Local authorities across England are set to receive an additional £41 million in funding to support the enforcement of new legal protections introduced by the Renters’ Rights Act, which comes into effect on 1 May 2026. This landmark legislation aims to strengthen tenant rights and clamp down on rogue landlords, with councils equipped with enhanced powers and duties to oversee compliance.

Significant funding boost for councils

All 317 local authorities will share a total of £60 million to prepare for the Act’s implementation, including £41.12 million allocated this April on top of £18.2 million provided in November 2025. This funding will cover the costs associated with new enforcement responsibilities, training, and guidance to ensure councils can effectively oversee the changes.

In addition to council funding, the government is investing up to £50 million to modernise civil courts, including the digitalisation of court processes. This investment aims to facilitate swift and fair justice for both renters and landlords. Furthermore, an extra £5 million per year will be allocated to increase fees in the housing legal aid sector, ensuring tenants facing eviction can continue to access free legal support.

New enforcement powers and penalties

From 1 May, councils will have a legal duty to enforce the Renters’ Rights Act, which introduces a range of new protections for approximately 11 million private renters. Key provisions include a ban on Section 21 ‘no-fault’ evictions, prohibitions against rental bidding wars, and protections against discrimination towards tenants with children or those receiving benefits.

Landlords who seriously or repeatedly breach the law will face increased fines of up to £40,000, a rise from the previous maximum of £30,000. Rent Repayment Orders will also be extended, allowing tenants to reclaim up to two years’ worth of rent if landlords fail to comply, doubling the previous limit of one year. Tenants will be able to challenge offences going back two years, rather than one.

These measures build on investigatory powers granted to councils in December 2025, which enable more thorough investigations into suspected unlawful landlord behaviour. Councils can now enter premises without prior notice and obtain information from third parties such as banks and accountants.

Statements from key figures

Housing Secretary Steve Reed said: “It’s less than a month until the Renters’ Rights Act begins to transform our private rented sector – a huge manifesto commitment. We’ve been preparing councils to use their new powers on the minority of landlords who rip off their tenants and this new funding will help councils carry out their duties. Stronger powers and fines will help deter wrongdoing in the first place, as we work towards a better rental system that’s fairer to tenants and good landlords.”

Courts Minister Sarah Sackman KC added: “The Renters’ Rights Act is historic, and our courts and tribunals must stand ready to deliver justice. That’s why we’re investing millions to modernise and digitise court processes. Access to justice is crucial, so we’re also keeping court fees low and providing free legal aid advice to those who need it most.”

Ben Beadle, Chief Executive of the National Residential Landlords Association, commented: “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. This announcement demonstrates that the government is serious about tackling those who bring the sector into disrepute and supporting those responsible landlords who provide decent and secure homes for renters.”

Ben Twomey, Chief Executive of Generation Rent, said: “The Renters’ Rights Act is a vital step in addressing the power imbalance between tenants and landlords. But the law will only reach into people’s homes and make a positive difference to their lives if councils are able to take actions against landlords who don’t follow the new rules. Therefore, we’re pleased to see the government commit further funding for councils, boosting their ability to make sure renters feel the benefit of the changes from May 1st.”

What this means for landlords

Landlords should prepare for a more regulated environment where compliance with the Renters’ Rights Act is rigorously enforced by local authorities. The ban on Section 21 evictions removes a previously common route for repossession, requiring landlords to rely on other legal grounds to regain possession of their properties.

The increased fines and extended Rent Repayment Orders serve as a strong deterrent against non-compliance, emphasising the importance of adhering to the new rules. Landlords are encouraged to familiarise themselves with the changes and ensure their practices meet the updated legal standards to avoid penalties.

With councils receiving enhanced investigatory powers and funding, enforcement activity is expected to increase, making it essential for landlords to maintain transparent and lawful management of their properties.

Source: Based on reporting from the Ministry of Housing, Communities and Local Government

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