Question to the HM Treasury:

To ask the Chancellor of the Exchequer, ahead of the Spring Statement, what assessment he has made of the contribution of private rental costs to the current increases in the cost of living; and what steps he will take to reduce those costs.

As the global economy recovers, many economies are experiencing high inflation, in part due to pressures from rising energy prices and disruptions to global supply chains. These global pressures are the main driver of higher inflation in the UK.

The latest ONS data shows that private rental prices paid by tenants in the UK rose by 2% in the 12 months to January 2022. This is compared to an average annual growth rate of 1.5% over the last 6 years.

We understand the pressure that a higher cost of living places on people. That is why the government is providing support worth over £20 billion across this financial year and next that will help families with the cost of living. This includes cutting the Universal Credit taper rate and increasing work allowances to make sure work pays, freezing alcohol and fuel duties to keep costs down, and the £9.1 billion package announced in February 2022 to help households with rising energy bills.

In addition, the Government is maintaining the increase in Local Housing Allowance (LHA) rates for 22/23. The LHA uplift gave extra support to over 1.5 million households in 20/21, who gained over £600 on average, while the gain was even higher for households renting in the highest demand areas.