Third of renters 'could be forced out by rent hikes' despite landmark reforms

As many as a third of renters could be forced out by rent hikes despite landmark legislation to protect their rights, research shows.

Labour ’s significant Renters' Rights Bill, which is currently passing through Parliament, will ban landlords from evicting renters for no reason from their homes.

But despite Section 21 evictions being abolished, campaigners have raised concerns that landlords would still be able to use unfair rent hikes to push people out of their homes.

Polling by the Renters Reform Coalition (RRC) has found 34% of renters, and 29% of renters with children, said they would "definitely" be forced to move home by a rent increase of £110 per month.

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Analysis by the campaign group suggests the average rent increase recommended at first-tier rent tribunals is more than double this at over £240 per month.

RRC said the government recognises “unreasonable rent increases” and had promised to “empower” renters to challenge them through tribunals.

But its polling showed more than half of renters (54%) were unaware that rent tribunals exist and only 14% said they were “very likely” to use one to challenge a rent increase in future - even after the government has made changes to improve the process.

The RRC is calling on the government to introduce a cap on in-tenancy rent increases so renters can remain in their homes.

The Renters’ Rights Bill is in its final stages of the House of Lords and so is due to become law soon. Peers have attempted to amend the legislation to limit rent increases.

Tom Darling, Director at the RRC, praised the “long overdue” Bill to improve renters’ rights but said “the rent rise eviction loophole is a serious gap in the legislation”.

“Even after section 21 is abolished, our research suggests as many as a third of renters will still face being pushed out of their homes and communities by rent increases, and landlords will be able to use rent hikes they know tenants cannot afford to threaten or intimidate,” he said.

"The government's proposed solution will not address this - our analysis shows rent tribunals will do nothing to protect the large proportion of renters who already cannot afford average market rents, even if they were willing to take their landlord to a tribunal in the first place.”

A Ministry of Housing, Communities and Local Government spokesman said: “Our landmark Renters’ Rights Bill will ensure that landlords are only be able to increase rents once a year to the market rate, and tenants will be able to challenge unreasonable rent increases through the First-tier Tribunal.

“This will prevent unscrupulous landlords using rent increases as a backdoor means of eviction, while ensuring rents can be increased to a fair rate.”

The Government has been clear it does not support rent caps. Officials say heavy-handed controls tend to mean higher rents at the start of a tenancy. It was also highlighted that MHCLG secured a £39billion investment for affordable housing at the Spending Review.

::: The RRC commissioned polling from More in Common, who surveyed 1,076 private renters through three separate polls between April 25 - May 5.

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