Landlords will not be able to include clauses to hike up rents just before tenancy agreements are due to expire, as part of a government pledge to address renter insecurity in its upcoming White Paper.

During a Commons debate, Housing Minister Eddie Hughes said while it was for landlords and tenants to agree the amount of rent that should be charged at the outset of a tenancy, it was keen to avoid any unintended negative consequences related to abolishing Section 21, including the use of a mechanism to force tenants out. However, Hughes would not be pushed on the timetable for introducing the Renters Reform Bill which was delayed last year. Labour’s Catherine West MP said there was a huge power imbalance between private landlords and their tenants, which was upheld by existing housing legislation, and urged the government to end Section 21 notices.

eddie hughes

Sector consultation

Hughes confirmed the Bill would be published later this year but said it was important to consult widely with people from across the sector to ensure it got it right. “Hearing and listening to these views would not only ensure that the White Paper and future legislation actually address the challenges that exist, but help to create a system that works for everyone.”

He stressed he was committed to rebalancing the relationship between tenants and landlords to deliver a fairer, more secure and more desirable private rented sector. “We get it: we understand the challenges that exist in the sector, and we are open to dealing with them. That is why it is so important that we continue to drive through our reforms to ensure that we deliver on our aims.” Added Hughes: “We are aware that we need the support of the entire private rented sector if we are to achieve these goals.”

10 COMMENTS

  1. But as rents are increasing at 12% plus a year, wont this make landlords evict a tenant sooner rather than leaving it a year then be stuck with a rise of only 5% depending on inflation.

    • 12% is a lot and in my opinion that’s far too much! Where are rents going up that much? My rents certainly aren’t going up anything like that. However, my rents will have to go up if the government keeps bashing landlords and forcing the EPC rate to go up to a C.

      • I agree that 12% is a large increase; I increased Rent for Tenants by 8.5%, which was the first increase in 3 years. I only increased Rent due to many increased charges created by Nottingham Council HMO (and Selected Licences) and also increased charges by the UK Government.

        I strongly suspect as the latest legislation starts to bite, I will be forced to increase Rent again.

  2. My 4 properties went up 10% last year and 12% this year.

    Theyre going up 15% this year as thats what the market is.

    The Gov are welcome to build a few hundred properties near me for rental and reduce the demand – its NOT going to happen though.

    Market forces!!

    • Indeed, once Councils (caused by Thatchers Government) were ‘forced’ to sell Council Housing to applicants and NOT permitted to invest the ‘new’ income in building new council accommodation, then that was the start of an increase in the PRS.

      Additionally, due to mis-trust in Private Pension plans (remember the Endowment Policy disasters) many Landlords (and I fall into this category) invested in properties to secure a pension pot for later life. Just as well I did as my Wife cannot collect her earned and paid for State Pension and I have to wait another year.

      Governments… do I trust them? No I do not. In my opinion, all these issues feed into the growth of the ‘small time’ Landlord within the PRS.

  3. I have not increased the rent in several years. It was below market rent. The Government then increased the taxes and regulations, so I had was forced to put them. They are still cheaper then market rents.

    I only increase rents, where a tenants is not looking after the property and it is going to cost me to put it right. Such tenants will often refused to pay the increase rent increase. The lack of protection demotivates landlords to spend money on the property, because hey will say the tenant will damage it. I have been in kitchen stores, when I tell them it is for a rental property, they will me to put a cheap one in as they will break it!. It is the elephant in the room.

    The Government might want higher housing standards, but does nothing to protect the property from tenants who don’t (or can’t) look after the property. You can’t have it both ways.

    As a long time landlord, I have been thinking of selling up. If the Government does n’t want landlord, why not get rid of Capital Gains Tax, so we can exit the market and invest elsewhere.

    • Totally agree Landlord 123.
      I am surprised to see the increases that some Landlords are stating here in this comments section. Such Landlords undoubtedly have a different ethos to myself in regard to the letting of properties, which I totally understand.
      For myself, many of my Tenants are long term Tenants and I certainly don’t wish to “milk it”, choosing instead of maintaining a good relationship with Tenants and trusting that they look after the properties to a reasonable level and, only increasing rents by a modest degree after a number of years.
      Obviously there the occasional exceptions to the rule and one has to deal with them as and when necessary.

  4. So does this mean Govt is to ban S13!?

    How may LL register a rent increase for existing tenants!?

    Most LL are content to increase rents annually for existing tenants using the S13 process.

    It is a process that works.

    Never have I had a S13 increase referred to the Rent Tribunal.

    Usually discussing with the tenant prior to the S13 increase has resulted in the agreed increase confirmed by the S13 increase.

    LL must be able to increase rents as they sed fit.

    If the tenant can’t afford or CHOOSES not to afford then they can always give NTQ.

    LL ARE entitled to attempt to achieve as much rent as they can.

    Rent controls will cause LL to sell up.

  5. Tenants simply cannot afford it. Most either didn’t get a payrise or got a 2-3% in the past 1-2 years. If a £1500 property goes up 10% this is £1650pm. £150 extra a month, which in most cases is far more than people’s payrises. The issue in the UK is that people are allowed to buy multiple properties and then milk the tenants. 1 property and 1 holiday home should be the max.

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