New data from SpareRoom shows support for rent controls among UK renters has risen from 77% to more than 80%, driven by growing concerns over housing affordability. The findings highlight the scale of the affordability crisis, with renters across the UK reporting they were forced to move in the past 12 months because they could no longer afford their rent. Meanwhile, an even larger percentage said their rent had increased over the same period.
Rent increase
According to the statistics from this research, 67% of UK renters saw rent increases over 12 months - 42% in current rentals, 25% when moving.
32% of UK tenants were forced to move because housing costs became unaffordable, highlighting the growing financial pressure on renters. Rising rents, higher household bills, and wider cost-of-living increases have left many tenants unable to renew leases or remain in their existing homes, leading to greater housing insecurity.
Rental prices reached record highs in six of the UK's nine regions as the supply of available rental properties continued to fall. With fewer homes on the market and demand consistently outstripping supply, competition among renters intensified, pushing rents to new peaks and making it increasingly difficult for many households to find affordable accommodation.
Higher increases in London
As the prices rise all over the UK, London renters are particularly noticing the hikes.
70% of London renters claim to have experienced this firsthand (44% current, 27% moving).
And, Property118 says that "35% of London renters moved due to the rising cost."
Rent controls
As rent continues to increase, SpareRoom says that 77% to 85% of renters support rent controls and emergency rent freezes, with only about 5% to 6% opposed.
Perhaps even more striking, the research found that 60% of supporters still back the policy, even if it results in landlords leaving the market and reducing the future supply of rental properties. However, the 5% against rent controls showed concern of landlords leaving the rental sector causing future rents to increase even further.
With these statistics comes a warning from SpareRoom. They note that while rent controls may provide short-term relief, they could exacerbate the underlying shortage of rental housing.
Rent control in Scotland
Scotland has allowed rent controls in different forms over the years. The Scottish Government says, "Starting April 1, local authorities acquired formal powers to assess local housing markets and apply for designated long-term rent control zones under new legislative frameworks implemented localised "rent control areas," allowing councils to cap increases at the Consumer Price Index (CPI) plus 1%, up to a maximum of 6%."
Scotland's rent control policies have sparked polarised views, with Living Rent (Scotland's Tenant Union) praising them as a major advance for tenants and Propertymark warning they are harming the rental market.
IEA on rent control policies
According to a 2024 briefing paper from the Institute of Economic Affairs (IEA), a review of the international evidence suggests that rent control policies are associated with more negative consequences than benefits:
- Reduced rental supply: Some landlords may choose to sell their properties or leave the rental market if lower returns make renting less financially viable.
- Lower levels of new development:
Developers may scale back or delay new housing projects if rent restrictions reduce the expected return on investment.
- Greater pressure on housing availability:
A reduction in both existing rental properties and new housing construction can contribute to tighter housing supply, potentially worsening shortages over time.
Issues caused by rent controls
The Brookings Institution also says that these controls lead to poor upkeep as "Landlords spend less money on repairs and fixing up homes because rent caps block them from earning extra funds to pay for the work."
This inevitably leads to a drop in the quality of rental homes and Brookings says that people end up staying in homes that do not fit their needs anymore - "like an empty nest." Moving house would mean that the renters would lose their cheap controlled rent.
The accumulation of this leads to a more competitive housing market due to supply decreasing and as a result, younger people or those new to renting tend to struggle to find any place to live.
