News that more than half of landlords in England have increased the rent for a new tenancy this year has led campaigners to urge the government to take action on rent affordability.
The calls for government intervention come from the Renters’ Rights Coalition, which pointed to the publication of the English Private Landlord Survey last week.
According to the government survey, 58% of landlords raised the rent for new tenants – with 35% increasing it by 15% or more.
The survey also revealed that 52% of landlords raised the rent when renewing tenancies for current tenants, a sharp increase from just 26% in 2021.
‘Sky’s the limit when putting up rent’
Lucy Tiller from the Renters’ Reform Coalition expressed concern about the rising rents, stating: “For many landlords it seems the sky’s the limit when putting up rent.”
She added that unaffordable rent hikes are forcing families to leave their homes and communities. “We’re seeing the social fabric of neighbourhoods being torn apart as people are priced out,” Ms Tiller said.
Ms Tiller is calling for the government to strengthen the Renters’ Rights Bill, suggesting that in-tenancy rent rises should be limited to either the lower of wage growth or inflation.
She also pointed out that the current Bill does not address the issue of rising renting costs, urging the government to establish a commission to investigate rent affordability.
‘We need to see the government slam the brakes’
Ben Twomey, chief executive of Generation Rent, echoed the concerns, stating that the Bill needs to prevent high rent rises that could force tenants out of their homes.
“We need to see the government slam the brakes on soaring rents so tenants can get some breathing space,” he said.
Landlords consider downsizing or selling
The English Private Landlord Survey also highlighted some trends among landlords. The survey revealed a significant rise in the number of landlords considering downsizing or selling their property portfolios.
Now, 31% of landlords are contemplating this option, compared to just 22% in 2021.
The survey also found that 47% of landlords own properties with a low energy efficiency rating (D or below), but only 35% of these landlords plan to improve their properties’ energy efficiency.
There is also a reluctance among some landlords to rent to certain tenants: 38% are hesitant to rent to those receiving housing benefits, while 47% are unwilling to rent to tenants requiring property adaptations.
Finally, 41% of landlords own their properties outright, with no mortgage debt, suggesting a growing number of landlords may be in a position to sell without financial strain.
As rent affordability continues to be a significant issue, campaigners are calling for swift action from the government to protect tenants from rising rents and provide stability for renters across England.