cracks
• EICR follow-up works don't get verified
• Damp complaints get handled verbally but not documented
• Right to Rent follow-ups for time-limited permissions forgotten
• Deposit prescribed information sent late or incomplete
• EPC ratings not verified before marketing

No single failure is catastrophic. But each one carries fines, reputational risk, and potential legal exposure. Multiply by portfolio size and the risk compounds.

The Documentation Challenge

Across all six areas, documentation is the consistent theme. You can:

• Complete gas safety checks but lose the certificates
• Fix damp issues but fail to prove the timeline
• Check Right to Rent but not keep records
• Protect deposits but not serve prescribed information

Being compliant and proving compliance are different things. Councils, the HSE, and the Home Office all want evidence. Without it, good work counts for nothing.

Solving Compliance Chaos

There are two approaches: manual systems done properly, or automation.

Manual Systems (Done Properly)

What You Need:

• Separate tracking for each compliance area
• Expiry date reminders that trigger action
• Documentation storage for each property
• Staff training on requirements
• Regular audits to catch gaps

What It Costs:

• Staff time: 3-5 hours per property per year
• Training: 16+ hours annually
• Systems: Spreadsheets, calendars, filing
• Risk: Human error, staff turnover, process drift

Automated Compliance

What You Need:

• Software that tracks all deadlines centrally
• Automated reminders before expiry
• Documentation storage linked to properties
• Timestamp proof of actions taken
• Audit-ready reports on demand

What It Costs:

• Software subscription: £50-150/month
• Setup time: 4-8 hours
• Ongoing management: Minimal
• Risk: Significantly reduced

How Letting Shield Helps

We built Letting Shield specifically for the compliance chaos problem. Here's what it does:

Central Dashboard Every compliance area tracked in one place. Gas safety, EICR, damp cases, Right to Rent, deposits, EPCs—all visible, all with upcoming deadlines highlighted.

Automated Reminders Configurable alerts before any deadline. Weekly summary of upcoming expiries. Escalation to managers if items become overdue.

Documentation Storage Every document stored against the relevant property and case. Timestamped uploads, audit trails, instant retrieval.

Damp Case Management Full workflow for damp complaints—logging, investigation, communication, remediation, sign-off. AI-powered assessment helps triage severity.

Audit-Ready Reports Generate complete compliance reports for any property or portfolio. When councils demand documentation, you produce it in minutes.

FAQs

What's the biggest compliance fine risk in 2026?

Gas safety carries unlimited fines and potential imprisonment. In practice, damp/mould enforcement under HHSRS (up to £30,000) is the most active area of enforcement in 2026, with councils using December 27 powers aggressively.

How many compliance areas do I need to track?

Six core areas: Gas Safety, EICR, Damp/Mould (HHSRS), Right to Rent, Deposit Protection, and EPC. Each has different deadlines, documentation requirements, and enforcing bodies.

Can I use spreadsheets for compliance tracking?

You can, but spreadsheets have limitations: no automatic reminders, no timestamp integrity, prone to human error, difficult to audit. For small portfolios they may work; for larger portfolios they create risk.

What happens if I miss a compliance deadline?

Consequences vary by area. Missing gas safety can result in unlimited fines. EICR violations carry up to £30,000. Damp non-compliance is now actively enforced with December 27 powers. All areas create legal exposure and potential tenant claims.

Is Awaab's Law the same as HHSRS?

No. Awaab's Law sets strict timelines for social housing providers only. Private letting agents are governed by HHSRS under the Housing Act 2004. However, councils use Awaab's Law timelines as benchmarks when assessing whether private agent responses are "reasonable."

How do I prioritise if I'm behind on compliance?

Start with gas safety (highest penalty risk), then EICR (next highest fines), then address any active damp complaints (most active current enforcement), then Right to Rent (highest per-tenant penalties), then deposit protection (litigation risk), then EPC (lowest fines but still matters).

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Guide

The Complete Awaab's Law Guide

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