Trade unions and tenant advocacy groups are calling on the government to introduce rent controls following the latest rise in UK rental prices, adding further pressure on Chancellor Rachel Reeves as affordability concerns continue to grow across the housing sector.
Several organisations, including the London Renters’ Union, UNISON and the Homes for All Coalition, have jointly signed an open letter urging the government to take action. In their proposal, they call for an immediate temporary freeze on rents, followed by the introduction of longer-term rent control measures alongside increased investment in social and council housing.
The groups argue that stronger intervention in the rental market is urgently needed to address rising housing costs. They claim that if a rent freeze had been implemented in 2022, renting households could now be paying around £3,200 less per year on average. This, they suggest, highlights the scale of financial pressure currently facing tenants.
Their proposal also stresses that any future rent control system should apply both during and between tenancies. According to the organisations involved, this would help prevent potential loopholes similar to those seen in Scotland’s 2022 rent freeze, where landlords were able to significantly increase rents when new tenants moved in.
The appeal comes at a politically sensitive time, as reports suggest that Chancellor Rachel Reeves had previously considered introducing a rent freeze as part of wider cost-of-living support measures. However, the idea was ultimately dropped by Downing Street last month, leaving campaigners to continue pushing for alternative forms of intervention.
The renewed calls for rent controls coincide with the latest data from the HomeLet Rental Index, which shows that average UK rents rose again in May. According to the figures, the typical monthly rent increased to £1,340, representing a 1.1% rise compared with April’s average of £1,325.
On an annual basis, rents are now 2.5% higher than they were in May of the previous year, when the average stood at £1,307. This continues a broader trend of gradual but persistent rental inflation across the UK housing market.
Regionally, the data shows that rental growth is largely widespread, with ten out of twelve monitored regions recording monthly increases. Only one region saw no change, while another experienced a slight decline.
Scotland recorded the strongest monthly growth at 1.9%, followed closely by Greater London and the East of England, both of which saw rents rise by 1.6%. Scotland also led annual growth figures, with rents increasing by 3.9% year-on-year. Greater London and the North East also experienced notable annual increases of 3.5%.
These figures highlight the continued pressure on renters across much of the country, particularly in areas where demand remains high and supply is constrained.
Jo Dickens, Head of Business Development at HomeLet and Let Alliance, noted that affordability remains a key issue for many tenants. She explained that even relatively modest monthly increases are still felt significantly by households already facing stretched budgets.
She added that maintaining sustainable tenancies is now a key priority for both letting agents and landlords. This involves striking a balance between achieving fair market rents while ensuring that properties remain affordable for tenants over the long term.
Overall, the latest data reinforces concerns about the ongoing strain within the rental sector. While rental growth may appear incremental on a month-to-month basis, the cumulative effect continues to place pressure on households across the UK, fuelling renewed debate over whether stronger government intervention is needed in the form of rent controls.
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