Newham Council has significantly bolstered renters' rights with the implementation of the Renters' Rights Act 2025, a move approved by Interim Chief Executive Paul Martin on April 29, 2026. This update introduces a revised Private Sector Housing Enforcement Policy, enhancing the council's regulatory approach to the private rented sector.
The Renters' Rights Act 2025, effective from May 1, 2026, ushers in substantial changes for tenants. Key provisions include the abolition of Section 21 'no-fault' evictions, a cap on rent increases to once per year, and a ban on landlords inviting or accepting offers above the advertised rent. Non-compliance with this specific ban can result in civil penalties, with 'Inviting, encouraging or accepting any offer of rent greater than the advertised rate' carrying a starting fine of £4,400, a minimum potential penalty of £3,300, and a maximum potential penalty of £5,500, capped at £7,000.
To align with the new legislation, Newham's revised Private Sector Housing Enforcement Policy includes a discretionary 10% uplift on civil penalty starting points. This adjustment is designed to ensure penalties remain an effective deterrent, acknowledging that Newham's average private rents are approximately 34% higher than the national average. The council will review this uplift annually to ensure it continues to act as a deterrent and does not exceed the average rent increase for Newham.
The policy details a framework for consistent, fair, and proportionate enforcement. It outlines how aggravating and mitigating factors will be applied when setting penalties. These factors are determined on a case-by-case basis, adjusting starting points upwards or downwards based on the culpability of the offender and the harm caused. Culpability factors include the number of properties owned or managed, previous non-compliance, admissions of guilt, and the speed of remediation. Harm factors consider the risk to tenant safety and wellbeing, whether that risk has materialized, and the vulnerability of tenants.
Furthermore, the 'principle of totality' will be applied to adjust aggregate fines proportionately for landlords committing multiple offenses. This involves assessing whether the total penalty is just and proportionate for all breaches. Reductions of up to 20% of the original calculated penalty amount may be applied based on the number of financial penalties issued to an individual or company.
A Renters' Rights Act Project Board, led by the Director of Housing Needs, has been established to oversee the implementation. The council has also secured new burdens funding from the Ministry for Housing, Communities and Local Government to support preparation costs and manage the impact on homelessness services.
The updated policy is anticipated to have a significant positive equality impact, particularly for groups disproportionately affected by poor-quality private rented housing, including disabled residents, Black and Global Majority communities, pregnant tenants, and low-income households. Mitigating actions include multilingual guidance, proportionate enforcement, and targeted engagement with vulnerable tenants.
Further details on the revised policy and the implementation plan can be found in the Public minutes of the Officer Key Decision meeting.