The government has announced an extra £41 million for local authorities to cover the costs of enforcing the Renters’ Rights Act, in addition to £18 million announced last autumn. The £60 million in funding will be shared across 317 local authorities in England.
From 1 May 2026, councils will have enhanced powers and obligations to enforce stronger rights and protections for 11m renters against ‘rogue landlords’.
When the act comes in, councils will be legally obliged to make sure landlords comply with the new rules that ban rental bidding wars, or discrimination against tenants with children or receiving benefits.
Landlords will face increased penalties of up to £40,000 for each breach of terms of the act – up from the current maximum fine of £30,000 per breach.
Rent Repayment Orders will also be heftier, going from one year’s worth of rent to two years. Tenants will also be able to challenge offences going back to two years, up from one year.
Other reforms under the new act include the scrapping of no-fault evictions, the end of fixed term contracts, limitations to how often rent can be increased and a cap on deposits.
Housing secretary Steve Reed said: “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.”
David Smith, property litigation partner at London law firm Spector Constant & Williams said the additional funding is “unlikely to transform enforcement overnight”.
“Many councils already struggle with limited housing enforcement teams, and the new ‘duty to enforce’ could place significant pressure on existing resources,” he explained. “No amount of money will resolve the shortage of qualified and experienced environmental health officers.”
Timothy Douglas, head of policy and campaigns at Propertymark, welcomed the funding but said it is vital that it is sustained and used strategically to build long-term capacity. “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.”
