Local authorities across England will receive approximately £60 million in funding to support enforcement of the Renters’ Rights Act, which comes into force on 1 May. The package comprises £41.12 million in new funding alongside £18.2 million allocated in autumn 2025, distributed among all 317 councils.
The Act introduces new duties for local authorities, including a legal obligation to ensure landlords comply with rules banning rental bidding wars, discrimination against tenants with children or benefit recipients, and Section 21 ‘no-fault’ evictions.
Increased enforcement powers
Councils will be able to issue financial penalties of up to £40,000 for serious or repeat breaches, an increase from the previous £30,000 limit. Rent Repayment Orders will expand in scope, allowing tenants to reclaim up to two years’ rent compared with the previous 12-month limit. The timeframe for bringing claims will also extend to two years.
The measures build on expanded investigatory powers introduced in December, enabling councils to enter premises without prior notice and access information from third parties such as banks and accountants.
Housing secretary Steve Reed stated: “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.”
Court modernisation and legal aid
The government confirmed up to £50 million will be invested in modernising the civil courts, including digitisation of processes. A further £5 million per year will be allocated to the housing legal aid sector to ensure tenants can access free support, particularly in eviction cases.
Courts minister Sarah Sackman KC said: “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.”
Industry response
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.”
Ben Twomey, chief executive of Generation Rent, noted that effective enforcement would be critical to the reforms’ success. “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 funding comes as regulatory compliance has emerged as a top business challenge for property professionals. The government has committed to providing councils with annual funding to support their responsibilities under the Act beyond its initial implementation.
For landlords and property investors, the changes represent a shift in the regulatory landscape for the private rented sector, with enhanced enforcement capabilities and financial penalties aimed at improving tenant protections and market standards.