Just as landlords predicted – rents are going up
2 weeks ago | 5 comments
MPs demand Angela Rayner U-turns on rent controls
8:26 AM, 27th August 2026, 5 days ago
13
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MPs have written to the housing secretary Angela Rayner, urging her to reconsider the government’s refusal to introduce rent controls in England.
It comes as research commissioned by the Joseph Rowntree Foundation and undertaken by the Autonomy Institute models three rent control ideas from next year.
They are: a CPI-linked cap, a nominal freeze and a moderate system limiting rises during tenancies to CPI and increases between tenancies to CPI plus 2%.
The estimates annual savings for each tenancy by 2031 of £1,418 under a freeze, £701 with moderate controls and £130 through a CPI-linked limit.
However, news of the MPs’ letter comes a day after the Institute for Fiscal Studies found that rent controls will reduce the number of homes to rent.
MPs press Ms Rayner
The letter from 26 MPs says: “On average rent now takes 36% of a renter’s salary, rising to almost half of their pay in some areas just to keep a roof over their heads.
“With so much of people’s income going on housing, it is little wonder that a third of renters are living in poverty.”
The letter added: “The impacts don’t stop at the front door either, when rent take up such a large chunk of a pay packet you aren’t able to spend in local cafés, restaurants or shops.
“These extortionate rents are the elephant in the room when we talk about the cost of living.”
Landlord tax trade-off
Each proposed route for rent controls is paired with two tax reforms: restoring full mortgage-interest deductions by reversing Section 24 and applying National Insurance contributions to landlord property income.
Without a policy change, the model projects that the proportion of tenancies involving loss-making landlords would rise from about 10% in 2024 to 17.05% by 2031, mainly because of higher mortgage costs.
With the proposed measures, that figure would be 12.48% under a CPI cap, 14.16% with moderate controls and 15.33% following a nominal freeze.
Mean post-tax rent return on equity, excluding capital gains, is projected at 2% without reform, compared with 1.81%, 1.68% and 1.52% respectively under the three alternatives.
Government rejects controls
Ms Rayner said last month that the government was not planning to impose rent controls and pointed to protections introduced through the Renters’ Rights Act.
She also said controls had not ‘necessarily brought rents down’ elsewhere in the UK, including Scotland.
Dr Will Stronge, chief executive at the Autonomy Institute, told The Mirror: “Rent controls have often been dismissed as unworkable, but our modelling shows that a modern, well-calibrated cap paired with fair treatment of landlord costs can improve affordability for tenants without triggering the kind of landlord exodus that would leave renters worse off.”
An MHCLG spokesman said: “We have no plans to introduce rent controls.”
Tags:
Angela Rayner rent controls, landlord mortgage-interest tax relief, landlord National Insurance, Private Rented Sector, rent controls England, Section 24 reversal
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Member Since April 2022 - Comments: 145
6:51 AM, 27th August 2026, About 5 days ago
Do they not realise that with the various costs they have imposed on landlords over the last 10 to 15 years the net return in the South East, in a flat/falling house price market is already only 3% on a good day and possibly way lower?
Meanwhile, bonds, savings accounts etc make more and my brother delighted in telling me the other day that his pension fund went up 30% this year.
If they want to reduce rents, maybe look at why the costs of being a landlord are so high.
Member Since November 2019 - Comments: 194
10:29 AM, 27th August 2026, About 5 days ago
In Reply to James , The Low Return on Investment is not limited to the South East , It`s the same for the rest of the Country . (with a few exceptions). If you Look Property bought for £80,000 a few years ago now worth £200000, Rented at £10000 per month. That Gives 6% . Start deduction deducting the Costs of Mortgages , EPC , Renters Rights , Gas Certificates , Section 24 Tax , Selective Licence Fees. And now £30000 fines. (I realise Property Prices may increase, But they have probably hit a ceiling for the next few Years)
Member Since January 2022 - Comments: 5
10:30 AM, 27th August 2026, About 5 days ago
Landlords rarely get to dictate the rent, that is mostly done by the market forces. Recent increases in rent reflect the impact on changes to taxation and legislation which has impacted the supply and demand balance. Surely the best solution is for the government to simply build more homes!
Member Since November 2019 - Comments: 194
10:37 AM, 27th August 2026, About 5 days ago
I know I put an extra zero on tried to amend it to £1000 per month . £12000 PA But was timed out .
Member Since June 2019 - Comments: 939
10:48 AM, 27th August 2026, About 5 days ago
Why exactly is adding NI to our income a benefit helping to counteract wage control? Yes rents are our wages the far left are still apparently oblivious to this fact.
Member Since September 2023 - Comments: 99
10:48 AM, 27th August 2026, About 5 days ago
I was watching the Jeremy Vine Show on Channel 5 this morning and they were going hammer and tong over rent increases.
The effect of Mortgage Rates was not mentioned. Common sense dictates that if mortgage rates increase then the rent has to also increase.
Member Since January 2015 - Comments: 1572 - Articles: 1
10:50 AM, 27th August 2026, About 5 days ago
All very well imposing rent capping/control but for those landlords on too high a loan to equity ie more than 60/40, and not enough in the bank, it won’t take more than a couple of mortgage rate increases and the landlords will be repossessed and the tenants evicted.
If tenants cannot afford the rents then natural market forces will see rents drop.
BUT there are too many tenants out there with dodgy affordability documentation and knowing intend to stop paying the rent after the first couple of months till the Bailiffs come knocking and live rent free.
Member Since March 2024 - Comments: 315
10:52 AM, 27th August 2026, About 5 days ago
How on earth does applying NI to rental profit even work?
State pensioners don’t pay it on earned income -are they proposing applying it regardless of age. If that’s the case it’s not really NI is it, rather a brand new tax.
Will it apply to dividends for those with properties in limited companies? Again that would be a whole new tax.
Do these people seriously think I will be paying a 2% income tax surcharge plus NI on what is to me an additional ‘pension’ to supplement the state pension? Eviction to sell will be my response, if nobody buys it in the fire sale environment then metal grilles on the doors and windows till common sense prevails will be the order of the day. Also, the contrast with investing in residential property via REITs held in an ISA where there is NO tax at all either on the PIDs (Property Income Dividends) nor capital appreciation would be utterly bizarre. This is what I’ve been doing (plus other types of REITs such as supermarkets, warehouses and medical premises amongst others).
Just when you think you have heard it all from those with no real experience of how anything but a think tank or third sector organisation works they surprise you with a whole new level of stupidity..
Member Since May 2015 - Comments: 2300 - Articles: 2
11:30 AM, 27th August 2026, About 5 days ago
CPI plus 2% PLUS all the new costs imposed by government, local and central.
Member Since June 2015 - Comments: 200
11:42 AM, 27th August 2026, About 5 days ago
No need to put NI on rent – they are already adding an additional 2% on rental profits from April 2027. There is scope to add additional % increases in future years. Well they are doing it for non incorporated landlords.
With MTD, S24 and additional tax rates moving to a corporate structure is seeming to be a more interesting idea. Not appropriate for everyone but should be looked at on a case by case basis.