Gold-plated private sector rent regulation sector is driving up rents and pushing landlords out of the market, according to an industry letter to Michael Gove.  

It says that “current government policy in the rental sector — covering 35% of UK homes — is stoking housing inflation, the largest single component of the cost of living” in an open letter to the Housing Secretary.  

The move comes as UK inflation dipped to 10.7% in November as an easing in the rise in petrol prices helped to lower the rate from a 41-year high of 11.1 per cent last month, according to the Office for National Statistics.  

While the Bank of England’s Monetary Policy Committee is today expected to hike interest rates by 0.5% to 3% to combat rising prices, the highest rate for some 14 years.  

It would be the ninth consecutive hike since last November when rates stood at 0.10%.    

The housing industry letter says that government moves to “restrict landlords’ legal rights”, raise minimum energy efficiency standards to an energy performance certificate band C, and raising taxes on property income and transactions among other measures are “putting undue pressure on landlords”.   

The correspondence is signed by estate agent Savills and such industry figures as Goodlord chief executive William Reeve, Lettings Hub chief executive Heidi Shackell and Property Academy founder Peter Knight.  

These heads say they broadly support the government’s A fairer private rented sector white paper, published in June, which plans to end ‘no fault’ evictions toughen tenants’ rights and boost housing conditions for renters.  

But they add that renters want their “housing to be affordable, and current policy appears to ignore this point”.  

They point out that 86% of tenants in a recent poll said rising rents was their biggest concern, while only 42% were worried about the condition of properties.  

Rents fell by 2% to £1,087 on average in November, according to Goodlord’s latest rental market index, but prices are still up 11% compared to average rents last year.  

Industry leaders say the government’s push to drive up standards is costly and has meant that many landlords have left the sector, hurting the supply of rented homes.  

The letter says: “By failing to encourage adequate supply, government policy is directly contributing to the sharp increases in rental prices.”  

Housing heads also warn Gove against adopting rent freezes that SNP leader Nicola Sturgeon took up in Scotland in September and backed in the capital by Mayor of London Sadiq Khan.  

They say wider use of rent freezes would further restrict supply by “fuelling landlords’ withdrawal from the sector”.  

Finally, the letter, “urges the government instead to consider ways to improve supply – while continuing its aspirations to ensure quality homes for tenants — by ensuring the rental sector remains an attractive place to invest without relying on skyrocketing — and ultimately inflationary — rents.”