Call for a rent freeze because ‘landlords can afford it’

An open letter has been signed by rent activists, trade unions and several Labour Mayors, including Sadiq Khan, calling for the housing minister Michael Gove to implement a private rent freeze and an eviction ban in England to help tenants in the ‘current rental crisis’.

The letter stresses that since landlords earn an average of £55,415 – before rental income – they can afford not to increase rents.

The letter has been organised by the London Renters’ Union (LRU) and highlights that half of private renters in the country are struggling with their housing costs – and ‘huge numbers of renters are facing homelessness in the coming months’. In London, they say that four in five renters are struggling.

The open letter states: “Landlords, with the encouragement of letting agents, are using this crisis as an opportunity to introduce rent hikes. In September 2022 alone, one million renters faced a rent increase.”

‘Landlords will be struggling with increased mortgage costs’

The letter goes on: “Some landlords will be struggling with increased mortgage costs, but many will not.

“Generation Rent research shows that just 11% of rent increases in 2022 were the result of higher mortgage rates. Just under half of rental properties have a mortgage and most of those have ‘interest only’ mortgages.

“The vast majority of landlords have far greater financial resilience to weather the storm ahead, with the median annual income of landlords before their income from rent is taken into account at £55,415. In comparison, many renters are low paid, in precarious work and have no savings or assets.

“Some landlords that are facing increased mortgage costs are trying to pass those costs on to renters that simply cannot afford it.”

Signed by Sadiq Khan, the mayor of London

The letter has also been signed by several charities, think tanks and the Green party along with Liverpool city region mayor Steve Rotheram, Greater Manchester mayor Andy Burnham as well as Sadiq Khan, the mayor of London.

A spokesperson for the LRU said: “Millions are being squeezed by falling wages and rising rents. The government has the power to protect people from unaffordable rent rises, but it is choosing instead to preside over a wild west rental market that is punishing the people who kept the country going through the pandemic.

“A rent freeze now is the only way to address the scale and urgency of the crisis, and would represent a step towards a stronger housing system that meets everyone’s needs.”

Cost of living pressures being faced by tenants

A spokesperson for the Department for Levelling Up, Housing and Communities said the government recognises the cost-of-living pressures being faced by tenants and has delivered £1,200 of direct support to millions of households over the past year, including £400 towards energy costs.

Another £1,350 of support will be going to the most vulnerable households over the next year.

The spokesperson added: “Evidence shows rent controls in the private sector do not work, leading to declining standards and a lack of investment – and may encourage illegal subletting.”

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