English councils are to receive £41 million in new funding to police a historic overhaul of renting laws, as the government places a legal ‘duty to enforce’ new tenant protections onto local authorities from the start of May.
The funding, which follows an initial £18 million commitment last autumn, is intended to equip all 317 local authorities with the resources and training needed to implement the landmark Renters’ Rights Act. Housing Secretary Steve Reed said the government was preparing councils to use new powers “on the minority of landlords who rip off their tenants, and this new funding will help councils carry out their duties.”
The new landscape for renters
Coming into force on 1 May 2026, the Renters’ Rights Act represents the most significant change to the private rented sector in decades. Its core provisions are designed to rebalance power towards tenants, banning practices that have become commonplace in a competitive market.
The most prominent change is the abolition of Section 21 ‘no-fault’ evictions. From May, landlords will only be able to end a tenancy by using a Section 8 notice, which requires them to cite a specific legal ground such as rent arrears, anti-social behaviour, or an intention to sell or move into the property.
Simultaneously, all assured shorthold tenancies will convert to periodic tenancies, rolling on month-to-month or week-to-week without a fixed end date, granting tenants greater flexibility to leave with two months’ notice. Landlords will be banned from instating bidding wars, legally required to stick to advertised rents, and restricted to asking for a maximum of one month’s rent in advance.
Further protections include a tenant’s right to request a pet, which landlords cannot unreasonably refuse, and a prohibition on refusing tenancies to families with children or those in receipt of benefits. Rent increases will be limited to once per year with two months’ notice, and tenants can challenge hikes they deem excessive at a tribunal.
A statutory ‘duty to enforce’
Crucially, the Act does not just give councils new rules to oversee—it legally compels them to act. The legislation imposes a clear “duty to enforce,” shifting the council’s role from having a discretionary power to a statutory obligation to ensure landlord compliance.
To fulfil this duty, councils have been granted strengthened investigatory powers. These include the right to enter rental premises—with or without a warrant depending on the circumstance—to gather evidence, and the authority to demand documents and access third-party data.
The stakes for non-compliance have also been raised. Landlords who seriously or repeatedly break the law will face fines of up to £40,000, an increase of £10,000 on the previous maximum penalty.
However, questions linger over whether the total £59 million allocated to councils is sufficient for the scale of the new enforcement burden. Data from March 2026 indicated that London councils, for instance, had collected only a third of the £8.7 million in civil penalties issued to landlords between 2023/24 and 2024/25, with some authorities reporting no penalties or prosecutions at all in recent years.
Beyond local enforcement, the government is investing £50 million to modernise the civil courts system to help process disputes more efficiently. Courts Minister Sarah Sackman stated, “The Renters’ Rights Act is historic, and our courts and tribunals must stand ready to deliver justice.”
Sector reaction and future reforms
The announcement has been welcomed by both tenant and landlord representatives, who agree on the need to root out poor practice. Ben Beadle, chief executive of the National Residential Landlords Association, said it showed the government was “serious about tackling those who bring the sector into disrepute.”
“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,” he added.
Ben Twomey, former chief executive of Generation Rent, called the Act “a vital step in addressing the power imbalance between tenants and landlords,” but stressed its success depended on enforcement. “Therefore, we’re pleased to see the Government commit further funding for councils, boosting their ability to make sure renters feel the benefit of the changes from May 1,” he said.
The May implementation is just the beginning of a phased rollout. Later in 2026, a national Private Rented Sector Database of all landlords and properties is due to begin a regional rollout, and new energy efficiency and Decent Homes Standards for private rentals are planned. A dedicated Private Landlord Ombudsman to resolve tenant complaints is likely to launch in 2028.
