Approximately 35% of the UK population are renters, with the private rented sector (PRS) accommodating around 19% of households since 2014—equivalent to approximately 4.5 million homes (English Housing Survey, GOV.UK).
Economic barriers such as rising property prices and stricter mortgage lending criteria have driven increased reliance on renting in recent years. Over the past decade, the average house price for first-time buyers has surged by 51% (ONS - House Price Index), creating a generation of renters dependent on long-term accommodation within the PRS.
As the rental sector continues to grow, housing policy debates are increasingly focused on balancing tenant rights and landlord responsibilities (A Fairer Private Rented Sector, GOV.UK).
Many Build to Rent (BTR) developers, such as Essential Living, operate in premium housing markets that have traditionally catered to affluent demographics. This model prioritizes tenant experience and high-quality amenities over affordability, distinguishing itself from general private rental or affordable housing models.
This article examines this government’s approach to rental policies, comparing it with those of the previous administration and assessing their impact on tenants, landlords, tenant agencies, and property platforms.
Background: The Renting Landscape Pre-July 2024
Before the Labour government took office in July 2024, the UK rental market faced persistent challenges. Rental prices had been increasing faster than wage growth, contributing to a growing affordability crisis( A Fairer Private Rented Sector, GOV.UK). The availability of rental properties also failed to meet demand, particularly in urban centres like London and Edinburgh.
Tenant advocacy groups, such as Shelter, have consistently highlighted how this imbalance forced many renters to compromise on living conditions or relocate to less desirable areas. Polly Neate, CEO of Shelter, stated in September 2024:
"The Renters’ Rights Bill is a watershed moment for England’s 11 million renters. By extending notice periods and ridding the country of the gross injustice of Section 21 evictions, renters will no longer live in fear of being booted out of their homes for no reason, with too little notice." (Shelter)
Efforts by the previous administration included drafting the Renters’ Reform Bill, which aimed to abolish Section 21 no-fault evictions and strengthen tenant protections. However, the bill failed to pass through Parliament before its dissolution in May 2024 (UK Parliament Commons Library). This delay left tenants vulnerable, as highlighted by Generation Rent on the 9th of October 2024:
"This delay has left renters exposed to insecurity and financial pressures, demonstrating the urgent need for decisive government action to safeguard tenant rights." (Generation Rent)
Comparing Old vs New Policies
The Renters’ Reform Bill introduced by the previous government focused on creating a fairer rental market by abolishing Section 21 evictions and enhancing tenant protections. The current government’s Renters’ Rights Bill builds upon this framework with an accelerated timeline for implementation and additional protections, such as extending the Decent Homes Standard to private rentals. These measures are detailed in the government’s initiatives to protect renters (How We're Protecting Renters, GOV.UK).
Alicia Kennedy, Director of Generation Rent, expressed cautious optimism about the Bill’s potential impact, stating on October 9th 2024:
"The Renters’ Rights Bill has the potential to transform renting, but it’s crucial that the government listens to renters’ concerns and ensures that these protections are enforced effectively." (Generation Rent)
Kennedy further added that renters have been waiting too long for action:
"Renters have been living with insecurity and unaffordable rent for far too long. It is essential that the government gets this right to provide stability and affordability."
However, she emphasised the need for monitoring and compliance:
"Legislation is only part of the solution; enforcement mechanisms must ensure landlords adhere to the new rules."
Many build-to-rent operators like Essential Living, have adapted by focusing on premium amenities, such as gyms and co-working spaces, to attract more tenants looking for a community as well as a home. This approach highlights the potential for innovative solutions within the private rented sector.
Government Housing New Policies and Initiatives of July 2024
Key Provisions in the Renters' Rights Bill:
The Renters’ Rights Bill includes proposals to:
- Abolishing Section 21 evictions
- Implementing simplified tenancy structures
- Extending the Decent Homes Standard to private rentals
These changes align with recommendations outlined in the government’s policy paper on a fairer private rented sector (GOV.UK Policy Paper).
Kennedy acknowledged the inclusion of key measures like banning Section 21 evictions but stressed that affordability issues must remain at the forefront:
"Without action on spiraling rents, affordability will continue to push people into financial hardship, even if they have stronger protections against eviction." (Generation Rent)
Housing Investment and Supply
The government has pledged to build 1.5 million homes over five years to alleviate demand pressures (English Housing Survey, GOV.UK). This target aligns with previous Conservative goals, which aimed for 300,000 homes annually.
While the promise of 1.5 million homes represents an ambitious target, housing groups have raised concerns about the feasibility of achieving it without substantial funding.
