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 force on 1 May 2026. This landmark legislation aims to overhaul the private rented sector, offering greater safeguards for tenants and stronger powers for councils to tackle rogue landlords.

New funding to support enforcement of the Renters’ Rights Act

All 317 local authorities in England will share a total of £60 million to prepare for the Act’s implementation, including £41.12 million allocated this April, supplementing the £18.2 million provided last autumn. This funding will enable councils to meet their new statutory duties, including overseeing compliance with the Act’s provisions and taking action against landlords who break the law.

In addition to council funding, the government is investing up to £50 million to modernise civil courts, including digitalising court processes, to ensure effective and timely justice for both renters and landlords. A further £5 million per year will be directed towards fee uplifts in the housing legal aid sector, maintaining access to free legal advice for tenants facing eviction.

Key new powers and protections for tenants

The Renters’ Rights Act introduces several significant changes designed to improve fairness and security in the private rented sector. From 1 May, councils will have a legal duty to enforce the new rules, which include a ban on Section 21 ‘no-fault’ evictions, prohibitions on 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, up from the previous maximum of £30,000. Rent Repayment Orders, which require landlords to repay rent to tenants when offences occur, will also be extended from one year’s rent to two years. Tenants will be able to challenge offences dating back two years, doubling the previous timeframe.

These measures build on investigatory powers granted to councils last December, allowing them to conduct more thorough investigations into suspected unlawful landlord behaviour. Councils can now enter properties without prior notice and access information from third parties such as banks and accountants to support enforcement.

Government and sector responses

Housing Secretary Steve Reed emphasised the significance of the upcoming changes, stating: “It’s less than a month until the Renters’ Rights Act begins to transform our private rented sector – a huge manifesto commitment.” He highlighted the government’s preparation of councils to use their new powers against rogue landlords and the role of stronger fines in deterring wrongdoing.

Courts Minister Sarah Sackman KC stressed the importance of modernising the justice system to support the Act, noting the investment in digital court processes and the commitment to keeping court fees low while providing free legal aid to those in need.

Ben Beadle, Chief Executive of the National Residential Landlords Association, welcomed the government’s stance against rogue landlords, stating: “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, also praised the funding boost for councils, emphasising that the law’s benefits will only be realised if councils have the resources to enforce it effectively.

What this means for landlords

Landlords should prepare for a more regulated environment where compliance with the Renters’ Rights Act is closely monitored by well-funded local authorities. The ban on Section 21 evictions means that landlords will need to rely on other legal grounds to regain possession of their properties.

The increased fines and extended Rent Repayment Orders underscore the importance of adhering strictly to the new rules, as penalties for non-compliance have become more severe. Landlords are encouraged to familiarise themselves with the changes and ensure their practices meet the new legal standards to avoid enforcement action.

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

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