Newham Council has approved a plan to implement the Renters' Rights Act 2025, a landmark piece of legislation designed to significantly enhance tenant protections and introduce new responsibilities for landlords and the local authority.
The decision, made by Interim Chief Executive Paul Martin on April 29, 2026, includes the adoption of a revised Private Sector Housing Enforcement Policy, effective from May 1, 2026. This policy aligns with government guidelines and the new Act's requirements. A key feature is the introduction of a discretionary 10% uplift on civil penalty starting points, a measure implemented to account for Newham's higher-than-average rents, which are approximately 34% above the national average.
The Renters' Rights Act 2025, which comes into force on May 1, 2026, ushers in substantial changes for the private rented sector. Crucially, it will abolish Section 21 no-fault
evictions, ensuring that tenants cannot be asked to leave without a valid and legitimate reason. The Act also limits rent increases to once per year and prohibits landlords from inviting or accepting offers above the advertised rent, aiming to prevent bidding wars and promote transparency in the rental market. Furthermore, new civil and criminal offences for landlords are introduced, with maximum civil penalties now set at up to £40,000 for certain specified offences. The specific criteria for reaching this maximum penalty are detailed in the 'Private Sector Housing Financial Penalty Matrix (Offence)', which considers the seriousness of the offence, aggravating and mitigating factors, financial considerations, and the totality of circumstances.
To ensure the effective implementation of these new regulations, a Renters' Rights Act Project Board has been established, led by the Director of Housing Needs. This board will convene monthly to monitor progress against all tasks outlined in the implementation plan, track financial expenditure, and agree on future actions. Mechanisms to ensure landlord awareness and compliance are also being put in place, including accessible and multilingual guidance for both landlords and tenants via the Council's website and communications channels. Targeted engagement with landlord forums, tenant groups, and community organisations is also planned. The Council will endeavour to provide general information, advice, and guidance to make it easier for landlords to understand and meet their regulatory obligations, and will signpost landlords with more complex questions or those requiring legal advice.
The revised Private Sector Housing Enforcement Policy aims to establish a consistent, fair, and proportionate enforcement framework. It outlines how civil penalties will be determined, with the aforementioned 10% uplift applied to starting points. This uplift will be reviewed annually at the beginning of each budget year by the Head of Service to ensure it continues to act as a deterrent and does not exceed the average rent increase in Newham.
The implementation of the Renters' Rights Act 2025 is supported by significant funding. The Ministry for Housing, Communities and Local Government has provided new burdens funding totalling £168,000 for preparation costs. An allocation of £600,000 for 2026/27 and £300,000 for 2027/28 is designated to manage the potential impact on homelessness services. Additionally, approximately £364,000 for 2026/27 has been allocated specifically for enforcement activities.
An Equality Impact Assessment conducted for the proposal indicates a strong positive impact, particularly for groups disproportionately affected by poor-quality private rented housing. These include disabled residents, Black and Global Majority communities, and low-income households. Mitigating actions to address potential disparities include the provision of multilingual guidance, proportionate enforcement strategies, and comprehensive officer training.