STORY
The Department for Work and Pensions (DWP) has announced a significant expansion of its crackdown on unscrupulous landlords, moving to protect hundreds of thousands of vulnerable tenants and claw back millions in misspent taxpayer cash. As of 20 December 2025, a successful pilot scheme that targets “rogue” operators is being rolled out to 41 local authorities across England, marking a decisive shift in the government’s efforts to uphold housing standards and fiscal responsibility.
The initiative leverages streamlined access to Universal Credit data, allowing local councils to identify landlords who are pocketing housing support payments while providing dangerous, substandard, or unlicensed accommodation. One trial area, Camden Council in North London, has already used this data to recover nearly £100,000 in public money and initiate fraud referrals against landlords who had effectively been “wrongly pocketing” taxpayer funds.
The expansion comes as the Renters’ Rights Act 2025 begins to exert its influence on the sector. Under the new legislation, the maximum penalty for Rent Repayment Orders has been doubled, allowing local authorities to recover up to 24 months of rent from non-compliant landlords, up from the previous 12-month limit. These orders are a primary tool for penalising those who ignore improvement notices or leave residents in “mouldy, dire conditions” while continuing to collect state-funded rent.
“No one should live in unsafe or unsuitable housing” said Minister for Social Security and Disability Sir Stephen Timms. He emphasised that the new tools are designed to deter “bad housing practice” and ensure better value for money by preventing the waste of public resources on properties that do not meet basic legal standards.
The government’s road-map for reform continues next week, with new investigatory powers for local councils set to take effect on 27 December 2025. These powers will grant enforcement officers the ability to demand documents, inspect premises, and access third-party data more easily.