A tenant pressure group has dismissed the Government’s £39bn affordable homes investment plan announced in Wednesday’s Spending Review as inadequate and claims private tenants will have to wait years to see any benefits.

Generation Rent says the ‘biggest cash injection into social and affordable housing in 50 years’ announced by Chancellor Rachel Reeves falls well short of what’s needed and is calling for rent controls to provide some more immediate relief.

The organisation estimates the funding could deliver up to 40,000 social homes per year, but argues this is nowhere near the 90,000 annual target it believes is necessary.

The Government must act to slam the brakes on soaring rents.”

“That’s why the Government must act to slam the brakes on soaring rents through introducing limits on how much landlords can raise the rent,” Generation Rent writes in its response to Wednesday’s Spending Review.

The group has consistently pushed for rent caps similar to those introduced in Scotland, arguing they represent a ‘common sense’ policy that would provide immediate breathing space for tenants facing unaffordable rent increases.

Generation Rent did, though, welcome the Chancellor’s decision to maintain the £13.2bn Warm Homes Plan after speculation it might be cut. However, the group warns the Government must: “Protect renters from rent hikes and eviction in the wake of energy efficiency improvements”.

Limited benefit

And it expressed its scepticism over making the Mortgage Guarantee Scheme permanent, suggesting policies that help people borrow more to pay high house prices have limitations. Pointing to the scheme’s modest take-up of just 53,000 households, Generation Rent argues: “Either you do too much and stoke house price inflation, making it harder for renters to buy, or you do too little and few households actually benefit.”