RENTERS’ groups are calling on the government today to include compensation for evicted tenants in the Renters’ Rights Bill ahead of its second reading in Parliament.

The long-awaited legislation will abolish no-fault evictions under section 21, which allows landlords to get rid of tenants with two months’ notice without providing a reason.

But, following lobbying by landlords, the Bill will also introduce a new “no-fault” eviction grounds to allow repossession of properties.

In a report published today, the Renters’ Reform Coalition calls for those who lose their homes on the new grounds for eviction to be compensated with two months rent free at the end of their tenancy.

An unwanted move costs a typical two-adult tenant household £1,709 on average and evictions can push renters into poverty, homelessness or debt, the group warns.

Campaigners argue that compensation would mitigate these harms and sharply reduce the number of evictions that lead to homelessness.

The coalition has welcomed the new government’s changes to the Bill, calling them “significant improvements,” but it warns that more action is needed to “decisively level the playing field between landlords and tenants.”

Coalition director Tom Darling said: “The government should hold its 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.

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

Other proposals in the report include longer protection periods to  stop no-fault evictions in the first two years of tenancy and rent stabilisation to cap in-tenancy increases.