0:07 AM, 6th March 2025, About a month ago 2
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In answer to a written question, Labour’s Treasury Minister Emma Reynolds has highlighted the pressures driving up rents – a lack of housing.
Addressing a query from Bell Ribeiro-Addy who asked if the Chancellor of the Exchequer had assessed the potential impact on economic growth of rising rents.
Ms Reynolds stated: “Rental prices are ultimately determined by the total supply of housing, relative to demand.
“Affordability of housing has fallen drastically, particularly in major cities, as too few homes have been built.”
Her comments underscore a growing issue in the private rented sector, where a severe imbalance between available properties and tenant needs is pushing costs to unsustainable levels.
Ben Beadle, the chief executive of the National Residential Landlords Association (NRLA), echoed the Minister’s view, warning that government policies could exacerbate the situation.
He said: “The Minister is right. Rents are going up because there are simply not enough properties to meet demand, and measures proposed by the government are going to worsen an already dire situation.”
The NRLA points to data from Zoopla which reveals that 12 renters now compete for every available rented home — twice the number seen prior to the pandemic.
Plus, official statistics highlight a troubling trend among landlords, with 31% planning to reduce their portfolios, up from 22% in 2021.
Mr Beadle said: “Changes such as the hike to stamp duty on the purchase of homes to rent that was announced in the Budget will only further dampen supply.”
He continued: “Likewise, the lack of preparation for the increased pressures on the courts due to the Renters’ Rights Bill will deter investment in new homes to rent.
“It is also of serious concern that proposals to improve the energy efficiency of private rented housing contain no detail of the financial package needed to support investment in the required works.
“Without such support, these changes will pile yet more cost pressures onto the sector.”
In her reply, Ms Reynolds also said: “This Government is taking meaningful steps to reform the planning system and make it easier to build.
“Changes to the National Planning Policy Framework, published in December, will reintroduce mandatory housing targets and bring low quality Green Belt land in scope of development.
“Building houses in the right places is vital to long-term economic growth, allowing prosperous places to grow, and providing the homes people want near good jobs.”
Mr Beadle warned: “The government needs to address the shortage of homes for private rent as the only viable route for improving affordability in the sector.
“Until it does so, it will be tenants that continue to suffer the consequence of the rental housing supply crisis.”
Cider Drinker
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Sign Up9:44 AM, 6th March 2025, About a month ago
𝐈𝐧 𝐡𝐞𝐫 𝐫𝐞𝐩𝐥𝐲, 𝐌𝐬 𝐑𝐞𝐲𝐧𝐨𝐥𝐝𝐬 𝐚𝐥𝐬𝐨 𝐬𝐚𝐢𝐝: “𝐓𝐡𝐢𝐬 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐢𝐬 𝐭𝐚𝐤𝐢𝐧𝐠 𝐦𝐞𝐚𝐧𝐢𝐧𝐠𝐟𝐮𝐥 𝐬𝐭𝐞𝐩𝐬 𝐭𝐨 𝐫𝐞𝐟𝐨𝐫𝐦 𝐭𝐡𝐞 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐬𝐲𝐬𝐭𝐞𝐦 𝐚𝐧𝐝 𝐦𝐚𝐤𝐞 𝐢𝐭 𝐞𝐚𝐬𝐢𝐞𝐫 𝐭𝐨 𝐛𝐮𝐢𝐥𝐝.
Builders cannot be forced to build homes that they cannot sell.
They cannot sell homes to people that are new to the U.K. and have no credit score.
They cannot sell to former tenants of the PRS who cannot afford to rent and cannot afford to buy.
They cannot sell to wealthy landlords who choose not to buy because of ridiculously high SDLT, unfair taxation and over-regulation.
As Thatcher might have once said,
‘You build if you want to. This lady ain’t for buying.’
Jim K
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Sign Up9:20 AM, 7th March 2025, About a month ago
Reply to the comment left by Cider Drinker at 06/03/2025 - 09:44
Hi.
Often read your posts.
This one is really insightful.
Made me reflect on our circumstsnces.I can certainly see all you said reflected