Reform Rights Bill Rent Control

Insights on the UK Rental Landscape

March 2025 Edition

The Truth About Rent Control

Key insights into the 2025 legislation and what it means for landlords and tenants

UK Rental Market at a Glance

8.7%
Average rent increase in the 12 months to February 2025
£1,092
Average monthly UK rent in 2025
27%
Total rent increase since 2021
19%
Wage growth in the same period
2025 Update
The ONS reports that UK rental inflation is expected to moderate to 4% for the remainder of 2025, down from nearly 9% in early 2025.

Does the Bill Include Rent Control?

The UK government has explicitly confirmed that the Renters' Rights Bill does not include any form of rent control. This clarification was published in the official guide to the bill on GOV.UK in February 2025.

"The government does not support the introduction of rent controls, and nothing in the bill restricts landlords raising rents in line with market prices."

- GOV.UK Guide to the Renters' Rights Bill, February 2025

Instead, the bill includes provisions allowing for once-yearly rent reviews and a process for tenants to challenge increases they consider excessive via tribunal.

Regional Rent Disparities Widen in 2025

London remains 71% above national average

Average Monthly Rent by Region (2025)

London
£1,625
South East
£1,125
Scotland
£973
East England
£985
Wales
£760
North East
£550

The gap between the most and least expensive rental regions has increased to £1,075 per month in 2025, with the North East remaining the most affordable region at £550 per month – just 34% of London's average.

2025 Update
Welsh tenants now pay around £760 per month on average, while Scottish residents face costs of £973 – significantly higher than most English regions outside London and the South East.

Renters' Rights Bill: Key Provisions

What the legislation actually includes

While the bill doesn't include rent control, it does introduce significant protections for renters:

  • Abolition of Section 21 'no-fault' evictions - Landlords will no longer be able to evict tenants without providing a valid reason
  • End of fixed-term tenancies - All tenancies will become periodic (rolling) by default 2025
  • Limited rent reviews - Landlords can only increase rent once per year, with tenant right to challenge
  • Stronger property standards - New minimum standards for rental properties, including safety requirements 2025
  • Ban on blanket 'no pets' policies - Landlords must consider pet requests reasonably
2025 Implementation Timeline
The government has confirmed the new tenancy system is expected to be in place by summer 2025, with Royal Assent anticipated after Easter 2025.

Bill Progress Timeline

From introduction to implementation

September 2024
First reading in House of Commons
October 2024
Second reading debate
January 2025
Report stage and third reading completed
February 2025
Bill enters House of Lords
April 2025
Expected Royal Assent
Summer 2025
Full implementation expected

Local Housing Allowance Gap

Support vs. actual rents in 2025

LHA Coverage of Lower Quartile Rents (March 2025)

North East
90%
Wales
86%
North West
83%
East Midlands
76%
South East
67%
London
55%

With LHA rates increasing by just 1.7% in April 2025 while private rents have risen by 8.7%, the gap between housing support and actual rental costs continues to widen, particularly in London and the South East.

Only 2% of rental properties in London are now affordable to those relying on housing benefits.

February 2025 Update
New research shows that 2% of households on housing registers had a lead tenant subject to immigration control, creating additional barriers to housing access.

UK Rent Increases vs. European Neighbors

How the UK compares without rent control measures

Country Rent Control Measures Avg. Annual Increase 2024-25 Notable 2025 Policy Changes
United Kingdom None (market rate with challenge rights) 8.7% Renters' Rights Bill abolishing no-fault evictions
Germany Strict rent controls (Mietpreisbremse) 2.9% Extended rent cap in high-demand areas until 2027
France Moderate (rent increase cap linked to inflation) 3.5% New energy efficiency requirements for rentals
Spain New caps in designated 'stressed areas' 4.1% Extended rental housing protections introduced in 2024
Ireland Rent Pressure Zones (max 2% annual increase) 2.0% Extended RPZs to additional cities in January 2025
Netherlands Points-based system for rent calculation 3.1% Updated points system with stronger energy efficiency factors

The UK stands out among its European neighbors for having both the highest average rent increases and the fewest explicit rent control measures. While most European nations have implemented various rent stabilization policies, the UK government maintains its position against rent controls in the 2025 Renters' Rights Bill.

