Rental reforms move closer to becoming law after being backed by MPs
The Renters' Rights Bill, which aims to bring significant changes to the rental sector, has moved a step closer to becoming law after receiving backing from MPs. The proposed legislation includes putting an end to no-fault evictions, halting bidding wars for tenancies, enabling tenants to contest unreasonable rent hikes, and capping upfront payments at no more than one month's rent for new tenants.
The House of Commons passed the Bill at its third reading with a decisive 440 votes to 111, giving it a majority of 329, and it will now head to the House of Lords for further examination.
However, some Conservative MPs have raised concerns that additional legal amendments could trigger a departure of landlords from the market, potentially reducing available rental homes and pushing rents even higher. Meanwhile, certain Labour backbenchers and the Green Party have suggested considering rent controls.
READ MORE: Students 'pressured into signing tenancy contracts before making friends in housing arms race'
Housing minister Matthew Pennycook, addressing the Commons during the third reading, said: "The current system for private renting is broken.
“While the Government recognises the majority of landlords provide high quality homes and a good service to their tenants, it remains the case that private renting provides the least affordable, poorest quality and most insecure housing of all tenures.
“This intolerable state of affairs is why renters have been demanding change for many years and I’m extremely proud that this Government has acted so early in the Parliament to deliver it.”
In response to criticisms directed at the Tories concerning the Bill's progression through votes, Shadow housing secretary Kevin Hollinrake retorted: "We agree that tenants need a better deal but this is not the Bill that gives them that better deal."
Bell Ribeiro-Addy, Labour MP for Clapham and Brixton Hill and herself a renter, pressed for a cap on rent hikes aligned with CPI or wage increases.
"I’m yet to hear a compelling reason why landlords should see their incomes grow faster than people who actually work for a living," she remarked.
Labour MP for Poole, Neil Duncan-Jordan, highlighted the lack of protection for tenants, stating: "There is nothing to protect tenants from extortionate, unjust rent hikes. The Renters’ Rights Bill doesn’t do enough to change that.
"Last year, a Government survey of landlords found rent increases of 15% or more when renewing or extending a contract were common. Despite the Bill’s passage, renters who cannot afford extortionate rent hikes will continue to have no alternative but to move, fall into debt or face eviction.
"The Bill’s provisions to allow renters the right to appeal to a tribunal that can determine a market rate increase are insufficient. By definition, market rates are already unaffordable for many renters. Only capping rent increases will give renters genuine security in their homes."
Green Party MP Carla Denyer (Bristol Central) also weighed in on the debate, advocating for amendments to the Bill to include rent controls.
"We have people on the streets and in temporary accommodation because they cannot afford their rent," she said.
She added: "But rent controls are still needed because having the right to something you cannot afford and cannot access is no help to anyone."
Ms Denyer didn't push any of her amendments to a vote, but she did welcome the minister's pledge to discuss ways to ensure that disabled tenants can modify their homes to suit their needs.