Councils to receive £41m to help enforce Renters’ Rights Act

Councils across England are to receive £41 million in new funding to help enforce the Renters’ Rights Act, which came into effect on 1 May.

Rob Winder Senior Associate Chartered Legal Executive and Head of Property Litigation in our Dispute Resolution team provides an update.

The funding is intended to support local authorities in carrying out new legal duties, including overseeing a ban on “no-fault” evictions and tackling rogue landlords. Ministers said the measures form part of a wider reform affecting around 11 million renters, alongside increased penalties for landlords who break the rules.

The allocation brings the total support for councils to £60 million, following an earlier £18.2 million provided in November 2025. All 317 local authorities in England will receive a share of the funding, alongside additional training and guidance in preparation for the new regime.

Separate investment has also been directed towards the justice system. Up to £50 million is being spent modernising civil courts, including the digitalisation of processes, while a further £5 million per year is funding increased fees for housing legal aid work.

The aim is to ensure both tenants and landlords can access the courts effectively following the introduction of the new rules.

New powers for councils include:

•  A duty to enforce: councils will be legally obliged to make sure landlords are complying with the new rules that ban old practices like rental bidding wars, discrimination against tenants with kids or receiving benefits and ‘no-fault’ evictions.
• Bigger fines: landlords seriously or repeatedly breaking the law will now face higher fines of up to £40,000 – up from £30,000.
• Rent Repayment Orders will also be heftier if the rules aren’t being followed – going from one year’s worth of rent to two years – and tenants can challenge offences going back to two years, up from one year.

These measures build on expanded investigatory powers introduced in December, allowing councils to carry out more detailed checks where breaches are suspected. This includes entering premises without prior notice and accessing information from third parties such as banks or accountants.

The government said the changes are designed to strengthen enforcement and improve standards across the private rented sector, with councils expected to play a central role in ensuring compliance.

For more information and advice on navigating the Renters’ Rights Act, please contact Rob on 01228 516666 or click here to send him an email.