Stamp Duty Land Tax (SDLT) on Additional Dwellings
Effective 31 October 2024, SDLT on additional dwellings increased from 3% to 5%, aiming to curb speculative property purchases. The NRLA warns that this could discourage investment, exacerbating supply shortages (NRLA Commentary).
Since the Labour government assumed office in July 2024, the UK rental market has experienced notable shifts.
These trends underscore the ongoing challenges in the UK's rental market, particularly concerning affordability and the balance between supply and demand. The Labour government's initiatives, including the pledge to build 1.5 million homes over five years, aim to address these issues. However, the effectiveness of these measures will depend on timely implementation and adequate funding.
Cost of Living Support and Welfare
Measures like increasing the National Living Wage and expanding the Household Support Fund aim to alleviate renters’ financial pressures. Enhanced Discretionary Housing Payments (DHPs) have also been introduced. A report by Shelter in 2023 revealed that over 50% of renters surveyed had cut back on essentials to afford rent (source: Shelter). Similarly, Generation Rent’s 2024 survey found that 41% of renters worry about affording rent increases in the next year (Generation Rent).
Transition to Electric Vehicles (EVs)
The introduction of Landlord EV Chargepoint Grants has been positively received, particularly by younger, environmentally conscious renters. Essential Living has embraced this initiative, integrating EV charging stations across its properties to align with tenant preferences and government sustainability goals (A Fairer Private Rented Sector, GOV.UK).
Tenant Rights and Security
The Renters' Rights Bill represents a significant step forward for tenant protections. Key measures include:
- Abolishing Section 21 no-fault evictions.
- Requiring landlords to meet the Decent Homes Standard.
- Preventing landlords from unreasonably withholding consent for pets (GOV.UK).
Richard Donnell, Executive Director at Zoopla, commented:
"Private renters moving home have faced rents rising faster than earnings over the last three years. Rental growth has slowed, but we expect an ongoing lack of rental supply to keep an upward pressure on rents."
However, implementing these measures presents challenges. For landlords, ensuring compliance while maintaining profitability is a delicate balance. Essential Living has addressed this by streamlining tenancy agreements and prioritising proactive communication with tenants, fostering trust and transparency.
Availability and Demand for Rental Properties
The supply-demand imbalance continues to strain the rental market. Zoopla reported a 30% drop in the supply of rental homes compared to the five-year average, with demand 51% higher ( Zoopla). This disparity is particularly acute in high-demand regions like London and Edinburgh. Polly Neate, CEO of Shelter, remarked:
"The market is so competitive that renters are being priced out of areas they’ve lived in for years."
- Scotland: The implementation of rent caps has led to a 12.7% increase in new tenancy prices, highlighting unintended consequences of such policies. (ons.gov.uk)
- London: Rental inflation has reached 6.9%, underscoring ongoing affordability challenges in the capital. (cluttons.com)
- North East: The region has experienced more balanced supply and demand dynamics, with moderate rental growth of 4.7%. (ons.gov.uk)
Rental Market Trends Post-July 2024: Supply, Demand, and Affordability Under Labour
Rental Price Growth:
- Before July 2024: In the 12 months leading up to June 2024, average UK private rents increased by 8.6%.
(ons.gov.uk) - After July 2024: By October 2024, the annual rental growth had decelerated to 3.9%, marking the slowest rate in over three years.
(zoopla.co.uk)
Average Rental Changes:
- June 2024: The average rent in England was £1,310 per month.
ons.gov.uk - July 2024: This figure saw a slight increase to £1,319 per month.
ons.gov.uk - October 2024: The average rent across the UK reached £1,270 per month.
zoopla.co.uk
UK Rental Market Supply and Demand (2020-2024)
| Year | Average Monthly Rent (£) | Annual Rental Growth (%) | Rental Demand (% Change YoY) | Rental Supply (% Change YoY) |
|---|---|---|---|---|
| 2020 | 980 | 3.2 | - | - |
| 2021 | 1,020 | 4.1 | +40 | -28 |
| 2022 | 1,120 | 9.8 | +25 | -15 |
| 2023 | 1,200 | 7.1 | +10 | -10 |
| 2024 | 1,270 | 3.9 | -29 | +12 |
Rental Supply and Demand:
- Demand: The surge in rental demand observed in 2022 and early 2023 began to moderate by mid-2024 but remained above pre-pandemic levels. (cluttons.com)
- Supply: While there was a slight easing in the constrained supply of rental properties, the overall shortage persisted, continuing to exert upward pressure on rents. (cluttons.com)
Affordability Concerns:
- A report from February 2025 highlighted that nearly 1 million children in the UK are at risk of poverty due to escalating rents and insufficient government housing support. The failure to adjust Local Housing Allowance rates in line with rising rents is projected to push an additional 90,000 families into financial hardship over the next year. (theguardian.com)
Landlord Responses
Many landlords have expressed concerns about new regulations, citing rising costs and reduced profitability. The NRLA has highlighted that stricter regulations, such as the abolition of Section 21 evictions and increased SDLT rates, could discourage investment in rental properties. In a recent statement, the NRLA warned:
"Over 500,000 rental homes could be lost over the next decade if the government does not address the unintended consequences of its policies." (NRLA)
Businesses and investors that prioritise renting as an experience are able commit to improving properties. BTR operators, such as Essential Living, take a tenant-first approach, prioritising long-term stability and experience over short-term rental increases. In addition to offering high-quality amenities, they have focused on clear tenant communication and flexible leasing structures to foster trust while adapting to regulatory changes. Nick Woodward, Lettings Director explained:
"Rather than cutting corners, we’re investing in what tenants value most. It a win-win."
