“By preventing landlords from raising the rent for sitting tenants by more than inflation or wage growth, my amendment to the Renters’ Rights Bill would help keep renters in their homes. Which is why I am urging my fellow MPs to support it.”
The amendment, which has the backing of trade unions the RMT and Unison, is among a number of pro-renter changes proposed as the bill looks set to clear the Commons and move on to the Lords.
As well as Barker’s amendment, the government is being urged to consider applying the decent homes standard to temporary accommodation, extending rent repayment orders so tenants can recover cash if their landlord doesn’t sign up to the new landlord database.
Generation Rent is also backing an amendment that would see a body setup to report on the impact of the legislation on rent levels, historic affordability of rents, and propose measures to improve the affordability of privately rented homes.
That’s after the Office for National Statistics reported the average UK private rent increased by 9.1% in the 12 months to November 2024, rising even further in England by 9.3% to £1,362 a month.
Affordability is considered outside the scope of the bill. But the legislation will crack down on bidding wars between tenants.
Last week the government also announced a further amendment that banned landlords from demanding more than one month of rent payments in advance.
Housing secretary Angela Rayner said: “We’re putting an end to renters being ripped off by outrageous upfront costs that leave them struggling to make ends meet or locked out of housing altogether.
“Our Renters’ Rights Bill will transform the rights of 11 million private tenants, ending rental bidding wars and abolishing ‘no fault’ eviction, making the system fairer and giving renters more security, stability and protections.”
The National Residential Landlords Association (NRLA) warned the measure, combined with freezing housing benefit rates and a shortage of housing, would “create significant barriers for those with poor or no credit histories needing to access the sector”.
NRLA policy director Chris Norris said: “The government is cutting off any assurance responsible landlords might seek when renting to those who cannot easily prove their ability to sustain tenancies and pay their rents. In the end those who will suffer most are those the government most wants to help.”
But tenants need more support and security to meet mounting costs, said Ben Twomey, chief executive of Generation Rent, who called for a rent cap.
“Putting a stop to landlords demanding more than a month’s rent in advance will help many renters avoid falling into debt and poverty,” said Twomey.
“But renters across the UK are facing soaring rents which are far outstripping our earnings. Despite this, there are very few measures in the bill to give us the breathing space we need from the cost of renting.
“We hope the government at least brings forward the amendment to introduce rent caps within tenancies to limit how much landlords can hike the rent on their tenants. Without this measure, many landlords will use rent hikes as a section 21 eviction in all but name.”
Tom Darling, director at the Renters’ Reform Coalition, echoed the calls. He said: “Recent research by Shelter shows nearly two thirds of working renters struggle to afford the rent.
“A simple cap on rent increases would be hugely popular, keep money in people’s pockets and help keep renters in their homes. It’s a major loophole in the legislation that rent increases will continue to be able to force renters out of their homes.”
Meanwhile, Carla Denyer, the Green Party co-leader and MP for Bristol Central, has proposed a law introducing rent controls in order to tackle ‘rip-off rents’ as housing costs spiral.
The Scottish government is developing a form of rent controls but the idea has proven unpopular with both the Labour and Conservative Westminster governments while Sadiq Khan has called for powers to introduce them in London.
“It’s time to end the scandal of rip-off rents. Time after time, I’ve had constituents write to me about the poor condition of their rented homes, and the extortionate amounts they’re shelling out in order to live there,” said Denyer.
“Right now, renters are facing a 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 controls are a normal part of the private rented sector. The UK is lagging behind, with dire consequences not just for renters but for the economy as a whole. We have a golden opportunity now to transform the experience of renting, and rebalance the rental market so it works for everyone.”
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