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Blog Post Renters' Rights Act

People Power for Rent Controls and Council Homes 

The Renters’ Rights Act’s passage at the beginning of May 2026 signals the possibility of a shift in how we approach the private rental sector in this country. No longer will landlords be able to evict tenants at whim through Section 21 ‘no fault’ evictions, alongside a host of other protections for tenants including guaranteed rent renewals, periodic tenancies, and more. These changes are the direct result of tireless organising by tenant unions, housing justice organisations, community groups, trade unions, and NGOs – the product of organised people coming together to create organised power. 

But many of these changes are not radical transformations to the housing crisis, but processes that bring the UK in line with most other similar countries. And while there is cause for celebration of the renter power that went into the Act, the RRA does not allay the cost of living crisis that imperils renters. Renters can now challenge unreasonable rent rises by filing with the rent tribunals – and legally do not have to pay the increases during the process of the tribunal. This is a huge step, and at the LRU, our members have been putting together resources to support all renters to challenge rent rises and push for a fairer housing system, collectively. 

However, on paper, the tribunal can only rule against rent rises that exceed market rent for the units in question – which provides meagre protection to working-class tenants and families in gentrifying neighbourhoods where rents are increasing rapidly and out of line with the incomes of longtime residents of the neighbourhood. One need only look at Hackney, Brixton, and Walthamstow to see who sets the market rent – landlords – and witness that this too can function as a form of violent social cleansing. Should tribunals get to determine who stays, based on who can pay at a market rate set largely by developers and speculation? 

Already, we have seen members of the London Renters Union and their neighbours receive massive rent rises at the end of their contracts. Others face evictions under grounds still allowed under the RRA, such as if the landlord decides to sell up. It is our members who are the hardest-working, and the most vulnerable, who are facing the shortest end of the stick. What makes London a global city is its ability to create community for those at all income levels, from diverse backgrounds and cultures – we only lose if the city continues becoming a playground for the rich. 

I witnessed this first-hand from 2019 till the current day. During the pandemic, I lived in Dalston with a group of friends, lucky to be able to pay for a room at a price that would now be unthinkable. The eviction moratorium at that time protected renters further. I had to leave that space for various reasons, and re-entered the housing market in London earlier this year. When house hunting recently, we were lucky to find a room for almost double the price from 2019. This is not a material increase in the quality of housing, or the immoveable whims of the market – this is profit. This experience is shared by tenants across LRU and beyond.

Other countries handle this differently. Across Europe, North America, and even Scotland, governments apply regulations to the amount that landlords can charge in rent across the board – not just to tenants who are able to offer the time, and fee, to challenge their increases. While fears abound about rent regulations decreasing supply or dissuading landlords from making repairs, recently-released research from IPPR, NEF, and JRF debunks this myth. And support for rent controls is massive across England – a recent housing demonstration for rent controls and safe, affordable council housing showed over 5000 people taking to the streets, making it the largest demonstration for housing justice in over a decade, and a massive show of unity in the housing movement. Tenant unions from across the country were joined by NGOs, trade unions, community groups, and everyday neighbours. Over 80 organisations endorsed this march, and continue to support rent controls across the board. A recent statement from Andrea Egan, the General Secretary of UNISON, emphasises that only rent regulations can protect the majority of workers represented by UNISON in their homes – workers without whom, huge swaths of the country and the city of London would cease to function.  Renters across England want, and deserve, real affordable rents now – and rent controls can achieve this. This would alleviate stressors on the majority of renters who spend more than one third of their income on rent, fearing an upcoming rent rise and cutting back on essentials. And the recent rumour concerning Rachel Reeves’ support for a rent freeze shows that there is political will to push a real system of rent controls through. That’s why, at the London Renters Union, and with dozens of tenant organisations and community organisations across the country with Homes for Us and Homes for All, we’re fighting for a visionary system of rent control for all tenants, coupled with a demand for safe, affordable, accessible council homes. We believe that we should all fight for rent control – that it protects migrants, people of colour, trans and queer people, youth, the elderly, the disabled, and all those pushed to the fringes of society. This is a natural extension of our fight for housing justice through the Renters Rights Act; a normal and fairly uncontroversial system of protection in most countries; and a politically feasible – and winning – system here. The cost of living crisis, global wars and genocide, many voters’ loss of faith in Labour, alongside the rise of Reform, show that everyday people need real change. This is the moment for renters to contact their MPs and join a tenant union in their area to fight for the system change we need – starting with rent controls and measures for real affordability, long term.

