For decades, the private rental sector (PRS) has played a crucial role in the UK’s housing market, and for millions of people, it remains the only option. But to understand the challenges renters face today, we need to look back and understand how the sector has evolved to where we are now.

In 1901, 90% of households rented privately. The PRS was the dominant form of housing. However, over the decades, the PRS declined significantly. The rise of homeownership, driven by policies such as Margaret Thatcher’s Right to Buy scheme, which enabled social housing tenants to purchase their homes at a discount, alongside a long-term decline in council housebuilding, reduced reliance on private renting. By 1991, the PRS had fallen to just 9.3% of households, the lowest point in modern history.

From the 1990s onwards, private renting made a drastic comeback. By 2011, 4.2 million households were living in the PRS. Several factors contributed to this shift, including deregulation in the 1980s. Most notably, the Housing Act 198h introduced Assured Shorthold Tenancies (ASTs), giving landlords greater control over tenancies. The continued decline of social housing, driven by the Right to Buy scheme and a slowdown in council housebuilding, further reduced affordable alternatives. Meanwhile, the affordability crisis in homeownership, with house prices rising beyond the reach of many first-time buyers, pushed more people into the private rented sector.

While the PRS expanded, the reality for renters became increasingly difficult. The sector was no longer just a stopgap for young professionals and students; it had become a home to families, low-income workers, and those excluded from homeownership or social housing.

The private rental sector is now larger than ever, with approximately 4.7 million households, 19% of all households, renting privately in the UK as of 2023-2024. Yet for many tenants, it remains unstable, unaffordable, and often unsafe. Rents continue to rise faster than wages, leaving millions struggling to keep up with costs, while Assured Shorthold Tenancies (ASTs) offer little long-term security. The ongoing threat of Section 21 no-fault evictions allows landlords to remove tenants without justification and with only two months’ notice, deepening the sector’s instability. Meanwhile, poor housing conditions remain widespread, with many properties affected by mould, damp, and disrepair due to weak regulations and a lack of enforcement against rogue landlords. Rogue landlords are not just negligent; they are breaking the law, which causes massive delays and inaction. Overstretched local authorities, still struggling with escalating temporary housing costs and the lingering impacts of the pandemic, simply do not have the resources to tackle this deep-rooted structural problem.

These challenges have serious knock-on effects, contributing to rising homelessness and exacerbating mental and physical health problems for those trapped in unsuitable housing.

The Renters Rights Bill, introduced by the Labour government, is set to introduce some of the most significant changes to the PRS in decades. If passed, it could take effect as early as Spring 2025.

The new bill details:

• Abolition of Section 21 ‘no-fault’ evictions, finally giving tenants greater security.
• Longer notice periods, increasing from two months to four months. This is essential, giving tenants more time to secure alternative housing and gather the necessary funds to support themselves.
• A “Protected Period”, preventing landlords from evicting tenants in the first year of a tenancy.
• Stronger protections against unfair evictions, including a 12-month ban on re-letting if a landlord claims they are selling.
• A national landlord register, making it easier to identify rogue landlords.
• Bans on discrimination, making it illegal to refuse tenants based on their receiving benefits or having children.
• Awaabs Law extended to the PRS, requiring urgent repairs to hazardous conditions.
• Prohibited payment of rent in advance and pre-tenancy payments.

While these measures are a step in the right direction, many organisations, including the Renters Reform Coalition, Shelter, and many other housing experts, including A4R, feel they do not go far enough, particularly when it comes to affordability. The Bill does nothing to prevent excessive rent increases, which have been a major concern raised by tenants, housing organisations, and even Members of Parliament during parliamentary debates.

Recent data indicate that average private rents in England increased by 9.2% in the 12 months leading up to December 2024, surpassing wage growth. This surge has led to nearly two-thirds of workers in private rented housing struggling to meet their rent payments. To address this pressing issue, the bill needs to incorporate measures that cap rent increases, aligning them with the lower of either the consumer price index or wage growth. Implementing such provisions would ensure that tenants are protected from disproportionate rent hikes, promoting a fairer and more sustainable rental market. But without addressing rent levels, there is a real risk of replacing one crisis with another. The end of Section 21 no-fault evictions could be undermined by landlords evicting tenants through unaffordable rent hikes instead.

The PRS needs urgent reform, but it also needs to be fair, stable, and affordable. Ending unfair evictions is a victory, but without stronger action on rents, tenants will still be at risk. The fight for a housing system that works for everyone is not over yet.