Tenants spending almost half a billion pounds more on rent per month than last year

Tenants spending almost half a billion pounds more on rent per month than last year

Shelter calls for urgent Bill in King’s Speech to bring rocketing rent hikes under control

New analysis of government figures by Shelter reveals runaway rents have left England’s private renters coughing up an extra £473 million pounds every month on rent in 2024 – with each household paying on average £103 more per month than they were paying in 2023.

The charity’s research also looks at where in the country these shocking rent rises have been most keenly felt. London is the worst affected city with private rents costing the city’s tenants on average £192 more every month than in 2023. Private renters in Manchester are spending £131 more on rent per month, while Bristol renters are forking out an extra £121 every month.

A separate survey of more than 2,000 private renters, carried out by YouGov for Shelter, shows just how many tenants are seeing their housing costs escalate. It showed nearly six in ten tenants (58%) have seen their rent increase since March 2023, while a third (34%) now report spending at least half of their monthly household income on rent. The charity estimates that more than 60,000 renters were forced to move because their rent was hiked in the last year.

CASE STUDY:Emma, 35, from Harlow, was hit with a no-fault eviction after attempting to negotiate down a £250 per month rent hike on a two-bedroom annex she was renting last year. Emma, who was pregnant with her second child at the time, had planned to have her partner move into her flat once their baby arrived, but her landlord refused to allow it, and Emma was hit with a massive rent hike in response.

Emma says: “I managed to negotiate the rent hike down to £100 per month, but my landlord still refused to let my boyfriend move in. She tried to evict us over email initially before finally using a no fault eviction to force us out. The stress was so bad it affected my pregnancy. I had to be induced due to my high blood pressure and my daughter was so worried her schoolwork started suffering. My boyfriend and I found a two-bed house together in March and we feel so grateful. But in future, there needs to be limits on how much landlords can raise the rent by, and no fault evictions must be scrapped.”

Under current laws, landlords can evict tenants who cannot afford a proposed rent hike by using a Section 21 no fault eviction. Tenants then have just two months’ notice to find a new home, leaving many scrambling to keep a roof over their heads. A record 25,910 households in England approached their local council for homelessness assistance because of no fault eviction in 2023.

The Labour Party committed to scrapping Section 21 in its election manifesto. But to ensure a future ban on Section 21 works, Shelter is urging the new government to bring forward legislation in the King’s Speech that prevents unscrupulous landlords from using excessive demands for more rent to force tenants to leave. The charity warns that without limits on in-tenancy rent rises, thousands of struggling renters will continue to be forced out of their homes unnecessarily.

Polly Neate, Chief Executive of Shelter, said:“The new government is right to want to scrap no fault evictions, but make no mistake - unfair evictions will continue unless action is taken to limit unreasonable rent hikes. Renting cannot be truly secure while renters can still be slapped with a huge increase out of the blue and told to magic up the money or get out.

“Rent stabilisation is one way the government can help renters keep hold of their homes once Section 21 is consigned to the dustbin of history. By limiting in-tenancy rent hikes to once a year, and keeping price rises in line with either inflation or wage growth, rent stabilisation could finally put an end to the big, unpredictable jumps in rent that force so many people out of their homes.

“With the King’s Speech just days away, this government must succeed where others have failed. To finally make renting genuinely safe, secure, and more affordable, it must bring forward a bill that scraps no fault evictions in full, limits in-tenancy rent hikes, and extends notice periods.”

ENDS