Rents have ballooned out of control – we must stop renters facing hikes higher than wage rises

The Renters’ Rights Bill is a welcome piece of legislation that has been a long time coming. I am proud that our Labour government is stepping up where the Conservatives failed. The ongoing housing and homelessness crisis has been worsened considerably by a private rented sector that has lost all sense of proportion – and it demands bold action.

While the Renters’ Rights Bill will make great strides in addressing the underlying issues renters face, I believe it can and should go further. Which is why I have proposed several amendments to the Renters’ Rights Bill aimed to increase protections for renters, including:

New Clause 5: Deposit Reform: This amendment would mean the government would be required to conduct a review and consult on tenancy deposit schemes and requirements within 12 months of the act’s passage. This change aims to improve the deposit process, ensuring it is fair for renters.

New Clause 6: Support for Care Leavers: Recognising the unique challenges faced by care leavers, this clause places a duty on local authorities to assist these individuals in covering or guaranteeing any required deposits for private rentals. This support is crucial for helping care leavers transition into independent living.

Amendments 5, 6 and 9: Rent Stabilisation: These amendments introduce essential rent stabilisation measures focusing on tackling the rising cost of renting in the private sector. By implementing these measures, we can mitigate the financial strain on renters and ensure that housing remains affordable by tying rent increases to the lowest of either inflation or wage growth.

Amendment 7: National Database for Private Rentals: This amendment would introduce specific requirements for landlord and dwelling entries on the Private Rented Sector Database. This would create greater transparency and accountability within the rental sector, empowering renters with crucial information about their landlords, letting agents and properties.

Amendment 8: Decent Homes Standard for Temporary Accommodation: This amendment would make the Decent Homes Standard apply to all homeless temporary accommodation provided under the Housing Act 1996 by adapting the definition of “residential premises” in the Housing Act 2004 to remove a requirement for such temporary accommodation to meet certain government regulations. By applying the Decent Homes Standard universally, we ensure that vulnerable individuals and families have access to safe and decent living conditions.

Amendment 55: Energy Efficiency and Rent Increases: This amendment aims to prevent landlords from using property improvements funded by means-tested energy efficiency grant schemes as justification for rent increases. By prohibiting such increases, we protect renters from unwarranted financial burdens.

These are all important issues, but arguably the most crucial is rent stabilisation. It is no secret that the price of rent has ballooned out of control. Rents have outpaced average wage growth for the last three years, and the Resolution Foundation predicts this could continue for another three.

Abolishing no-fault evictions is a key part of this bill, but for many renters unaffordable rent hikes are, and will remain, a de-facto section 21 eviction. There is a real risk that landlords will use unfair rent hikes in a similar way, to threaten or punish renters for asserting their new rights or complaining about issues in their homes.

My amendments on rent stabilisation would prevent landlords from putting the rent up for existing tenants by more than inflation or wage growth.

The housing crisis necessitates immediate and effective action. While long-term solutions such as building more social and affordable housing are essential and important steps from the government, we are in an emergency, and we must also implement measures that provide immediate relief to struggling renters. My proposed amendments on rent stabilisation offers a practical solution to smooth out rent fluctuations, helping to safeguard renters from economic eviction.

Additionally, limiting rent rises would immediately slow the growth of our vast housing benefit bill and support councils struggling with unsustainable temporary accommodation costs, who have increasingly been warning this is driving them to the brink of bankruptcy. In my own city, Liverpool, the council’s temporary accommodation bill has risen 10,000% in the last five years. This is simply not sustainable.

Through adopting my amendment to stabilise rent increases, we can help tenants stay in their homes and begin to tackle the housing and homelessness crisis gripping the country. I hope fellow MPs will join me in recognising the urgency of this issue and support these essential amendments to the Renters’ Rights Bill. Together, we can ensure that every renter has the security and safeguards they deserve.

Paula Barker is the Labour MP for Liverpool Wavertree and a former shadow minister for homelessness and rough sleeping.

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