The average private rent in England rose by 8.6% in the 12 months to June 2024, according to the latest data.
According to the ONS, in the 12 months to June 2024, average rent prices rose to £1,310 in England (8.6%), £743 in Wales (8.2%) and £959 in Scotland (8.4%).
In Northern Ireland, average rents rose by 10.3% in the 12 months to April 2024.
Sam Reynolds, CEO of Zero Deposit, commented: “Much of the pre-election noise was predictably focused on the housing market, but with rents continuing to rise, it's vital that the new government gives the current rent crisis the focus it deserves.”
Rental prices have been driven up by a widening imbalance in supply and demand and although the new government has been an early player in improving the private rented sector, particularly by increasing housing supply, there are concerns that plans to abolish Section 21 evictions will have a negative impact on the sector.
Amanda McNeill, partner and head of property dispute resolution at Howard Kennedy, said: “It is commendable that the Government is trying to fix the broken housing market by abolishing the guaranteed short-term tenancy scheme, no-fault evictions scheme and introducing a much-needed decent housing standard. But is the Government committing suicide? There is a real risk that these measures will reduce housing supply as the Government recognises there is a housing shortage and many private landlords withdraw from the private rented sector.”
“More than 20% of privately rented homes have been found to not meet the Decent Housing Standard. Will landlords be prepared to spend money to renovate their properties? How will inspections and enforcement be funded?”
“Currently, landlords can seek restoration of possession of a premises at the end of a lease under section 21. While restoration of possession may require court proceedings, landlords can use expedited possession procedures to obtain a possession order without the need for a court hearing. Landlords already experience significant delays in obtaining such orders due to the huge backlog of cases in the courts and if section 21 is repealed, all possession proceedings will require a court hearing.
“Unless there is a fundamental overhaul of the courts and significant investment, such as digitising court proceedings and expanding resources, landlords may find it no longer makes commercial sense to rent out their properties, as it will become more difficult to recover possession of their properties given the costs and delays involved.”
“Demand far exceeds supply and rents are very likely to rise if existing private landlords exit the sector.”
Chris Norris, policy director at the National Homeowners Association, said: “With an average of 15 households chasing every available home to rent, it is vital that rental reforms do not exacerbate an already severe supply crisis in the private rented sector.”
“Any alternative to Section 21 must be fair, workable and sustainable for both responsible landlords and tenants. That means fixing a broken justice system that too often fails the people it relies on.”
“The Housing Minister rightly pointed out that the courts need to act swiftly where landlords have valid grounds to repossess properties – this includes cases of tenant anti-social behaviour or serious rent arrears – but currently they take around seven months to process – which is far too long.”
“Delays do no good to tenants and increase hardship, stress and uncertainty. We need action from this Government and the Bill to ensure they have timely access to justice when they need it.”
Scott Goldstein, partner at Payne Hicks Beech, agrees: “Keir Starmer is tackling the unfinished business of the Conservative government. We've known for five years that scrapping Section 21 notices was being considered. As ever, the question is whether the court system will be strengthened to deal with floodgate openings, as desperate landlords trying to reclaim their properties will be forced to prove they have grounds to do so.”
The King's Speech – Industry Reaction