BPF: Rents rising slower than inflation

The British Property Federation said an analysis of 500,000 market rent homes across the country by the Valuation Office showed that they were rising at 2.8 per cent, which is lower than the retail price index.

The same figures were cited last week by housing charity Shelter to show that rents were overshooting inflation as they are higher than the current level of the consumer price index.

The BPF has written to the Communities and Local Government select committee ahead of its first oral evidence session for its inquiry into the private rented sector.

In its response, the BPF called for an end to rent controls, arguing that they could limit investment in the sector when more homes are needed. However, it did back the introduction of licencing for lettings agents and a system of landlord registration.

‘Debate on the private rented sector is too often dominated by case study, narrow evidence and prejudice, rather than the full picture and there is real danger that on the back of that we get poor policymaking,’ said Ian Fletcher, director of policy at the BPF. ‘Policies that hurt investment in the private rented sector will not help people needing a home and just exacerbate the nation’s housing crisis. We hope the select committee will remember that rents reflect local housing markets and come out strongly in rejecting rent controls.’

Mr Fletcher also commented that market rents were growing at a lower rate than those in the social sector, where landlords can raise rents by as much as RPI plus 0.5 per cent.