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The renters’ rights movement must look beyond ‘affordability’

As we enter the worst recession in 300 years, renters’ incomes will be squeezed with chances of meaningful wage-increases remote for most. As such, all concerned with safeguarding and improving renters’ quality of life should turn their attention to minimising the cost of living where possible.

Given housing costs are renters’ greatest expense, how rent is determined should be scrutinised closely with rent reduced as much as possible. In addition to benefiting renters as individuals, reductions in rent would serve to fortify aggregate demand during the recession1.

Competing definitions of affordability

In 2011, the coalition government introduced a definition of affordability which provided a rented property would be classified as ‘affordable’ if it cost no more than 80% of the local market rent.

The definition was absurd.

It is impossible to calculate whether something is affordable if the formula you use takes no account of the renter’s income and essential outgoings. In response, various well-intentioned actors, including the Labour Party came up with their own definitions² of affordability focusing on renters’ income and ability to pay.

The limitations of a focus on ‘affordability’

Any suggestion that market forces should not be the sole determinant of renters’ housing costs should be broadly welcomed. However, limiting demands around housing costs solely to those of ‘affordability’ has served to tacitly legitimate the landlord and renter relationship, a relationship that is, at its core, inherently exploitative.

The principle that landlords should profiteer from renters has become locked-in as ‘something that goes without saying’, all calls for affordability demand are that landlords’ profiteering should not be so great as to cause renters excessive hardship. Crucially, a focus on ‘affordability’ for the renter has meant the landlord’s side of the relationship has avoided scrutiny.

Scrutiny of how landlords justify the rent they charge exposes the inherent unfairness of the landlord and renter relationship

1) ‘Supply and demand’ might explain rent levels, but explanation does not equal justification!

Housing costs for renters should be based on the actual cost of supplying the home, not what the market can bear. Sometimes, because of the layout of the plumbing in certain properties, it is impossible for water companies to provide individual water bills for each household. When this is the case, the landlord of the building will receive one water bill for the entire property and then invoice each household for their portion of the bill.

It is unlawful for landlords to make a profit from the re-sale of water in such circumstances as it is recognised it would be morally abhorrent to profiteer from something so necessary to human survival when the water company has already done so.

Given shelter’s own importance to human survival and given that everyone involved in the construction of the home has already been paid for their work and materials, there is no compelling reason why re-sale of shelter should be treated differently.

2) Landlords’ costs of supplying a home, outside of initial acquisition, are negligible compared to the rent they charrge.

45% of landlords own their renters’ homes outright without a mortgage. For such landlords, the ongoing cost of supplying a property to a renter is limited to the costs incurred keeping the property in a good state of repair and fit for human habitation (£73.17 per month on average for a three bedroom home). In comparison, the average rent on a three-bedroom home in Manchester is £895.00 per month.

3) It is unfair for landlords to expect renters to cover the cost of initial acquisition of the home through their rent, unless ownership is transferred in exchange!

As an alternative to pointing to the free market price mechanism, landlords sometimes use their Mortgage CMIs as justification for the rent they charge. It is unfair for them to do so. If landlords want somebody else, i.e. renters, to cover their costs in acquiring ownership of the home, as a basic point of fairness, ownership of the home should be transferred to the ones doing the actual paying in exchange.

Currently, landlords have their cake and eat it, at the renter’s expense.

Moving beyond affordability

If challenges to housing costs focus solely on ‘affordability’ a systematic investigation of landlordism, and subsequent exploration of pathways that could lead to greatly reduced housing costs for renters, such as nationalisation of the private rented sector, become foreclosed.

It is unclear why, historically, supposedly progressive actors have been content only to ask for ‘affordability’ on behalf of renters. There may have been a lack of courage in challenging landlordism head on, or perhaps a latent ‘protestant work ethic’ type notion that it is virtuous for housing costs to be at least a bit of a burden for renters.

Whatever the historic reasons, we are now in extraordinary times, merely asking for affordability is not good enough.

<strong><span class="has-inline-color has-accent-color">Tom Lavin</span></strong>
Tom Lavin

Tom Lavin is on the organising committee of ACORN Liverpool and a Justice First Fellow working in housing law at Merseyside Law Centre. He previously worked for Shelter as a housing adviser.

1 This argument is made here in relation to rent suspensions but can equally be applied to reducing rent.

² Housing charity Shelter state a rented property should not be considered affordable if housing costs are greater than 35% of net household income: https://blog.shelter.org.uk/2015/08/what-is-affordable-housing/  Manchester City Council came up with a more convoluted formula based on the average income of residents in the city: https://secure.manchester.gov.uk/info/100007/homes_and_property/7638/manchester_housing_strategy/2