Campaigners are calling on the federal government to permit rents to be capped inside tenancies as a key invoice returns to the Commons.
Greater than 30 MPs have backed an modification to the Renters’ Rights Invoice which, if handed, would limit how a lot landlords can elevate rents on sitting tenants by limiting share will increase to inflation or common wage progress – whichever is lowest.
The invoice, which was first proposed by the Conservatives, guarantees to abolish Section 21 “no-fault evictions”, the authorized mechanism that permits landlords to evict tenants with out offering a purpose.
Part 21 notices have been recognized as a key driver of homelessness by housing charities together with Shelter, which says about 500 renters obtain a no-fault eviction each day.
Nonetheless, campaigners have expressed concern that if Part 21 notices are banned, landlords will use different means to evict tenants, together with by pricing out tenants with lease hikes.
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The latest statistics by the Workplace for Nationwide Statistics (ONS) confirmed that English renters paid an average of £1,362 last month, whereas lease costs in England elevated by practically 10% prior to now yr.
UK lease rises weren’t far behind, rising 9.1% throughout the yr, just under the record-high annual rise of 9.2% in March.
Comparisons have been drawn with different international locations in Europe, together with the Netherlands, the place a lease improve restrict of inflation or wage progress plus 1% is in place.
Though there’s a measure within the invoice that might ban lease will increase from being written into contracts to stop mid-tenancy hikes, critics have identified that landlords would nonetheless have the ability to elevate lease yearly on the market charge.
Evaluation of presidency figures by housing charity Shelter discovered England’s non-public renters paid an additional £473m each month on lease in 2024 – a mean of £103 extra per 30 days than they had been paying in 2023.
Nonetheless, the federal government has dominated out rent controls, saying its plan to build 1.5 million more homes will convey costs down.
The modification on limiting lease will increase has been proposed by Labour MP Paula Barker, a former shadow housing minister who mentioned the change would “assist maintain renters of their properties”.
It has the help of the RMT and Unison unions, in addition to the Renters’ Reform Coalition, which incorporates main homelessness and housing charities comparable to Shelter and Disaster.
Ms Barker mentioned the housing disaster wanted “fast motion” and that her proposal would forestall landlords from utilizing “unaffordable lease hikes as de facto no-fault evictions”.
“In the long run, constructing extra social and inexpensive housing will assist to handle the emergency – however to assist renters who’re struggling proper now, a measure to restrict lease rises would cease landlords from utilizing unaffordable lease hikes as de facto no-fault evictions,” she mentioned.
“By stopping landlords from elevating the lease for sitting tenants by greater than inflation or wage progress, my modification to the Renters’ Rights Invoice would assist maintain renters of their properties. Which is why I’m urging my fellow MPs to help it.”
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Different MPs who help Ms Barker’s modification embody Inexperienced Occasion MP Carla Denyer, who has put ahead a separate proposal that might arrange an unbiased “dwelling lease” physique to determine guidelines about lease will increase between tenancies by considering elements comparable to property sort, situation, measurement and native incomes.
Inexperienced Occasion co-leader Carla Denyer speaks to the media on School Inexperienced. Pic: PA
“It is time to finish the scandal of rip-off rents,” the Bristol Central MP mentioned.
“Proper now, renters are dealing with a wild west in relation to renting a house – and an absence of safety has left them on the mercy of landlords who see tenants as money cows, not folks in want of a house.
“Throughout Europe, lease controls are a standard a part of the non-public rented sector. The UK is lagging behind, with dire penalties not only for renters however for the financial system as an entire.”
A spokesperson for the Ministry of Housing, Communities and Native Authorities mentioned: “Our Renters’ Rights Invoice will strengthen tenants’ rights by banning part 21 ‘no fault’ evictions and whereas we don’t have plans to introduce lease controls, we’re taking motion to cap lease payable in the beginning of a tenancy to 1 month, finish unfair bidding wars, and provides tenants stronger powers to problem extreme lease hikes.
“That is alongside boosting provide by constructing 1.5 million properties as a part of our plan for change.”
