Rents hit record-high level relative to earnings amid lack of housing stock
The UK's housing market is in an "affordability crisis", according to an independent watchdog.
Brits on lower incomes are being forced into the pricier private rental market as rent prices relative to average earnings rise to record levels, a new report has found.
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The demand for private rentals has increased since the COVID pandemic in 2019, pushing prices up as the amount of properties available to rent has fallen.
The report, by The Chartered Institute of Housing (CIH)'s 2026 UK Housing Review, found that increased inflation and interest rates from 2022 meant that many Brits chose renting over homeownership due to high costs.
At the same time, tax reform and high mortgage rates have led landlords to take their properties off the rental market.
The CIH described the amount of new listings as "subdued".
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The report raised the alarm over a shortage of social housing in the UK.
Blaming the Right to Buy scheme, which the CIH dubbed "the UK’s largest privatisation programme", the report noted "a sharp decline in social housing availability."
It warned that the lack of social housing is now pushing low-income families into the private rental sector, where costs are far higher.
The Right to Buy scheme was introduced in 1980 by then-Prime Minister Margaret Thatcher. It allowed those in social housing to buy their properties, ultimately leading to a decline in rentable social housing.
The report said that the decline in letted social housing is: "one of the factors behind rising homelessness pressures, as fewer homes are available for people in housing need."
Rachael Williamson, director of policy, communications and external affairs at CIH, said: “Right to Buy transformed home ownership opportunities for millions, but this new analysis shows the lasting consequences for the availability of social housing today.“
"With demand rising and homelessness pressures growing, rebuilding social housing supply must remain a priority for housing policy across the UK."
"Ensuring councils and housing associations can replace and expand affordable homes is critical to restoring a housing system that works for everyone,” she added.