Landlords warn they could increase rents in response to Labour’s renters’ rights bill

National Residential Landlords Association claims bill could turn rental sector into ‘Airbnb lite’

Deputy Prime Minister Angela Rayner spoke of her own time as a social housing tenant (Chris Furlong/PA) (PA Wire)

Landlords have warned they may raise rents as a result of Labour’s Renters’ Rights Bill, which is aimed at giving tenants more power when renting.

The proposals could include legislation to allow tenants to walk away from deals just two months after moving in, as well as introducing a ban on so-called no-fault evictions in the coming week.

Previously, tenants generally had to wait for six months before they could leave a rental agreement.

The National Residential Landlords Association (NRLA), which represents over 110,000 landlords, warned that, if the policy is introduced, it could lead to an increase in rent prices particularly in city centres and tourist hotspots.

It said its members are considering adjusting prices to mitigate the risk to incomes posed by added flexibility for renters.

Deputy Prime Minister Angela Rayner said renters have been let down for ‘too long’ (Chris Furlong/PA) (PA Wire)

Chris Norris, policy director for the NRLA told the Guardian: “The new model could lead to Airbnb lite.

“If you need a place for two months you could go to a private rented sector landlord, [sign a tenancy agreement] and then immediately serve notice.”

But renters dismissed this possibility, with Dan Wilson Craw, deputy chief executive of the Generation Rent campaign group, saying: “If you want a short-term let, it’s always going to be more straightforward to go through a platform like Airbnb, so these warnings are completely implausible.”

The Renters’ Rights Bill will ensure greater security for renters by creating a “level playing field between tenants and landlords”, the government said.

A ban on no-fault evictions, which was promised by the previous government but was delayed over concern about its impact on landlords, has been welcomed by campaigners.

Research by charity Shelter found that, since 2019, 26,000 households have been evicted through the Section 21 process, which allows landlords to evict tenants with two months’ notice without providing a reason.

Mr Wilson Craw said: “Evictions have surged in recent years, so it is welcome that the Government is acting quickly to introduce legislation to tackle this crisis.

“The abolition of Section 21 evictions is long overdue and requiring landlords to provide a valid reason for eviction will give tenants more confidence to challenge disrepair and poor treatment by landlords and letting agents.”

He said ministers were also right to “take a stand on the egregious practice of bidding wars” in the coming Bill but warned measures it has proposed “risk being ineffective at countering the problem”.

The Bill will also extend Awaab’s Law – named after the toddler who died after exposure to mould in his family’s social rented home – to the private sector to ensure all landlords speedily address hazards and make homes safe.

In addition, it would end blanket bans imposed by some landlords on those receiving benefits or with children.

A Decent Homes Standard will be applied to the private rented sector for the first time, with the government highlighting that 21 per cent of privately rented homes are currently classified as “non-decent” and more than 500,000 contain the most serious hazards.

Also included in the reforms is a crackdown on bidding wars through a legal requirement for landlords and letting agents to publish the required rent for a property.

Deputy prime minister Angela Rayner said: “Renters have been let down for too long and too many are stuck in disgraceful conditions, powerless to act because of the threat of a retaliatory eviction hanging over them.”

She added: “There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord. This Bill will do just that and tenants can be reassured this Government will protect them.”

A Ministry of Housing, Communities and Local Government spokesperson said: “We don’t recognise this mischaracterisation of our rental reforms. There is a broad consensus more needs to be done to level the playing field between landlords and tenants and this is exactly what our proposed reforms will do.

“The majority of landlords already meet their responsibilities to tenants and have nothing to fear from these reforms.”