MPs will debate amendments to rent caps and upfront tenancy payments when the Renters’ Rights Bill returns to parliament tomorrow.
The Bill, introduced in September, includes measures to ban Section 21 no-fault evictions, limit rent increases to once a year and apply the Decent Homes Standard to the private rented sector for the first time.
Among the changes before MPs on Tuesday is one to limit the amount landlords can raise rents to the consumer price Index level of inflation, or wage growth, whatever is lower.
Average private rents in England lifted by 9.3% in the 12 months to November, outstripping wage growth of 5.4%, according to the latest National Office of Statistics data.
More than 30 lawmakers are understood to support this amendment, tabled last week by Labour MP Paula Barker.
Generation Rent chief executive Ben Twomey welcomed the Bill moving to its report stage but adds it needs to go further.
Twomey says: “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.”
Another amendment will ban landlords from demanding several month’s rent in advance from tenants.
However, National Residential Landlords Association Policy Director Chris Norris has said: “Restricting rent in advance, combined with freezing housing benefit rates and not enough rental housing to meet demand is creating significant barriers for those with poor or no credit histories needing to access the sector.
“This includes international students and those employed on a short-term or variable basis with an income that fluctuates.”
Propertymark chief executive Nathan Emerson has added: “There are other issues in the private rental sector that the government must concentrate on, such as a shortage of supply and the taxes and regulations that are weighing heavily on landlords.
“The government must ensure that it gets its priorities right so that both tenants and landlords can benefit from a stable and affordable private rental market.”
Key elements of the Bill include:
- Tenants will be in a stronger position to challenge unreasonable rent increases supported by a Tribunal and landlords will only be allowed to raise the rent once a year and only to the market rate
- Renters will get a quicker resolution over disputes, cutting down on the need to go through the courts through a new Ombudsman service
- Local councils will be given stronger powers to crack down on unscrupulous landlords, with fines lifted to £40,000 for the worst offenders
- A new database for landlords to share important information on their property standards
- Tenants will be able to request to have a pet and landlords will not be able to unreasonably refuse