Renters face £2k ‘eviction tax’

Renters face an average upfront cost of £2,216 when moving house after eviction, a new report by Generation Rent has found.

The research shows that unwanted moving can push renters into poverty, debt and even homelessness.

Where the costs add up

The renters’ rights charity lists the expenses tenants typically have to pay when moving and then calculates the average costs:

deposit for a new home - £1,531 (five weeks’ worth of rent)

cleaning - £30

van hire for moving - £60

28 hours in time off work to view properties, pack and move - £320 out of pocket

overlapping rent – £255

broadband installation - £20

Ben Twomey, chief executive of Generation Rent, described the additional expenses renters have to stump up for a move they choose to make as “an astonishing amount of money”.

“Along with the inconvenience of being uprooted and having to find a new home, you can play by the rules, but still rack up thousands of pounds of debt when the landlord decides to kick you out,” said Twomey.

What is the renters' rights bill?

The research comes as the renters’ rights bill reaches its second reading in the Commons. Today (9 October) MPs are debating the bill which is heralded as a once-in-a-generation overhaul of the private rental market in England.

At the heart of the bill is the banning of section 21 notices (no-fault evictions), which allows landlords to evict tenants for no reason with just two months’ notice.

But the bill will introduce new eviction grounds for when a landlord moves back into a property themselves, or when selling a property.

Campaigners warn that this could be used as a “backdoor” alternative to a section 21 notice.

The Renters' Reform Coalition (RRC), of which Generation Rent is a member of, is calling on the government to introduce two months' rent compensation for tenants evicted under these grounds in the bill.

Homelessness after no fault evictions

The latest government figures on homelessness show that over the last tax year – April 2023 to March 2024 – 31,730 households successfully claimed homelessness support following the end of an assured shorthold (private rented) tenancy due to “landlord wishing to sell the property”.

This figure is made up of 5,410 homelessness relief claims and 26,320 homelessness prevention claims.

For tenancies ending due to the “landlord wishing to re-let the property”, there were 2,900 homelessness relief claims and 10,670 homelessness prevention claims.

Tom Darling, director of the Renters’ Reform Coalition, said it’s “totally unjust” that a renter can be evicted through no fault of their own and have to meet the costs.

“We welcome the government's renters' rights bill - the end of section 21 will mean greater security for millions of renters across England. But let's be clear: no-fault evictions will continue. That's why we're calling on the government to go further and protect tenants against the ‘eviction tax' through two month's rent as compensation,” said Darling.

Your rights as a renter

Your rights as a private tenant will depend on the type of agreement you have with your landlord, but most will have an assured shorthold tenancies (AST).

An AST agreement exists to protect both you, as the tenant, and the landlord and sets out the terms for you to live in the landlord's property.

You can check which type of tenancy agreement you have using the Shelter website or read our guide about the rights of assured shorthold tenants.

If you’re facing eviction, find out what to do with this guide for private and social tenants.

Gabrielle Pickard Whitehead

Gabrielle is an experienced journalist, who has been writing about personal finance and the economy for over 17 years. She specialises in social and economic equality, welfare and government policy, with a strong focus on helping readers stay informed about the most important issues affecting financial security.

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