All 317 local authorities in England are sharing £60m in government funding to enforce the Renters' Rights Act (the legislation that abolishes no-fault evictions and bans rental bidding wars), which came into force on 1 May 2026. What your tenants are thinking right now is simple: finally, someone is checking up on this.
What the money covers
The £60m total breaks down into two tranches: £41.12m in new funding announced in April 2026, added to £18.2m already allocated to councils in autumn 2025, according to Property Industry Eye (15 April 2026).
Alongside the council funding, the government confirmed up to £50m will go towards modernising the civil courts in England, including digitising court processes. A further £5m per year will fund fee uplifts for the housing legal aid (free legal help) sector, so tenants facing eviction can continue to access no-cost support.
Courts minister Sarah Sackman KC 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."
Bigger fines and stronger powers for councils
From 1 May 2026, councils in England have a legal duty to ensure landlords comply with the new rules. That is not discretionary - it is a statutory obligation.
The penalties for non-compliance have gone up. Fines for serious or repeat breaches of the Renters' Rights Act now reach up to £40,000, compared with the previous cap of £30,000 (Property Industry Eye, April 2026).
Rent Repayment Orders (RROs) - a mechanism allowing tenants to recover rent paid while a landlord was breaking the law - have also doubled in scope. Tenants can now claim back up to two years' rent, and the window for bringing a claim extends to two years. Previously both limits stood at one year.
Councils also gained expanded investigatory powers in December 2025. These include entering rental properties without giving landlords prior notice and accessing information from third parties such as banks and accountants.
What responsible landlords and tenants should expect
Housing Secretary Steve Reed said the funding is targeted at "the minority of landlords who rip off their tenants," adding that stronger powers and fines will "help deter wrongdoing in the first place."
Ben Beadle, chief executive of the National Residential Landlords Association (NRLA), welcomed the focus on bad actors: "Rogue landlords have no place in the private rented sector and every effort should be made by local authorities to drive them from the market."
Ben Twomey, chief executive of tenant advocacy group Generation Rent, stressed that enforcement is what will make the law real in practice: "The law will only reach into people's homes and make a positive difference if councils are able to take action against landlords who don't follow the new rules."
For landlords managing compliant lettings, the funding signals a shift. Councils now have both the resource and the obligation to investigate. For tenants, particularly those in the private rented sector (PRS) in England, it means the protections on paper are more likely to carry weight in practice.
The government confirmed councils will continue to receive annual funding to support their ongoing responsibilities under the Act beyond its initial rollout.
