The Mayor of London, Sadiq Khan, has announced a £400,000 Renters’ Rights Enforcement Fund aimed at supporting London’s tenants as the Renters’ Rights Act comes into force on 1 May. This fund is designed to help renters challenge landlords, understand their new rights, and ensure compliance with the updated legislation.

Supporting Tenants and Enforcement

The fund will provide financial backing to advice services, tenant groups, and training programmes for borough officers tasked with pursuing criminal landlords. This initiative reflects a significant expansion of renters’ rights, which Khan describes as the most substantial in a generation, affecting London’s 2.7 million renters.

Key provisions under the new law include a ban on no-fault evictions and the establishment of tribunals to contest unreasonable rent increases. The enforcement fund aims to equip organisations with the resources necessary to uphold these new protections effectively.

Calls for Rent Cap Powers

Alongside the fund announcement, Khan reiterated his call for rent cap powers to be devolved to London. He argues that such measures are essential to address the capital’s affordability and housing supply challenges. Supporting this position, recent YouGov polling commissioned by the Greater London Authority found that three-quarters of Londoners would back limits on rent increases.

Khan emphasised that the next step is for government ministers to grant London the authority to cap rents, which he believes would have widespread public support.

Tools and Intelligence Sharing

The fund also includes plans to develop online tools and checkers to enable tenants to hold landlords and letting agents accountable. Additionally, there will be improved intelligence-sharing between boroughs to identify and manage problem properties more effectively.

To encourage new housing supply, Khan proposes exempting build-to-rent developments from any future rent caps. The Mayor’s office will further raise awareness through a campaign launching next month, utilising online advertisements and posters across the Transport for London network.

Industry Reactions

Ben Twomey, Chief Executive of Generation Rent, welcomed the fund, describing the Renters’ Rights Act as a major step towards rebalancing power between landlords and tenants. He highlighted that the mayor’s funding will enable tenant organisations to raise awareness and support renters in exercising their new rights.

Conversely, Jordan McCay, a policy officer at the British Property Federation, cautioned against rent controls. He noted that while protecting build-to-rent from rent caps is positive, rent controls generally pose risks to investment and housing availability. McCay referenced evidence from Scotland, where rent-setting interference led to reduced investment and a shrinking housing supply, worsening affordability. He warned that introducing rent controls in England could prompt landlords to leave the sector and deter new investment.

What this means for landlords

Landlords in London should prepare for increased scrutiny and enforcement activity as the Renters’ Rights Act takes effect. The new fund will empower tenant groups and local authorities to challenge non-compliance more effectively, potentially increasing the administrative and legal demands on landlords.

Those operating in the build-to-rent sector may find some relief in the proposed exemption from rent caps, which aims to encourage continued investment and supply in this area. However, the broader debate on rent control powers remains unresolved, with potential implications for the wider rental market depending on future government decisions.

Source: Based on reporting from Property118

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The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

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TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/