Councils gain increased investigation powers under the Renters' Rights Act 2025

Councils in England have had increased investigation powers since 27 December 2025 under the Renters' Rights Act 2025, according to guidance published by Business Debtline and National Debtline. The powers allow councils to ask for documents, access third-party data and inspect properties to identify bad practice in the private rented sector¹.

The same guidance sets out a series of further changes to the private rented sector in England that take effect from 1 May 2026. From that date, rent increases for private tenants are restricted to once a year¹. For new tenancies after 1 May 2026, asking for payment of rent in advance before a tenancy agreement is signed is not allowed². Landlords will also need to give tenants, and anyone named on the tenancy, a government-produced information sheet before 31 May 2026¹.

Where a private tenant's rent arrears are caused by delays paying the housing costs element of Universal Credit, this will be ignored when deciding the rent arrears level from 1 May 2026². Universal Credit takes five weeks from claim to payment, sometimes longer, and the Department for Work and Pensions should start paying the housing costs element within five weeks¹.

Separately, discretionary housing payment is included in the Crisis and Resilience Fund (CRF) and is to become CRF Housing Payments from 1 April 2026¹. A discretionary housing payment is an amount of money the council can give to help with housing costs that does not have to be paid back, and it is up to the council whether to give one and how much¹.

Why it matters for households

The enforcement powers affect private landlords and letting agents in England, and tenants whose landlords are investigated. The other measures affect private tenants in England from 1 May 2026, including the limit of one rent increase a year and the ban on rent in advance for new tenancies¹.

The treatment of Universal Credit delays in rent arrears decisions applies to private tenants whose arrears are caused by those delays². The change to CRF Housing Payments from 1 April 2026 affects households receiving a discretionary housing payment towards housing costs¹.

The guidance also notes that Local Housing Allowance rules generally apply to private tenants only, and that the under-occupancy rule reduces the Universal Credit housing costs element or Housing Benefit by 14% for one spare bedroom and 25% for two or more spare bedrooms¹. The benefit cap limits how much can be received if a claimant and their partner are of working age but not working¹.

What happens next

The Renters' Rights Act 2025 changes for private tenants in England take effect from 1 May 2026¹. Where a landlord serves notice, they must begin court possession proceedings by asking the court to issue a claim form by the earlier of 31 July 2026 or the expiry of the notice¹. The government-produced information sheet must be given before 31 May 2026¹. CRF Housing Payments begin on 1 April 2026¹.