It is understood 48 councils will use the money to tackle rogue landlords operating in their areas.
Since 2011, nearly 40,000 inspections have taken place at properties, with over 3,000 landlords facing further enforcement action of prosecution.
The cash boost will allow allow local authorities to carry out more raids, increase inspections of property, issue more statutory notices, survey more streets and to demolish sheds and prohibited buildings.
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Minister Lewis said: "Many private rental tenants are happy with their home and the service they receive, but there are still rogue landlords that exploit vulnerable people and force their tenants to live in overcrowded and squalid accommodation.
"We are determined to tackle these rogues which is why we are providing 48 councils with extra funding, so they can get rid of the cowboy operators in their area and bring an end to tenants living in miserable homes in the name of profit.
"We also want to raise the quality and choice of rental accommodation across the sector. The funding will ensure tenants know what level of service they can expect and have confidence to get help and take action if things go wrong."
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