The UK government has allocated £41 million to councils in England to support enforcement of the forthcoming Renters’ Rights Act, which comes into effect on 1 May. This funding forms part of a broader £60 million package aimed at equipping local authorities with the resources needed to uphold new tenant protections and tackle rogue landlords.

Funding to support enforcement powers

The £41 million is designated to help councils implement their new statutory duties under the Renters’ Rights Act, including ensuring compliance with the ban on Section 21 ‘no-fault’ evictions and the prohibition of rent bidding wars. This funding builds on £18.2 million already provided last autumn and will be distributed across 317 local authorities.

From May, councils will have enhanced investigatory powers, allowing officers to enter rental properties without prior notice and to request financial information from third parties such as banks and accountants. These measures aim to strengthen local authorities’ ability to identify and act against landlords who breach the new regulations.

In addition to enforcement funding, the government has committed £5 million annually to increase housing legal aid fees for tenants facing eviction, ensuring better access to legal support.

Government and sector perspectives

Housing Secretary Steve Reed emphasised the significance of the Renters’ Rights Act, describing it as a “huge manifesto commitment” that will transform the private rented sector. He highlighted the government’s preparations to empower councils to target the minority of landlords who exploit tenants, stating: “This new funding will help councils carry out their duties.”

Reed also noted that stronger enforcement powers and increased fines—rising from £30,000 to £40,000 for serious or repeat offences—will act as a deterrent. Rent Repayment Orders will be extended from one year’s rent to two, and tenants will have a two-year window to pursue claims, doubling the previous timeframe.

Courts will also receive a separate £50 million investment to modernise and digitise housing-related processes. Courts Minister Sarah Sackman stressed the importance of accessible justice, noting the government’s commitment to keeping court fees low and providing free legal aid to those most in need.

Reactions from landlord and tenant groups

Ben Beadle, Chief Executive of the National Residential Landlords Association, welcomed the funding and enforcement focus, stating: “Rogue landlords have no place in the private rented sector and every effort should be made by local authorities to drive them from the market.” He added that the government’s announcement demonstrates a serious commitment to supporting responsible landlords who provide secure homes.

Ben Twomey, Chief Executive of Generation Rent, described the Act as “a vital step in addressing the power imbalance between tenants and landlords.” He emphasised that the law’s effectiveness depends on councils’ ability to take action against non-compliant landlords and expressed approval of the additional funding to ensure renters benefit from the changes starting 1 May.

What this means for landlords

Landlords should prepare for increased scrutiny and enforcement activity from local authorities, which now have expanded powers to investigate and penalise breaches of the Renters’ Rights Act. The rise in maximum fines and extended Rent Repayment Orders signal a tougher regulatory environment, particularly for those who do not comply with the new rules.

Responsible landlords who adhere to the new standards can expect a fairer rental market, with rogue operators being targeted more effectively. The government’s investment in legal aid and court modernisation also suggests a more accessible and efficient dispute resolution process for both landlords and tenants.

Source: Based on reporting from Property118

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