The Renters’ Rights Act aims to improve tenants’ lives by increasing penalties and giving local authorities more investigative powers, Patrick Owen, Private Rented Sector Enforcement at MHCLG, told the RHE Global Housing Conference.

He said that £18.2 million had been allocated for preparatory work for the act, with additional funding expected for 2027–28. He commented: “I think it’s fair to say that 2026/27 will be tough. Looking ahead, the funding position potentially looks more hopeful.” 

“We anticipate that from 2027/28, additional enforcement costs will be funded by the database fee, with the database set to come on screen from the back end of this year.”

Owen stressed that the act introduces civil penalties of up to £7,000 for first-time breaches and more serious penalties of up to £40,000 for repeat and multiple offences. The rent repayment order (RRO) regime has been extended, increasing the maximum penalty to two years’ rent and allowing tenants up to two years to apply. RROs can be sought against superior and immediate landlords.

He said: “We see RROs principally as a tenant-led tool, but they are also available to local authorities where rent has been paid by Housing Benefit or the housing element of Universal Credit.”

He argued: “There needs to be something to act as a sufficient deterrent to landlords, a minority of which are determined to break the law.”

But he added: “I don’t think it will do anyone any favours if large penalties are being placed on landlords for innocent administrative errors. My sense is that most authorities will recognise that an approach needs to be proportionate to retain credibility, for landlords as well as tenants.”