Councils across England have been handed £41m in fresh funding to enforce sweeping reforms under the Renters’ Rights Act as the government ramps up preparations ahead of the 1 May implementation.
The funding forms part of a wider £60m package for all 317 local authorities, designed to support enforcement of new rules targeting rogue landlords and reshaping the private rented sector.
From next month, councils will be under a legal duty to enforce the new regime, including the abolition of Section 21 ‘no-fault’ evictions, a ban on rental bidding and stronger protections against tenant discrimination.
For letting agents, the changes signal a significant shift in compliance risk, with local authorities given enhanced investigatory powers and the ability to issue fines of up to £40,000 for serious or repeat breaches.
COURTS INVESTMENT
The reforms are backed by further investment in the court system, including up to £50m to modernise civil processes and £5m annually to support housing legal aid – aimed at ensuring enforcement action can be processed more efficiently.
Steve Reed, UK Housing Secretary, says: “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.”
HISTORIC ACT
Sarah Sackman, Courts Minister, adds: “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.”
Industry bodies say the funding is critical if the reforms are to be effective on the ground.
ENFORCEMENT = LEGISLATIVE CHANGE
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “This funding recognises that enforcement must go hand-in-hand with legislative change.
“Propertymark has long highlighted that without sufficient funding, staffing and training, councils would struggle to enforce new and existing regulations effectively.
“While this support will help local authorities implement and enforce the new measures, it is equally important that councils are supported to improve housing standards more broadly.
“In particular, there must be sustained investment in the recruitment and retention of Environmental Health Officers, who play a critical role in enforcement on the ground.”
SUSTAINED FUNDING
And he adds: “However, it is vital that this funding is sustained and used strategically to build long-term capacity, not just short-term fixes. Consistent and proportionate enforcement is key to driving up standards, tackling criminal landlords, and maintaining confidence among good agents and landlords who already comply with the rules.
“As the Renters’ Rights Act comes into force, we will continue to work with the UK Government and local authorities to ensure the new framework is delivered in a way that is fair, effective, and workable for agents, landlords and tenants.”
DRIVE OUT ROGUE LANDLORDS
Ben Beadle, Chief Executive of the National Residential Landlords Association, says: “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.”
Tenant groups also welcomed the move but stressed enforcement will be key.
POWER IMBALANCE
And Ben Twomey, Chief Executive of Generation Rent, says: “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.”
