Section 21 ban will not protect tenants from ‘economic eviction’ loophole

Millions of private tenants will be left vulnerable to eviction despite the Renters’ Rights Bill’s claim to improve tenant protections, a survey reveals.

According to the Renters’ Reform Coalition (RRC), the legislation will abolish section 21 ‘no fault’ evictions but will not prevent landlords from imposing steep rent rises.

Those rent rises could effectively force tenants out of their homes with rises they can’t afford.

It says that four million renters – around 34% of tenants – could be forced to relocate if faced with a £110 rent increase.

The RRC is now calling for rent controls in a bid to close the economic eviction loophole.

‘Rent rise eviction loophole’

Coalition director, Tom Darling, said: “The Renters’ Rights Bill is long overdue.

“It will give renters more rights and protections and should help drive up housing standards.

“But the rent rise eviction loophole is a serious gap in the legislation.”

He added: “Even after section 21 is abolished, our research suggests as many as a third of renters will still face being pushed out of their homes and communities by rent increases, and landlords will be able to use rent hikes they know tenants cannot afford to threaten or intimidate.”

Content rent rises at tribunals

The coalition says a £110 rent rise would be equivalent to a 7.9% increase, which is close to England’s average annual rent rise.

It adds that the impact is particularly severe for families, with 29% of renters with children stating they would ‘definitely’ have to move.

Also, 24% of tenants indicated they would need to reduce spending on essentials, such as food, to cope with such increases.

The Bill would see tenants being able to contest excessive rent rises through tribunals.

However, RRC‘s analysis of tribunal cases in early 2025 reveals an average rent increase of £244.63 per month – that’s a 22.2% rise for tenants who challenged their landlords.

Put a cap on rent increases

The research shows that tribunals approved rent rises in more than 90% of cases, even in properties with severe disrepair or hazardous conditions.

Plus, 54% of renters are unaware of rent tribunals, and only 14% are ‘very likely’ to use them.

Mr Darling said: “The government’s proposed solution will not address this – our analysis shows rent tribunals will do nothing to protect the large proportion of renters who already cannot afford average market rents, even if they were willing to take their landlord to a tribunal in the first place.

“But a cap on rent increases would be simple to implement, putting money back into renters’ pockets and giving them real long-term security in their homes.”