March 2025 Analysis
Housing experts note that jurisdictions with moderate rent control measures have experienced more stable housing markets with annual increases typically aligned closer to inflation rates.

Student Rental Market 2025

Impact of the Renters' Rights Bill

The Renters' Rights Bill introduces key changes for students in 2025:

  • End of fixed-term contracts - Will make the traditional September-to-June student letting cycle more flexible 2025
  • Guarantor challenges - New regulations around guarantor requirements may affect international students
  • Deposit changes - More protection but potentially higher upfront costs

"The bill introduces key changes for students, balancing improved protections with potential challenges in guarantor use and rent deposits."

- Higher Education Policy Institute, February 2025

March 2025 Student Housing Update
Universities are adapting their accommodation guidance to reflect the new legislation, with updated advice expected for the 2025-26 academic year.

Challenging Rent Increases

New tenant rights in 2025

Under the Renters' Rights Bill, tenants gain new mechanisms to challenge rent increases they consider excessive:

Step 1
Landlord must serve a Section 13 notice proposing the new rent
Step 2
Tenant has 28 days to challenge the increase if believed to be above market rate
Step 3
Challenge submitted to the First-tier Tribunal (Property Chamber)
Step 4
Tribunal determines whether the increase is reasonable based on market evidence
Step 5
New rent not payable until tribunal makes determination
March 2025 Update
The government has committed to publishing comprehensive guidance for tribunals on assessing "market rates" by summer 2025.

Housing Benefit vs. Rental Inflation

Support lagging behind market reality

While private rents continue to rise at nearly 9% annually, housing benefit and Universal Credit support for housing costs will increase by just 1.7% in April 2025.

This growing disparity is creating a significant affordability gap for low-income renters, with many facing potential homelessness as they are priced out of the private rental sector.

Metric 2024 Value 2025 Value Change
Average UK Rent £1,005 £1,092 +8.7%
Housing Benefit Variable Variable +1.7%
Affordability Gap - - +7.0%
2025 Support Update
With housing benefit frozen and Universal Credit set to rise by just 1.7% in April 2025, people on low incomes face an increasingly difficult situation.

The Rent Control Debate

Arguments from both sides in 2025

Arguments For Rent Control

  • Would address the growing affordability crisis in UK housing
  • Could reduce homelessness by keeping more properties affordable
  • Would align UK policy with many European neighbors
  • Could help close the gap between benefits and actual rental costs
  • Has been shown to stabilize communities in some jurisdictions

Arguments Against Rent Control

  • May reduce overall housing supply as landlords exit the market
  • Could lead to reduced property maintenance and lower standards
  • May discourage new housing development and investment
  • Can create market distortions and black markets
  • Government believes addressing supply issues is more effective
March 2025 Government Position
The UK government maintains that boosting housing supply rather than implementing rent controls is the sustainable solution to the housing crisis, despite growing calls from tenant advocacy groups for stronger measures in light of continued above-inflation rent increases.

Impact on Different Stakeholders

Winners and losers of the new legislation

Stakeholder Positive Aspects Negative Aspects
Tenants Increased security, improved standards, end to no-fault evictions No rent control, annual increases still permitted
Private Landlords Can still increase rents with market, clearer framework for disputes More regulation, harder to end tenancies, administrative burden
Low-income Renters Improved property standards, more security Growing gap between benefits and actual rents
Local Authorities Clearer enforcement powers Increased pressure on housing services

The 2025 legislative changes represent a significant shift in the UK rental landscape, though without explicit rent control measures, affordability remains a key concern.

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