Councils get £41m to enforce Renters’ Rights Act

Councils in England will receive £41 million to pay for their new enforcement powers under the Renters’ Rights Act, the government has announced.

The cash is part of a wider £60 million allocation across 317 authorities and includes £18.2 million provided last autumn.

From May, councils will have a statutory duty to ensure compliance with measures banning Section 21 evictions and rent bidding wars.

The investigatory reach of councils also widens, allowing officers to enter premises without prior notice and obtain financial data from third parties, including banks and accountants.

There’s also £5 million each year to boost housing legal aid fees for those facing eviction.

Preparing councils

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.”

He added: “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.”

Fines for serious or repeat breaches rising to £40,000 from £30,000, while Rent Repayment Orders will extend from one year’s rent to two.

Tenants will also be able to pursue claims over a two-year window rather than one.

Cash for courts

Separate funding has been confirmed for the courts system with £50 million for modernisation, including a digitised housing processes.

Courts minister Sarah Sackman 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.”

She added: “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.”

No place for rogue landlords

Ben Beadle, the chief executive of the National Residential Landlords Association, said: “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.

“This announcement demonstrates that the government is serious about tackling those who bring the sector into disrepute and supporting those responsible landlords who provide decent and secure homes for renters.”

Ben Twomey, the chief executive of Generation Rent, said: “The Renters’ Rights Act is a vital step in addressing the power imbalance between tenants and landlords.

“But the law will only reach into people’s homes and make a positive difference to their lives if councils are able to take actions against landlords who don’t follow the new rules.

“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 1st.”