Councils in England can now issue fines of up to £7,000 where landlords fail to address serious hazards in rented homes, under new powers introduced through the Renters’ Rights Act, the government has announced.

The Ministry of Housing, Communities and Local Government said the measure, which came into force on Monday, is intended to help councils take stronger action against landlords where dangerous conditions are identified in rented properties.

The penalties apply to 21 types of hazards assessed as being at the most serious “Category 1” level under the Housing Health and Safety Rating System (HHSRS). The government said these can include severe damp and mould, freezing conditions, faulty electrics, fire hazards, structural issues and unsafe layouts.

According to MHCLG, around 10% of private rented homes are estimated to have at least one serious health and safety hazard. Councils already have a duty to act where Category 1 hazards are found.

The new penalty sits alongside existing enforcement powers available to councils. These include requiring landlords to carry out repairs, undertaking emergency works where there is an immediate risk, and recovering costs from landlords who fail to act.

Housing Secretary Steve Reed has written to mayors across England urging councils to use “all powers at their disposal” to tackle unsafe housing and protect tenants.

He said: “Renters deserve a safe, secure place to call home and our landmark Renters’ Rights Act gives councils more options to take speedy action against rogue landlords.

“These include the new power to issue a £7,000 penalty to a landlord when there is a hazard like severe damp or mould in a privately rented home – a situation that no family should have to live with.”

Alongside the new fines, the government is introducing an updated HHSRS framework, which comes into force on Tuesday 23 June. MHCLG said the revised system is designed to make it simpler for councils to identify risks and take enforcement action.

The HHSRS has been reviewed for the first time since 2006. The updated version includes a revised assessment and scoring process, new descriptive terms, and a reduced number of hazards, from 29 to 21, where hazards have been amalgamated where they are statistically similar in likelihood and harm.

Ben Twomey, Chief Executive of Generation Rent, said the new power was “an essential step towards raising the quality of rented homes”, but added that tenants would only feel the benefit if councils “seek out and take action against those landlords who ignore unsafe conditions”.

Clara Collingwood, Director at the Renters’ Reform Coalition, also welcomed the move, saying councils “must start using” the new powers to address poor conditions in the private rented sector.