A Labour peer’s decision to evict a long-term tenant family and relet at a higher rent is stirring debate among UK landlords and investors over Section 21 reform and market pricing. Lord Waheed Alli’s Islington townhouse was re-advertised for nearly £1,000 a month more after the family was served notice in June, highlighting tensions between political rhetoric and property rights.
Landlord concerns over Section 21 ban
The five-bedroom home, let since 2021 for £4,800 a month, was re-listed on Rightmove in August at £5,850 before a new tenancy was agreed at £5,700. The outgoing tenants told the i newspaper they had offered to match the new rent to avoid disrupting their children’s exams, but the managing agent declined.
Shadow Housing Secretary James Cleverly criticised the move as “another example of Labour saying one thing and doing another,” noting that forthcoming legislation would block landlords from re-letting for 12 months after most no-fault evictions. The Renters’ Rights Bill, now progressing through Parliament, plans to ban Section 21 notices and impose those relisting limits unless there is proven antisocial behaviour or rent arrears.
Market forces still dictate rents
While no laws were broken—Lord Alli’s representatives say the decision was taken by his letting agent—landlord groups argue that rising costs leave owners with few options. Ben Twomey, chief executive of Generation Rent, countered that “evicting families and using practices that are about to be banned shows that same generosity doesn’t extend to his tenants.”
Buy-to-let investors note that mortgage rates have more than doubled for many since late 2021. “If you can’t adjust rents when costs jump, you risk running at a loss,” said Sarah Mitchell, a north London landlord who recently refinanced at 6%. “That’s not greed—it’s basic economics.”
Balancing fairness and financial reality
The episode follows a similar row involving homelessness minister Rushanara Ali, whose east London property was re-listed at a higher rent after an attempted sale fell through. For many private landlords, these cases highlight the tension between public expectations and the financial pressures of holding rental property in a high-interest-rate environment.
As Section 21’s abolition nears, landlord associations such as the NRLA warn that stricter eviction rules could shrink the rental supply. “When regulation overshoots, tenants ultimately pay through reduced choice and higher rents,” said Chris Norris, NRLA policy director.
Editor’s view
Lord Alli’s case underscores the dilemma: political optics versus market reality. The Renters’ Rights Bill, set to outlaw Section 21 evictions and curb re-letting within a year of a notice, marks a decisive shift in the rental landscape. For landlords juggling rising costs and policy changes, the coming months will show whether this stricter framework steadies rents or simply pushes more investors to sell, deepening the supply squeeze.