Public Opinion and Tenant Advocacy: The Push for Stronger Protections
The introduction of the Renters’ Rights Bill has been met with mixed reactions from tenants, advocacy groups, and the wider public. While tenant organisations such as Shelter and Generation Rent have welcomed the reforms, concerns remain over their enforcement and whether they go far enough in addressing affordability and security in the rental market.
Advocacy for Stronger Enforcement
Polly Neate, CEO of Shelter, praised the government’s commitment to abolishing Section 21 evictions but warned:
"The Renters’ Rights Bill lays the groundwork for meaningful change, but without robust enforcement, its impact could fall short." (Shelter)
Generation Rent has echoed these concerns, emphasising the need for better protection against rent hikes, landlord non-compliance, and eviction loopholes. Alicia Kennedy, Director of Generation Rent, stated:
" Legislation is only part of the solution; enforcement mechanisims must enure landlords adhere to the new rules." (Generation Rent)
Tenant groups argue that local councils must be adequately funded and empowered to ensure compliance, particularly in prosecuting rogue landlords who continue to exploit regulatory gaps.
Public Support for Rent Controls
There is significant public support for additional renter protections, particularly around rent controls. A YouGov poll commissioned by the think tank Common Wealth found that 44% of landlords support the introduction of rent controls based on location and quality of the property. (landlordzone.co.uk)
This support spans across income groups and regions, with London and other high-demand areas showing even higher approval for stricter rent regulations. Many renters feel that even with increased eviction protections, affordability remains the biggest unresolved issue in the market.
The Debate on Landlord Rights vs Tenant Protections
While tenant advocacy groups push for stronger regulation, landlord associations such as the NRLA warn that excessive restrictions could discourage property investment, further reducing rental supply. The National Residential Landlords Association (NRLA) has expressed concerns that recent policy decisions, such as the increase in stamp duty on additional properties, could exacerbate the shortage of rental homes. They report that almost eight in ten landlords (79%) observed strong demand for private rented housing in the third quarter of the year. (nrla.org.uk)
This ongoing debate between affordability for renters and sustainability for landlords will likely shape future housing policies.
Conclusion
The first seven months of the government’s tenure have brought significant changes to the UK rental market. Policies like the Renters’ Rights Bill aim to enhance tenant security and address supply shortages, but rising rental prices and supply-demand imbalances remain critical challenges. Advocacy groups like Shelter and Generation Rent remain vocal in demanding stronger enforcement of rental regulations, while landlords like Essential Living demonstrate how tenant-focused strategies can thrive within the evolving regulatory landscape.
The path forward will require collaboration between tenants, landlords, and policymakers. Only by addressing the root causes of affordability and housing supply can the UK rental market achieve stability, fairness, and long-term growth.
As reforms take shape, ensuring the voices of renters, landlords, and advocacy groups are heard will be crucial in delivering meaningful, long-term change.
Frequently asked questions
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What is the Renters' Rights Bill?
The Renters' Rights Bill aims to abolish Section 21 no-fault evictions, simplify tenancy agreements, and enforce the Decent Homes Standard in the private rented sector.
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How has the government committed to addressing housing supply shortages?
The government has pledged to build 1.5 million homes over five years. Critics, however, have raised concerns about the lack of detailed funding mechanisms.
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How are landlords managing regulatory changes?
Some landlords, like Essential Living, are adjusting their business models by integrating long-term value-driven amenities and flexible leasing options instead of relying solely on rental increases.
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What is being done to help tenants with rising costs?
Initiatives like increased Discretionary Housing Payments and the expansion of the Household Support Fund aim to provide relief. However, supply-demand imbalances continue to drive affordability challenges.
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What is the outlook for the UK rental market?
The success of new policies hinges on effective implementation and balancing tenant and landlord needs. While reforms are promising, challenges remain, particularly around affordability and supply.
