Local authorities across England are to receive almost £60 million of funding as they prepare to implement new powers under the Tenants Rights Act, which will come into force on 1 May.
The government said all 317 councils will share the funding package – which includes £41.12m in new money with £18.2m allocated in autumn 2025 – to support law enforcement and strengthen protections for tenants.
The Act introduces a range of new duties for councils, including a legal obligation to ensure that landlords follow rules banning practices such as rental bidding wars, discrimination against tenants with children or tenants receiving benefits and so-called ‘no-fault’ evictions.
Local authorities will also be able to issue larger financial penalties, with fines for serious or repeated breaches increasing from £30,000 to £40,000. The scope of rent repayment orders will be doubled – allowing tenants to claw back up to two years’ rent compared to the previous 12-month limit – while the time limit for bringing claims will also extend to two years.
The measures build on extended investigatory powers introduced in December, which enabled councils to take more detailed enforcement action, including entering premises without prior notice and accessing information from third parties such as banks and accountants.
According to Housing Secretary Steve Reid, the reforms are a major step towards reforming the private rented sector. “We are less than a month away from the Tenant Rights Act starting to transform our private rented sector – a huge manifesto commitment,” he said.
“We are preparing councils to use their new powers to crack down on minority landlords who prey on their tenants and this new funding will help councils carry out their duties.”
As well as funding for councils, the government confirmed that up to £50m will be invested in the modernization of civil courts, including the digitalisation of processes to help implement the new system. An additional £5m per year will be allocated to the housing legal aid sector to ensure tenants continue to receive free assistance, particularly in eviction cases.
Courts Minister Sarah Sackman Casey stressed that the justice system must be equipped to handle the changes. “The Tenant Rights Act is historic, and our courts and tribunals must be prepared to deliver justice,” he said. “That’s why we’re investing millions to modernize and digitalize court processes.”
Industry bodies and tenant groups have broadly welcomed the measures, with a particular focus on enforcement.
Ben Beadle, chief executive of the National Residential Landlords Association, said: “There is no place in the private rented sector for rogue landlords and every effort must be made by local authorities to drive them out of the market.
“This announcement shows that the Government is serious about tackling those who bring the sector into disrepute and supporting responsible landlords who provide decent and safe homes for tenants.”
Ben Twomey, chief executive of Generation Rent, said effective enforcement would be vital to the success of the reforms. “The law will only reach people’s homes and bring positive change if councils are able to take action against landlords who do not follow the new rules,” he said.
The government said councils will continue to receive annual funding to support their responsibilities under the Act after its introduction next month.