Local authorities across England are to receive around £60m in funding as they prepare to enforce new powers under the Renters’ Rights Act, which comes into force on 1 May.
The government said all 317 councils will share the funding package – comprising £41.12m in new money alongside £18.2m allocated in autumn 2025 – to support enforcement of the legislation and strengthen protections for tenants.
The Act introduces a range of new duties for councils, including a legal obligation to ensure landlords comply with rules banning practices such as rental bidding wars, discrimination against tenants with children or those in receipt of benefits, and so-called ‘no-fault’ evictions.
Local authorities will also be able to issue larger financial penalties, with fines for serious or repeat breaches rising to £40,000, up from £30,000. Rent Repayment Orders will double in scope – allowing tenants to reclaim up to two years’ rent, compared with the previous 12-month limit – while the timeframe for bringing claims will also extend to two years.
The measures build on expanded investigatory powers introduced in December, enabling councils to carry out more detailed enforcement action, including entering premises without prior notice and accessing information from third parties such as banks and accountants.
According to housing secretary Steve Reed, the reforms mark a major step in overhauling the private rented sector. “It’s less than a month until the Renters’ Rights Act begins to transform our private rented sector – a huge manifesto commitment,” he said.
“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.”
Alongside the funding for councils, the government confirmed up to £50m will be invested in modernising the civil courts, including the digitisation of processes, to support enforcement of the new regime. A further £5m per year will be allocated to the housing legal aid sector to ensure tenants can continue to access free support, particularly in cases involving eviction.
Courts minister Sarah Sackman KC emphasised that the justice system must be equipped to handle the changes. “The Renters’ Rights Act is historic, and our courts and tribunals must stand ready to deliver justice,” she said. “That’s why we’re investing millions to modernise and digitise court processes.”
Industry bodies and tenant groups have broadly welcomed the measures, particularly the focus on enforcement.
Ben Beadle, chief executive of the National Residential Landlords Association, said: “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, added that effective enforcement would be critical to the success of the reforms. “The law will only reach into people’s homes and make a positive difference if councils are able to take action against landlords who don’t follow the new rules,” he said.
The government said councils will continue to receive annual funding to support their responsibilities under the Act beyond its introduction next month.
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