MPs push for stronger private rental sector protection

A cross-party parliamentary committee says the government must do more to protect private renters, months after the Renters' Rights Act (2026) came into force. The Housing, Communities and Local Government (HCLG) Select Committee published its "Housing conditions in the Private Rented Sector" report on 3 July 2026. The government estimates the Act now covers 11 million renters across England, yet the committee finds that too much still falls on tenants to fight their own corner.

What the committee found

The report's central finding is that tenants carry too much of the burden when things go wrong. To challenge a landlord, renters must go through the courts, their local council, or the new housing ombudsman (an independent dispute resolution body) - a process the committee says leaves the most vulnerable people at a practical disadvantage.

Committee Chair Florence Eshalomi MP acknowledged the government's reforms are "welcome" but said "more needs to be done to ensure that the new tenants' rights are enforceable and that landlords play by the rules." The report calls for stronger, more proactive regulation by local authorities and a full published assessment of the resources and powers councils currently hold.

The report also flags that the new minimum energy efficiency standard could be "undermined" if councils lack the funding to enforce it. For any landlord holding older stock approaching an upgrade cycle, that is a signal the enforcement environment is likely to tighten.

Awaab's Law extended to private landlords

One of the report's sharpest recommendations is rolling out Awaab's Law to private landlords. Named after Awaab Ishak, who died in 2020 from mould exposure in a social housing flat, the law sets statutory deadlines for landlords to inspect and fix hazards such as damp and mould. It currently applies only to the social rented sector.

The committee wants it fully in place across the private rented sector by the end of 2028/29. For BTL (buy-to-let) landlords, that means fixed legal timescales (deadlines set by statute for resolving Category 1 hazards) becoming standard operating procedure. The committee also recommends expanding the planned Private Rented Sector Database - a government register of landlords and property conditions - so tenants can check a property's fitness before they sign a tenancy agreement.

The LHA problem and retaliatory rent increases

The committee repeats its call to unfreeze the Local Housing Allowance (LHA) - the benefit cap that determines how much housing benefit a private tenant can receive. LHA rates for 2026/27 remain fixed at 2024 levels, based on rental data from October 2022 to September 2023, according to the Department for Work and Pensions. Citizens Advice calculates that LHA now sits 14% below actual rents at the 30th percentile of the market.

The committee wants LHA restored to at least that 30th percentile benchmark. It argues that leaving the gap in place risks displacing low-income households into poorer accommodation or making them homeless. If you hold property let to LHA-reliant tenants, you may wish to check your area's current rates on the LHA rates map to understand the shortfall your tenants are already carrying.

On rent increases, the committee sounds a specific warning. Retaliatory hikes - raising rent after a tenant complains about conditions - could constitute "economic eviction," the report says. The committee stops short of supporting rent controls. It does, however, want the First Tier Tribunal (the independent court that handles rent disputes) to work more effectively as a check on above-market increases.

For the finance side, rising compliance costs and LHA shortfalls both feed into your yield calculation and lender affordability tests. You may wish to run the numbers on any affected properties using the BTL stress test calculator. Further detail on how lenders are responding to the regulatory environment is covered in the negotiation and finance hub.

Key takeaways

• The HCLG Select Committee published its private rented sector conditions report on 3 July 2026

• Awaab's Law is recommended for extension to all private landlords, with full implementation targeted by end of 2028/29

• LHA rates are currently 14% below the 30th percentile of market rents, according to Citizens Advice

• The committee does not support rent controls but wants the First Tier Tribunal to function more effectively against retaliatory increases

• Local authority enforcement funding is flagged as a critical gap in the current framework