Renters hit with a hidden £2,216 ‘eviction tax’ – Generation Rent

Renters in England are facing an average cost of £2,216 for unwanted house moves following eviction, according to research from Generation Rent.

This ‘eviction tax’ includes costs such as the deposit, ‘overlapping’ rent from old and new tenancies, and other moving expenses.

As MPs debate the Renters’ Rights Bill in the Commons today, the organisation wants the law to stipulate that landlords waive the last two months’ rent.

It says the average rent in England is £1,327, meaning two month’s compensation would cover the ‘eviction tax’ costs.

‘A move you didn’t choose to make’

Generation Rent’s chief executive, Ben Twomey, said: “£2,216 is an astonishing amount of money to have to stump up for a move you didn’t choose to make.

“Along with the inconvenience of being uprooted and having to find a new home, you can play by the rules but still rack up thousands of pounds of debt when the landlord decides to kick you out.”

He added: “The cost of renting crisis continues to cut deep, and these enormous moving costs can be the difference between renters finding a new home or finding themselves out on the streets.

“The government must use the opportunity of the Renters’ Rights Bill to compensate evicted renters by making landlords waive the last two months’ rent, so we have the breathing space to make the savings we need to keep a roof over our heads.”

Two months’ rent compensation for tenants

While the Bill will abolish the Section 21 ‘no-fault’ evictions, it will still allow landlords to evict when selling a property or moving back in themselves.

The Renters’ Reform Coalition (RRC) is calling on the government to introduce two months’ rent compensation for tenants evicted under these grounds.

It says that compensation would help mitigate the financial hardship faced by renters who are forced to move out of their homes.

The RRC argues that having to pay compensation in the case of a no-fault, landlord-need eviction would reduce the number of evictions that result in homelessness.

It would also discourage landlords from trying to ‘abuse’ the new eviction grounds as a ‘backdoor’ to the banned Section 21 process, the RRC warns.

‘Totally unjust that a renter can be evicted’

Tom Darling, a director of the Renters’ Reform Coalition, said: “It’s totally unjust that a renter can be evicted through absolutely no fault of their own and have to meet costs of more than two grand – this is just another factor in our broken renting system which contributes to homelessness and poverty.

“We welcome the government’s Renters’’ Rights Bill – the end of section 21 will mean greater security for millions of renters across England.”

He adds: “But let’s be clear: no-fault evictions will continue.

“That’s why we’re calling on the government to go further and protect tenants against the ‘eviction tax’ through two months’ rent as compensation.”

Pay attention to their other proposals

The organisations are also urging MPs to pay attention to their other proposals, such as:

• Longer protected periods – to ensure that renters are protected from a no-fault eviction for the first two years of a tenancy
• Rent stabilisation – a cap on in-tenancy rent increases to help keep renters in their homes and stop unaffordable rent increases forcing renters out of their homes
• The right to pause rent payments in cases of serious, unaddressed disrepair – a new (mediated) legal right to pause rent payments where a landlord fails to carry out essential repairs within a defined timeline, thereby strengthening ‘Awaab’s’ Law for the private rented sector
• National Rental Affordability Commission – to investigate bringing rents down relative to incomes, which should include exploring rent control measures
• Discretionary possession grounds – so courts can consider all factors and where possible avoid or postpone a harmful eviction
• Stronger protection against discrimination – including curtailing practices whose effects are discriminatory such as rent in advance and guarantors
• Stronger enforcement – including more funding for local authorities and an expansion of selective licensing schemes
• Crackdown on illegal eviction – a strengthening of penalties for landlords who evict tenants illegally and increase in powers for local authorities to go after them.

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