High housing costs in the private rental sector: The case for action
Think tank: IPPR
Author(s): Dr Maya Singer Hobbs; Henry Parkes; Tazu Walden
May 11, 2026
This report from UK think tank IPPR calls for a new system of rent stabilisation to cap excessive increases, linked to whichever is lower: inflation or wage growth.
45 per cent of all private renters in the UK have unaffordable rents. It’s time for the government to act to limit rent increases.
In the UK today, 2.4 million households renting privately have unaffordable rents, an additional 250,000 since 2023. This is 45 per cent of all private renters in the UK. This is not just limited to those at the very bottom of the income distribution or to those receiving state support – 72 per cent of households struggling to pay rent currently get no government help for their housing.
Without further intervention, affordability will continue to deteriorate. By the end of this decade, an additional 340,000 households will be spending more than 30 per cent of their income on rent compared to 2023/24.
