A Labour MP is putting forward an amendment to the Renters Rights Bill with the aim of limiting rent increases during a tenancy.
Paula Barker, the Member of Parliament for Liverpool Wavertree, has introduced a proposal that would prevent landlords from raising rent for existing tenants by more than the rate of inflation or wage growth. Rather than introducing a fixed rent level controlled by the government, Barker’s amendment seeks to create a practical mechanism that would help moderate rent increases. This, she argues, would ease the financial burden on renters and prevent the social harm caused by what she describes as “economic evictions.”
Economic evictions, as defined by Barker, occur when landlords use unfair rent hikes as a means of threatening or punishing tenants who assert their rights or raise complaints about the condition of their homes. These rent increases can have a significant impact on tenants, leading to stress, financial instability, and the possibility of having to move out due to unaffordable rent, even if the tenant would otherwise prefer to stay in the property.
Barker’s amendment reflects her ongoing concern about the vulnerability of renters in an increasingly volatile housing market, where rents have risen sharply in recent years, leaving many tenants struggling to make ends meet. By tying rent increases to inflation and wage growth, Barker aims to provide tenants with greater stability and ensure that rent remains affordable, particularly for those on lower or fixed incomes. She believes that this approach could play a key role in protecting renters from unjust treatment and fostering a fairer, more secure rental market.
Writing in The House, the House of Commons magazine, Labour MP Paula Barker emphasised that moves to limit rent rises and make renting more affordable are supported by a broad coalition of major unions and housing organisations. Among those backing the initiative are prominent unions such as UNISON, the RMT, the Fire Brigades Union, and the NEU. Additionally, housing charities and advocacy groups like Shelter and Generation Rent have also shown their support. These alliances are crucial in pushing for reforms aimed at addressing the financial strain on renters, with a collective belief that the current system is failing to meet the needs of those affected by high rents.
Barker’s amendment to the Renters Reform Bill seeks to tackle what she views as a significant flaw in the legislation. While the Bill includes provisions for abolishing no-fault evictions, Barker believes it falls short of addressing the root cause of many renters’ struggles – the escalating cost of renting. In her view, the Bill will “fail to address one of the most significant issues renters face – the high cost of renting,” which continues to rise far above the rate of wage growth. Over the past three years, rent increases have consistently outpaced wage growth, and according to the Resolution Foundation, this trend is predicted to continue for at least another three years. This growing disparity is a significant burden on renters, particularly in an era where wages have not kept pace with the cost of living.
Barker stresses that while abolishing no-fault evictions is a key part of the proposed reforms, it does not sufficiently protect renters from unaffordable rent hikes, which often have the same effect as eviction. She explains that for many renters, an unaffordable rent increase can serve as a “de facto section 21 eviction,” meaning renters are forced out of their homes due to financial pressures, even without the official legal process of eviction. This situation leaves renters in a vulnerable position, with limited options for securing stable, affordable housing. Barker’s amendment proposes a practical solution to this issue by introducing a limit on rent rises, pegging them to inflation or wage growth, rather than leaving renters exposed to unpredictable and unaffordable increases.
By addressing these concerns, Barker’s proposed amendment seeks to ensure that renters are not at the mercy of rising rents and can maintain a stable home without the fear of being priced out of the market. She calls for the government to take meaningful action to prevent what she refers to as “economic evictions,” where landlords use steep rent hikes to force tenants out, especially in cases where tenants assert their rights or raise concerns about living conditions. Through this amendment, Barker aims to make housing more accessible and secure for renters, while ensuring that those already struggling with high rent costs do not face further financial hardship.
Barker goes on to criticise the Renters’ Rights Bill for its reliance on a rent tribunal as a solution to excessive rent increases. While the Bill does provide an avenue for renters to challenge rent hikes deemed to be above market value, Barker points out that this tribunal would not have the power to recommend a rent increase that exceeds what the landlord initially proposes. This, she argues, represents a modest improvement compared to the current tribunal system in England and Scotland. However, she also highlights significant limitations in the proposed system.
She suggests that the tribunal, while a theoretical remedy, will not have a practical impact for most renters. The vast majority of renters, according to Barker, are either unaware of the existence of this appeal process or are unwilling to go through the considerable effort involved in challenging a rent increase. Additionally, if a large number of renters were to utilise the tribunal system, it could quickly become overwhelmed, rendering it ineffective.
Barker further contends that the tribunal’s focus on addressing above-market rent increases misses a critical issue. She argues that the real problem for many renters is that market rents, on average, are already unaffordable, especially for individuals and families on low incomes. For these renters, even a “market level” rent increase can result in what Barker terms an “economic eviction,” where the cost of staying in their home becomes financially untenable. This, she claims, is particularly concerning for renters who are already dealing with substandard living conditions and unreliable landlords.
With the Renters’ Rights Bill set to return to the House of Commons for its Report Stage and Third Reading, followed by further scrutiny in the House of Lords, Barker’s criticisms suggest that the current version of the Bill may not go far enough in addressing the root causes of the housing crisis.
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