The Renters’ Rights Act (RRA) has been in effect for over five weeks, marking a significant shift in how local councils in England approach enforcement of landlord compliance. Recent disclosures from councils reveal that enforcement activities are increasingly being funded through fines imposed on landlords, signalling a new financial model that landlords and letting agents should understand and prepare for.
Funding Enforcement: The Financial Reality for Councils
In April 2026, the UK government allocated £41.12 million in new burdens funding to local authorities to support enforcement under the Renters’ Rights Act, supplementing an earlier £18.2 million awarded in November 2025. This brings the total funding to just over £60 million distributed among 317 local housing authorities across England. While this appears substantial, when divided, the average funding per council is approximately £130,000 annually. This amount is likely sufficient to cover only a small team of enforcement officers, leaving limited resources for legal proceedings, tribunal cases, and administrative costs.
Bath and North East Somerset Council (B&NES) has publicly acknowledged this funding shortfall. At a recent scrutiny panel meeting, the responsible cabinet member indicated that future enforcement efforts will need to be supplemented by revenue generated from fines imposed on landlords. This “payment by results” model, while pragmatic, raises concerns about the sustainability and fairness of enforcement funding. Other councils are expected to follow a similar approach, effectively making enforcement activities self-financing through penalty income.
The Statutory Duty to Enforce: A Paradigm Shift
Prior to the introduction of the Renters’ Rights Act, councils generally followed the Regulators’ Code, favouring informal resolution methods such as advisory letters and compliance deadlines before escalating to formal enforcement. However, Section 107 of the RRA 2025 imposes a statutory duty on all local housing authorities in England to enforce landlord compliance proactively.
Government guidance published in November 2025 explicitly states that every housing authority must enforce the new tenancy provisions within its jurisdiction. Several councils have updated their enforcement policies to reflect this change, moving away from informal approaches as the default. For instance, Pendle Council has noted that the Regulators’ Code no longer justifies informal action as the starting point, while Cheltenham Borough Council describes this statutory duty as a fundamental shift in enforcement philosophy.
Moreover, councils must now report their enforcement activities to the Secretary of State under Section 110 of the Act, increasing transparency and accountability. This reporting requirement adds pressure on authorities to demonstrate active enforcement rather than passive oversight.
Faster Enforcement Without Warning Letters
One practical consequence of the new statutory duty is that councils may now proceed more swiftly to formal enforcement actions without issuing prior warning letters in certain cases. Portsmouth City Council’s updated enforcement policy exemplifies this approach, allowing formal enforcement where there are serious risks, clear legal breaches, or repeat offences, bypassing the traditional advisory stage.
While this does not mean all cases will skip informal warnings, it signals a reduced tolerance for non-compliance and a more assertive enforcement stance. Councils must still ensure enforcement is proportionate and that there is sufficient evidence before imposing civil penalties. Nonetheless, landlords should no longer assume that a warning letter will precede formal action.
Understanding the Scale of Penalties
The Ministry of Housing, Communities and Local Government (MHCLG) published statutory guidance in November 2025 outlining starting points for civil penalties under the Renters’ Rights Act. These figures serve as baseline fines before adjustments based on case specifics. Examples include a £4,000 starting fine for failing to provide a Written Statement of Terms, £3,000 for omitting rent information in property adverts, and £6,000 for relying on possession grounds without reasonable belief.
More serious breaches carry higher starting penalties, such as £25,000 for re-letting a property within a restricted period after certain possession grounds, and £35,000 for breaching banning orders. The maximum civil penalty for a breach is £7,000, while offences can attract fines up to £40,000. Continuing breaches beyond 28 days after a penalty may be treated as ongoing offences, potentially increasing fines. Councils also retain the option to pursue criminal prosecutions with unlimited fines as an alternative to civil penalties.
What This Means for Landlords
The introduction of the Renters’ Rights Act and the evolving enforcement landscape do not alter landlords’ fundamental legal obligations. However, the practical risks associated with non-compliance have increased, particularly as councils adopt more assertive enforcement strategies funded through fines. Landlords who maintain comprehensive, up-to-date records and compliance documentation are less likely to become targets of enforcement action.
Conversely, landlords relying on incomplete records, informal processes, or outdated filing systems may face greater scrutiny and a higher likelihood of formal penalties. The ability to promptly produce evidence of compliance—such as valid certificates, properly served notices, and documented communications—will be crucial in interactions with enforcement officers. Treating compliance as an ongoing operational priority rather than a reactive task can help landlords manage risk effectively.
What TLA Members Should Consider
- Review and update your compliance documentation regularly, ensuring all certificates, notices, and tenancy records are current and easily accessible.
- Familiarise yourself with your local council’s updated enforcement policy and approach to the Renters’ Rights Act to understand potential enforcement behaviours.
- Implement robust record-keeping systems, whether digital or physical, to maintain a clear audit trail for every tenancy and property managed.
- Consider using compliance management tools or services designed to track deadlines and legal requirements efficiently.
- Stay informed about changes in legislation and enforcement guidance through trusted sources such as the TLA Academy and member updates.
- Engage proactively with your local housing authority if contacted, providing clear evidence of compliance to potentially avoid formal enforcement action.
TLA Training Academy
The Landlord Association provides structured guidance, compliance education and practical support for landlords, letting agents and property professionals. Members can access training and resources designed to help them stay organised, informed and prepared.
Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/
Those looking to join and access member support can register here: https://landlordassociation.org.uk/get-started-with-the-landlord-association/
TLA update
The Landlord Association is continuing to expand its support, resources and partner network for landlords, tenants, agents and property professionals across the UK. Service providers interested in working with TLA can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com
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