UNIONS joined campaign groups and think tanks today to demand Angela Rayner introduce rent caps to tackle the housing crisis.

Leaders of Unison, the NEU, RMT and CWU were among the signatories calling for urgent controls and a major investment in public housing in an open letter to the housing secretary and deputy PM co-ordinated by the London Renters Union.

The average rent across Britain has risen by 8.4 per cent to £1,286 per month over the past 12 months.

Many landlords and letting agents have used the cost-of-living crisis as an excuse to push up prices, even though a government survey reveals that nearly two in five landlords own their properties outright.

Despite this, two thirds of these mortgage-free landlords increased the price of new rental agreements during 2023 even though they were not affected by rising interest rates. 

Labour has pledged to put an end to no-fault evictions through the Renters’ Rights Bill, and also announced plans to deliver 1.5 million new homes within five years.

But campaigners have voiced concerns about the absence of robust policy to tackle the root causes of unaffordable rents.

An analysis by Generation Rent found that increases of 20 homes per 1,000 people were linked to just a 2.8 per cent decrease in rent as a share of average income.

They are among the signatories calling on the government to devolve powers to metro mayors and regional authorities so they can introduce the rent caps.

The letter also suggests equipping councils to buy up homes and convert them into social housing, and investing in the mass expansion of more public homes. 

Ben Twomey, Chief Executive of Generation Rent, said: “For the new (Renters’ reform) law to give us the breathing space we need, it must prevent rent rises going above wage growth or inflation, whichever is lower.

“A mass expansion of public housing is a necessary step to improving access to homes for all tenants.

“Stopping rents from rising faster than our wages or inflation is not going to drive landlords into poverty and homelessness, but it would protect so many renters from that fate.”

London Renters Union activist Elyen Chej said: “We cannot rely solely on private house building to undo the damage done by years of skyrocketing rents.

“The government must take immediate action to slam the brakes on rising rents so that everyone in this country has a secure place to call home.”

National Education Union general secretary Daniel Kebede said: “Children cannot learn when they are growing up in insecure homes or living in cramped temporary accommodation. 

“Schools in London are closing because families cannot afford to live in the area and education funding is inadequate.

“We need the government to tackle this affordability crisis head on before more damage is done to our services and our communities.”