The Government is providing local authorities across England with an extra £41m to cover costs for new enforcement powers through the landmark Renters' Rights Act.

The funds are being allocated help councils oversee new legal protections for 11 million private renters from 1 May, when the RRA comes in to force and the ban on Section 21 ‘no-fault’ evictions begins, along with rogue landlords will facing fines of up to £40k.

Steve Reed, Housing Secretary, 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.”

All 317 local authorities are getting a share of £60m in total ahead of the Act coming into force in just a few weeks – the pot of cash comprises of £41.12m in new funding following an initial £18.2m allocated to councils last autumn.

David Smith, property litigation partner at London law firm Spector Constant & Williams, said: “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.”

New powers for councils coming on 1 May include: 

• A duty to enforce: councils will be legally obliged to make sure landlords are complying with the new rules that ban old practices like rental bidding wars, discrimination against tenants with kids or receiving benefits and ‘no-fault’ evictions.  
• Bigger fines: landlords seriously or repeatedly breaking the law will now face higher fines of up to £40,000 – up from £30,000. 
• Rent Repayment Orders will also be heftier if the rules aren’t being followed – going from one year’s worth of rent to two years – and tenants can challenge offences going back to two years, up from one year.

Ben Beadle. 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.”