7:00 AM, 18th November 2024, About 2 hours ago
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The UK’s private rented sector is in turmoil. As landlords exit the market in record numbers, tenants are finding themselves trapped in a vicious cycle of rising rents and shrinking housing options. What used to be a relatively stable rental market is now veering dangerously close to a full-blown renters’ crisis.
For tenants, it feels like they’re being squeezed from all sides—unable to save for a home of their own and watching rents climb higher with each passing year. So, what’s causing this crisis, and how can it be stopped?
The main driver behind rising rents is simple: fewer homes available to rent. As more and more landlords leave the market, the supply of rental properties is shrinking. But demand isn’t going anywhere. In fact, as house prices remain out of reach for many, more people are relying on the rental market than ever before.
Emma and Jack are one such couple. They’ve been renting in London for five years, hoping to save enough for a deposit on their first home. But with house prices continuing to rise, that deposit feels like a moving target. In the meantime, their rent has increased three times in the last two years. Now, they’re spending over 40% of their monthly income on rent—leaving them with little chance of ever saving enough to buy.
Rising rents are creating a financial trap for renters like Emma and Jack. The more they pay in rent, the less they can save for a deposit, forcing them to remain stuck in the rental market with no way out.
Why are landlords leaving? The reasons are clear—punitive tax changes, like Section 24, and an onslaught of regulations are making it increasingly difficult for smaller landlords to turn a profit. For many, the costs simply outweigh the benefits.
Take David, who owns a single buy-to-let property. For years, it was a steady source of income that helped supplement his pension. But since the introduction of Section 24, David’s tax bill has soared, and now he’s facing the prospect of having to sell the property just to stay financially afloat. Thousands of landlords like David are making the same decision—sell up and get out.
With fewer landlords in the market, tenants are left competing for a shrinking pool of rental homes. And as the laws of supply and demand dictate, fewer homes mean higher rents.
For many tenants, rising rents are more than just an inconvenience—they’re becoming a serious financial strain. Renters are already spending a large portion of their income on housing, and as rents rise, that burden is only getting worse.
Take Rachel, a teacher renting a flat in Birmingham. Her rent has increased by £150 a month since her landlord sold to a new corporate owner. While Rachel’s salary has barely budged, her rent is eating up more and more of her income. Now, she’s cutting back on essential spending just to keep a roof over her head.
The rising cost of rent is hitting low- and middle-income tenants the hardest. Many are being forced out of city centres, moving to less convenient areas with longer commutes. Others, like Rachel, are sacrificing their quality of life just to make ends meet. And for those already struggling, rising rents could push them into housing insecurity or even homelessness.
One of the most damaging effects of rising rents is how they’re pushing the dream of homeownership further out of reach for millions of renters. For years, tenants have been trying to save enough for a deposit to buy their first home. But with rents rising faster than wages, that goal is becoming impossible to achieve.
Take Ben, a young professional in Manchester. He’s been renting for eight years, saving diligently to buy his own home. But as his rent continues to rise, he’s finding it harder to set aside money each month. The rising cost of living is eroding his savings, and every time he gets close to having enough for a deposit, house prices rise again.
Renters like Ben are trapped—unable to buy their own homes and stuck in a rental market that’s becoming more expensive by the day.
The reality is that the UK is already teetering on the edge of a renters’ crisis. Rising rents, fewer available homes, and the increasing difficulty of saving for homeownership are all contributing to a housing market that feels broken for many.
As more landlords leave the market, the pressure on the rental sector is intensifying. This isn’t just bad news for tenants—it’s bad for the entire housing ecosystem. The ripple effects of a full-blown renters’ crisis could spread across the economy, affecting everything from household spending to social stability.
There’s no easy fix, but there are steps that can be taken to alleviate the pressure on both landlords and tenants. Here’s what needs to happen:
At Property118, we’re working to prevent a full-blown renters’ crisis. We’re advocating for the reform of harmful tax policies, the protection of small landlords, and the creation of a fairer rental market for tenants. But we can’t do it alone.
If you believe in protecting tenants from rising rents and ensuring that rental housing remains accessible to everyone, please consider supporting Property118. Your donations help us fight for policies that keep rents affordable and protect both tenants and landlords.
Every donation counts. Use the form below to help us fight for a fairer, more affordable rental market.
The UK is heading toward a renters’ crisis—but with the right reforms, we can stop it. Let’s work together to protect tenants and secure a better future for the rental market.
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