Landlords in England will only be allowed to raise rents once a year under new reforms outlined by the Labour government today (Wednesday, September 11).
This is part of a new Renters’ Rights Bill which is being introduced to Parliament and is set to come in next summer.
It will stop in-tenancy rent increases from being written into contracts, as well as banning "bidding wars" and prevent landlords from blocking tenants on benefits or with children.
Currently, if a landlord wants to raise the rent they can either write it into the contract as a yearly set increase or issue a Section 13 notice when they want to raise it. A tenant can dispute a rent increase – but only after it has been enforced.
The government will also legally require landlords and letting agents to publish an “asking rent” for their property, and prevent them from asking for, encouraging, or accepting any bids above this price, The Telegraph reports.
Additionally, a ban on "no-fault" evictions is set to be part of the bill.
Labour’s new Renters’ Rights Bill replaces the Conservative’s Renters’ Reform Bill, a manifesto promise which never came to be.
A ban on "no-fault" evictions was first proposed under the Conservatives but it was delayed amid concern about the impact on landlords from some Tory MPs, and time ran out to pass the law before July’s election was called, BBC News reports.
Additionally, the government promised to hand out “new investigatory powers” to councils so they can fine “unscrupulous landlords” who do not fix “serious hazards”.
Under these new powers, landlords could face fines of up to £7,000.
Housing secretary Angela Rayer said: “There can be no more dither and delay. We must overhaul renting and rebalance the relationship between tenant and landlord.
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“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.”
Ben Twomey, chief executive of campaign group Generation Rent, said banning no-fault evictions was "painfully overdue" and would "give tenants more confidence to challenge disrepair and poor treatment by landlords and letting agents".
Ben Beadle, chief executive of the National Residential Landlords Association said it was vital the bill was "fair to both tenants and landlords".
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