Advocates are urging the government to permit the capping of rents within tenancies as a significant piece of legislation returns to the Commons.
Over 30 Members of Parliament have endorsed an amendment to the Renters’ Rights Bill which, if approved, would limit the extent to which landlords can increase rents for existing tenants by capping percentage hikes to either inflation or average wage growth—whichever amount is lesser.
This legislation, initially put forward by the Conservatives, aims to eliminate Section 21 “no-fault evictions”, the legal provision allowing landlords to evict tenants without any justification.
Section 21 notices have been recognized as a primary contributor to homelessness by housing charities such as Shelter, which reports that approximately 500 tenants receive no-fault eviction notices each day.
However, advocates have raised alarms that, should Section 21 notices be abolished, landlords might resort to alternative eviction methods, including imposing rent increases to price out tenants.
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The latest data from the Office for National Statistics (ONS) indicated that English renters paid an average of £1,362 last month, with rental prices in England rising nearly 10% over the past year.
Rent increases in the UK were similarly substantial, growing by 9.1% year-over-year, slightly lower than the record annual growth of 9.2% experienced in March.
Comparisons have been made with various European nations, such as the Netherlands, which has instituted a rent increase limit of inflation or wage growth plus 1%.
Despite a provision in the bill prohibiting rent increases from being specified in contracts to avoid mid-tenancy hikes, critics emphasize that landlords would still retain the ability to raise rents annually at the prevailing market rate.
Research conducted by housing charity Shelter reveals that private renters in England paid an additional £473 million monthly on rent in 2024—averaging £103 more each month compared to 2023.
Nonetheless, the government has dismissed rent controls, asserting that its strategy to construct 1.5 million additional homes will lead to a decline in prices.
The amendment to cap rent increases has been put forth by Labour MP Paula Barker, a former shadow housing minister, who stated that this modification would “help retain renters in their residences”.
This proposal has garnered support from the RMT and Unison unions, as well as the Renters’ Reform Coalition, which includes significant homelessness and housing charities like Shelter and Crisis.
Ms. Barker expressed that the housing crisis necessitates “immediate measures” and that her proposition would prevent landlords from employing “unaffordable rent increases as de facto no-fault evictions”.
“In the long run, increasing the supply of social and affordable housing will aid in addressing the crisis—but to assist renters facing difficulties presently, a limit on rent hikes would prevent landlords from exploiting unaffordable increases as a form of no-fault eviction,” she stated.
“By restricting landlords from elevating rents for existing tenants beyond inflation or wage growth, my amendment to the Renters’ Rights Bill would contribute to keeping renters in their homes, which is why I am imploring my fellow MPs to endorse it.”
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Bristol renters confront intense competition
Additional MPs endorsing Ms. Barker’s proposal include Green Party MP Carla Denyer, who has suggested a separate initiative to establish an independent “living rent” authority to set criteria concerning rent adjustments between tenancies, considering factors like property type, condition, size, and local earnings.
Green Party co-leader Carla Denyer addresses the media on College Green. Pic: PA
“It’s high time to put an end to the injustice of exorbitant rent,” declared the MP representing Bristol Central.
“At present, renters are navigating a chaotic landscape in the housing market—lacking adequate protections leaves them vulnerable to landlords who perceive tenants as mere sources of revenue rather than individuals in need of a home.
“Throughout Europe, rent regulations are a commonplace aspect of the private renting sector. The UK is lagging, which has severe repercussions not only for renters but for the economy at large.”
A representative from the Ministry of Housing, Communities and Local Government stated: “Our Renters’ Rights Bill will enhance tenant rights by prohibiting section 21 ‘no fault’ evictions. While we do not plan to implement rent controls, we are initiating measures to limit the initial rent at the commencement of a tenancy to one month, eliminate unjust bidding wars, and empower tenants to contest excessive rent hikes.
“This is in conjunction with expanding supply by constructing 1.5 million homes as part of our transformative strategy.”
