Generation Rent welcomes reports government is considering rent freeze

Generation Rent claims renters could save hundreds of pounds a year under the government’s proposed rent freeze.

Media reports from The Guardian suggest ministers are considering imposing a year-long freeze on rents.

The reported move comes despite previous government claims that it had no plans to introduce rent controls.

Encouraging the government is considering a rent freeze

According to Generation Rent, if the average household faced a 1.9% rent increase over the next year, in line with current trends, they would spend an additional £324 across the year on rent, or £27 a month.

On average, private renters spend over 36% of their income on rent, with the government’s definition of an affordable rent being 30% of someone’s income or less.

Ben Twomey, chief executive of Generation Rent, said: “Homes are the foundations of our lives. But when we are forced to spend too much of our income on rent, it means children are going to school hungry or older renters who can’t afford to turn the heating on.

“Many renters are already paying more than we can afford. Further rent rises due to international events way out of our control would pull even more people into poverty. It’s encouraging that the government is considering a rent freeze and we urge them to press ahead and bring it in as quickly as possible to give renters the breathing space we need.”

Rent controls rarely work

However, despite Generation Rent’s claims that renters could save hundreds of pounds, rent controls often have the opposite effect. As previously reported by Property118, Scotland’s rent cap has been blamed for driving up rents, with prices rising by 11.6%.

Data by Hamptons reveals Scottish landlords are increasing rents at a faster pace than anywhere else in Great Britain because of rent controls reshaping the market.

Lead analyst at Hamptons, David Fell, said: “The evidence from Scotland suggests that rent controls rarely work as intended.

“At best, they delay rent increases; at worst, they set a new benchmark where landlords feel compelled to increase their rents every year by the maximum allowed.

“Faced with uncertainty over future rules, many landlords choose to raise rents little and often rather than risk falling far below market levels.”