Government backs councils with further £40m to enforce upcoming Renters’ Rights Act

The Ministry of Housing, Communities and Local Government (MHCLG) has added a further £41.1m to its funding pot to support local authorities in enforcing the new Renters’ Rights Act.

All 317 councils across England will receive a share of a total £59.3m ahead of the law coming into force from 1 May, following an initial £18.2m allocated to local governments last autumn.

The Renters’ Rights Act aims to protect private tenants from unfair treatment from landlords and award them greater rights. This is underpinned by the abolition of Section 21 “no-fault” evictions.

Councils will be granted new powers and duties to enforce the legislation in their area, including a duty to enforce, which means they are legally obliged to make sure landlords are complying with the new rules that ban old practices such as rental bidding wars and discrimination against tenants with children or receiving benefits.

They will also be able to hand out bigger fines, with landlords seriously or repeatedly breaching the law facing fines of up to £40,000, up from £30,000, while rent repayment orders have increased from one year’s worth of rent to two.

The Ministry of Justice has also committed up to £50m towards modernising the civil courts, including digitalising court processes.

Meanwhile, a further £5m is being invested into fee uplifts for the housing legal aid sector each year, so all renters are able to access free support if they face eviction from their home.

Sarah Sackman, court minister, said: “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.”

The £41m uplift in MHCLG funding follows expanded investigatory powers that came into force last September for councils to carry out more thorough investigations where they suspect landlords are breaking the law, including entering the premises without notifying the landlord and accessing information from third parties like banks and accountants.