Councils prepare to crack down on landlords who rip off their tenants
With the Renters’ Rights Act set to take effect from 1 May, local authorities across England have received an extra £41 million from the government to crack down on rogue landlords.
The government announced that it is providing councils with additional funding and training on how to fulfil their new duties, which will include cracking down on landlords who ‘rip off’ their tenants.
The Renters’ Rights Act introduces new laws that protect tenants in England, including removing ‘no-fault’ evictions and fixed-term assured shorthold tenancies.
It also gives councils the duty and expanded power to fine and take action against landlords who fail to address renters’ issues.
From 1 May, local authorities will be legally obliged to ensure landlords are complying with the new rules. They will be able to levy fines of up to £40,000 for noncompliance and order the repayment of up to two years’ worth of rent to tenants.
“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,” said Housing Secretary Steve Reed.
“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.”
The government said local authorities will continue to receive additional yearly funding to support their new duties under the Act.
New ombudsman to protect renters
The Renters’ Rights Act also introduces a new mechanism for resolving conflicts in the private rented sector that is designed to be accessible to tenants seeking redress or challenging exorbitant rent increases.
A new Private Rented Sector Landlord Ombudsman will be introduced with the goal of providing quick, fair rulings on tenants’ complaints about their landlord.
It will be compulsory for landlords to have signed up to this ombudsman service and the new Private Sector Rented Database, although these mechanisms will not be immediately available from 1 May 2026.
However, even before the ombudsman is available, tenants will still be able to build cases on their complaints and appeal to their local authorities.