Local Authorities

Local Authorities

Context

The Renters’ Rights Act 2025 introduces a new statutory duty to enforce under section 107 (s.107 RRA 2025). Once in force, this is expected to drive a significant increase in enforcement activity via civil penalties.

Local authorities will also be subject to quarterly reporting to MHCLG, including a detailed breakdown of civil penalties issued and the offences to which they relate. This reporting will make it easier to identify where enforcement levels are significantly lower than those of authorities with a comparable private rented sector (excluding authorities with discretionary licensing schemes).

As a result, most Private Sector Housing (PSH) or equivalent teams will need to issue a higher volume of civil penalties. Colleagues in other services (including Trading Standards and Housing / Housing Options / Housing Solutions / Housing Need) may also need to understand the new civil penalty regime and associated requirements.

Justice For Tenants (JFT) already delivers commissioned services to most local authorities across England. We support teams to implement proportionate, evidence-led enforcement approaches and to operate at volume while remaining compliant with policy, statute and guidance.

 

What local authorities will need in place

To support delivery of the new regime, local authorities are likely to require:

  • PSH and licensing policies that clearly separate:
    • offences to which the Regulator’s Code applies, and
    • breaches/offences covered by the new statutory duties.
      (Contact JFT for a model enforcement policy or via ACEHO.)
  • A Civil Penalty Policy that aligns with precedent and the new statutory guidance.
    (Contact JFT for a model Civil Penalty Policy or via ACEHO.)
  • Training for relevant officers (provided by JFT).
  • Software to generate compliant civil penalty notices efficiently (provided free by JFT).
  • Officer support to ensure notices are compliant with policy, statute and guidance, helping to reduce appeals (provided by JFT).
  • Support with robust handling of Written Representations, including fair, transparent and consistent application of policy-based factors in line with precedent (provided by JFT).
  • Specialist, affordable support for Tribunal appeals. Without effective appeals handling, appeals may become the financially rational choice for recipients of civil penalties in some areas – consuming limited resources and making compliance with s.107 harder to achieve.

Funding available

JFT has funding to support local authorities with the above at no cost to the local authority.

  • Every local authority can access £2,000 of free funding.
  • Policies and the 10-minute Civil Penalty Notice (CPN) Generator are free.
  • Funding can cover training and a significant amount of ongoing support.

Civil Penalties

JFT can support local authorities with:

  1. Policy provision and consultation
  2. Review and amendments to civil penalty notices
  3. The 10-minute Civil Penalty Notice generator
  4. Assistance with Tribunal appeal submissions
  5. Representation at Tribunal hearings (advocacy)

 

Rent Repayment Orders (RROs)

JFT runs hundreds of Rent Repayment Order proceedings each year on behalf of tenants and local authorities.

Legislative changes will enable local authorities, by default, to recover up to two years of Universal Credit or Housing Benefit in many cases after serving a civil penalty for most offences. These recovered funds remain with the local authority to support private rented sector enforcement work (rather than returning to DWP).

In addition, DWP and MHCLG are operating an expanded pilot (covering roughly 18% of local authorities) enabling officers to obtain Universal Credit data for a property to support RRO applications to recover public funds from criminal landlords. This is expected to be rolled out nationally in 2026.

Following a service review, this process is expected to operate via a single click within the 10-minute CPN Generator and will often require minimal or zero local authority involvement. Cases will be triaged, and where it is financially sensible for the authority, JFT can progress the matter and return recovered funds to support local authority enforcement activity.

 

Debt enforcement (non-payment of civil penalties)

Evidence indicates that under 50% of civil penalties are paid, and those that are paid are generally paid voluntarily. Jigsaw data suggests that around 90% of local authorities do not have an effective debt recovery process.

As volumes increase – particularly where new “breach” penalties are capped at £7,000—there is a risk that unpaid penalties are not pursued and are eventually written off. Writing off these debts reduces the income available to enforcement teams to fund their private rented sector work, limiting capacity and weakening deterrence. Over time, this can undermine compliance and make it harder to deliver statutory duties.

The best approach for local authorities is to have support with debt recovery where:

  • The local authority does not need to outlay money upfront; and
  • Fees are only payable when funds are recovered from a debtor.

 

Other free support for local authorities
Local authorities can make referrals to JFT, or signpost tenants to contact us directly, where there may be eligibility for a Rent Repayment Order (RRO). JFT can support or represent tenants through the RRO process where appropriate. This can support wider enforcement objectives and may also help councils access key evidence that is often burdensome for officers to obtain (including proof of rent payments, tenancy agreements and tenant witness statements).

 

Next steps

To discuss support for your team, please contact Al McClenahan.

JFT is a non-profit organisation. JFT holds appropriate insurances and policies for working with local authority colleagues.