Renter groups have called on the government to do more to tackle out of control rents, as a government survey revealed that over a third of landlords increasing rents on new tenancies did so by at least 15%. The survey reported that nearly six in ten landlords (58%) increased the rent the last time they let to new tenants, and 35% of these landlords put rents up for new tenants by 15% or more.
The English Private Landlord Survey 2024, published by the Ministry of Homes Communities and Local Government (MHCLG), also showed that the proportion of landlords increasing rent on existing tenants when renewing or extending contracts has doubled since 2021, to reach 52%. One in five of these landlords reported increasing the rent by 15% or more.
Other findings in the report include:
- 31% of landlords reporting plans to reduce their portfolios or sell their properties, an increase from 2021 where this figure was 22%.
- A greater proportion of landlords reporting plans to sell or reduce their portfolios.
- Nearly half (47%) of landlords said they had at least one property with an Energy Performance Certificate rating of D or below, but only 35% of these landlords said they were planning to improve the energy efficiency of some or all of their properties.
- 38% of landlords reported being unwilling to let to those in receipt of housing support, and 47% reported being unwilling to let to people who would require adaptations to the property (e.g. home adaptations for disabilities).
- 41% of landlords had no borrowing on any of their properties. Renter groups have called on the government to do more to tackle the cost-of-living crisis for renters, by strengthening the Renters’ Rights Bill and committing to a commission to tackle the problem.
Lucy Tiller, Policy and Public Affairs Manager at the Renters’ Reform Coalition (RRC), said:
“For many landlords it seems the sky’s the limit when putting up rent – nearly a fifth of those raising the rent on existing tenants did so by a whopping 15% or more. These unaffordable rent hikes have real consequences for society. Every week they are forcing families out of their homes and communities.
“Everybody needs a secure home, but eye-watering rents put this out of reach for too many. The government must strengthen the forthcoming Renters’ Rights Bill to limit how much rent can be increased within tenancies – to the lowest of either inflation or wage growth. This would help millions of renters stay in their homes. And as the Bill won't address the high cost of renting overall, the Government should commit to a Rental Affordability Commission, to explore ways to get a grip on soaring rents.”
Landlord groups are likely to herald the news that more landlords reported considering selling properties or reducing their portfolios as evidence that the government should backtrack or water down long-awaited reforms to private renting. The RRC have been clear that the government should hold its nerve in the face of such threats.
Lucy Tiller said:
“Landlord groups have a history of threatening a mass exodus every time new reforms and regulations are announced – in reality, the private rented sector has remained the same size for about a decade. But should large numbers of landlords sell up and houses become more affordable, many renters will jump at the chance to buy a place of their own. At the end of the day, it’s secure, decent homes we need. Not more landlords.”