The cost of private rented housing has largely followed changes in earnings across England, in stark contrast to the social rented sector where rents have increased faster than wages, according to a new report from the National Audit Office.

Whilst the report notes that the exception to this is in London, where rents are rising much faster, the Residential Landlords Association (RLA) is warning that this is a result of a chronic shortage of homes across all tenures and that there will be further pressure on market rents as a result of the forthcoming changes to mortgage interest relief.

Commenting, RLA policy director, David Smith said: “(The) findings from the National Audit Office will surprise those who have falsely sought to argue that landlords are profiteering. The question must surely now be why the heavily subsidised social rented sector is seeing its rents increasing so much more than earnings.

“We cannot afford to be complacent. Forthcoming changes to mortgage interest relief, due to be rolled out from April will serve only to place upwards pressure on market rents, stifling the supply of homes to rent and reducing choice for tenants.”