Newham Council has revised its Private Sector Housing Enforcement Policy as part of its implementation plan for the Renters' Rights Act 2025 (RRA25), which came into effect on May 1, 2026. The updated policy aims to enhance tenant rights and security by introducing new responsibilities for local authorities.
The RRA25 introduces significant reforms, including the abolition of Section 21 no-fault
evictions, a limit on rent increases to once per year, and new civil and criminal offences for landlords who fail to comply. Maximum civil penalties can reach up to £40,000 for certain offences, such as reletting or remarketing a property within the 12-month no-let period after using moving or selling grounds, breaching a banning order, or dealing with mandatory or additional HMO unlicensed properties.
A key change in Newham's policy includes a discretionary 10% uplift on civil penalty starting points. This uplift is applied to all civil penalty starting points and will be reviewed annually. It is justified by Newham's higher-than-average rents, which are approximately 34% above the national average, ensuring penalties remain a credible deterrent in the local market and supporting tenant protection. The policy states that any percentage adjustment for local rent levels must not exceed the percentage by which they are higher or lower than the national average.
Interim Chief Executive Paul Martin approved the implementation plan, which delegates authority to the Director of Housing Needs and Head of Private Sector Housing for minor amendments. Further delegation allows these directors, along with the Director for Law and Governance, to finalise any additional policies required by parliamentary orders or statutory instruments related to the RRA25.
A Renters' Rights Act Project Board has been established to oversee the implementation. The board meets monthly to monitor progress, financial expenditure, and agree on future actions.
The revised policy is designed to create a consistent, fair, and proportionate enforcement framework. It details a matrix for determining civil penalties, incorporating aggravating and mitigating factors, financial considerations, and the principle of totality. Aggravating and mitigating factors are categorised under 'Culpability' and 'Harm'. Culpability factors include the number of properties owned, previous non-compliance history, admissions of guilt, and the speed of remediation. Harm factors consider the level of risk to tenants' safety and wellbeing, whether that risk has materialised, and the vulnerability of tenants.
The 'principle of totality' will be applied to ensure aggregate penalty amounts are just and proportionate in cases involving multiple breaches. This may involve reducing penalties by up to 20% of the original calculated amount, depending on the number of financial penalties issued, to reach a just and proportionate total sum.
A 20% discount is offered for timely payment of civil penalties within 28 days.
Financially, the implementation is supported by new burdens funding from the Ministry for Housing, Communities and Local Government (MHCLG). Beyond the £168,000 for preparation costs, there are specific additional allocations: £600,000 for 2026/27 and £300,000 for 2027/28 for homelessness services to manage the impact of the RRA25, and approximately £364,000 for 2026/27 for additional enforcement. It is anticipated that income from Civil Penalty Notices will sustain enforcement costs from 2027/28 onwards.
An Equality Impact Assessment concluded that the revised policy 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 multilingual guidance, proportionate enforcement, and officer training. Further details on the implementation plan can be found in the Public reports pack.