Calls for rent caps within tenancies as landmark bill returns to Commons | Politics news

Campaigners are calling on the Government to allow rents to be capped within tenancies as a key bill returns to the Commons.

More than 30 MPs have backed an amendment to tenants’ rights which, if passed, would limit how much landlords can raise rents on sitting tenants by capping percentage increases to inflation or average wage growth – whichever is lower.

The bill, which was first put forward by the Conservatives, promises to abolish it Section 21 “expulsion without fault”the legal mechanism that allows landlords to evict tenants without giving a reason.

Section 21 notices have been identified as a key driver of homelessness by housing charities including Shelter, which says around 500 tenants receive a no-fault eviction every day.

However, campaigners have raised concerns that if Section 21 notices are banned, landlords will use other means to evict tenants, including pricing tenants with rent increases.

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The latest statistics from the Office for National Statistics (ONS) showed that English tenants paid an average of £1,362 last monthwhile rental prices in England rose by almost 10% in the past year.

UK rent rises were not far behind, growing 9.1% over the year, just below the record annual increase of 9.2% in March.

Comparisons have been made with other countries in Europe, including the Netherlands, where a rent increase limit of inflation or wage increase plus 1% is in place.

Although there is a measure in the bill that would ban rent increases from being written into contracts to prevent mid-term rent increases, critics have pointed out that landlords would still be able to raise rents once a year to market rate.

Analysis of government figures by housing charity Shelter found that England’s private tenants were paying an extra £473 million a month in rent in 2024 – an average of £103 more a month than they paid in 2023.

However, the government has ruled that out rent controlsays it plans to build 1.5 million more homes will bring prices down.

The change to cap rent rises has been proposed by Labor MP Paula Barker, a former shadow housing minister, who said the change would “help keep tenants in their homes”.

It has the support of the RMT and Unison unions, as well as the Renters’ Reform Coalition, which includes major homelessness and housing charities such as Shelter and Crisis.

Ms Barker said the housing crisis needed “immediate action” and her proposals would prevent landlords from using “unaffordable rent increases as de facto no-fault evictions”.

“In the long term, building more social and affordable housing will help address the emergency – but to help tenants who are struggling right now, a measure to cap rent rises will stop landlords using unaffordable rent rises as de facto no-fault evictions,” said she.

“By preventing landlords from raising rents for sitting tenants by more than inflation or wage growth, my amendment to the Tenants’ Bill of Rights would help keep tenants in their homes. That’s why I’m calling on my fellow MPs to support it.”

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Renters in Bristol face insane competition

Other MPs backing Ms Barker’s amendment include Green Party MP Carla Denyer, who has tabled a separate motion that would set up an independent “living rent” body to establish rules on rent increases between tenancies, taking into account factors such as property type, condition, size and local incomes.

Green party leader Carla Denyer speaks to the media on College Green. Picture: PA
Picture:
Green Party co-leader Carla Denyer speaks to the media on College Green. Picture: PA

“It’s time to end the scandal of rip-off rents,” said the Bristol Central MP.

“Right now, tenants are facing the wild west when it comes to renting a home – and a lack of protection has left them at the mercy of landlords who see tenants as cash cows, not people in need of a home.

“Across Europe, rent control is a normal part of the private rented sector. The UK is lagging behind, with dire consequences not just for tenants but for the economy as a whole.”

A spokesman for the Department for Housing, Towns and Local Government said: “Our Tenants’ Bill of Rights will strengthen tenants’ rights by banning section 21 ‘no fault’ evictions, and while we have no plans to introduce rent controls, we are taking action to limit rents, to be paid at the start of a tenancy, to one month, end unfair bidding wars and give tenants stronger powers to challenge excessive rent increases.

“This is alongside increasing supply by building 1.5 million homes as part of our plan for change.”