Average UK private rents increased by 8.6% in the 12 months to June 2024, the latest figures show.

Average rents increased to £1,310 (8.6%) in England, £743 (8.2%) in Wales, and £959 (8.4%) in Scotland, in the 12 months to June 2024, according to the ONS.

In Northern Ireland, average rents increased by 10.3% in the 12 months to April 2024.

Sam Reynolds, CEO of Zero Deposit, commented: “Much of the noise leading up to the election was predictably focussed on the housing market, however, with rents continuing to climb, it’s imperative our new government gives the current rental crisis the focus it deserves.”

Rental prices have been pushed higher by the widening supply-demand imbalance, and despite the new government’s early attempts to improve conditions in the private rented sector – most notably by increasing housing supply – there are concerns that plans to scrap Section 21 evictions could have an adverse impact on the sector.

Amanda McNeil, partner and head of real estate dispute resolution at Howard Kennedy, said: “It is admirable that the government is seeking to fix our broken housing market by abolishing Assured Shorthold Tenancies and no-fault evictions and by introducing a much-needed Decent Homes Standard. However, will they be scoring an own goal? There is a real risk these measures could reduce available housing supply at a time when the government has identified an existing housing shortage and prompt many private landlords to withdraw from the private rented sector.

“Over 20% of properties in the private rented sector have been identified as not meeting the Decent Homes Standard. Will landlords be prepared to expend money upgrading the properties? How will investigation and enforcement be resourced?

“Currently, landlords can seek to recover possession of their properties at the end of the tenancy under section 21. Whilst court proceedings may need to be issued to recover possession, landlords can utilise the accelerated possession procedure and obtain a possession order without the need for a court hearing. Landlords are already facing a huge delay in obtaining such orders due to significant backlogs at the court, and the abolition of section 21 will result in all possession proceedings requiring a court hearing.

“Unless there is an overhaul of, and significant investment in the courts, with the digitalisation of the court process and more resources, landlords may consider it no longer makes commercial sense to let their properties due to it being more difficult to recover possession of their properties in terms of cost and delay.

“If existing private landlords withdraw from the sector, with demand far exceeding supply, there is also the very significant prospect that this will push up rents.”

Chris Norris, policy director for the National Residential Landlords Association, said: “With an average of 15 households chasing every available home to rent it is vital that rental reform does not make an already serious supply crisis in the private rented sector worse.

“The system that replaces Section 21 needs to be fair, workable and sustainable for both responsible landlords and renters. That means fixing a broken justice system which too often fails those reliant upon it.

“The housing minister has rightly noted that landlords need the courts to operate quickly where they have a good reason to repossess a property. This includes cases of tenant anti-social behaviour and serious rent arrears, which currently take almost seven months to process. This is far too long.

“Tenants are no better served by delays, which increase hardship, stress, and uncertainty. We need action from the government, alongside the Bill, to ensure all are able to access justice in a timely fashion when they need to do so.”

Scott Goldstein, partner at Payne Hicks Beach, concurred: “Keir Starmer is dealing with the Conservative government’s unfinished business as we have known for five years that the abolition of section 21 notices is on the cards. As ever, the issue will be whether the court system is beefed up to cope with the floodgates opening, as landlords desperate to take back their properties are forced to prove that they have grounds for doing so.”

King’s Speech – Industry reaction