As record rental costs suffocate household budgets across the UK, a resounding 80% of tenants have declared their support for introducing rent controls, according to a landmark survey from SpareRoom.
The poll of 5,607 renters comes as Prime Minister Andy Burnham's government weighs potential reforms to the private rental market. Rental costs have reached new highs in six out of nine UK regions, with tenants battling unprecedented pressure on their finances. Matt Hutchinson, Director of SpareRoom, warns that the recent Renters' Rights Act has exacerbated affordability issues by coinciding with a decline in housing supply.
While tenant backing for rent controls is strong, industry bodies and letting professionals are sounding alarm bells. They fear such measures could deter landlords, driving down available properties and paradoxically increasing rents in the long term. SpareRoom's research reveals that six out of ten tenants acknowledge this risk.
National Residential Landlords Association Chief Executive Ben Beadle has urged the government to reject rent controls, citing warnings from Angela Rayner and the Housing Select Committee about potential negative impacts on housing supply. Lettings expert Greg Tsuman suggests a rent freeze combined with new taxes and rising borrowing costs could be disastrous for tenants seeking properties.
Reducing tax burdens on letting would be a more effective strategy to address affordability, according to Tsuman. He also warns that some landlords might choose to leave properties vacant rather than risk being unable to regain possession, further constricting rental stock.
The rent control debate unfolds against a backdrop of supply constraints affecting sales and rental markets. Average UK rental prices have seen steady increases, particularly in high-demand urban areas, with recent data from Zoopla and Rightmove indicating sustained upward trends.