Up to 65 councils will use the funding to tackle rogue landlords who let out substandard homes and make tenant's lives "a misery".
Worse off councils will be able to bid for a share of the fund to tackle irresponsible landlords who provide unsafe living conditions, exploit innocent tenants and blight communities.
In addition, the finance will also target 'bed in sheds' which are often rented to migrants to landlords who charge them extortionate prices to live in cramped conditions.
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Local authorities can use the money to:
• Increase inspections of property
• Carry out more raids
• Initiate more enforcement action and prosecutions
• Demolish sheds and buildings that are prohibited.
Communities Secretary Greg Clark said: "We're determined to keep the country building and increase the supply of good quality homes that families want, both to buy and for rent.
"Key to this is rooting out the minority of landlords in the private rented sector that let out poorly-maintained and unsafe properties to vulnerable tenants, making their lives a misery.
"Council-led efforts mean more than 3,000 landlords have faced enforcement action and even prosecution in the last 2 years – today's £5 million funding, combined with the extra powers we're bringing forward, will help them go even further."
(LM)
