Private rents not rising above inflation - unlike social housing rents

Private rents not rising above inflation - unlike social housing rents

The cost of private rented housing is roughly mirroring changes in earnings across England - but in the social rented sector rents have increased faster than wages.

That's the view of the Residential Landlords Association citing a new report from the National Audit Office.

The report notes that the exception to this is in London, where rents are rising much faster - but the RLA claims this is a result of a chronic shortage of homes across all tenures. 

Now the RLA is warning that there will be further pressure on private rents as a result of the forthcoming changes to mortgage interest relief in April.

"[The] findings from the National Audit Office will surprise those who have falsely sought to argue that landlords are profiteering. The question must surely now be why the heavily subsidised social rented sector is seeing its rents increasing so much more than earnings," says RLA policy director David Smith.

"We cannot afford to be complacent. Forthcoming changes to mortgage interest relief, due to be rolled out from April will serve only to place upwards pressure on market rents, stifling the supply of homes to rent and reducing choice for tenants," he adds.

"In the end, those who will suffer will be tenants unable to save for a house of their own, and the many vulnerable people, such as the homeless, who rely so much on the sector to provide a home for them."


Article courtesy of Letting Agent Today | Sign up for Letting Agent Today newsletter | Get this news on YOUR site!