Tenants back rent controls despite landlord exits and rising rents
A survey of over 5,600 tenants reveals strong support for rent controls even though many expect these measures to reduce landlord numbers and rental supply, potentially pushing rents higher in the long term.
A large survey conducted by flat-sharing website SpareRoom has shown that tenants across the UK continue to support rent control policies despite recognising the risks these controls pose to the private rented sector. The survey, which included 5,607 tenants, found that a significant proportion of renters have faced affordability challenges and rent increases in the past year.
According to the findings, 32% of renters nationwide and 35% in London reported having to move because their rent became unaffordable. Additionally, 67% of UK renters experienced rent increases within the last 12 months, with 42% seeing rises in their current homes and 25% facing higher rents when moving to new properties. London renters reported even higher figures, with 70% experiencing rent hikes.
Survey details and tenant perspectives
The survey highlights a complex tenant attitude towards rent controls. While many tenants understand that such policies might lead to fewer landlords operating in the market, and consequently a reduction in available rental properties, a majority still favour rent controls as a means to curb escalating rents.
Approximately six in ten tenants who support rent controls accept the potential trade-off of a diminished landlord presence. This suggests a willingness among tenants to tolerate a smaller rental market if it means some relief from rising housing costs.
SpareRoom’s director, Matt Hutchinson, commented on the survey results, noting that rents have recently hit record highs in most UK regions. He pointed out that the introduction of the Renters’ Rights Act has improved tenant protections but has not alleviated the affordability crisis. Hutchinson warned that unless the supply of affordable homes increases, rents are likely to continue rising.
Context of rent controls and supply issues
Rent control policies have been a contentious topic in UK housing debates for many years. The idea is to limit the amount landlords can increase rents, aiming to make renting more affordable for tenants. However, critics argue that these controls can discourage investment in rental properties, leading to a contraction in supply and potentially worsening the housing shortage.
The survey reflects this tension, with tenants caught between the immediate need for affordable rents and the longer-term implications of reduced landlord participation. The recent Renters’ Rights Act has strengthened tenant security, but supply constraints remain a significant challenge for the sector.
Historically, attempts to impose strict rent controls have met with mixed results, often depending on how they are implemented and the broader housing market context. The current political environment, with the Labour Government under Andy Burnham, has raised hopes among some for meaningful reforms to increase affordable housing supply, though delivering on this remains uncertain.
Practical implications for landlords and letting agents
For landlords managing small portfolios or letting agents advising clients, the survey underscores the importance of preparing for a regulatory environment where rent controls may become more common. This could mean adapting rent-setting strategies, reviewing tenancy agreements, and staying informed about legislative developments.
Landlords should also consider the potential impact on tenant demand and turnover. While rent controls may reduce income growth opportunities, they could also improve tenant retention if rents become more predictable and affordable. Letting agents will need to balance advising landlords on compliance with maintaining competitive rental offerings.
Moreover, the possibility of a shrinking landlord base suggests that those remaining in the market might face less competition but also increased scrutiny and regulatory obligations. Keeping thorough records of rent reviews, tenant communications, and compliance with safety and licensing regulations will be essential.
Uncertainties and what landlords should watch
It remains unclear how rent controls will be implemented in detail and whether exemptions or caps will apply to different types of properties or landlords. The impact on rental supply will also depend on broader housing policies, including incentives for new build developments and support for affordable housing schemes.
Landlords should monitor government announcements closely and seek updated guidance on rent control measures and their legal obligations. Changes to possession procedures, deposit rules, or safety standards may accompany rent control legislation, affecting day-to-day management.
Additionally, the political landscape could shift, influencing the scope and enforcement of rent controls. Landlords and agents should prepare for a period of regulatory flux and ensure they have access to reliable information and support.
Considerations for landlords now
- Review current tenancy agreements to understand how rent increases are managed and whether they comply with potential new rent control rules.
- Maintain clear records of rent changes, tenant communications, and compliance with safety and licensing requirements.
- Stay informed about local and national policy developments affecting rent controls and housing supply.
- Assess the financial viability of rental properties under different rent control scenarios to plan for possible income changes.
- Engage with professional bodies and membership organisations for guidance and resources on adapting to regulatory changes.
Supporting landlords with compliance and management
The Landlord Association (TLA) offers resources and support to help landlords and letting agents manage the challenges posed by rent controls and evolving rental regulations. Through membership, landlords can access practical compliance information, document templates, and updates on legislative changes affecting rent, possession, and tenant rights.
TLA is developing ORBIT, a property management and compliance platform currently in BETA testing. ORBIT aims to assist landlords and agents in organising portfolios, managing rental documents, recording key actions such as rent reviews and inspections, and accessing TLA’s compliance resources. While still in development, ORBIT could become a valuable tool for landlords needing to keep detailed records and evidence of compliance amid regulatory shifts.
Exploring TLA membership and ORBIT BETA access can provide landlords with timely support to adapt to rent control measures and maintain effective property management practices.
Looking ahead, landlords should prepare for a rental sector where affordability pressures remain high and regulatory oversight intensifies. Staying proactive in compliance and tenant engagement will be crucial to sustaining rental businesses in this environment.
Sources: Landlord Today
TLA - The Landlord Association