London Daily

Focus on the big picture.
Wednesday, Oct 07, 2026

Something has to give in this infernal housing rental market

Something has to give in this infernal housing rental market

LONDON rents have hit yet another record high, eating up 62 per cent of the average renting household’s post-tax income, according to one estate agent. Meanwhile, another record: the number of private tenants facing eviction for falling behind on their rent.

So what can be done?

One option is to do nothing. We’re familiar with this because it’s been happening for years. But with private renting now the second largest tenure in England, accounting for a fifth of households, doing nothing is hardly the vote-neutral choice it once was.

Mayor Sadiq Khan yesterday joined forces with renters’ charities to demand Government action to protect the capital’s 2.6 million private renters from spiralling costs and the spectre of homelessness.

He also called for an emergency rent freeze, a policy unsurprisingly popular among renters, not so much among landlords. Buy-to-let mortgages require rental income to cover at least 125 per cent of mortgage payments, meaning landlords with mortgages must charge higher rents as interest rates rise.


Housing minister Michael Gove

Still, as their profit margins decline, landlords do often sell up, decreasing the supply of rental homes without denting demand. Evidence from other cities suggests that rent controls can make it harder to find a home and may push up rents in other areas. Meanwhile, landlord lobby groups invoke the notorious Fifties slumlord Peter Rachman if landlords can’t raise rents to cover maintenance costs. On the other hand, renters anecdotally already find it hard to get repairs and also find themselves summarily evicted if they even ask, such is the precarity of life under the two months’ notice term spelt out under Section 21.

Rent controls, a possible solution, cannot happen in a vacuum. First, we need the proposed legislation banning no-fault evictions to be enacted. Then we also need investment in new social housing to ease competition for private rentals. The Government already pumps money into housing — Rishi Sunak’s stamp duty holiday cost the Treasury £6.4bn, while new-build buyers were lent £20bn via Help to Buy.

So far all the tinkering with the housing sector — cutting tax relief and upping capital gains — has been about making it harder to be a buy-to-let landlord. The help this was supposed to provide to renters was that landlords would then sell up and renters could buy those properties. In fact house prices have continued to rise and millions remain locked out of their local housing markets.

Nothing, though, has been done for at least 30 years to help renters directly. Now is the time for the Government to make concrete interventions. A rent cap might be a blunt instrument but it’s a start.

Newsletter

Related Articles

0:00
0:00
Close
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
EY Warns UK Fiscal Headroom Has Halved to £11 Billion Ahead of Autumn Budget
BT Accused of Pressuring Vulnerable Customers During Digital Landline Shift
British Carmakers Warn of Growing Pressure From EU-China Tariff Dispute
Green Party of England and Wales Adopts Motion Defining Zionism as Racism
Medical Charity Threatens NHS Legal Action Over Two-Year Autism and ADHD Assessment Waits
British Transport Police Report Record Rise in Violence on Railways
Glasgow Council Workers Face Pay Cuts Under Fire-and-Rehire Plan
British Medical Groups Press Prime Minister Andy Burnham to Cancel £330 Million Palantir NHS Contract
UK Faces Record Bluetongue Outbreak Across Livestock Farms
×