Newham Council has approved an implementation plan to bring the Renters' Rights Act 2025 into effect across the borough, a move designed to significantly enhance tenant rights and security.

The decision, made by Interim Chief Executive Paul Martin on April 29, 2026, and effective from May 1, 2026, will see the abolition of Section 21 no-fault evictions, a cap on annual rent increases, and a ban on landlords soliciting offers above the advertised rent.

To enforce these changes, Newham Council has adopted a revised Private Sector Housing Enforcement Policy. This policy includes a discretionary 10% uplift on civil penalty starting points. This uplift is specifically designed to reflect Newham's higher-than-average rents, which are approximately 34% higher than the national average, ensuring that civil penalties remain an effective deterrent within the local market. The uplift will be reviewed annually to ensure it continues to act as a deterrent and does not exceed the average rent increase for Newham.

Landlords who fail to comply with the new legislation will face new civil and criminal offences, with maximum civil penalties reaching up to £40,000. The determination of these penalties will consider a range of aggravating and mitigating factors, based on the culpability of the offender and the harm caused. Culpability factors include the number of properties owned or managed, previous non-compliance, any admission of guilt, and the speed of remediation. Harm factors encompass the level of risk posed to tenants' safety and wellbeing, whether that risk has materialised, and the vulnerability of the tenants.

Financially, the implementation will be supported by new burdens funding from the Ministry for Housing, Communities and Local Government. This includes £168,000 for preparation costs, and further allocations of £600,000 for 2026/27 and £300,000 for 2027/28 to support services in managing the impact of the Act on homelessness. Additionally, approximately £364,000 for 2026/27 has been allocated for additional enforcement.

It is anticipated that income generated from Civil Penalty Notices will sustain enforcement costs from the 2027/28 financial year onwards. This income is ring-fenced to be reinvested into future enforcement resources in these critical areas.

To ensure effective and fair enforcement, officers will receive comprehensive training. This training will cover new legislation, enforcement powers, cultural competence, equality, disability awareness, and inclusive communication. Training on PFEA and new powers has already been delivered, with ongoing presentations planned.

Authority has been delegated to the Director of Housing Needs and Head of Private Sector Housing for minor amendments to the policy. Further authority is granted to the Director of Housing Needs and the Director for Law and Governance, in consultation with the relevant Portfolio Holder, to finalise any additional policies required by subsequent parliamentary orders.

A Renters' Rights Act Project Board has been established, led by the Director of Housing Needs, to oversee progress and monitor financial expenditure.

The implementation is a statutory requirement and aligns with the Council's priority to ensure Homes for our residents, aiming for high-quality, well-managed, and safe rented housing.

An Equality Impact Assessment for the proposal concludes it has a strong positive equality impact, particularly for groups disproportionately affected by poor-quality private rented housing, such as disabled residents, Black and Global Majority communities, and low-income households. Mitigating actions include the provision of multilingual guidance, proportionate enforcement, and ongoing officer training.

The full details of the revised Private Sector Housing Enforcement Policy can be found in Appendix 2 of the Officer Key Decision Report, available at https://mgov.newham.gov.uk/documents/g15385/Public%20minutes%2029th-Apr-2026%20Officer%20Key%20Decision.pdf?T=11.