Due to landlords’ financial problems and pressure, tenants are requested to give up on rent reduction even when there is an expected fall in September Retail Price Index (RPI).

Millions of tenants are urged to forgo the idea of rent reduction due to the financial problems and pressure landlords and the government face. Tenants’ rent had increased in line with inflation in the economy.  However, it is revealed that the expected Retail Price Index will be -2% in September, which means if the change in rental prices is affected by the inflation or deflation of the economy, the average rents could possibly be reduced by £1.4 a week next year. National Housing Federation (NHF) warned that the small drop in rent could lead to 4,000 fewer new homes being built as services.

As revealed, there are about 5 million people who are now on the waiting list for council homes. Under these circumstances, the National Housing Federation (NHF) suggested rent freeze for the year instead. The Federation spokesman further stated that as the public finances deteriorate, more private borrow is needed to build and create new homes. Matthew Gardiner, owner of Trafford Housing Trust who owns more than 9,000 homes, also estimated that the reduction in rent due to the -2% inflation would lead to £1 million loss in the business as well as “restricted services”.

Despite the Government’s target of 300 million new homes to be built by the end of 2020, National Housing Federation (NHF) anticipated no more than 80,000 new homes would be finished by the end of this year - which is significantly below the government’s target of 220,000 - 250,000 homes to be achieved in a year.