Ignoring the Warning Signs: The Renters' Rights Bill and the Looming Housing Crisis

Ignoring the Warning Signs: The Renters' Rights Bill and the Looming Housing Crisis

Let’s be clear—the RRB will increase homelessness and will ultimately come at a cost to those it’s intended to protect: tenants.

The warning lights are already flashing red, and the Bill isn’t even on the statute books yet.

A report by the London School of Economics (LSE), commissioned by Crisis, found that councils in England spent £732 million on temporary accommodation for homeless families in the year leading up to April 2024—an 80% increase compared to the previous year. Meanwhile, the Ministry of Justice reported that Section 21 notices, which allow landlords to evict tenants without giving a specific reason, hit an eight-year high last year as landlords scrambled to regain control of properties before the RRB came into effect.

Francesca Albanese, Director of Policy at Crisis, highlighted that local councils are at “breaking point”, citing a lack of social housing and rising rents which are forcing lower-income families out of the private rented sector (PRS).

And the situation is only set to worsen.

The Impact of the RRB: More Selective Landlords and Higher Rents

The RRB will inevitably lead to landlords becoming more selective about prospective tenants, as well as raising rentsto offset the increased costs brought about by the Bill. This will only price more people out of the rental market.

Faced with the prospect of a longer court process under the new system, landlords can hardly be blamed for tightening their criteria. Add measures like limits on rent in advance—often used by tenants with poor or no credit history—and the already difficult task of securing a privately rented home for those on lower incomes becomes even more daunting.

The Ministry of Housing, Communities and Local Government has responded to the LSE report, attributing the homelessness crisis to an issue inherited from the previous Government, and suggested that the removal of Section 21 “no fault” evictions would help alleviate the problem. But let’s be clear—abolishing Section 21 won’t prevent landlords from evicting tenants, nor should it. The reasons for evictions—rent arrears, anti-social behaviour, and a desire to sell a property—will still exist. All the Bill does is shift the method of eviction, from Section 21 to Section 8 notices.

A Stagnant Rental Market and a Growing Housing Problem

There is also a sense that the Government does not fully believe the warnings about landlords leaving the sector. While we don’t anticipate a mass exodus, the RRB, combined with new energy efficiency standards, will likely push smaller landlords out of the market entirely.

However, whether landlords sell their properties or not misses the point entirely. PRS stock has been stagnant for nearly a decade—an entire period that has coincided with soaring tenant demand, especially in the aftermath of the COVID-19 lockdowns.

Tenants are staying in homes for longer periods, which has led to less churn and fewer available rental properties. This supply-demand imbalance has driven rental inflation, and we urgently need more rental homes across the board—from private landlords to build-to-rent projects.

The Government’s own forecasts predict an additional five million people in the UK by 2032. This will likely be driven by migration, and migrants typically need homes immediately. Even if the promised 1.5 million new homes are delivered during this parliament, it still won’t be enough.

As always, we are here to help! 

Data and information derived from numerous sources as outlined in the post including www.landlordtoday.co.uk*