A leading economic analyst’s stark warning that many private rental sector election policies put forward by the major parties in the general election will probably push up rents even higher.

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The government’s latest release of figures on the PRS shows that rents increased by 8.7% year on year to April 2024, however this has actually fallen from the previous March month’s year on year figure of an 8.9% increase but it is massively higher when comparing it with the 1.1% rise in house prices.

Sarah Coles, head of personal finance at a business consultancy commented: “Would be first time buyers are facing horrible pressure from the rental market, with rents up 8.7% in a year. And while there were plenty of measures for renters in the election manifestos, these have been focused on improving rights and conditions rather than on rental affordability.

“Ironically, those measures could well end up pushing up rents, as more landlords may be persuaded to sell up, and those who stay could face higher costs, and pass them onto tenants. With no light at the end of the tunnel for renters when it comes to costs, their only hope may be to get onto the property ladder and out of the rental market altogether.

“Anyone in this position, who is aged 18 to 39, should seriously consider taking advantage of the Lifetime ISA, where you can save or invest up to £4,000 a year and the government will top it up by another £1,000. The LISA offers a vital leg-up onto the property ladder.

“An estimated 11% of first-time buyers with a mortgage used a Lifetime ISA to get onto the property ladder in the most recent year we have data for (2022-23), and during 2023, among HL LISA clients, the average annual bonus was £747, which is a very welcome step in the right direction.”

A leading buy to let lender’s spokesperson, says: “It is encouraging to see a reduction in rental inflation, which we believe will be driven by lower inflation on new lets. In order for this trend to continue, something that helps to alleviate the affordability challenges faced by tenants, it is crucial that we address the imbalance between the demand and supply of rented homes. To do this we need to recognise the contribution of private rented sector landlords and be proactive in creating the conditions that facilitate investment in good quality housing.”

A trade association’s spokesman added: "The impact of what has been a challenging economic period continues to play chaos for many renters. Not only are personal finances stretched to the max for many people, but we have the added uncertainty of a general election and what that might ultimately mean for renters and landlords.

“All major political parties have referenced the need for building much-needed new homes, but we need to see a precise plan and timeline as to how and when that is going to happen. Currently, demand is continuing to seriously outstrip supply, and this remains a major contributary factor to elevated rental prices across the board."

True to form the Generation Rent activist group issued a statement responding to the rent rise from its chief exec, saying: "Prices in the shops may have stopped rising so quickly, but renters are still seeing our single biggest cost go up faster than our incomes. Landlords can raise the rent as high as they think they can get away with and use the threat of a no-fault eviction to bully their tenants to accept it.