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Renters’ Rights Act lays the foundations of housing justice for private renters

On 26th October 2022, I received a Section 21 ‘no fault’ eviction notice. That meant my partner and I had two months to find a new flat. Three unsuccessful offers, six weeks, a lot of stress and a 40% increase in our monthly costs later, we managed to move into a new place in the same neighbourhood in time for Christmas. It was a grim, expensive experience.

Frankly though, my partner and I could take it. We had some savings, jobs flexible enough to allow us to go to flat viewings at little notice, and enough income to swallow the bitter pill of rapidly escalating rents.

Most private renters are less able to absorb this shock than we were. Almost half have no savings. The private rented sector (PRS) is now home to 1 in 4 of households with children in England, up from 1 in 10 in 2003/04. By 2040, over 2 million pensioners are projected to be renting from a private landlord. Many private renters can’t drop everything to hunt for a new flat because of work, caring responsibilities and health problems. Those with children in school or nursery have less choice over where they can move without disrupting their families. Many people simply want to stay in the community they know and where they feel at home. The need to stabilise life in the PRS is clear and urgent.

The Renters’ Rights Act 2025 is the biggest win for renters in a generation. It is a reset after decades in which England built one of the least regulated private rented sectors in Western Europe. As of 1st May 2026, Section 21 ‘no fault’ evictions are gone. That will curtail opportunities for rogue landlords to use ‘revenge evictions’, where renters who ask for repairs or complain about poor conditions are simply turfed out. Landlords will need to give a reason before evicting people – for example because they are selling the property or moving into it themselves. In these cases, renters will now get four months rather than two to find a new place to live. Given intense pressures in many local housing markets and a social housing system stretched to breaking point, having to move will continue to be a struggle. But those extra two months will be a lifeline for many. They will give renters more time, more choice, and more power.

Other changes will also help rebalance the scales in renters’ favour. Landlords will only be able to put up rent once a year, cannot demand large upfront payments, and cannot invite or accept bids above the asking rent, to name only a few. The Act is a reset after decades of unusually aggressive deregulation. The Housing Act 1988 made short-term tenancies and ‘no fault’ evictions the norm, helping create one of Western Europe’s least secure private rental markets.

But the single biggest problem for private renters remains: it is really, really expensive. Under new rules coming into force on Friday, renters will have a legal route to challenge rent hikes above market rates. Since the biggest rent increases happen when renters move between tenancies, fewer moves should also provide some protection. But none of this helps with the reality that market rates themselves are already unaffordable for many. Britain still needs far more homes, including social housing. But even a major housebuilding push would take years to ease rental pressures. Millions of renters need relief now – not in a decade or more’s time.

It’s no surprise that think tanks, charities, campaigners and tenants’ unions are now calling for different forms of rent regulation to cool or reduce rents over shorter timescales. These range from caps on how rents can rise within tenancies, to full rent freezes between tenancies, to measures to reduce rents from current highs by linking them to reference rents based on local incomes and housing conditions. Others continue the long-running campaign to increase Local Housing Allowance (housing benefit for the PRS) so that it covers the costs of renting. We need a plan to make life affordable for renters, and I hope that Red Brick can be a space for the left to share different ideas and evidence.

But we shouldn’t let this debate distract from what a huge achievement the Renters’ Rights Act is. It lays the foundations of housing justice for private renters. It will allow us to plan our lives, address problems in our homes without fear of eviction, and is likely to mean fewer moves and fewer rent hikes. That is a good place from which to plan our next steps.

Would you like to write for Red Brick? Email rose.grayston@gmail.com to pitch your piece (c.600-900 words)

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Why the construction sector needs social housing

With 169,000 children growing up in temporary accommodation – the highest number since records began – the case for the government’s manifesto commitment to ‘deliver the biggest increase in social and affordable housebuilding in a generation’ is overwhelming. This situation damages children’s health and development, and it is costing councils across England £7.7 million every day. It is a national scandal whose social and financial costs are well-understood.

But social housing does more than provide an alternative to poor-quality homes. It is also the foundation of a successful housebuilding system. Building social homes at scale – including during market downturns – can underpin the government’s response to the crisis in construction skills and innovation. Far from being in conflict, social housing and market housing can support each other.

