Councils to receive extra £41m to support enforcement of new Renters’ Right Act powers

From 1 May, councils will be legally obliged to ensure landlords comply with the new rules that ban practices such as rental bidding wars, discrimination against tenants with children or receiving benefits, and ‘no-fault’ evictions.

They will also be able to issue bigger fines of up to £40,000 and pursue two years' worth of rent repayment orders, up from one year's worth.

All 317 local authorities will get a share of £60 million in total ahead of the Act coming into force. The sum comprises £41.12 million in new funding following an initial £18.2 million allocated to councils last autumn.

The Government has also announced that up to £50 million will be invested to modernise the civil courts, and an additional £5 million is being invested into fee uplifts for the housing legal aid sector each year.

Housing Secretary Steve Reed said: “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.”

Courts Minister, Sarah Sackman KC meanwhile said: “The Renters’ Rights Act is historic, and our courts and tribunals must stand ready to deliver justice.

“That’s why we’re investing millions to modernise and digitise court processes. Access to justice is crucial, so we’re also keeping court fees low and providing free legal aid advice to those who need it most.”

Adam Carey