Over 30 Members of Parliament are poised to back a pivotal amendment to the forthcoming Renters’ Rights Bill, a move that could usher in a cap on rental price increases.

Tomorrow, Tuesday, January 14, the House of Commons will engage in a critical debate and cast their final votes on the proposed amendments to this landmark legislation.

At its core, the Bill seeks to overhaul the private rental sector through a series of transformative measures. Chief among these are the abolition of ‘no fault’ Section 21 evictions, an extension of notice periods under revised no-fault eviction grounds from two to four months, a ban on rental bidding wars, and the creation of a comprehensive Landlord Database.

The Government, in a notable gesture, has also introduced an amendment to restrict the amount of rent landlords can demand upfront to a maximum of one month's payment.

Data from the Office for National Statistics (ONS) paints a stark picture: the average cost of private rents in England surged by 9.3% in the 12 months leading up to November 2024—a growth rate far outpacing that of wages.

Simultaneously, findings from Shelter, a leading housing charity, reveal that nearly two-thirds of private renters in England struggle to keep up with their rent payments—a sobering statistic that underscores the financial strain faced by many.

In this context, Labour MP Paula Barker has tabled an amendment to introduce rent caps within tenancies. If adopted, this measure would tether rent increases to the lower of two metrics: the Consumer Price Index level of inflation or wage growth. This amendment has garnered the support of over 30 MPs.

Ben Twomey, chief executive of Generation Rent, welcomed the Bill but expressed reservations about its adequacy in tackling the root causes of the rental affordability crisis. He stated: “Everyone needs a safe, secure and affordable home, but for private renters it can be snatched away only too easily.

“The Renters’ Rights Bill, which will abolish ‘no fault’ Section 21 evictions, is therefore positive for renters across England. Meanwhile, putting a stop to landlords demanding more than a month’s rent in advance will help many renters avoid falling into debt and poverty.

“But renters across the UK are facing soaring rents which are far outstripping our earnings. Despite this, there are very few measures in the Bill to give us the breathing space we need from the cost of renting.

“We hope the Government at least brings forward the amendment to introduce rent caps within tenancies to limit how much landlords can hike the rent on their tenants.

Without this measure, many landlords will use rent hikes as a Section 21 eviction in all but name.”

He concluded with a broader appeal: “In the long-term, the Government must act to stop runaway rents and unfreeze the Local Housing Allowance rate to protect families on low incomes from poverty and homelessness.”