Newham Council has significantly increased potential fines for rogue landlords as part of its implementation of the Renters' Rights Act 2025, aiming to bolster tenant protections and ensure safer, better-managed private rented housing.

An urgent decision record, signed by Interim Chief Executive Paul Martin on April 29, 2026, approved a revised Private Sector Housing Enforcement Policy. This policy introduces a discretionary 10% uplift on civil penalty starting points to reflect Newham's higher-than-average rents, which are approximately 34% above the national average. This uplift will be reviewed annually at the beginning of each budget year to ensure it acts as a deterrent and does not exceed the average rent increase for Newham.

The Renters' Rights Act 2025, which came into effect on May 1, 2026, introduces a raft of new measures to enhance tenant rights. These include the abolition of Section 21 no-fault evictions, limitations on rent increases to once per year, and a prohibition on landlords inviting or accepting offers above the advertised rent. The legislation also introduces new civil and criminal offences for landlords, with maximum civil penalties now set at up to £40,000.

The revised enforcement policy details how Newham Council will regulate the private rented sector, aiming for a consistent, fair, and proportionate enforcement framework. A detailed matrix for determining civil penalties has been established, incorporating the 10% general adjustment uplift. Beyond this uplift, the exact amount of civil penalties will be determined by considering aggravating and mitigating factors, financial considerations, and the principle of totality, all assessed on a case-by-case basis.

Culpability factors include the number of properties owned or managed, previous history of non-compliance, admission of guilt, and how quickly non-compliance has been remedied. Harm factors include the level of risk posed to tenants' safety and well-being, whether that risk has materialized, and the vulnerability of tenants. Financial considerations ensure penalties remove financial gain, and the principle of totality adjusts aggregate fines proportionately for multiple breaches. Importantly, financial penalties cannot fall below 25% of the starting point or exceed 25% above the starting point, with a maximum statutory cap of £7,000 for breaches and £40,000 for offences.

While the meeting information does not explicitly list specific types of landlord 'rogue' behaviour anticipated to be most prevalent in Newham, the policy aims to target non-compliance. Specific breaches and offences detailed in Appendix 2 of the policy include issues such as Fixed-Term Purporting: Offering a fixed-term tenancy, Rental Bidding: Accepting or soliciting offers above the advertised rent, Discrimination: Implementing 'No DSS' or 'No Children' policies, and Illegal Eviction: Harassment or illegal lockout attempts.

Delegated authority has been granted to council officers to make necessary amendments to the policy and to finalise any additional policies required by subsequent parliamentary orders. A Renters' Rights Act Project Board has been formed to oversee the implementation, monitor progress, and agree on future actions.

The decision aligns with the council's priority to ensure high-quality, well-managed, and safe rented housing for its residents. The implementation is a statutory requirement, and no alternative options were considered.

Financially, the implementation is supported by new burdens funding from the Ministry for Housing, Communities and Local Government, totalling £168,000 for preparation costs and further allocations for homelessness services and enforcement. It is anticipated that income from Civil Penalty Notices will sustain enforcement costs from 2027/28 onwards.

The policy has been assessed for its equality impact, concluding that it has a strong positive impact, particularly for groups disproportionately affected by poor-quality private rented housing. Mitigating actions include multilingual guidance, proportionate enforcement, officer training, and targeted engagement with vulnerable tenants.

For more details on the decision, see the Public reports pack 29th-Apr-2026 Officer Key Decision and Public minutes 29th-Apr-2026 Officer Key Decision.