UK private renters face soaring rents as affordability crisis deepens

Research by the New Economics Foundation shows private rents across England have risen by 6‑9% per year, with an average increase of almost 8% over the past two years – about £1,200 more per household each year. Low‑income renters now spend roughly 48.5% of their income on rent, and renters overall allocate about a third of earnings to housing, a level that has persisted for the last 15‑20 years and intensified after past deregulation.

The Renters’ Rights Act, which took effect this month, does not curb rent levels. The NEF proposes an “emergency brake” that caps rent hikes at the lower of inflation or 2%, and a phased re‑introduction of a historic “fair‑rent” system, with mayoral powers to run local pilots. New‑build properties would be exempt initially. Polling shows 71‑75% public support for capping annual rent rises. The Joint Research Forum is also reviewing policy options, with an interim report slated for May.