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

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 the Renters’ Rights Bill which, if passed, would restrict how much landlords can raise rents on sitting tenants by limiting percentage increases to inflation or average wage growth – whichever is lowest.

The bill, which was first proposed by the Conservatives, promises to abolish Section 21 “no-fault evictions”, the legal mechanism that allows landlords to evict tenants without providing a reason.

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

However, campaigners have expressed concern that if Section 21 notices are banned, landlords will use other means to evict tenants, including by pricing out tenants with rent hikes.

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The most recent statistics by the Office for National Statistics (ONS) showed that English renters paid an average of £1,362 last month, while rent prices in England increased by nearly 10% in the past year.

UK rent rises were not far behind, growing 9.1% across the year, just below the record-high annual rise of 9.2% in March.

Comparisons have been drawn with other countries in Europe, including the Netherlands, where a rent increase limit of inflation or wage growth 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-tenancy hikes, critics have pointed out that landlords would still be able to raise rent once a year at the market rate.

Analysis of government figures by housing charity Shelter found England’s private renters paid an extra £473m every month on rent in 2024 – an average of £103 more per month than they were paying in 2023.

However, the government has ruled out rent controls, saying its plan to build 1.5 million more homes will bring prices down.

The amendment on restricting rent increases has been proposed by Labour MP Paula Barker, a former shadow housing minister who said the change would “help keep renters 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 that her proposal would prevent landlords from using “unaffordable rent hikes as de facto no-fault evictions”.

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

“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.”

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

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

“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.”

A spokesperson for the Ministry of Housing, Communities and Local Government said: “Our Renters’ Rights Bill will strengthen tenants’ rights by banning section 21 ‘no fault’ evictions and while we do not have plans to introduce rent controls, we are taking action to cap rent payable at the start of a tenancy to one month, end unfair bidding wars, and give tenants stronger powers to challenge excessive rent hikes.

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