Local authorities in England are set to share an extra £41m from the Ministry of Housing, Communities and Local Government to get ready for new enforcement powers to tackle rogue landlords ahead of the Renters’ Rights Act coming into effect.
The funding comes on top of an initial £18m commitment made last autumn to prepare councils for the introduction of the new act from next month.
From 1 May, councils will be legally obliged to make sure landlords are complying with the new rules, which includes a ban on rental bidding wars and Section 21 ‘no-fault’ evictions.
Councils will also be able to issue fines of up to £40,000 to landlords that seriously or repeatedly break the law.
Housing secretary Steve Reed said: “It’s less than a month until the Renters’ Rights Act begins to transform our private rented sector – a huge manifesto commitment.
“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.”
David Smith, property litigation partner at London law firm Spector Constant & Williams, added: “Spread across more than 300 local authorities, the additional funding is unlikely to transform enforcement overnight.
“Many councils already struggle with limited housing enforcement teams, and the new ‘duty to enforce’ could place significant pressure on existing resources. No amount of money will resolve the shortage of qualified and experienced environmental health officers.
“In practice, compliant landlords are unlikely to notice immediate changes, but those operating outside the rules may face increased scrutiny and higher financial penalties. We are likely to see an increase in disputes as the new legislation beds in and areas of uncertainty are tested through the courts.”
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