Just last month, I had the opportunity to assist a young homeless family living along England’s picturesque south coast. The local council had arranged for them to move into a privately rented apartment with a rent they had agreed upon, sweetening the deal with a “landlord incentive” of £1,500. Everything seemed to be falling into place until the landlord threw a curveball – upon receiving an email confirmation from the council, he decided to hike the rent by £100 a month, justifying this move by claiming that it was in line with current market trends.
This decision wasn’t driven by financial necessity; the property was free of mortgage debts, which Zoopla notes is the case for 70% of landlords who have minimal or no mortgage obligations. Additionally, it wasn’t a case of low supply unexpectedly raising demand – in fact, council figures showed that more than 8% of local homes were unoccupied. Nothing had improved about the flat’s location or condition; the increased rent stemmed purely from the landlord’s unchecked ability to set his own price.
Unfortunately, this scenario means that the children in this family are now growing up with an unnecessary and heavier financial burden of an additional £100 a month. It also inadvertently boosts the property’s resale value, should it be sold to another landlord, making it even harder for first-time buyers who have to compete in this overpriced market. If the trend continues, the landlord is likely to up the rent again next year, possibly pushing the family back out into homelessness as they struggle to keep up with inflated costs.
This is where the government’s renter’s rights bill could intervene, potentially breaking such a vicious cycle. The proposed bill aims to recalibrate the dynamic between landlords and tenants, aligning more closely with international standards. Its main feature includes banning “no-fault” evictions while abolishing the notoriously unstable tenancies currently prevalent in England.
While these proposed amendments are crucial, they fail to address the root issue—the spiraling cost of renting. Contrary to regions like Scotland, Sweden, and Germany, the UK government remains adamant that rent should be left to the whims of the “open market,” despite its clear inflationary patterns. Historical evidence points to regulation as the only effective measure to curb such rises.
That said, these reforms are far from superficial. They come with the potential added benefit of stable renting terms—imagine the peace of mind that comes from knowing your children can complete their schooling without the anxiety caused by uncertain 12-month leases. Over time, this security could lead to better-quality rented homes as tenants gain confidence to assert their rights. Unlike the current precarious setup, where renters hesitate to demand standard maintenance, the social sector shows tenants routinely winning court cases, compelling landlords to make repairs and sometimes receiving hefty compensation, in some instances matching up to 100% of the rent paid.
Under these new rules, private landlords will need to accept that maintenance and compensation are part and parcel of their investment. This marks a significant shift from the passive income mindset that has characterized the housing market for decades.
Further, the bill proposes a formal ban on landlords discriminating against those on benefits or families with children. It also targets lettings agents’ tendency to instigate “bidding wars” and prohibits steep upfront rent demands. Also, pet ownership refusals from landlords will need adequate justification. While these rights might sound basic globally, they signify a groundbreaking change for England.
Naturally, landlords are up in arms. They managed, some years ago, to thwart similar attempts by the previous government, sidestepping reform with a protracted four-year campaign that saw proposals stall until post-election. The prospect of Labour’s bill succeeding has sparked a frenzy. With rent hikes reaching new peaks in 2024 and no-fault evictions soaring to an eight-year high, landlords seem to believe tenants are the adversaries.
Now, the fear is that landlords might rush to push through last-minute no-fault evictions, re-letting properties at the steepest prices before the new regulations come into force. These changes are expected by the summer of 2025, leaving campaigners concerned that the interim may witness a blitz of evictions and rent gouging.
We’re frequently reminded that most landlords mean well, with only a few bad apples in the barrel. While it remains uncertain how landlords will respond in these pre-reform times, should they seize this opportunity to exploit the current loopholes, their reputation will be hard to defend moving forward.
Nick Bano is a barrister who specializes in renters’ rights and homelessness law. He penned the book Against Landlords: How to Solve the Housing Crisis. This insightful read is available from Verso for £16.99, and for those interested, check out guardianbookshop.com to make a purchase. Do note that delivery charges may apply.