The inherent limitations of the UK’s development model

In a housebuilding system which relies excessively on speculative market housing, developers compete against each other to pay the most for land. Having taken on a large upfront risk through high land costs, developers then need to recoup their investment, building as slowly as necessary to maintain prices. But when sales prices soften, even moderately, market housing starts plummet. Developers are not incentivised to start new schemes if they will have to sell homes for less than they assumed when buying land.

To make matters worse, in tandem with increasing dependence on this speculative model of market supply, the UK’s social housing supply model has become pro-cyclical. Post-war social housing developments were close to 100% social housing. Most costs were covered by grant, and land was assembled at low cost outside the speculative market. This model was insulated from market cycles, allowing the supply of social homes to continue during downturns in private housebuilding. In other words, social housing supply at this time was counter-cyclical.

From the 1980s, the dominant supply model for social housing flipped: grant rates were cut, borrowing costs rose, social landlords had to start competing with private developers in the land market. As a result, an expanded range of ‘affordable housing’ tenures (with costs pegged to market prices) has become increasingly dependent on cross-subsidy from the profits of building market housing. Far from smoothing out the boom and bust cycle of speculative private housebuilding, this model of building social housing intensifies those peaks and troughs. This doesn’t just affect how many homes are built. It shapes how the construction sector itself operates.

Supporting the UK’s construction sector

Ratcheting down: Private housing completions in England since 1946

Over repeated cycles of the housing market, the total output of speculative development is ratcheting downward. As housing starts plummet, so too does the demand for skills and materials. Many construction workers simply leave the sector, often permanently. It is no coincidence that construction workers are more likely to be self-employed than workers in any other sector. Today, more people are leaving the construction sector than joining it, and productivity has remained stubbornly flat for decades. Why would housebuilders maintain a large permanent workforce, or invest in the skills of that workforce, when they know they will need to retrench supply as the market turns?

Because firms cannot predict demand, materials prices have become more volatile. Official statistics show sharp swings in construction output and brick deliveries, worsening shortages and price spikes in an import-dependent system. As the construction industry has adapted to manage the risks of cyclical demand, construction capacity has atrophied.

The long-heralded shift to modern methods of construction (MMC) has also stalled. The speculative, stop-start nature of the industry makes the expense and risks of investment in innovation unattractive. Investors are reluctant to commit to factories which will be moth-balled at the first signs of the next housing market slowdown.

From stop-start to build, baby, build

A more balanced system would combine market housing with a counter-cyclical social housing programme, alongside new market models based on stable demand such as Build to Rent.

When governments fund and enable social housing at scale, it can be built as fast as need demands and construction capacity allows. As the Farmer Review of the UK Construction Labour Model found in 2016, a major programme of social housing would support predictability of demand for labour, skills and materials, resulting in a less risky operating environment for housebuilders, developers and planners. The booms and busts of cyclical market supply are smoothed out by counter-cyclical social supply, so capacity can be maintained and increased despite housing market cycles.

In countries such as Japan and Sweden, innovations and new technologies have thrived on this certainty, creating new opportunities to expand development capacity. It is no coincidence that the last time that modern methods of construction made a major contribution to overall housing supply in the UK was during the post-war social housing boom.

Of course, the benefits of a more sustainable skills base and of innovation in construction today would be felt far beyond the developments which first enabled them. If social housing schemes keep construction workers in the sector during market downturns, those experienced workers will be available to the private sector when the market recovers. If social housing schemes provide enough stable demand to keep MMC providers in business, market housing will be able to benefit from their services, too. While construction capacity is often seen as a constraint on building more social housing, the reverse is also true. A stable pipeline of social housing would expand capacity, supporting more jobs, stronger skills, and greater innovation across the sector.

The government’s new Social and Affordable Homes Programme 2026-36 represents the most significant policy shift back towards a counter-cyclical social housing supply model in decades. A future blog will explore how this could work in practice, and what further changes are needed.

Would you like to write for Red Brick? Email rose.grayston@gmail.com to pitch your piece (c.600-900 words)

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Making land deliver

Last week saw the launch of ‘Making land deliver’, a new report from Network Homes proposing three big ideas to reduce land costs for providers of social and affordable housing. I took part in a panel discussion along with the report’s co-author, Reuben Young, Rico Wojtulewicz from the House Builders Association and Cllr Shama Tatler from Brent.

