A lettings industry supplier is insisting that the Renters Rights Bill need not be a major concern to landlords.
FCC Paragon says the Bill’s emphasis on landlords not using rent increases as a backdoor route to eviction – and not being allowed mid-tenancy rent increases beyond the market rate – has led to concern from landlords that they may lose income.
However, government figures show that rent prices have climbed by as much as 9.9% in the past year alone. And FCC Paragon says that even when the Bill is passed into law this summer, it’s unlikely to hamper landlords’ ability to benefit from a thriving rental market.
Government data shows that the average rent in Britain currently stands at £1,338 per month having increased by 8.1%, or £100, in the past year (Jan 24 – Feb 25, the latest available). This is equivalent to an average monthly increase of £8.33.
London has seen the biggest increase with rents climbing by 9.9% since January 2024 leaving the current average at £2,235 per month. This marks an annual cash increase of £201, equivalent to an average monthly increase of £17.
The North West has seen an annual increase of 9.3%, followed by the North East (8.7%), Wales (8.6%), the East Midlands (8.4%), East of England (8.1%), West Midlands (7.5%), South East (7.1%), South West (5.9%), Scotland (5.7%), and Yorkshire & Humber (4.9%)
The Renters Rights Bill states that tenants can appeal any above-market rent increases that 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
An FCC Paragon spokesperson says: “The Renter’s Rights Bill will not hamper the profitability of being a buy to let landlord. Nor will it slow the rising price of rent in Britain.
“With regards to rent prices, the key focus of the RRB 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.
“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 RRB in place than they would be without it.
“The government is determined to avoid implementing any kind of rent control on the British market, so this is an attempt to thwart the unfair practices of a few landlords and ensure people can afford a good home without having to stem the profit potential of enterprising landlords.”
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