The Renters’ Rights Bill won’t impact private landlords’ profits or slow rising rents, according to tenant referencing company FCC Paragon.

The proposed law means landlords would not be able to implement mid-tenancy rent increases that go beyond the accepted market rate. While some fear any such clauses will negatively impact their ability to turn a profit, the company believes the Bill will do little to hamper the cost of rents that continue to rise.

ONS figures show that the average rent in Britain stands at £1,338 a month, having increased by 8.1%, or £100, in the past year. London has seen the biggest increase, with rents climbing 9.9% since January 2024, leaving the average at £2,235 a month.

Local market rates

The Bill states that tenants can appeal any above-market rent increases they suspect are being implemented as a backdoor means of eviction. However, landlords will still be able to increase their rents in line with local market rates - a price that would reasonably be achieved if the property was being newly advertised on the market.

Bekki Leaves, of FCC Paragon, said the key focus appears to be stopping landlords from forcing evictions by increasing rent to an unacceptable level that is out of step with fair market rates.

“But by no means does it mean that landlords cannot increase rent for existing tenants to match increases in that fair market value,” she added.

“For example, landlords in London can now fairly insist on increasing their rents by up to 9.9% for tenants who moved in at the start of 2024. As such, they are going to be no worse off with the Bill in place than they would be without it.”

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