Renters' Rights Act explained as landlords now face fines up to £40,000

Temie Laleye
Tue, 14 Apr 2026 08:48:29 +0000

England's private rental sector is set for a major shake-up when the Renters' Rights Act takes effect on May 1, delivering sweeping new protections for approximately 11 million tenants.

The landmark legislation will outlaw Section 21 'no-fault' evictions, ending the practice that allowed landlords to remove tenants without providing a reason.

Additional safeguards will prohibit rental bidding wars, where prospective tenants compete by offering above the asking price.

Landlords will also be barred from discriminating against people who have children or those receiving benefits.

Local councils across the country are being equipped with strengthened powers and legal obligations to ensure compliance with these new rules.

With fewer than four weeks until implementation, authorities are receiving additional funding, training materials and official guidance to prepare them for their expanded responsibilities under the Act.

Councils will now have a legal duty to enforce these new regulations, with significantly tougher penalties for those who break the rules.

Landlords who seriously or repeatedly breach the law face fines reaching £40,000, a substantial increase from the previous maximum of £30,000.

Tenants will also benefit from enhanced Rent Repayment Orders, which have been doubled from one year's worth of rent to two years.

Those challenging landlord misconduct can now pursue offences dating back two years, rather than the previous 12-month limit.

Since December, councils have possessed expanded investigatory powers enabling more thorough examinations of suspected wrongdoing.

These include the ability to enter properties without giving landlords advance warning.

Investigators can also obtain information from third parties such as banks and accountants when building cases against rogue operators.

The Government is providing £60million in total to help councils fulfil their new enforcement duties, comprising £41.12million in fresh funding this month alongside £18.2million allocated last autumn.

All 317 local authorities in England will receive a share of this money, with ongoing annual payments promised to support their expanded responsibilities.

Courts are also being upgraded to handle the anticipated increase in housing disputes.

Up to £50million is being invested to modernise civil court systems, including digitalising processes to speed up case handling.

This investment covers the current Spending Review period through to 2028/29.

Renters facing eviction will continue to have access to free legal assistance, with an extra £5million being pumped into the housing legal aid sector annually.

Court fees are being kept low to ensure tenants and landlords alike can access justice when disputes arise.

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."

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."

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."

He welcomed the announcement as evidence the Government is serious about tackling those damaging the sector's reputation whilst supporting responsible property owners.

Generation Rent chief executive Ben Twomey described the Act as "a vital step in addressing the power imbalance between tenants and landlords."

He expressed satisfaction that additional council funding would help ensure renters feel the benefit of changes from May 1.