Enforcement Budget Ramps Up to Millions for Local Authorities

With the first phase of implementation of the Renters’ Rights Act just days away now, with the big bang date being 1st May, the UK government has announced that local authorities in England will be funded an extra £41 million to cover costs for new enforcement powers from the Renters’ Rights Act.

With the Act being the biggest change in the private rented sector in over 30 years, it’s not surprising that the government also needs to invest in actually enforcing it. With the council already stretched budget-wise, the new round of funding is intended to enforce the Act on the ground. Historically, councils have often faced criticism over enforcement and follow-up from complaints, as the Guardian reported that “out of 300,000 complaints from tenants, just 2% of formal enforcement” (The Guardian).

The new funding pot is set at £41.12 million, which will be split across 317 local authorities. This comes after the initial first round of funding of £18.2 million allocated to councils last autumn. We’ve seen the first round of expanded enforcement powers start to take place from December 2025, which allows councils to carry out more though investgations with suspected landlords who are not compliant, including those who are suspected to have CAT 1 hazards within their property. Expanded investigations have included local authority enforcement officers entering the premises of landlords without prior notice.

What are the new local authority enforcement powers under the Renters’ Rights Act?

• Councils will be forced to crack down on rogue landlords under tough new laws
• They must stamp out unfair practices, including:
  • Rental bidding wars
  • Discrimination against families or tenants on benefits
  • “No-fault” evictions
• Landlords who break the rules face hefty fines of up to £40,000 — up from £30,000
• Tenants will gain stronger powers to fight back and can challenge offences
• Rent Repayment Orders will double, allowing claims of up to two years’ rent
• The time limit to make a claim will also double from one year to two years

Additional funding pots have been promised to uphold the effectiveness of the Renters’ Rights Act:

• An additional £50 million will be invested to modernise the civil courts, including digitalising the court process.
• £5 million is being invested into fee uplifts for the housing legal aid sector each year to support renters access free legal support in the event of eviction.

Housing Secretary Steve Reed, commented:

“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.”