Chancellor urged to help landlords and tenants in the Spending Review

With Chancellor Rachel Reeves set to unveil the 2025 Spending Review today (11 June), a leading north London estate agent has urged the government to tackle the escalating housing crisis gripping the nation.

Jeremy Leaf, a former residential chairman of the Royal Institution of Chartered Surveyors (RICS), warned that persistent shortages in both private and social housing, coupled with rising demand, require immediate action.

He said: “As far as lettings are concerned, landlords need certainty and tenants, not just in the private sector, seek security.

“The chronic shortage of homes to rent, especially in London and other cities has been exacerbated by the rising number of short lets.”

Growing migration issues

Mr Leaf points to the Office for National Statistics predicting a population increase of 6.6 million in the UK by 2036 – the highest net migration in Europe.

There’s also going to be a big increase in pensioners which will add to demand for housing.

He said: “Approximately 25% of private sector tenants are said to receive housing benefit.

“Landlords are fulfilling a role which local authorities are unwilling or unable to perform.

“We need better enforcement of existing rules and for short-term accommodation.”

Landlords need help

Mr Leaf went on to say: “Without more comfort on regaining possession from tenants in substantial arrears or disruptive to other occupiers, landlords will be reluctant to remain in the sector or add to portfolios.

“Repairs and improvements will also be delayed, resulting in a drop in stock and quality as well as upward pressure on rents.”

The Spending Review, which will outline government spending plans for 2026/27 to 2028/29 and investment budgets through 2029/30, is seen as a critical opportunity to address these challenges.

Unlike previous reviews, this ‘zero-based’ approach will reassess all spending from scratch, potentially reshaping policies to prioritise value for money.

The government had planned to release its industrial and infrastructure strategies alongside the review, but recent reports indicate these will now follow in the weeks after.

More housing needed

Mr Leaf also stressed the urgency of addressing the housing crisis, particularly the shortage of affordable and social housing in high-demand areas.

He said: “Most people, let alone politicians, accept that we are in the midst of a housing crisis, so we hope that the Chancellor addresses this, particularly the continuing shortage of social and affordable housing for sale and rent in areas of high demand.

“We have heard many encouraging words since the change of government but change on the ground is simply not happening fast enough.

“Uncertainty is the enemy of investment and the cost of doing nothing is far higher.”

He adds: “Investing further resources in trying to accelerate housing supply will help retain and attract employment, improving job/social mobility as well as economic growth.”

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