Local authorities across England are to receive an extra £41 million to cover costs for new enforcement powers through the landmark Renters’ Rights Act.

The money will help councils oversee new legal protections for 11 million private renters from 1 May – a huge overhaul including a ban on Section 21 ‘no-fault’ evictions and rogue landlords will face fines of up to £40,000.

All 317 local authorities will get a share of the funding this month, ahead of the Act coming into effect – the pot of cash comprises of £41.12 million in new funding following an initial £18.2 million allocated to councils last autumn.

In addition, up to £50 million will be invested to modernise the civil courts in preparation for the Act, including a move to digitalising court processes. Another £5 million is being invested into fee uplifts for the housing legal aid sector each year, so all renters can access free help and support in the event of facing eviction from their home.

New powers for councils coming on 1 May include:

• A duty to enforce: councils will be legally obliged to make sure landlords are complying with the new rules that ban old practices like rental bidding wars, discrimination against tenants with children or receiving benefits and ‘no-fault’ evictions
• Bigger fines: landlords seriously or repeatedly breaking the law will now face higher fines of up to £40,000 – up from £30,000
• Rent Repayment Orders will also be heftier if the rules aren’t being followed – going from one year’s worth of rent to two years – and tenants can challenge offences going back to two years, up from one year.

This follows expanded investigatory powers that came into force last December for councils to carry out more thorough investigations where they suspect landlords are breaking the law – from entering the premises without having to give prior notice to landlords to accessing information from third-parties like banks and accountants.

Housing Secretary Steve Reed, said: “It’s less than a month until the Renters’ Rights Act begins to transform our private rented sector – a huge manifesto commitment.

“We’ve been preparing councils to use their new powers on the minority of landlords who rip off their tenants and this new funding will help councils carry out their duties.

“Stronger powers and fines will help deter wrongdoing in the first place, as we work towards a better rental system that’s fairer to tenants and good landlords.”

Courts Minister Sarah Sackman KC, said: “The Renters’ Rights Act is historic, and our courts and tribunals must stand ready to deliver justice.

“That’s why we’re investing millions to modernise and digitise court processes. Access to justice is crucial, so we’re also keeping court fees low and providing free legal aid advice to those who need it most.”

 Chief Executive of the National Residential Landlords Association, Ben Beadle, said: “Rogue landlords have no place in the private rented sector and every effort should be made by local authorities to drive them from the market.

“This announcement demonstrates that the government is serious about tackling those who bring the sector into disrepute and supporting those responsible landlords who provide decent and secure homes for renters.”

Chief Executive of Generation Rent, Ben Twomey, said: “The Renters’ Rights Act is a vital step in addressing the power imbalance between tenants and landlords. But the law will only reach into people’s homes and make a positive difference to their lives if councils are able to take actions against landlords who don’t follow the new rules.

“Therefore, we’re pleased to see the government commit further funding for councils, boosting their ability to make sure renters feel the benefit of the changes from May 1st.”