The Renters Reform Coalition is calling for the government to introduce compensation for evicted tenants in the Renters’ Rights Bill, which is due to be debated in parliament next week.

The government’s new Renters’ Rights Bill, which had its first reading in September, will scrap section 21 evictions.

The new legislation also introduces more detailed grounds for possession to allow landlords to recover their properties, which includes things like selling the property or moving in relatives. Tenants will have a 12-month protected period at the beginning of the tenancy, and the notice period for eviction will increase from two to four months.

However, a new report published by the Renters’ Reform Coalition, a group of 21 campaigning organisations, argues that the legislation must go further to protect tenants, including compensating those faced with no-fault evictions under the new grounds.

Evicted tenants, it says, should be entitled to two months’ non-payment of rent at the end of a tenancy, which would help to mitigate the costs —and possible negative consequences— of an unwanted move.

According to a 2021 report by Generation Rent, an unwanted move costs a typical two-adult tenant household £1,709 on average; unexpected costs that the Renters’ Reform Coalition argues, can push renters into poverty, debt or homelessness – consequences which would be lessened if evicted renters were to receive compensation.

The call for compensation is part of a wider report issued by the Renters Reform Coalition, called Roadmap to Reform. This urges the government to “hold its nerve”, and includes a raft of proposals to help strengthen protections for renters under the new legislation.

Further suggestions outlined in the report include increasing the protected period for tenants from 12 months to two years, rent stabilisation in the form of a cap on in-tenancy rent, and the right to pause rent payments in cases of serious, unaddressed disrepair to the property.

The report also calls for a tougher stance on discriminatory practices, like rent in advance and guarantors, and a crackdown on illegal evictions, giving more power and funding to local authorities to enforce protections for renters.

Tom Darling, director of the Renters’ Reform Coalition, said: “It’s frankly ridiculous section 21 still exists – we’re approaching six years since the previous government first promised to abolish it, while every indicator on the dashboard has been going in the wrong direction.

“We as renting campaigners have welcomed the government’s Renters’ Rights Bill. This legislation is a significant improvement on the last government’s effort: as drafted it will already make a difference for a lot of people. The government should hold their nerve in the face of threats from landlords of a wave of evictions before the reforms come in. This threat in itself shows why change is so desperately needed.

“Despite all this, we are concerned the legislation may still fall short of the mark, given the government’s important ambitions to rebalance the private rented sector. Today, our coalition has come together to publish our vision for what we believe it will take to achieve a future for renters where we can live in affordable, decent homes, in secure tenancies, free from all forms of discrimination.

“We look forward to engaging with the government as the legislation progresses.”

Tenants competing for fewer properties as landlords flee the rental market