The National Residential Landlords Association (NRLA) has labelled the Spring Statement a missed opportunity to improve the chronic supply crisis in the private rented sector.

Ben Beadle, of the NRLA. explained that Chancellor Rachel Reeves has done nothing to address issues exacerbating the crisis, despite Zoopla figures showing there are now an average of 12 tenants chasing every available home to rent.

Responding to a recent Parliamentary question, Treasury Minister Emma Reynolds admitted, “rental prices are ultimately determined by the total supply of housing, relative to demand”, giving hope the Government might take some action to support landlords and tenants.

"Chronic shortage"

However, the Statement ignored these entirely, Beadle said. “It has done nothing to tackle the chronic shortage of rental housing to meet demand, nor to reform a broken tax system which is failing to encourage and support investment in energy efficiency improvements.”  

In her Statement, the Chancellor announced an extra £2billion for the Affordable Homes Programme, which will only fund building about 18,000 new social and affordable homes. Reeves also did not increase the Local Housing Allowance, to the dismay of tenant groups as well as the NRLA.

“It has also done nothing to address the unjust freeze on housing benefit which is leaving so many renters fearful of how they will afford their rents,” adds Beadle.

Renting campaigners are calling for a cap on rent increases, including Tom Darling, director at the Renters’ Reform Coalition. He explains: “Building more social housing is critical, yet this alone will not address this affordability crisis - we need to see serious action to make renting more affordable. That means a cap on rent increases now, to keep more tenants in their homes, and a national rental affordability commission to look at ways to bring down the cost of renting in the longer term.”

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