Khan launches £400,000 fund ahead of Renters' Rights Act

Sadiq Khan has launched a £400,000 enforcement fund to prepare London's 2.7 million renters for the Renters' Rights Act 2025 coming into force in May.

Related topics:  London,  Renters Rights Act,  Sadiq Khan
Property | Reporter
27th March 2026
Sadiq Khan - Mayor of London - 749
"I'm pleased to announce a new Renters' Rights Enforcement Fund so that renters in London know their new rights, from a ban on no-fault evictions to tribunals to challenge unreasonable rent hikes"
- Sadiq Khan - Mayor of London

The Mayor of London has launched a £400,000 fund to help renters across the capital understand and enforce their new legal rights ahead of the Renters' Rights Act 2025 taking effect on 1 May 2026.

The move, which fulfils a manifesto commitment, comes as new polling shows three-quarters of Londoners support a cap on annual rent increases.

The 'Renters' Rights Enforcement Fund' will direct money to organisations and London boroughs to inform tenants of their rights, as well as fund training for enforcement officers tasked with holding rogue landlords to account.

Sadiq Khan used the announcement to renew his call for the devolution of rent controls to City Hall, arguing for caps on rent rises while proposing to exempt new build-to-rent homes to protect long-term housing supply.

What the Renters' Rights Act means for London tenants

The legislation, which Khan has campaigned on for many years, will significantly reshape the private rented sector. Its measures include:

  • The abolition of Section 21 'no-fault' evictions
  • New rules to curb unreasonable rent rises
  • Strengthened rights for tenants to challenge landlords at tribunal, with refunds of up to 24 months' rent available

The YouGov polling, commissioned by the Greater London Authority, found 75% of Londoners would back a cap on how much rent can be raised each year. The mayor argued the result demonstrated a clear public appetite for further reform beyond the act itself.

"We are seeing the biggest expansion of renters' rights for a generation," said Sadiq Khan, mayor of London. "This is a change that I have long called for and will transform the lives of London's 2.7 million renters.

"I'm pleased to announce a new Renters' Rights Enforcement Fund so that renters in London know their new rights, from a ban on no-fault evictions to tribunals to challenge unreasonable rent hikes. It also means that crucially, organisations will have more resources to make sure the new rules are upheld."

"I will continue working with the Government to build new social and affordable homes with record funding, including 6,000 new key worker rent control homes. I believe the next step is for Ministers to devolve the power to cap rents so we can tackle the capital's problems of both affordability and supply. And the evidence is clear – Londoners would overwhelmingly back new plans to put a cap on rent increases in the capital."

Broader action to support London's 2.7 million renters

The enforcement fund sits within a wider package of measures the mayor says are designed to champion renters across the capital. These include getting 6,000 new rent-controlled homes for key workers underway by 2030, with rents set at 40% of key workers' average net household income. The GLA estimates that a two-bedroom home under the scheme would save tenants around £7,000 a year on average.

Other initiatives include the publication of online private rented sector tools and checkers enabling Londoners to scrutinise their landlords and letting agents, support for boroughs to expand licensing powers, and the expanded use of sensors to detect damp and mould. A wider public awareness campaign is planned for next month, with online advertising and posters across the TfL network.

Khan also pointed to nearly £12 billion of investment through the Mayor's Affordable Homes Programme as part of a broader effort to increase housing supply across all tenures over the next decade.

Sector organisations broadly welcomed the enforcement fund, though one industry body raised concerns about the broader direction of travel on rent controls.

"The Renters' Rights Act is a major step forward in rebalancing the power between landlords and renters, giving us more security in our homes," said Ben Twomey, chief executive of Generation Rent.

"Ahead of this new law coming into action, the Mayor's funding of tenants' organisations is most welcome to help make every renter aware of the new rights. With this funding, organisations can do more to support the law to reach into people's homes and improve their lives."

Manny Hothi, chief executive of Trust for London, said the legislation marked a turning point for renters. "The Renters' Rights Act is a huge milestone for London renters. From May, for the first time in a generation, people will not legally face having to leave their homes on the whim of their landlord." 

"But alongside this, renters need to understand and be able to exercise their new rights. We welcome the Mayor's commitment to spread the word and back renters and borough enforcement. London needs a stable, affordable, well-managed private rented sector. This is a welcome step along the way."

Industry warns on rent control risks

The British Property Federation struck a more cautious tone, warning that rent controls could reduce investment and shrink housing supply.

"While it is encouraging to see Build to Rent protected from calls for rent controls given its key role in expanding housing supply, this protection is recognition that rent controls pose significant risks to investment and the availability and homes, and should not be introduced at all," said Jordan McCay, policy officer at the British Property Federation.

"Evidence from Scotland shows how interference in rent-setting reduces investment and shrinks housing supply, worsening affordability for tenants. Introduction of rent controls in England risks repeating these patterns, prompting private landlords to exit the sector and deterring new investment and delivery."

"We strongly urge the GLA to focus on boosting supply and maintaining a stable, predictable investment environment to deliver new, high-quality homes at scale."

More like this
CLOSE
Subscribe
to our newsletter

Join a community of over 20,000 landlords and property specialists and keep up-to-date with industry news and upcoming events via our newsletter.