Shelter has called for indefinite tenancies as well as rent increases restricted to once a year and limited to a rise either in line with inflation or wage growth. 

The charity wants the government to introduce radical reforms to prevent renters being forced out of their homes and cutting back on daily essentials by “extortionate rent hikes”. It believes the commitment to scrap unfair, no-fault evictions in England will be undermined if landlords are free to bump up tenants’ rents and force them out through the back door.

Shelter reports that 25% of renters say they have forgone challenging a rent increase they thought was unfair in the last five years for fear of a retaliatory eviction.

Policy manager Tarun Bhakta (pictured) explains that in theory, tenants can challenge a rent increase at a first-tier tribunal, but in many cases, a ceiling of market rent allows for very large rent increases.

“Setting fair and sensible limits on in-tenancy rent increases would allow for some fair rises to rents, whilst preventing big, unpredictable jumps that force tenants out of their home,” he says.

“For a tenant who started renting an average rented home in April 2015 and faced the maximum rent increase each year, this would leave them £84 a month – over £1,000 a year - better off in 2024 than if their rent had been allowed to follow the market.”

Consequences

Shelter’s research in 2015 found that rent stabilisation was unlikely to have unintended consequences, such as an exodus of landlords.

“In fact, while landlords may decide to increase the rent to cover increases in their costs, many landlords increase the rent simply because they can,” adds Bhakta. “Revealingly, our research also showed that landlords without any mortgage are almost as likely to increase rents as those with a mortgage.”

Main image credit: Facebook/Shelter