Labour is "failing renters," a Conservative shadow minister has said, as new analysis reveals that the average tenant in Britain must work 133 days into the year before they have earned enough to cover their annual rent. Known as the "cost of rent day," May 14 marks the point when tenants stop working solely for their landlords and begin earning for themselves.
Rent Day Arrives Later Each Year
The measure, devised by the Adam Smith Institute, divides annual rents by gross annual pay. In 2024, rent day fell on May 5, after 125 days. This year, it arrives eight days later, on May 14. For London tenants, the wait is even longer: they will not reach rent day until June 2, reflecting the higher cost of living in the capital.
Gareth Bacon, shadow minister for housing, said: "The cost of rent day continues to get later each year, which is clear evidence that the government is failing renters." The Adam Smith Institute argues that the Renters' Rights Act, which came into force this month, fails to help tenants because it adds "further regulatory burdens and costs on landlords."
Renters' Rights Act Under Fire
The Act ended so-called no-fault evictions and banned fixed-term contracts. Landlords claim this makes it harder to evict problematic tenants. The think tank says Labour should focus on housebuilding and fulfill its pledge to build 1.5 million new homes by the next general election.
James Lawson, chairman of the Adam Smith Institute, said: "Renting in England has become unaffordable for millions, particularly in London and the South East where housing costs are swallowing ever larger shares of people's incomes. Instead of fixing the supply problem, ministers continue reaching for policies like the Renters' Rights Bill that are already driving landlords out of the market and pushing rents even higher."
Landlords Plan Rent Hikes Amid Tax Changes
This comes as a leading industry body warns that nearly half of landlords are planning to raise rents in response to a two per cent hike in income tax on property income due next year. The National Residential Landlords Association (NRLA) found that 46 per cent of landlords plan to increase rents ahead of the tax changes in April 2027.
Nearly a third (35 per cent) said the tax hike means they will raise rents by more than previously planned, while 33 per cent said they will sell at least one property as a result. Ben Beadle, the NRLA's chief executive, said: "If the Government is serious about easing cost of living pressures, it needs to look in the mirror. Renters will be left picking up the bill for the Chancellor's tax hikes. The Government needs to scrap plans that risk pushing rents higher and making it harder for people to find a home."
