A record high for UK rents has left millions of tenants facing financial ruin – and a growing majority are calling for drastic action in the form of rent controls. Research from SpareRoom reveals 77% of renters back the policy, citing spiralling costs that have become 'unmanageable'.
Nearly a third (32%) of UK renters were forced to move home last year due to unaffordable rent, with 35% of Londoners among them – a staggering figure that highlights the desperate need for intervention. Two-thirds (67%) of all UK renters have seen their housing costs rise in the past 12 months, with 42% experiencing price hikes in their current rental agreements and 25% facing higher prices when securing new tenancies.
The calls for rent controls arrive as Prime Minister Andy Burnham takes office, having previously advocated for the policy. However, the effectiveness of such measures remains contentious – while some see them as a vital lifeline for tenants, others warn that they could deter landlords from investing in the market, ultimately reducing housing supply and driving up rents.
Property experts are divided on the issue. Matt Hutchinson, director at SpareRoom, acknowledged the appeal of rent controls but cautioned that they don't address the fundamental problem of a shortage of available homes. He pointed out that the recent Renters' Rights Act has coincided with a tightening of supply across the country, making rental pressures worse.
But analysis from the Institute of Economic Affairs (IEA) and Hamptons suggests that rent controls can have unintended consequences – while initial rents for existing tenants might decrease, higher rents in uncontrolled sectors and reduced housing quality and availability are possible outcomes. Scotland's experience with a rent cap is often cited as evidence that such policies may not achieve their intended goals, with rents increasing by 11.6% and landlords reportedly raising rents more frequently.