London Daily

Focus on the big picture.
Monday, Aug 31, 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
ScottishPower Recycles Nearly All Materials From Historic Hagshaw Hill Wind Farm
Millions Travel Across England, Wales and Northern Ireland for Summer Bank Holiday
Met Office Issues Yellow Thunderstorm Warnings Across Southern England
Four Arrested After Bank Holiday Stabbing Violence in Kettering
Scottish Chamber of Commerce Warns Tax and Business Costs Risk Holding Back Scotland
UK Government Launches Youth Employment Drive With Major Retailers
UK and Ukraine Advance AI and Defence Technology Partnership
Prime Minister Andy Burnham Moves to Exclude Serious Offenders From Early Release
Twelve Arrested After A66 Crash Kills Seven, Including Two Police Officers
Bank of England Governor Warns AI Investment Boom Could Trigger Global Market Correction
London Science Museum Ends Long-Running BP Sponsorship
Scottish Homeowners Prepare Valuation Challenges Over Proposed Mansion Tax
UK Prosecutors Consider Charges Against Undercover Police in Spycops Scandal
James Cleverly Leaves Shadow Cabinet to Run for London Mayor
Avanti West Coast Drivers Agree 3.6% Pay Rise, Averting Strike Action
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
UK Government Retreats From Plan to Unfreeze Personal Income Tax Threshold
Northern Ireland Leaders Press UK Government for Sustainable Funding Settlement
UK Health Agency Warns Nationwide Salmonella Outbreak Could Worsen
NHS Warns Autism and ADHD Assessment Costs Have Become Unsustainable
UK Rejects Moratorium on AI Data Centres Despite Energy and Water Concerns
Thames Water Creditors Offer Government Golden Share in £10 Billion Rescue Plan
UK Warns Defence Executives of Russian Assassination and Sabotage Threats
Bank of England Holds Interest Rate at 3.75% Amid Inflation Risks
UK Restricts Early Prison Release for Serious Offenders as Jails Near Capacity
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
Bank of England Holds Interest Rate at 3.7% as Growth Stalls and Inflation Eases
UK Government Announces Electricity VAT Cut and £2 Bus Fare Cap
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
×