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Renters in England are working 125 days each year – before tax – just to pay their rent, according to new research from the Adam Smith Institute (ASI).
This means that renters only start earning money for themselves on 6 May, which the ASI has named Cost of Rent Day.
The initiative was calculated using data from sample regions across England and Wales, alongside figures from each local authority in London.
In response to this rental “crisis”, the ASI has called for the government to double down on housebuilding, rather than punishing landlords with policies such as rent controls.
James Lawson, Chairman of the Adam Smith Institute, said: “Renting in England has become eye-wateringly expensive. Our latest analysis exposes the severity of this crisis, particularly in our cities, London and the South East.
“This should not come as a surprise. Our housing market is by no means free – it’s shackled by regulations that empower NIMBYs at the expense of future homeowners.
The think tank has pushed for planning rules to be liberalised, and for the government to pursue more aggressive policies to boost housebuilding and ultimately lower the cost of renting.
In the report, the ASI advocated for compulsory purchase orders, developing on swathes of the green belt, and profit-sharing with local residents.
“Many of the policies which are being widely touted as solutions, including rent controls, will only make things worse”, Lawson added.
“Instead of engaging in more central planning and regulation, we must liberalise our planning system. A growing housing supply is the only sustainable way to cut renting costs.”
In an interview with City AM last week, Grand Designs presenter Kevin McCloud said the UK construction sector’s supply chain had “been deracinated”.
“It’s a great model for those at the top,” the presenter told City AM.
“If you’re a housebuilder and times are good, you say, ‘Let’s get building.’ You employ a load of people, bang up some houses and then drip-feed them into the market to control the supply. These are standard techniques that seem almost corrupt.”
