The fine will apply to 21 types of hazards that are found to be serious – the most dangerous level includes freezing conditions, faulty electrics, fire hazards, structural issues and unsafe layouts.
Around 10% of private rented homes are estimated to have at least one of the health and safety problems classified as serious.
The penalty sits alongside existing powers councils can use to tackle unsafe homes that put tenants at risk. These include forcing repairs, carrying out emergency works 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.
Reed 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.”
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Alongside the tougher fines, this government is updating the Housing Health and Safety Rating System (HHSRS) for the first time in 20 years.
This system is used to assess health and safety in all types of housing, making it simpler to identify dangerous risks and take action.
The improved final framework comes into force on Tuesday 23 June and will support quicker enforcement, helping to ensure hazards such as damp, fire risks and unsafe electrics are addressed more effectively.
Local authorities across England have been handed an extra £41m to cover the costs of policing legal protections that have been introduced through the Renters’ Rights Act.