There is no doubting the importance and timeliness of the land reform agenda, and on this our panel was unanimous. Since 1995, the value of land owned by UK households has grown by an astounding 583%, while the combined value of the assets overlying land (i.e. buildings) has risen at less than half this rate. We are effectively channelling ever more of our national wealth into the hands of those who own a fixed supply of land. This represents a significant challenge for any government hoping to build, build, build its way out of a Covid recession.

 ‘Making land deliver’ suggests a three-pronged attack on the land value problem:

  1. Allow local councils, Homes England, and the Greater London Authority to compulsorily purchase land at existing use value.
  2. Consider social value and market value when selling public land.
  3. Reform the system of developer contributions to affordable housing.

Network Homes are right to look to the rules on Compulsory Purchase Order compensation for a mechanism to moderate the land market – an issue discussed in detail elsewhere on this blog. Removing ‘hope value’ from CPO compensation awards would tackle a critical barrier to solving the housing crisis in England and Wales.

However, I would caution that Network Homes’ specific call for compensation to be reduced to ‘existing use value’ is likely to conflict with Protocol 1 of the European Convention on Human Rights, which rightly requires compensation at market value. Instead, the UK should simply align itself with other ECHR signatories including Germany, France and Netherlands, by excluding potential development value from definitions of ‘market value’ for CPO compensation purposes. Removing ‘hope value’ would have the effect of reducing awards to levels closer to ‘existing use values’, while still fairly compensating landowners.

Secondly, public bodies considering land disposals should consider social value as well as market value. The government’s Public Land for Housing Programme so far boasts a build out rate of just 15% over the decade that it has been running, and just 6% of the homes planned for these sites will be for social rent. Reviewing and clarifying ‘best consideration’ rules to ensure social value is paramount in decisions about how to use public land is an obvious win.

But the really fresh thinking comes in the third proposal: to replace the Section 106 system for delivering affordable housing on market-led schemes in England with a new, ‘un-gameable’ and non-negotiable system of developer contributions. It works like this:

  • Councils set an affordable housing tax rate for all development in their area.
  • Developers submit a Gross Development Value, on which they will pay the local tax rate.
  • That GDV is used to set the price at which the council can buy homes on the scheme on completion for use as social and affordable housing.

A developer could submit a ‘pessimistic’ GDV to pay less tax, but would then be required to sell homes to the council at ‘pessimistic’ values. This balancing of incentives is the beauty of the proposal. However, there are some thorny issues to work through.

Firstly, this system appears to leave developers in control of the type, size and design of the homes they will build, with councils having only the right to purchase those homes at a pre-set price at the end of the process. There is no guarantee that developers will build the right homes for meeting local housing need, or even that they will meet minimum space standards for social housing. True, councils could spend their tax revenues on delivering the right homes elsewhere – but this relies on Network Homes’ first two recommendations to provide an alternative source of land right-priced for social and affordable housing.

Secondly, the intention to balance power between developers and councils through this proposal may be undermined by the broader planning system. Could a council find itself under pressure to purchase homes of the wrong type or at the wrong price to prevent sites stalling in this system? If that council was worried about how to satisfy its Housing Delivery Test and so avoid losing its planning powers, perhaps. This could be resolved by capping the price which can be paid for affordable housing, for example using plan-stage viability assessments when allocating land.

Despite my quibbles, new thinking from social housing providers is extremely welcome here. Network’s ‘Making land deliver’ follows on the heels of its 2019 report into barriers to social rent delivery for HAs. Both reports provide valuable insights from the front-line of housing delivery, and crucial back up for non-practitioners like me who are campaigning on these issues. I would absolutely encourage other social housing providers to share their experiences and ideas.

<strong><span class="has-inline-color has-accent-color">Rose Grayston</span></strong>
Rose Grayston

Rose has 10 years of experience in providing policy, research and strategic communications support to progressive campaigns and their leaders. 

She has managed and led successful campaigns to reform English planning rules to incentivise the delivery of affordable homes, to reduce borrowing rates for local authority house-building, and to build political and public support for reform of England’s broken land and house-building systems.