The bill is designed to afford tenants more protections, but could it lead to tenants being ‘forced out’ of their homes by landlords simply applying average annual rent increases.
That, argues the tenants’ campaigning group, The Renters’ Reform Coalition (RRC), after carrying out detailed research, is a likely outcome - an unintended consequence of the new legislation, now not expected to become law before early 2026.
But is this simply an appeal to the government; a ruse argument put forward by RRC to persuade the government to introduce a "cap on rent" increases - rent control in other words?
The Labour government (Angela Rayner) is on record as saying that rent control has definitely been ruled out by the Government.
But the RRC tenants’ group, after carrying out its research, claims that millions of tenants could find themselves in a bind as they will be unable to afford an average annual rent rise. If that conclusion is correct they would be forced to move house despite Labour’s claimed better protections.
One could argue that by formalising the rent increase process through section 13 notices and introducing continuous periodic tenancies (no more fixed terms), landlords, when under the renters’ Rights Bill (RRB) legislation, are more likely to rigorously apply annual rent increases. Before the RRB landlords would often allow rents to run-on at the same level, falling behind general inflation and market rents.
The RRC claims that over two-thirds of renters will “definitely (34 per cent) or probably (34 per cent) need to move home” if given an average (7.9 per cent) rent rise of £110 pcm.
Based on ONS rent inflation statistics, the average annual rent increase in England was 7.5% year to date, and the average rent was £1390pcm as of May 2025. https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/may2025
The RRC argues that despite the new legislation bringing an end to the controversial Section 21 ‘no-fault’ process, as well as giving extra protection from unfair rent increases through an independent property tribunal, many tenants will suffer the consequences, even when rent increases to market levels are to be deemed fair.
The tenants’ campaigning group points out that a £110 rent rise is an increase of 7.9 per cent on the average rent which represents a current average rent increase of 7.5 per cent. Average rents increased to £1,339 in May, up 7 per cent in the year.
RRC goes on to assume that “it is unlikely that tribunals will be able to provide adequate protection against “backdoor eviction” via rent rises, which the Ministry of Housing, Communities and Local Government says they should do.”
“Rent tribunals are unlikely to help tenants stay in their homes. 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, for instance removing the risk a tribunal could set a higher rent than requested by the landlord,” claims RRC.
Its analysis of first-tier tribunal rent appeal cases in 2025 found that the average gap between original rents and the recommended rent set by the tribunal was £244.63 more per month - equivalent to a 22.2% rent increase for tenants who appealed.
Keeping rents strictly inline with market rates on an annual basis, as landlords are advised to do when the formal Section 13 process applies, and when tenancies are no longer on a fixed term basis but are continuous periodic, then rent rises will be more regular and undoubtedly be more painful for tenants
More landlords are selling properties, or contemplating selling-up and exiting the market altogether ahead of the new bill.
Reforms to renters' rights in the RRB, such as the abolition of "no-fault" evictions (Section 21) and changes to tenancy agreements, are causing lots of anxiety among buy-to-let landlords. They worry about the long-term viability and manageability of their rental businesses.
Costs are rising generally since Covid and higher energy costs following the Ukraine invasion by Russia, rising mortgage rates, maintenance expenses, and energy efficiency upgrades (EPC regulations) are reducing landlords' profit margins.
All these factors make it less attractive to remain in the lettings market. Coupled with an increasing tax burden, including capital gains tax (CGT) and mortgage interest relief, you have reduced financial returns for buy-to-let investments.
What’s more, the increased workload entailed when dealing with the numerous new regulations included in the RRB and the uncertainty of surrounding evictions when tenancies when Section 8 becomes the sole means of removing a bad tenant, and landlords are running scared.
The result, as landlords choose to leave, is reduced rental supply. A significant reduction in the number of rental properties available is pushing up rents. It leads to increasing homelessness when tenants are unable to find alternative housing, and therefore puts a severe strain on social housing, councils forced to find temporary housing.
One recent poll taken of over 500 letting agents found that 67 per cent of the landlords in their management portfolios were considering selling-up. It highlights the real concerns felt by letting agents, that a landlord exodus is set to grow as the full effects of the new legislation become known, despite most of them currently holding the line.
Landlord exodus is a complex issue. Many argue it’s not as serious an issue as the anecdotal evidence suggests. More landlords are still entering the sector. Nevertheless, even a minor exodus has far-reaching consequences if not addressed by policy makers.
The RRC and renter groups have warned that rent appeal tribunals will not provide tenants with the proper security they need and they are calling on the government to introduce a cap on in-tenancy rent increases, so that renters can remain in their homes.
As the Renters' Rights Bill approaches its final stage in the House of Lords, Lord Best, former chair of the government's Affordable Housing Commission, is attempting an amendment to the bill which would limit rent increases for existing tenants for the first four years of a tenancy.
Tom Darling, Director at the RRC, said:
"The Renters' Rights Bill is long overdue. It will give renters more rights and protections and should help drive up housing standards. But 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.
"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.
“But a cap on rent increases would be simple to implement, putting money back into renters' pockets and giving them real long-term security in their homes."
A Ministry of Housing, Communities and Local Government spokesperson has said:
“Our landmark Renters’ Rights Bill will ensure that landlords are only 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.”
And of course, the First-tier Tribunal will not be able to increase a tenant's rent beyond what the landlord initially proposed. The bill guidance states that there will be provisions to ensure tenants are not unfairly burdened with higher rents than initially requested by the landlord.
Any rent increases determined by the tribunal will only take effect from the date of the decision, not backdated, furthermore, the tribunal will have the power to delay rent increases for up to two months in cases of genuine financial hardship, all subject to any amendments yet to be made as the bill progresses.
The RRC’s case for rent caps rests on several as yet uncertain assumptions:
That landlords will continue to exit the sector as they have done of late or indeed increase their rate of exit without the offset effect of more landlords entering therefore driving up rents in the process..
That average rent increase of 7.9 per cent or thereabouts will persist into the future.
That the First Tier Tribunal will increase rents beyond what tenants can afford.
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