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What the government's £41 million enforcement funding means for landlords

View profile for Sophie Chilstone
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Government Green Paper sets out a "fundamental rethink" on social housing

The government has announced a further £41 million in funding for local authorities to support enforcement of the Renters’ Rights Act, ahead of the legislation coming into force on 1 May 2026. This brings total funding for councils to just under £60 million, following an initial £18.2 million allocated last autumn.

The funding is intended to ensure councils are resourced to carry out their new legal duties under the Act. For landlords, this marks a shift to a more actively enforced regulatory environment, making it important to understand how the changes are likely to operate in practice.

A move towards consistent enforcement

From May, councils will be under a statutory duty to enforce the requirements of the Renters’ Rights Act. This is designed to improve consistency across England, where enforcement activity has historically varied between local authorities.

The additional funding will support councils to:

  • Recruit and train enforcement staff
  • Carry out more detailed investigations
  • Take enforcement action where required
  • Prepare for an increase in housing‑related disputes

Alongside this, the government has confirmed up to £50 million to modernise the civil courts, including the digitalisation of housing processes, to support the effective handling of disputes arising under the new regime.

What councils will be enforcing

The Renters’ Rights Act introduces a wide range of changes affecting the private rented sector. Councils will be required to ensure landlords comply with new and expanded requirements, including:

  • The abolition of Section 21 ‘no‑fault’ evictions
  • A ban on rental bidding wars
  • Prohibitions on discrimination, including against tenants with children or those receiving benefits
  • Application of the Decent Homes Standard and Awaab’s Law to private rented properties
  • Changes to tenancy structures, rent increases and deposits

Where breaches are serious or repeated, councils will have the power to issue civil penalties of up to £40,000, an increase from the previous £30,000 maximum. Rent Repayment Orders have also been expanded, allowing tenants in certain cases to seek repayment of up to two years’ rent, and to challenge breaches going back two years rather than one.

Councils’ investigatory powers have also widened. In specific circumstances, officers may be able to enter premises or obtain information from third parties when investigating suspected non‑compliance.

What this means in practice for landlords

For landlords, the funding announcement underlines that the Renters’ Rights Act is not only about new legal standards, but about how actively those standards will be monitored and enforced.

Even well‑intentioned landlords may find that long‑standing practices need to be reviewed to reflect the new framework. Particular areas of focus are likely to include:

  • Tenancy documentation and prescribed information
  • Rent review processes and timing
  • Property condition, repair records and response times
  • Possession strategies that must now align with the revised grounds

As the legislation beds in, an increase in disputes and test cases is expected, particularly where there is uncertainty about how the new rules will be interpreted and applied.

The importance of early advice

With councils under a legal obligation to enforce, landlords who review their arrangements early are likely to be in a stronger position. Proactive compliance can reduce the risk of enforcement action, financial penalties and disruption to tenancies.

Clear advice can also help landlords respond appropriately if contacted by a local authority or faced with a tenant challenge, ensuring matters are dealt with proportionately and efficiently.

How Stephensons can help

Stephensons advises landlords, letting agents and property professionals on all aspects of housing law and regulatory compliance. Our team can assist with:

  • Reviewing tenancy agreements and procedures in light of the Renters’ Rights Act
  • Advising on lawful rent increases and possession routes
  • Responding to council investigations, inspections and enforcement notices
  • Challenging or defending civil penalties and Rent Repayment Order applications
  • Representation in the First‑tier Tribunal and civil courts
  • Strategic advice for portfolio landlords adapting to the new regime

Our focus is on practical, commercially informed advice, helping landlords navigate change with confidence while minimising disruption and risk.

If you would like tailored advice on how the Renters’ Rights Act and increased enforcement powers affect your portfolio or business, our specialist landlord and tenant team is available to help. Contact us today on 0161 696 6170 to speak with our specialist solicitors.

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