Landlords could raise rents in response to new rules under Labour government

Landlords in England issue 'rent' warning due to new rules under Labour
-Credit: (Image: Reach Publishing Services Limited)


A previous headline of this article incorrectly reported that "every renter in England faces £1,311 charge due to new rules under Labour". In fact, the rise would not be an additional £1311 charge, but the increase would would mean the average monthly rent rising to at least £1,311, which would equate to approximately an additional £12 per year. Furthermore, this increase would not apply to 'every renter in the UK'. We are happy to clarify this and the article has been amended accordingly.

Landlords in England have warned they may HIKE rents - due to the new Labour Party Government Renters' Bill. Private rental sector reforms "could lead to Airbnb Lite", according to the landlords’ association, as the Labour plan is unveiled in parliament.

Angela Rayner, the Labour Party deputy prime minister and housing secretary, said the bill would “rebalance the relationship between tenant and landlord”. But the National Residential Landlords Association said landlords might respond with rent rises in areas.

“The new model could lead to Airbnb Lite,” said Chris Norris, the policy director. “If you need a place for two months you could go to a private rented sector landlord, [sign a tenancy agreement] and then immediately serve notice.”

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The average private rent in the UK is currently estimated to be around £1,310 per month. A rise would mean it rising to at least £1,311 as landlords try to offset the cost. Dan Wilson Craw, the deputy chief executive of the Generation Rent campaign group, said: “If you want a short-term let, it’s always going to be more straightforward to go through a platform like Airbnb, so these warnings are completely implausible.”

The new laws, which cover England only, will set deadlines for landlords to tackle dangerous conditions in an extension to the private rented sector of Awaab’s law, named after a two-year-old who died from the toxic effects of mould in social housing, only allow landlords to raise rents once a year, and only to the “market rate”, and fine landlords up to £7,000 if homes do not meet a “decent homes standard”.

It will also abolish blanket bans on renting to people with children or who are receiving benefits. The Renters’ Reform Coalition of charities and campaign groups welcomed the bill as “a stronger piece of legislation than the previous attempt” by the Conservative government. Tom Darling, the director of the RRC, said eviction protections meant “a lot of renters will benefit from increased security of tenure”, but safeguards were still needed to stop ongoing unfair or fraudulent evictions.

“Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act because of the threat of a retaliatory eviction hanging over them,” said Rayner. “Most landlords act in a responsible way but a small number of unscrupulous ones are tarnishing the reputation of the whole sector by making the most of the housing crisis and forcing tenants into bidding wars.

“There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This bill will do just that and tenants can be reassured this government will protect them.”