Money Wellness

housing

Published 13 Jan 2025

3 min read

Over 30 MPs back cap on rent increases during tenancies

More than 30 MPs are backing calls to place a cap on rent increases during tenancies.

James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 13 January 2025

MPs are debating and voting on amendments to the Renters’ Rights Bill for the final time tomorrow (January 14th).

The government wants to significantly improve conditions for private renters through measures such as:

  • ending ‘no fault' Section 21 evictions
  • raising eviction notice periods under new no fault grounds to four months
  • banning rental bidding wars
  • introducing a new Landlord Database

However, Labour MP Paula Barker is calling for a further amendment to the bill, which would mean landlords can’t raise rents on their tenants by more than inflation or wage growth. 

“Instead of a fixed rent level controlled by the government, a limit would be a practical measure to smooth out rent rises and reduce the social harm caused by economic evictions,” she said.

“Putting more money in tenants’ pockets cannot be a bad thing. This is money people should be spending in their communities, investing in the economy, not donating to their landlord’s wallet.”

Ms Barker added that similar measures are already in place in several European countries, including France, Germany and Spain, as well as several US states.

Campaigners back cap on rent increases

So far, more than 30 MPs have supported Ms Barker’s amendment, along with campaign group Generation Rent.

“Without this measure, many landlords will use rent hikes as a Section 21 eviction in all but name,” said chief executive Ben Twomey.

Mr Twomey described the measures included in the Renters’ Rights Bill as “positive for renters across England”.

However, he said people are facing “soaring rents which are far outstripping our earnings”.

“Despite this, there are very few measures in the Bill to give us the breathing space we need from the cost of renting,” Mr Twomey commented.

According to the Office for National Statistics, average private rents in England went up by 9.3% in the year to November 2024.

What other measures are MPs considering?

The government has also tabled an amendment to limit how much rent a landlord can demand in advance to one month’s worth.

Other amendments being considered by MPs include:

  • allowing tenants to reclaim rent from landlords who fail to join a landlord redress scheme or comply with database requirements
  • protecting tenants from rent hikes when landlords receive means-tested grants for energy efficiency improvements
  • applying the Decent Homes Standard to temporary accommodation for the homeless
  • restricting landlords from unnecessarily requiring guarantors
  • setting up a body to monitor rent levels and affordability, with recommendations for improvement
  • introducing detailed requirements for entries on the Private Rented Sector Database

Struggling with rent costs?

If you’re finding it hard to pay your rent, there are several important steps you can take.

Speak to your landlord

Be honest about your financial situation with your landlord. 

Having this conversation might feel awkward, but they can’t help and work with you to create a new payment plan if they don’t know that you’re struggling.

Benefits check

Make sure you’re not missing out on money you’re entitled to by using our free benefits calculator

You could also contact your local council to see what help they can offer.

Get free debt advice

If you’re struggling to pay your rent, then seek advice as soon as you can.

We offer free debt advice online and over the phone, where we can run through your finances and let you know what options are open to you.

James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

James has spent almost 20 years writing news articles, guides and features, with a strong focus on the legal and financial services sectors.

Published: 13 January 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 13 January 2025

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